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2001-03-20 Special CIC CC ARRA HAB Minutes2 MINUTES OF THE SPECIAL JOINT CITY COUNCIL, COMMUNITY IMPROVEMENT COMMISSION, ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY AND HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING TUESDAY- -MARCH 20, 2001- -6:50 P.M. Mayor/Chair Appezzato convened the Special Joint Meeting at 7:15 p.m. Tiger Cub Pack No. 2 led the Pledge of Allegiance. Elder John Pillitiere, Alameda Chapel, gave the invocation. ROLL CALL - AGENDA ITEM Present: Councilmembers/Commissioners/Board Members Daysog, DeWitt, Johnson, Kerr and Housing Authority Commissioner Torrey, Mayor/Chair Appezzato - 6. Absent: None. (CC 01-132) (CIC 01-05) City Council: Resolution No. 13321, Community Improvement Commission: Resolution Mo. 01-95, Alameda Reuse and Redevelopment Authority: Resolution No. 30, Housing Authority Board of Commissioners: Resolution No. 736, "Authorizing the City Manager, the Executive Director of Alameda Reuse and Redevelopment Authority, the Executive Director of the Community Improvement Commission and the Executive Director of the Housing Authority to Execute an Agreement to Settle Litigation Initiated by Renewed Hope Housing Advocates and ARC Ecology." Adopted. Mayor/Chair Appezzato requested staff to provide a brief presentation. Jeff Bond, Development Manager, stated the Settlement Agreement essentially allows the City and Catellus Development Corporation to initiate the development project approved on May 31, 2000; the Agreement will result in the development of approximately 25% affordable housing within the Catellus Project, as well as 25% affordable housing at various income levels in the near future at Alameda Point; it also will allow the City to begin implementation of many agreements approved in the recent past, e.g. Port of Oakland and Alameda Unified School District Agreements. Mayor/Chair Appezzato commended the Honorable Judge Richard Hodge for his contribution to the negotiation process. Honorable Judge Hodge stated that his role was to make sure everyone stayed at the table; the people who worked on the matter Special Joint Meeting of the City Council, Community Improvement Commission, Alameda Reuse and Redevelopment Authority, and Housing Authority Board of Commissioners March 20, 2001 227 worked very hard; everyone had a legitimate point of-view and position; the positions clashed, which is what the Settlement Agreement is all about. Mayor/Chair Appezzato stated the Settlement Agreement will remove the legal impediment to breaking ground on redevelopment of the first 215 acres of the Navy property; the City does not own the Naval Base yet, but does own the property under discussion; the Project to be developed by Catellus will create hundreds of construction jobs needed to build over 500 residential units, a 1.3 million square foot business park, a public waterfront promenade, parks and related infrastructure, and provide 4,000 business park commercial office jobs; the Catellus Project will add approximately $434 Million in assessed value to the property tax roll; the Project is expected to generate $2 Million annually in revenues needed by the City, Schools, County and other public agencies to maintain and enhance local services. Settling the lawsuit will enable the City to fully implement its historic Agreement with the Alameda Unified School District, which among other things, dedicates 20 acres of the former Navy property to the District, including land for a new elementary school on the Catellus Project site; $2.7 Million in development impact fees, above the State- mandated fee, from the Catellus Project will go to the District to help fund schools; former Mastick School, which is now the Mastick Senior Center, will be deeded to the City allowing it to remain the community's permanent senior citizen center; approximately 90% of the citizens in the community indicate that the quality of life in Alameda is good, excellent or better, and stated the major challenge facing the community is affordable housing. Under the Settlement Agreement, the City and Catellus, and later the Master Developer selected to redevelop Alameda Point, commit that at least one of every four new residential units constructed on former Navy property will be affordable housing-- permanently affordable to families with incomes below the County median; said amount is 60% greater than that required by State Redevelopment law, thus putting Alameda at the very forefront of Bay Area cities striving to meet the challenge of creating housing that is affordable to families at all income levels. Tom Matthews, Chair, Renewed Hope, stated the City and Catellus have agreed to develop 60 units of family housing on a three acre site inside the East Housing area--the Catellus Project; at least fifty percent of those units will be rental and all of the units will be for working families at various income levels under $67,000 per year for a family of four; Catellus has agreed to lower the price of two thirds of its moderate-income units to be affordable and available to families under the $67,000 a year [income level); twenty-five percent of all new units built on the Base will be for low- and moderate-income families; ten percent of those will be Special Joint Meeting of the City Council, Community Improvement Commission, Alameda Reuse and Redevelopment Authority, and Housing Authority Board of Commissioners March 20, 2001 22 specifically aimed at workforce housing; in addition, the City and Catellus have agreed to some criteria and special testing for determining toxic contamination in the redevelopment area; Renewed Hope is concerned about toxicity, both in the 60-acre site [and] the school site; a way of dealing with those issues has been reached. If the Settlement Agreement is approved, it is believed the City will be taking a first step in providing housing for teachers, police officers, office workers, and small business employees being forced to move from the City, and [for] many of the new workers that will hold new jobs created in the community over the next ten years; if the City approves 1,200 new units on the Base, this Agreement will add an additional 200 affordable units that would not have been there before; if 1,800 units are added out at the Base, 350 more affordable units will be available than previously would be required. It is hoped the Council and the broader community has been educated to the vast housing needs that exist in this community, as well as other communities in the Bay Area. Renewed Hope applauds the Council and the Catellus Corporation for their efforts in getting to this point. Councilmember/Commissioner/Board Member Daysog thanked Renewed Hope for coming a long way from its first and loudest desire for all of the housing there; stated a good balance was struck; thanked Renewed Hope for understanding the types of challenges the City faces with Base conversion, which the City alone is faced to deal with. Vickie R. Smith, Renewed Hope Steering Committee and Negotiating Team Member, Alameda, stated families should not have to move out of the City or children displaced; and it is hoped that only good for the City comes out of this [Agreement]. Jeanne Nader, Founding Member of Renewed Hope, Alameda, thanked the City Manager for spurring them on to organize around housing issues; stated Renewed Hope is a movement; people are talking about workforce housing and not affordable housing; Renewed Hope will continue to fight for affordable housing and workforce housing in the City. Pastor Michael Yoshii, Buena Vista United Methodist Church, Vice Chair, Renewed Hope Steering Committee and Member of the Negotiating Team, Alameda, congratulated everyone for work well done; stated the consciousness has shifted to the dire needs around affordable housing; stated the issues are still on-going for people dealing with rental crises and housing concerns; there will still be debates around values, differences of opinion and perspectives; the greatness that the City can have is diversity and to embrace everyone and facilitate everyone's voice in the future. Special Joint Meeting of the City Council, Community Improvement Commission, Alameda Reuse and Redevelopment Authority, and Housing Authority Board of Commissioners March 20, 2001 229 Peggy Doherty, Renewed Hope Executive Board Member, Alameda, stated that she was impressed with the dedication and commitment of the negotiators; conveyed Father Keyes', of the Saint Barnabas Parish, congratulations to everyone for a job well done; further stated the Agreement goes a long way toward bringing everyone together and provides an opportunity for collaboration and a step toward restoring hope. Eve Bach, Arc Ecology, San Francisco, stated that she is looking at tonight as the beginning of a good relationship, as the rest of the Base moves forward toward redevelopment; she is confident everyone learned a lot in the years of struggle over this project, the EIR; she hopes there will be many other times to meet to talk about all the wonderful things that will happen in this community. Austin Tam, Renewed Hope, thanked various members of Renewed Hope for doing a good job and for never giving up hope on East Housing; it is an historical moment for everyone, especially for him. Betty Elgar, Alameda, invited the City Council to attend a Socio- Economic and Political Justice Legislative Day in Sacramento; stated East Housing should be saved, not demolished; reported that she has valuable information about saving the housing and information from the National Social Workers' Association about housing, health care, child care, and transportation subsidies; and read the welfare reform principal on public assistance. Paula McCloskey, Chief Executive Officer of the Alameda Chamber of Commerce, stated the Chamber has demonstrated its support for the Catellus Project, it is anxious to see the Project move forward and completed, and appreciates the time and effort that has gone into putting the Settlement Agreement together. Moira Fossum, Alameda Chamber of Commerce, stated Paula McCloskey stated the Chamber's position well. Art Lenhardt, Secretary to the St. Barnabas Parish Council, stated the Pastoral Council commends the various groups for coming together at such a time as this; the Settlement Agreement will encourage keeping fine people in Alameda. Nelson Rising, CEO, Catellus Development Corporation, stated the Settlement Agreement will substantially increase the amount of affordable housing in Alameda and impose stricter standards than current law requires for environmental protocol; Catellus is committed to quality architecture, quality planning and respect for local public policy concerns; the Settlement Agreement is an example of that commitment. Special Joint Meeting of the City Council, Community Improvement Commission, Alameda Reuse and Redevelopment Authority, and Housing Authority Board of Commissioners March 20, 2001 230 Councilmember/Commissioner/Board Member Daysog moved acceptance of the Agreement. Vice Mayor/Commissioner/Board Member DeWitt seconded the motion. Under discussion, Vice Mayor/Commissioner/Board Member DeWitt stated the effects of today will be seen for the next fifty years or more; that each citizen in this community has an opportunity to participate and be a part of Alameda; and thanked everyone for their cooperation and participation. Councilmember/Commissioner/Board Member Kerr stated the issue tonight involves millions of dollars of public land; because the Settlement Agreement has such a broad scope, she is disappointed notice for the meeting did not go out until 6:00 p.m. last night; the community at large does not have an opportunity to.review the Agreement. Councilmember/Commissioner/Board Member Kerr further stated that the Plaintiffs' campaign over the last two years talked about affordable housing/workforce housing: there was a constant changing definition; however, the thrust of their dialogues focused on workers above low- and very low- income levels, essentially people with moderate incomes; the Settlement Agreement focuses on low- and very low- income housing; the wording on the 60 units to be built at the Fleet Industrial Supply Center (FISC) states a minimum of 30% of the units would be for very low income, and 30% would be made available to households with low income: 60% is guaranteed to low- and very low- income people; it further states that no more than 40% would be available to households with incomes below 100% of the median area income. There is no guarantee 40% of the 60 units would be for moderate-income people, e.g. police, fire, teachers, etc.; there is only a guarantee that 60% will be for low- and very low- income people; originally the 60 units at FISC were specified for homeownership; then there was a compromise supposedly reached by Council of half and half; but now the Agreement language has room for the units to be all rentals. There is a requirement at least 50% be rentals, but there is no guarantee the other 50% will provide homeownership opportunities. The language, once again, is sliding toward all rentals. Section 4.1 of the Settlement Agreement defines the income levels for affordable housing at Alameda Point; 10% of the total units built would be for households with low- and very low- income, and the remaining 50% would be tied to some State law which could be changed. Once again, a guarantee is not really seen of housing for police, fire, teachers, as people heard about for two solid years. There is concern regarding the 20% tax increment set aside; after this Agreement, there may not be 20% set aside for senior housing; Section 4.1 admits limited funding of the 20% set aside; and it is not clear who would get first choice, if there was a problem. The Agreement restricts the Plaintiffs from aiding Special Joint Meeting of the City Council, Community Improvement Commission, Alameda Reuse and Redevelopment Authority, and Housing Authority Board of Commissioners March 20, 2001 other parties suing in the future, however, all of the Plaintiffs' records would be available under subpoena; Renewed Hope does not have a defined class of participants; essentially, anyone could take up the same lawsuits and claim they are not a member of Renewed Hope, subpoena the records that are available from Arc Ecology and Renewed Hope and start the whole thing over again; there should be no possibility of challenging the development of FISC and East Housing by Catellus; development should start tomorrow and be guaranteed from legal challenge; the number of exceptions is so broad that the Project is open to stoppage again and again; some of the sections [of the Agreement] allow lawsuits on almost anything, even though there are many sections which state the Catellus development will not be hindered; and that she is disappointed at the lack of any guarantee for the workforce housing for police, fire, teachers; and at the possibility of people being able to sue on the same issues all over again. Councilmember /Commissioner /Board Member Johnson stated it has been a long process; thanked Judge Hodge for his services during negotiations, and also the people who worked hard to put the Settlement Agreement together; stated the Settlement Agreement is a victory for the community; the general thought of affordable housing and diversity is recognized by the community; the Agreement benefits the entire community; those who do not agree with it now, will see the benefits as time goes on; most members of the City Council agree that there is a housing crisis throughout the entire region; all parties involved with the Settlement Agreement should be commended for taking on the task of providing affordable housing and for successfully reaching a conclusion; the Mayor has cited many, many benefits to the Agreement, not only for the City, schools, or affordable housing; it is a classic, multi -party win - win; relations with Renewed Hope and the City were contentious for some time, but parties opposed to each other have come together and to agreement; a Settlement Agreement is a compromise; everyone has come together and reached an acceptable compromise to this very difficult issue; it is not an easy issue [affordable housing] to resolve; there may be little details that not everyone will totally agree on, but that is what a settlement is; the Settlement Agreement is a milestone for Alameda. CouncilmemberjCommissionerjBoard Member Daysog stated we must move forward because it has been ten years since the first rumors of [base] closure, nine years since the actual decision regarding the closure of the Alameda Naval Air Station, eight years since President Clinton came to Alameda in 1993, to declare Alameda a national model and the rapid conversion process was declared; since 1996, the Community Reuse Plan was adopted, four years since the Base officially closed in 1997, three years since Catellus was selected to redevelop FISC East Housing, 18 months since a basic Special Joint Meeting of the City Council, Community Improvement Commission, Alameda Reuse and Redevelopment Authority, and Housing Authority Board of Commissioners March 20, 2001 2 2 understanding with Catellus, and many more months negotiating with Catellus and Renewed Hope on the Agreement. As a City, we have come very far in the last ten years; we must continue to move forward; as we move forward, we must keep in mind that while we might be off schedule, we are still on course. Alameda's base closure leverages scarce public dollars to bring in much needed private capital and creativity to create jobs, expand opportunities, and offer hope; it is regrettable that it took such a long time to get to this point, because what has been agreed upon with respect to housing is not all together different from what he, and even the Mayor, offered early on; now is not the time to look back, a good Agreement is in hand, one that ensures affordable housing at numbers that make a difference; Oakland and San Francisco are struggling just to get 25% in particular areas; the City has definitely demonstrated that it has out-classed a lot of cities, not just in regards to the 25% but taking upon the responsibility of providing shelter and services to families and children who are transitioning from homelessness to self sufficiency. The process with Renewed Hope not only allows for the 25% [affordable housing], but also strengthens the process for treating toxic contamination. The right kind of mix has been reached, which should work not only for this community but as a model for many other communities. People recognized and acknowledged that Councilmembers and staff treated the issue of affordable housing as fairly, and as justly, and as prudently as was necessary; a solution is in hand that is prudent and good in spirit. Councilmember/Commissioner/Board Member Kerr stated that her [earlier] comments were not mere details; for the last two years, and again tonight, Council has listened to [the desire for] housing for moderate income people, e.g. police, fire and teachers; there is no guarantee in the Settlement Agreement that that will ever happen; the Settlement Agreement does not include the elimination of the probability of future lawsuits either; as far as the matter of slowing things down, the Council has wanted to move forward since day one, since Catellus was selected; no one on the City Council brought a lawsuit, no one on the City Council made any effort to stop the development; City Council made the decision and stood behind it; to say that anyone on the City Council has ever tried to slow anything down is a total mis-statement; it is disappointing not to have the the guarantees; Council's direction was that there would be guaranteed minimums of moderate income housing, however, the wording that ended up in the Agreement does not guarantee it. Councilmember/Commissioner/Board Member Daysog stated that he, too, is interested in the workforce housing aspects; just because workforce housing is not listed in the Agreement does not mean that something cannot be done on the Naval Air Station with workforce Special Joint Meeting of the City Council, Community Improvement Commission, Alameda Reuse and Redevelopment Authority, and Housing Authority Board of Commissioners March 20, 2001 housing. Mayor/Chair Appezzato thanked everyone for their participation; acknowledged certain City Staff members; stated the Settlement Agreement is comprehensive, it touches every facet of the community, it will be the shining star of base conversion in the City; terminology such as low- and very low income should be gotten rid of; seniors will have an opportunity to buy homes in the development, if they qualify; this community has found a way to do things; this is just a culmination of one more opportunity to do something for everyone in the community; and we can all make it work and together continue to make a difference. On the call for the question, the motion carried by the following voice vote: Ayes: Councilmembers/ Commissioners/Board Members Daysog, DeWitt, Johnson, Housing Authority Commissioner Torrey, and Mayor/Chair Appezzato - 5. Noes: Councilmember/Commissioner/Board Member Kerr - 1. ADJOURNMENT There being no further business, Mayor/Chair Appezzato adjourned the Special Joint Meeting at 8:23 p.m. Etie..7ectfully submitted, D ne B. Felsch, City Clerk Secretary, Community Improvement Commission CMC The agenda for this meeting was posted in accordance with the Brown Act. Special Joint Meeting of the City Council, Community Improvement Commission, Alameda Reuse and Redevelopment Authority, and Housing Authority Board of Commissioners March 20, 2001