HomeMy WebLinkAboutAgenda Packet - CC - 2020.11.04City of Burlingame
BURLINGAME
F,
Meeting Agenda - Final
City Council
Wednesday, November 4, 2020 6:00 PM
Special Meeting - Study Session
BURLINGAME CITY HALL
501 PRIMROSE ROAD
BURLINGAME, CA 94010
On March 17, 2020, the Governor issued Executive Order N-29-20 suspending certain
provisions of the Ralph M. Brown Act in order to allow for local legislative bodies to conduct
their meetings telephonically or by other electronic means. Pursuant to the Governor's
Executive Order N-33-20 issued on March 19, 2020, and the CDC's social distancing guidelines
which discourage large public gatherings, the Council Chambers will not be open to the public
for the November 4, 2020 City Council Study Session.
Members of the public may view the meeting by logging into the Zoom meeting listed below.
Additionally, the meeting will be streamed live on YouTube and uploaded to the City's website
after the meeting.
Members of the public may provide written comments by email to
publiccomment@burlingame.org.
Emailed comments should include the specific agenda item on which you are commenting, or
note that your comment concerns an item that is not on the agenda. The length of the emailed
comment should be commensurate with the three minutes customarily allowed for verbal
comments, which is approximately 250-300 words. To ensure that your comment is received
and read to the City Council, please submit your email no later than 5:00 p.m. on November 4,
2020. The City will make every effort to read emails received after that time, but cannot
guarantee such emails will be read into the record. Any emails received after the 5:00 pm.
deadline which are not read into the record, will be provided to the City Council after the
meeting.
All votes are unanimous unless separately noted on the record.
Online
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City Council Meeting Agenda - Final November 4, 2020
1. CALL TO ORDER - 6:00 p.m. - Online
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2. STUDY SESSION
a. Discussion of PrODosed Develobment Aareement Terms for the 220 Park Road (Former
Post Office) Project
Attachments: Staff Report
Draft Term Sheet
3. ADJOURNMENT
Notice: Any attendees who require special assistance or a disability -related modification to participate
in this meeting, or who have a disability and wish to request an alternative format for the agenda,
meeting notice or other writings that may be distributed at the meeting, should contact Meaghan
Hassel -Shearer, City Clerk, by 10:00 a.m. on Wednesday, November 4, 2020 at (650) 558-7203 or at
mhasselshearer@burlingame.org. Notification in advance of the meeting will enable the Clty to make
reasonable arrangements to ensure accessibility to this meeting, the materials related to it, and your
ability to comment.
NEXT CITY COUNCIL MEETING
Monday, November 16, 2020
VIEW REGULAR COUNCIL MEETING ONLINE AT www.burlingame.org/video
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City Council Meeting Agenda - Final November 4, 2020
Any writings or documents provided to a majority of the City Council regarding any item on this agenda
will be made available for public inspection via www.burlingame.org or by emailing the City Clerk at
mhasselshearer@burlingame.org. If you are unable to obtain information via the Clty's website or
through email, contact the City Clerk at (650) 558-7203.
City of Burlingame Page 3 Printed on 111312020
NAPENNOR
euR— iN�fLME AGENDA NO:
STAFF REPORT
MEETING DATE: November 4, 2020
To: Honorable Mayor and City Council
Date: November 4, 2020
From: Lisa K. Goldman, City Manager — (650) 558-7243
Kathleen Kane, City Attorney — (650) 558-7204
Kevin Gardiner, Community Development Director (650) 558-7253
Scott Spansail, Assistant City Attorney — (650) 558-7204
Subject: Discussion of Proposed Development Agreement Terms for the 220 Park
Road (Former Post Office) Proiect
RECOMMENDATION
Staff recommends the City Council discuss the proposed Development Agreement terms for the
220 Park Road (former Post Office) project.
BACKGROUND
Sares Regis Group has submitted an application for the redevelopment and restoration of portions
of the existing Post Office building and construction of a new six -story office project with ground
floor retail and two levels of underground parking at 220 Park Road, including portions of the
underground garage below City Parking Lot E. The project includes 11,915 SF of retail uses on
the ground floor, 140,000 square feet of office on the floors above, and 280 parking spaces.
For the past several months, City staff has been meeting with representatives from Sares Regis
and their development partner, Dostart Development, to negotiate the terms that will be included
in a Development Agreement between the City and Sares Regis.
This evening's study session is intended to allow the City Council an opportunity to comment on
the draft term sheet for the project.
Exhibit:
• Draft Term Sheet
1
Burlingame Post Office — 220 Park Rd
Development Agreement
October 26, 2020
Revised Points for Discussion Incorporating City Council Feedback from October 5, 2020:
1. Form of Agreement:
The Development Agreement (DA) provides clarity and an organizational mechanism to
authorize the City Manager and City Attorney to execute certain agreements that
pertain to contributions by the 220 Park project (Project) to the City and Town Square
and for the use of portions of the City's Lot E by the Project. The intent is for the
specific details and documentation of each of the items below to be captured in
individual agreements appended to the DA.
2. Milestone Schedule:
a. DA provides a 5-year term from the City's approval.
b. Developer commits to submitting for Superstructure Building Permit within 24 months
of the City's approval of the DA.
c. A schedule of performance provides a framework for coordinating when decisions need
to be made by both the City and Developer about any improvements to the Town
Square to be directed by the City but constructed by Project since the design of the
Town Square is still in progress.
3. Shared Parking:
a. Developer makes 275 of Project's approximately 280 parking stalls available for public
use on evenings and weekends. (Approximately 5 stalls will be reserved for the building
manager and for tenants needing access on weekends).
b. In exchange, the City will grant Project an underground easement under a portion of the
Town Square for construction of a 32 of these parking spaces.
4. Town Square Contributions:
a. The Town Square is an important benefit to the community, and Project has every
interest in the Town Square being completed and being completed as soon after the
completion of Project as possible.
b. Developer provides a contribution of $2,000,000 towards construction of the Town
Square upon issuance of the superstructure building permit. This contribution amount
is equivalent to (i) approximately double the cost of constructing a standard version of a
new Town Square, as shown in the attached Standard Plaza Design or (ii) approximately
equivalent to the cost of constructing the Town Square shown in Project renderings to
date and shown in the attached Rendering Plaza Design. Both cost estimates
incorporate an assumed 3% annual construction cost escalation over the next 3 years to
reflect approximately double the Consumer Price Index's average annual rate of
inflation over the past 10 years. (Note: these designs are not intended to be built but
are just provided for cost estimating purposes to support the contribution and illustrate
the amount of additional funds that would be available to make further, yet -to -be
determined improvements).
c. To incentivize an earlier start to Project construction and to account for further
potential construction cost escalation, Developer to provide an addition 5% in
contribution amount annually for every year the earlier of either (i) the start of site
demolition or (ii) the issuance of the superstructure building permit extends beyond 3
years from City approval of the DA. Therefore, developer would contribute and
additional $100,000 if the superstructure permit is issued more the 3 years after City
approval and yet another $105,000 if issued more than 4 years after City approval (i.e.
total contribution increases by $205,000 if demolition starts or superstructure building
permit is issued in the final year of the DA term).
d. Additionally, Developer pays for and demolishes the portion of the existing parking lot
above the underground parking easement in preparation for the Town Square's
construction and contributes to the City the amount that would otherwise be used to
repave this portion of the parking lot at Project completion, assuming construction of
the Town Square proceeds immediately after Project and at the full discretion of the
City.
e. If the City Council concurs, Developer also contributes an additional $1,019,900 towards
construction of the Town Square in exchange for a credit of Project's Traffic/Streets
Impact Fees and/or an additional $24,080 towards construction of the Town Square in
exchange for a credit of the Project's Park Impact Fees, due to contributions being made
to the Town Square.
f. Only if desired and requested by the City in its sole discretion, Project pays for and
makes any combination of improvements to the Town Square that would be more
efficiently constructed by the Project, with the cost applied as a credit to and within the
Project's contribution amount. A menu of possible improvements generated by the
City's Town Square design team that are likely more efficiently constructed by Project
are shown in the attached Offsite Improvements Alternatives Diagram but are by no
means confirmed or exhaustive. To date, they include:
i. Construction of a patio extension from the Post Office lobby into the Town
Square parcel.
ii. Improvements to the Lorton Ave and Park Rd sidewalks fronting the Town
Square parcel.
iii. Widening of the Lorton Ave sidewalk into the street right-of-way along the
Town Square parcel and Project parcel.
iv. Construction of new culvert clean -out within Park Rd, subject to further
discussions about potential utility conflicts.
5. Interim Use and Maintenance of Property:
a. With an understanding that timely redevelopment is the primary priority, Developer
aims to mitigate the current state of the property negative impact, to the extent the
property owner agrees to Developer's request to so (as Developer is the prospective
purchaser but not yet the property owner). Due to the abandoned condition and
intended redevelopment, Developer and City acknowledge that extensive temporary
reuse is difficult due to insurance, lack of accessibility, liability, and property condition.
Nonetheless, Developer will do the following:
After City approval of the DA, Develop to wrap the perimeter fencing with
graphic "fence wrap" promoting downtown Burlingame, the future project,
and/or the historic post office's history, provided owner agrees to Developer
implementing this plan.
After City approval of the DA, Developer to implement protective measures to
mitigate or stop further physical degradation of the historically significant
portions of the Post Office building, provided owner agrees to Developer
implementing this plan.
6. Temporary Staging for Historic Preservation and Construction:
a. Developer and the City enter into a temporary construction staging agreement for use
of Lot E for temporary relocation of the historic Post Office building in order to preserve
the building in accordance with the Historic Preservation Covenant Standards and in
order to confine the impact of other construction activities to the smaller area of
Project's immediate surroundings. Temporarily closing Lot E also acclimates the public
to the surface parking disappearing to make way for the permanent Town Square.
b. Moving the preserved portions of the Post Office immediately offsite but with as little
additional movement as possible reduces risk of damage. As such and given the
essential nature of these elements' temporary relocation, no additional compensation is
proposed.
c. A portion of Lot E is also very helpful for other construction activities, such as storing
building materials, accepting deliveries, locating dewatering equipment, among others,
in an effort to speed construction and limit construction's impact on other areas of
downtown. Developer compensates the City for this temporary use of Lot E not
explicitly related to storing the Post Office's historic elements at the current rate of a
Burlingame Business Parking Permit of $60 per parking stall per month and increasing to
$65 per stall and $70 per stall in years 4 and 5 of the DA respectively or in a manner
equivalent to what is currently in place for Lot N's temporary construction use.