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2013-04-16 Joint CC SACIC Minutes MINUTES OF THE SPECIAL JOINT CITY COUNCIL AND THE SUCCESSOR AGENCY OF THE COMMUNITY IMPROVEMENT COMMISSION (SACIC) MEETING TUESDAY- -APRIL 16, 2013- -7:01 P.M. Mayor/Chair Gilmore convened the meeting at 9:03 p.m. ROLL CALL – Present: Councilmembers/Agency Members Chen, Daysog, Ezzy Ashcraft, Tam and Mayor Gilmore – 5. Absent: None. ORAL COMMUNICATIONS, NON-AGENDA None. CONSENT CALENDAR Councilmember/Agency Member Chen moved approval of the Consent Calendar. Councilmember/Agency Member Tam seconded the motion, which carried by unanimous voice vote – 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph number.] (*13-185 CC/13-010 SACIC) Minutes of the Joint City Council and SACIC Meeting Held on March 19, 2013. Approved. (*13-186 CC/13-011 SACIC) Recommendation to Approve a Second Amendment to Agreement with Keyser Marston Associates, Inc. Expanding the Scope of Work and Adding $15,000, for a Total Contract Amount of $89,000 to Provide Successor Agency Financial Consulting Services. Accepted. AGENDA ITEM (13-187 CC/13-012 SACIC) Recommendation to Approve the Updated Alameda Landing Retail Tenanting Strategy. The Housing Program Manager gave a brief presentation. Sean Whiskeman, Catellus, gave a Power Point presentation. Mayor/Chair Gilmore stated at a previous meeting there was some doubt as to when the rest of the retail would be completed, which seems to be moving faster than anticipated; inquired whether the change is a result of the market improving, the economy improving, or marketing efforts for the site. Special Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission April 16, 2013 1 Mr. Whiskeman responded the market is creating a lot of opportunity; stated Target is under construction, which is a driver and has generated additional interest; Safeway is also a driver of activity and holds the key to the rest of the retail; the economy is improving; things are getting better; challenges still exist; retailers are still cautious about expansion, but the market has helped create opportunities; noted the Safeway would include a fuel center just like South Shore; the fuel center would be on a separate parcel that is not part of the Alameda Landing DDA and would be at the entry to the site; three buildings are proposed for the entry site, including the fuel center; approval would go through the Planning Board process. Vice Mayor/Agency Member Ezzy Ashcraft commended Catellus for all the hard work marketing the center; stated that she is very excited to see the list of potential retailers; her only concern is the Safeway Gas Station; she visited the site; the community is concerned about the appearance of gateways to Alameda; hopefully, Park Street will get better due to the new North Park Street Zoning Code just adopted; a couple of business are being proposed for Webster Street; rumors are a drive-thru burger establishment is in the mix; the Planning Board is hesitant to add a drive-thru, except pharmacies which benefit the community; that she is concerned about the appearance coming out of the Tube; the West End should not look like it is off of a freeway with a gas station and drive thru restaurant; when the Planning Board previously heard the matter there was a lot of discussion about not competing with Webster Street; the Planning Board limited the minimum footprint of stores at Alameda Landing to not compete directly with the footprint size of stores on Webster Street; fuel falling under sales leakage surprised her; in the past couple of years, two different gas stations requested use permits changes, including longer hours, due to not getting enough business; a Webster Street station is adding a convenient store and wanted to be able to sell liquor to bring in more business, which was denied; there is a free market, but agreements regarding Webster Street should not be ignored; she is concerned about both the appearance of the West End gateway and the competition being added for the Webster Street fuel stations; she would prefer to see other proposed retailers on the parcel instead; she is taken aback that the Safeway is a package deal with the fuel station; that she would not vote to approve the grocery store if automatic approval of the fuel station is included. Mr. Whiskeman stated the fuel station is not before the Council tonight; Safeway wants to include a fuel center; the fuel center at the entry site would go through the Planning Board process on its own track; the entry site is not being approved tonight. Vice Mayor/Agency Member Ezzy Ashcraft stated that she raised the matter because the staff report indicates one of Safeway’s location requirements is the ability to build a Safeway gas station as part of its store. Mr. Whiskeman stated the tenanting strategy includes approving grocery as a category, which hopefully will be Safeway. Special Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission April 16, 2013 2 Vice Mayor/Agency Member Ezzy Ashcraft inquired what is a Safeway lifestyle store. Mr. Whiskeman responded Safeway uses the term lifestyle to define stores and describe new markets. Vice Mayor/Agency Member Ezzy Ashcraft stated 45,000 square feet is the proposed footprint; inquired how the size compares to the South Shore and Harbor Bay Safeway stores. Mr. Whiskeman responded that he believes South Shore Store is larger; stated typical stores are 55,000 square feet. Vice Mayor/Agency Member Ezzy Ashcraft stated a speaker indicated the South Shore store is about 60,000 square feet; inquired whether the size would be closer to the Harbor Bay store. Mr. Whiskeman responded that he believes the Harbor Bay store is a little bit smaller. Vice Mayor/Agency Member Ezzy Ashcraft inquired whether the size would be somewhere between the Harbor Bay and South Shore stores, to which Mr. Whiskeman responded in the affirmative. Councilmember/Agency Member Daysog stated the project is exciting; Safeway’s lifestyle stores have expanded organic and specialty food selections, as well as an in store signature cafe and food center; having a lifestyle store allows residents to purchase prepared meals and better food; having a supermarket of such quality is imperative, which is why he embraces the strategy and cannot wait to see the development happen; that he likes the initial drawings and de-linking the gas station; that he is indifferent about the gas station; proposing a McDonald’s might be a problem; a different establishment, such as Five Guys, might be acceptable; further stated that he believes the Catellus project has stimulated improvements on Webster Street and the College of Alameda; stated efforts have been purposely made to improve the gateway. Councilmember/Agency Member Tam stated that she appreciates the accommodations and changes made to be responsive to leakage categories; she does not have an issue with the fuel station because fuel falls under the leakage category; fuel station issues arise when stations are located near residential areas; Safeway is probably the best grocery store tenant based on labor history and successes in Alameda; Mr. Whiskeman indicated Safeway would be a good anchor tenant and would stimulate interest in the center; inquired why Safeway thinks the location makes demographic sense given the proximity of the Lucky’s at Webster Street and Constitution Way. Mr. Whiskerman responded Safeway has real experience in Alameda; Safeway stores are overburdened, especially the South Shore location; Safeway might envision that the Special Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission April 16, 2013 3 Alameda Landing store would help the South Shore store and views the store as an opportunity to capture additional sales on the West End as well as future growth and extending beyond Alameda into Oakland; the two stores in Alameda do extremely well; all grocery stores in Alameda over perform based on an average basis. Councilmember/Agency Member inquired whether the choice may be associated with future residential development, to which Mr. Whiskerman responded in the affirmative; stated future growth on the W est End is very strong draw. Councilmember/Agency Member Tam explained that she recently learned about Five Guys and In-N-Out Burger; stated that she is not opposed to having a hamburger establishment. Councilmember/Agency Member Chen stated that he welcomes Safeway; he has not heard any opposition; Safeway stores are over producing due to being well run; that he was hoping for an Asian market; inquired how the Safeway would cut into Lucky’s profits; stated freedom of choice with two grocery stores provides residents with better prices and variety. Mr. Whiskeman responded the vast majority of the grocery stores are over performing; stated Lucky’s is the only store currently serving the West End; Safeway provides another option; determining the impacts on Lucky’s is difficult. Councilmember/Agency Member Chen stated the potential sales tax revenue which would be generated is exciting. Mayor/Chair Gilmore stated Lucky’s may have a tendency to take customers for granted since it is the only West End grocery store; hopefully, competition might end said tendency and Lucky’s might improve in the face of competition; Alameda consumers, particularly those in the West End, would be the winners. Vice Mayor/Agency Member Ezzy Ashcraft stated the Safeway lifestyle store will differ from Lucky’s; agreed with the Mayor/Chair; Safeway and the Encinal Market improved when Trader Joe’s opened at South Shore; Alameda has other choices, such as Nob Hill Market and the Market Place; West End residents might be driving across the Island or out of Alameda; the Safeway would be environmentally friendly and would reduce carbon footprints; Bayport residents were shown plans which included a grocery store within walking distance when the homes were originally sold; not having to always get in a car is nice; sometimes a little competition helps raise the bar. The City Manager/Executive Director thanked Catellus for stepping up to the plate; stated that he gave Catellus a hard time about leakage categories at a prior meeting; he had several lengthy discussions with Catellus’s Chief Executive Officer; Catellus has adapted to meet the City’s desires; now Catellus is proposing to promptly construct all nine buildings; the City will devote resources to help Catellus get the buildings up in Special Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission April 16, 2013 4 time to meet the swing in the market; the entry site is not being addressed, but staff supports a gas station on the site; gasoline is a leakage category; the location is as good as can be found and does not interface with residential areas; Alameda Landing buildings are not going to compete with Webster Street size buildings; the City is looking for opportunities to plug leakage categories because leakage categories are high sales tax generators; residents go elsewhere to spend money; staff views the financial perspective and is excited about the prospect of the Safeway being a center tenant; that he is eager to see what Catellus will bring to the National Shopping Center Convention in May; he is optimistic Catellus will find several tenants eager to commit to the center. * * * Councilmember/Agency Member Chen left the dais at 9:45 p.m. and returned at 9:47 p.m. and Councilmember/Agency Member Tam left the dais at 9:48 p.m. and returned at 9:50 p.m. * * * Urged approval of the staff recommendation: Mike Henneberry, Alameda. Stated there is need for another grocery store: Karen Bey, Alameda. Expressed support of Lucky’s and In and Out Burger: Carol Gottstein, Alameda. Councilmember/Agency Member Daysog moved approval of the staff recommendation. Councilmember/Agency Member Tam seconded the motion, which carried by unanimous voice vote – 5. ADJOURNMENT There being no further business, Mayor/Chair Gilmore adjourned the meeting at 9:51 p.m. Respectfully submitted, Lara Weisiger, City Clerk Secretary, SACIC The agenda for this meeting was posted in accordance with the Sunshine Ordinance. Special Joint Meeting Alameda City Council and Successor Agency to the Community Improvement Commission April 16, 2013 5