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1993-03-05 Special CC MinutesMINUTES OF SPECIAL MEETING OF THE ALAMEDA CITY COUNCIL MARCH 5. 1993 The meeting convened at 6:00 p.m., with President Withrow presiding. The Pledge of Allegiance was led by Councilmember Appezzato. ROLL CALL - Present: Councilmembers Appezzato, Lucas, Roth and President Withrow - 4. Absent: Councilman Arnerich - 1. 93-122 Report from the Public Works Director and the Community Development Director Recommending Consideration of, and Action on, Alternative Methods to Support an Alameda Location for UCSF by Funding Participation in Start-up Costs of a Water Shuttle Service Demonstration Project. Tim Hoppen, Executive Vice President, Harbor Bay Isle Associates, and the Doric Group, shared historical perspective of subject matter, and addressed issues, concerns and questions raised during the past few weeks; noted areas competing for occupancy by UCSF, and related efforts. Stephen K. Brimhall, Vice President, Harbor Bay Associates; President, Harbor Bay Maritime, pointed out on wall exhibit locations of UCSF in San Francisco; shuttle system route which ties locations together and could tie in with ferry at China Basin. Mr. Happen further noted time, money and efforts expended by Harbor Bay Maritime including working with vessel builder, and with Port of San Francisco concerning docking facility; Maratriton Investments, Inc., entered into agreement with us to assist with acquisition of vessel and construction of facility; reviewed efforts of County Economic Development Advisory Board [EDAB]. Mr. Brimhall stated the lease of Berlex is the next step; addressed traffic mitigations e.g., vanpools, flex-time; in-lieu fees; bio-medical industry; and urged Council consider making a loan and apply for the operation of the ferry system; make it broad enough to permit continuing to seek other public agencies, and/or. private [investors], if necessary. In response to Councilmember Lucas's inquiry concerning square footage permitted to building in HBI, and employees, Mr. Brimhall replied the Development Agreement allows 5 to 5.5 million square feet; and estimated, if the UC campus did not come, that footage would permit 15,000 to 20,000 total employees; UCSF campus would perhaps require three to four thousand less employees because of lesser density. In response to Councilmember Appezzato, Mr. Brimhall replied the ferry is a marketing effort; a high-speed link is important to March 5, 1993 4 transport professors between UCSF locations; ultimately if UCSF locates in Alameda, they will take over the system. William Garvine, Executive Director, Alameda Chamber of Commerce, urged Council to support the loaned use of TIF monies for the operation of a UCSF demonstration ferry; stated this is first step, and is important to provide for Alameda and other East Bay youth. Councilmember Appezzato stated he does not know anyone who is opposed to UCSF coming to Alameda. Dom Dicolen, Alameda, stated jobs will be generated and a ferry could also be standby in case of calamity as in Loma Prieta earthquake. Claude Hutchison, Oakland, stated he is former regent of University of California; Past-President California Bankers Association, and addressed Council concerning economic development as it relates to proposal, and the importance of jobs. In response to President Withrow, Mr. Hutchison stated his experience with Harbor Bay Isle is that his bank financed some residential construction within the last 18 months and the loan was paid off on schedule; in concept his sense is, that to have a modest lien on a great number of lots with a high probability of being developed and sold, Council would have a sound proposition. In response to Councilmember Appezzato, Mr. Hutchison, stated the nation's banks are operating with very stringent regulatory requirements, this [situation] probably falls outside the norm of what could be reasonably financed in the period of time that is available to City, and probably calls for a public/private partnership; concerning private investors, it is not clear to him if the rate of return is high enough; he believes public funds are being requested as seed capital and hopefully over time the community will reap higher sales taxes, and other attributes that come from economic development. Responding to Councilmember Lucas concerning a benefit of having UCSF over having other businesses at the Business Park, Mr. Hutchison replied if Council can capture UCSF, he cannot think of a finer tenant in terms of setting the tone and tenor for the Park and also being a magnet for attracting peripheral businesses. Matthew Herman, Alameda, read a letter from former Councilmember Joseph Camicia encouraging Council to do everything possible to bring UCSF to Alameda. Don Roberts, Alameda, stated he supports the idea of having UCSF come to Alameda but has reservations about the process by which that effort will take place. Jay de los Reyes, Alameda, stated he is former President of Filipino Americans of Alameda; UCSF facilities in Alameda would be March 5, 1993 5 a source of many new jobs; urged Council support loan and demonstrate Alameda's commitment. Shirley Cummins, Alameda, stated her skepticism is out-weighed by the positive side of this matter for minorities; the money should come from General Fund if necessary; wealthy people should help; and Ron Cowan should be given credit for being a visionary. Neil P. Sweeney, Alameda, requested Council vote affirmatively for the ordinance [93-123 for Special Assessment Improvement Procedures Law]. Roger Stone, San Lorenzo, stated unemployment dropped nationwide .1%; in California, it rose 3%; and urged Council vote in favor of this [proposal] as it would create construction and other jobs. John Barni, Sr., Alameda, stated he is in favor of UCSF coming to Alameda; is not in favor of the method of financing being proposed. Greg Beattie, Alameda, Chamber of Commerce, stated a decision must be made if an active approach is to be taken in building a future for a business community that will help everyone; Ron Cowan has created an opportunity for Alameda, there is no time to lose and he hopes Council will vote in favor of proposal. Mia Bozarth, Alameda, stated UCSF will be a responsible tenant and will bring jobs and money to Alameda; the ferry will transport people without jamming streets with traffic; [City] should provide the $400,000 and be supportive. Charles Risso, Alameda, stated the City should do whatever is necessary to attract UCSF; Alameda needs UCSF; the majority of Alamedans want a ferry agreement and want UCSF. Reverend Lawrence VanHook, Alameda, stated a main concern is creation of jobs; and inquired if only Harbor Bay Isle and professors can ride the ferry. The City Manager responded the ferry is for people from UCSF, if there is additional room, others can ride; at some point it could become a public ferry. Reverend VanHook stated UCSF would be a valuable asset; perhaps an apprenticeship program could be started in the Alameda Unified School District that can possibly funnel juniors and seniors to the laboratory; wants UCSF to come to Alameda not Oakland, and wants to work with surrounding communities concerning jobs. Clayton Guyton, Alameda, stated he would like to see UCSF come to East Bay; the resources for jobs are enormous; Oakland is entering into this process but we do not want the communities, and particularly the African-Americans, of Oakland and Alameda split over the issue; perhaps a procedure could be addressed to capture the jobs so the African-American communities in Alameda, Oakland, March 5, 1993 66 and other cities can work to bring UCSF to the East Bay, and he would like to see it come to Alameda. Paul Cobb, Oakland, African-American Neighborhood Council, stated he was invited by citizens of Alameda; has been in discussions with Alamedans to show them how to draft an employment agreement with the City, if Council is successful in bringing in UCSF; Oakland is a friendly competitor; EDAB passed a motion unanimously to support Oakland's bid; he encouraged mutual regionalism, working together on congestion management, airport, and bridges in a spirit of friendship; he intends to work with citizens to assist them to develop jobs for all who live in this area. Harold Griego, Alameda, stated he would like to know if money is coming from the General Fund [for the ferry]. The City Manager responded the money does not come from the General Fund; it comes from Transportation Improvement Fund and the source of those funds are Construction Improvement Taxes charged against the developer. Mr. Greigo stated he would be against loans made from the taxpayers' money; also thinks we need jobs for Alameda. Dennis Green, Alameda, stated the initial ferry is a demonstration project; UCSF attempted to expand in San Francisco, met obstacles, and is watching for a demonstration of support and an understanding of their need for a high-speed ferry; requested Council support effort to bring UCSF not only with words but with deeds. Vice Mayor Roth stated he requested Harbor Bay presentation be given Council; he understands the need for UCSF to tie all their locations together; Alameda has subsidized many businesses, about 13 or 14 million dollars in loans and grants since 1984; in this case, we [City] have security; there are many more positives than negatives; if we do not bring in UCSF now, we never will; and he will support this [proposal]. Councilmember Lucas stated she agrees with Vice Mayor Roth; the issue is: do we want UCSF campus here or not; Council said it wants UCSF, community supports attracting the campus; jobs are needed; she would like the money loaned to UCSF, however, the City must work with the developer; the campus would benefit the community; since the only vehicle of attracting that campus is to work with Harbor Bay Isle developer and assist with funding ferry service, that is what Council must do; and she will support this action. Councilmember Appezzato stated the entire issue has been somewhat confusing and full of uncertainties; he fully supports UCSF coming to Alameda; reviewed the background of discussions of Council; stated some persons do not believe anyone can travel from San Francisco to Harbor Bay at sixty knots on a consistent basis in thirty minutes; stated whether loan is really developer's money, public money or taxpayer money confuses the general public; we are March 5, 1993 rt as responsible for these funds as other public monies; we have no idea of credit worthiness, nor what equity remains in property of Harbor Bay; he would not invest his own personal money in this project therefore, he cannot invest the money of the citizens of Alameda; to UCSF, he says welcome; to Doric Development, good luck in effort to bring UCSF to Alameda; he supports the effort but not the loan of public monies; and will vote no on this loan agreement, however, he votes yes on UCSF. President Withrow stated he believes the whole retinue of benefits has been laid out this evening; however, he would like to respond to Councilmember Appezzato because he believes the [comments] are germaine to some of the issues faced with EDAB; a tremendous number of jobs are being lost from California and from Alameda County; and one of the terms Councilmember Appezzato used capsulizes an issue that has bothered him for some time - the statement that he would welcome UCSF in Alameda; he appreciates that [comment], however, it strikes at what we are doing here and that is to step out, sell, market and recruit to bring businesses into our area; that is the only way we can succeed; and he hopes Council will send a strong signal to UCSF as well as any other business activity that would like to come to Alameda, that there would be a favorable job/business relationship available to them." Councilmember Lucas moved the [staff report, dated March 4, 1993, and] recommendation. Vice Mayor Roth seconded the motion. Under discussion, Vice Mayor Roth stated City security places the City above the first mortgage holder; that is an advantage a private individual or bank does not have and is one of the reasons the City can make the loan where a private individual could not. President Withrow stated that is a good point. The motion carried by the following voice vote: Ayes: Councilmembers Lucas, Roth and President Withrow - 3. Noes: Councilmember Appezzato - 1. Absent: Councilman Arnerich - 1. 93-123 Ordinance No. , N.S. "Amending the Alameda Municipal Code by Adding Article VI (The City of Alameda Improvement Procedure Code) to Chapter III (Finance and Taxation) Thereof, Providing for the City of Alameda Special Assessment Improvement Procedures Law, Including General Provisions and Definitions, Powers and Procedures for the Purpose of Providing Financing for Specified Purposes, and Certain Other Supplemental Provisions. (Continued from Regular Council Meeting of March 2, 1993) Vice Mayor Roth moved introduction of the ordinance. Councilmember Lucas seconded the motion which was carried by the following voice vote: Ayes: Councilmembers Lucas, Roth and President Withrow - 3. Noes: Councilmember Appezzato - 1. Absent: Councilman Arnerich - 1. March 5, 1993 ADJOURNMENT President Withrow adjourned the meeting at 8:38 p.m. Respectfully submitted, 4,14X,C. (-//- DINE B. FELSCH, CMC City Clerk The agenda for this meeting was posted 72 hours in advance. March 5, 1993