2008-11-18 Special ARRA MinutesAPPROVED
MINUTES OF THE REGULAR MEETING OF THE
ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY
Tuesday, November 18, 2008
The meeting convened at 9:43 p.m. with Chair Johnson presiding.
1. ROLL CALL
Present: Chair Beverly Johnson
Boardmember Doug deHaan
Boardmember Frank Matarrese
Boardmember Marie Gilmore
Vice Chair Lena Tam
2. CONSENT CALENDAR
2 -B
2 -A. Authorize the Executive Director to Execute an Amendment to Agreement with Russell
Resources for Environmental Consulting Services for Alameda Point Extending the Term
for 12 Months and Adding $147,500 to the Budget.
2 -B. Approve a One -year Lease with Two One -Year Options with Makani Power for a Portion
of Hangar 12.
Member deHaan motioned approval of the Consent Calendar, seconded by Member
Matarrese, and passed by the following voice votes: Ayes – 5, Noes – 0, Abstentions – 0.
3. REGULAR AGENDA ITEMS
This portion of the meeting is a continuation of the Regular ARRA Meeting of 1115, which
was recessed by Chair Johnson. On 1115, all Board members agreed that Item 3 -A
(SunCal's Development Concept) and the balance of the 1115 agenda be continued at the
Special ARRA Meeting scheduled on November 18, 2008.
3 -A. Alameda Point Update — Review and Comment on SunCal's Development Concept
(Continued from the November S, 2008 Regular Meeting)
Debbie Potter, Base Reuse and Community Development Manager, provided an overview
regarding the purpose of presenting SunCal's Development Concept, which was to solicit
feedback and comments from the ARRA to move forward with the draft Master Plan, which is
due Dec. 19tH
Chair Johnson called the public speakers first. Michael Krieger reiterated a point that if any
board member cannot support the plan for whatever reason, now is the appropriate time to
discuss and raise objections, and what changes need to be made. Arthur Lipow discussed his
concerns about the impact of the bankruptcies of SunCal Companies to the Alameda Point
project. Susan Decker discussed her continued support of the Plan.
The Board reminded the public that the list of questions from the last meeting on Nov. 5th has
been summarized and will be addressed this evening. Pat Keliher, SunCal's Alameda Point
Project Manager, Matthew Ridgway of Fehr and Peers, Peter Calthorpe and Peter Tagami, of
California Capital Group, were present to answer questions.
Member Gilmore stated that a key issue revolves around the feasibility of implementation and
the traffic solutions - how to move people on and off the island. She discussed this as being a big
part of her comfort level with regard to whether the plan can be executed. She wants to see real
life examples of the solutions in place and working, and does not want Alameda to be the
experiment. Member Matarrese had two transportation— related points: how we are addressing
commute in the tube into China Town, and trick routes, how are we moving goods?
Matthew Ridgway, consultant from Fehr & Peers, addressed the transportation issues. He stated
that traffic congestion is expected to be worse, regardless of Alameda Point redevelopment, as
moving traffic to /from Alameda Point is secondary next to the traffic moving through the tube
and the 880 corridor. One of the questions was whether the option of a Bus Rapid Transit (BRT)
was out. Mr. Ridgway responded `no', but is reserving the right of way to bus transit alignment.
He further discussed that the project is developer funded and funding will be sought from AC
Transit and other funding sources. Another question was regarding buy -in of other stakeholders.
Mr. Ridgway explained that they are working with AC Transit for funding issues and Caltrans on
Broadway /Jackson improvements, but there is a much larger group of stake holders, and they are
not assuming things outside of Alameda's purview.
The Board had requested a matrix be created. Mr. Ridgway prepared a draft which highlights
major differences between the three plans, the APCP plan, the WRT plan, and the current SunCal
plan. One of the major differences they realized was having an onsite school, which was carried
forward to the current AP transportation strategy. A rapid bus element was not definitive in
other plans, but in the current AP transportation strategy, it is definitive to fiend a rapid bus
transit system, also proposing to fiend constriction and operating costs for an additional BRT line
across the whole island to the Friitvale BART station in order to increase transit use throughout
the island. A bikeshare program is being proposed; and another dramatic difference is a
progressive parking plan, which was in the APCP plan, and is carried forward to the current plan.
Shared parking, unbundling cost of residential parking, commercial fee based - parking, parking
maximums, limit number of auto trips — new elements included in the summary of the matrix
proposed to reduce auto trips.
Chair Johnson and Member Matarrese were concerned about the passive incentives of parking,
which did not have the effect that was intended, because other transportation hasn't been
provided. Member Gilmore discussed these unintended consequences and not being able to lure
business to site because there is not enough parking. Member deHaan discussed the real life
situation in Alameda, that streets upon streets are constrained because of no parking. He stated
his concern that lack of parking has not driven Alamedans to use public transportation.
Mr. Ridgway explained that possibly parking shortages weren't in tandem with a whole host of
transportation alternatives. They are proposing to implement the transportation alternatives and
provide the level of parking that would balance with those alternatives — to be effective
economically and be viable. They are trying to develop a plan that addresses all these issues.
Chair Johnson stated that if we insure other transportation alternatives were available, people
would use it.
Vice Chair Tam discussed the City's settlement with Oakland China town over the impact of the
Alameda Point project with traffic in China Town - a traffic level threshold was generated, and
the appropriate level was 1800 units. She asked Mr. Ridgway if their mitigation measures are all
to get back to that threshold level. Mr. Ridgway affirmed, stating that they are marketing the
plan as a green development — you live here because you only have one car or no car — the
people that have a lifestyle with fewer or no automobiles would want to live here.
Another question addressed how the water emergency transit authority will interface and will
meet the needs for maintenance and fueling facilities, and if this can be accommodated at
Alameda Point. Mr. Ridgway explained that they have looked at the issue of relocation of the
ferry terminal to the estuary or to sea plane lagoon, but have not looked at dredging or fueling
stations; and have not reached that level of detail at this point.
Another request from the Board was to provide examples of transit alternatives. Fehr & Peers
provided a handout with information which cites several examples. Studies included comparative
analysis of transit uses among specific cities in the bay area. They are diligent in citing statistics
and research conducted nationally to reduce the number of auto trips. Regarding funds for island
wide transportation solutions, Mr. Ridgway stated that operating and capital cost are being borne
by the Alameda Point project. In response to the request to have an analysis of how many vehicle
trips this plan will create, Mr. Ridgway said that a detailed phasing plan will be included in the
Dec. 19 draft master plan.
Member Matarrese reiterated that the PDC and concept plan didn't address the issue of goods
and services moving on and off Alameda Point - trick routes, etc. for commercial and retail. He
stressed that this is a critical component that needs to be addressed.
For Peter Calthorpe addressed the next category of issues regarding adaptive reuse and light
industrial questions, and questions regarding examples of other transit oriented development.
Mr. Calthorpe gave a presentation of several examples of comparable mixed use developments,
housing over retail, live -work — in other bay area cities including Oakland, Richmond, Daly City,
San Mateo, and San Jose. Alameda Point has a unique component to offer which attracts entities
to the various mixed -use elements, that Alameda Point has the ability to have a large company
"campus".
Vice Chair Tam asked Mr. Calthorpe to comment on creating that buffer between the different
types of uses so there are no inherent conflicts that city councils have to deal with. Mr.
Calthorpe explained that, until you get to real industrial uses, you don't have to buffer. The
beauty of that mix, the services, parks and shops are double duty — if you put a store in a
typically residential neighborhood, it won't be used — but if you put it in mixed use — it's used
throughout the day, a better viability and keeps folks out of their cars. We're all focused on
transit mode.
Member deHaan asked about adaptive reuse and light industry, and the compatibility of this? Mr.
Calthorpe stated that the parcels for commercial development are not best used as light
industrial, rather as low -rise office, and some historic reuse that can be industrial; explaining that
when you invest this much in public infrastructure, the parks and transit — you don't want to
dedicate land to light industrial — it would be underutilization for light industrial. Member
Matarrese wanted to discuss the potential reuse of hangars.
Phil Tagami, of California Capital Group, continued the presentation by discussing adaptive
reuse of the historical district strictures. He discussed the tax credits and identified the protected
historic districts. His focus is on 23 of 86 buildings identified, including the flight tower and the
dive building. In total, he was asked to study 13M sq. ft. of space, as well as preserving and
protecting the open space that is part of that. One of the tests of being able to restore the
buildings is to give equal attention, respect to the buildings, and early involvement is key —
having the opportunity to transition and put the site into reuse NOW would protect from further
decay, create use and activity, and generate more revenue. There is a demand for certain
activities and good transitional uses; now is the opportunity to have the time to become intimate
with these buildings and begin process of next phase.
Member deHaan stated that the Navy had an inventory of the historical buildings and had desires
and needs for specific ones. He asked how far we are in that process and does it relate to the 23
of 86 buildings. Mr. Tagami stated that they are 1/3 of the way done and there is a lot of due
diligence that needs to be exercised. He further explained that the Navy hasn't fully processed
the application for the historic district. Clear policies and a well - thought -of redevelopment effort
requires patience, due diligence, and there will be verbal sparring — a challenge and constraint
that they are ready to engage in. Mr. Tagami discussed a similar situation with the Fox Theatre
in Oakland — there were more reasons why you can't renovate the building versus why you can —
and there's a shorter time horizon here at Alameda Point, so they are willing to explore adaptive
reuse prior to transfer and are ready to take that risk.
Member Matarrese asked whether Mr. Tagami has had discussions with the City regarding
transitional use prior to transfer and whether we are pursuing this. Member Matarrese stated that
this option was a way to get us closest to the plan without losing the assets out there, as there is
copper mining, vandalism, and no fiends to secure property. Mr. Tagami said that he has
expressed this desire and that SunCal has beginnings of communication with the City. It is an
ongoing process, but they want to mind their role, focus on due diligence and underwriting, but
said that when the time is appropriate, they would be prepared to engage in that dialogue.
Member Matarrese asked if the appropriate time is now and if they are prepared to engage in that
dialogue now. Member Matarrese expressed to the Board that they consider giving direction to
move this issue as a priority. Vice Chair Tam discussed that the heavy capital makes the council
and the board reluctant to make investments for property we don't own. Mr. Tagami explained
that they often go at risk and are not asking the city to go at risk. They evaluate current
increment expense, have a good track record of delivering value, all of which requires a team
approach. They will expend the time, energy and money. Chair Johnson asked if DSD wants to
move forward with interim adaptive reuse.
Debbie Potter explained that the key components to the partnership and business deal is the
leasing program and at what point to transition that leasing program. These discussions are
underway, and staff is interested in understanding what SunCal and Phil Tagami are proposing.
Taking over the leasing program and expanding that program, renovating and identifying what
uses can be derived from those if renovated. David Brandt, Deputy Executive Director, added
that there was also discussion of starting with restoring one building at a time.
Chair Johnson stated that there are lots of benefits to adaptive reuse prior to transfer and that we
should move forward. Member Gilmore asked how many of the 23 buildings are currently under
lease, to which Ms. Potter replied that most are not, because they are in poor condition. Member
Gilmore discussed working something out with Suncal and Mr. Tagami for taking over historic
properties that are not under lease, to rehab and get them for productive use, and the sooner the
better. Ms. Potter explained that we should continue the analysis, what they can expect for a
revenue stream, and how willing are they to go at risk for buildings we don't own. Mr. Tagami
explained that all properties need time on task; they need to take stock of the buildings, introduce
them back on marketplace. It will take lots of work, and there will be obstacles and tears shed,
but they are up for the challenge and there is no excuse not to engage.
Mr. Keliher wanted to make it clear that SunCal has not engaged staff in any kind of detail about
this particular issue, in response to Chair Johnson's request that SunCal communicate with staff
on more regular basis staff so they can have a better understanding of possibilities, and they are
not caught by surprise. Ms. Potter stated that she didn't intend to give that impression, and that
the issue just hasn't been discussed in great detail. She explained that SunCal and Tagami have
to do their deal before they can come to the City with a proposal. The Board and staff were all in
agreement that there are advantages to moving forward with rehabilitation on the strictures that
can be saved, and to make it a priority to move forward on discussions and do it as quickly as
possible.
Member Matarrese proposed that the ARRA direct staff to get into discussions with
SunCal and Phil Tagami tomorrow and bring an update back on what the discussions have
been like and what the choke points are; and this issue can be discussed as a separate
activity that runs parallel to the development. All Boardmembers agreed.
Vice Chair Tam expressed that the key to a successful project is flexibility in reacting to the
changing economic conditions. In the next decade there is some expectation that the sustained
downturn in economy will require job creation, and looking at the potential for self sustaining for
energy level for the entire island, maybe there are some partnerships with AP &T, such as a solar
farm, or other type of renewable energy source. Vice Chair Tam supports the plan, as it reflects
and captures sentiment that we've been hearing throughout the community and public
workshops. Chair Johnson stated that there needs to be discussion about the phasing of public
amenities at some other appropriate point.
FM — reiterate some comments from last time including that the plan needs work on
environmental issues such as the working waterfront, which showers noise upwind. He
expressed that it's an odd place to put a neighborhood. He also mentioned not wanting to see
plans that have sidewalk dining because it's freezing cold near the waterfront — and no water
play in park. He cited that there are plenty of lessons in town to learn from, discussing the Bay
Street, Emeryville situation where there is residential over retail and the problems that come
from that type of development. Member Matarrese stated examples are all around that we should
consider, and would like the same level of detail in the final plan that has been given to
residential, given to commercial and light industrial.
Member dehaan asked SunCal about a survey that they were conducting with Alameda residents.
Mr. Keliher clarified that the survey is preliminary and is sponsored by SunCal and not the City.
4. ORAL REPORTS
4 -A. Oral report from Member Matarrese, Restoration Advisory Board (RAB) representative.
- Highlights of October 2 Alameda Point RAB Meeting. (Continued f -om the November
5, 2008 Regular Meeting)
Member Matarrese provided a brief presentation. He discussed highlights from the ARRA
meeting of Sept. 10th. The BCT gave an update and of the fiscal year and their activities, and
there were comments on the transfer of FOST for site IR 15.
5. ORAL COMMUNICATIONS, NON - AGENDA (PUBLIC COMMENT)
None.
6. COMMUNICATIONS FROM THE GOVERNING BODY
None.
7. ADJOURNMENT
Meeting was adjourned at 11:34 p.m. by Chair Johnson.
Respectfidly submitted,
Irma Glidden
ARRA Secretary