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2019-02-05 Special CC MinutesSpecial Meeting Alameda City Council February 5, 2019 1 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL TUESDAY- -FEBRUARY 5, 2019- -5:00 P.M. Mayor Ezzy Ashcraft convened the meeting at 5:06 p.m. Councilmember Daysog led the Pledge of Allegiance. ROLL CALL - Present: Councilmembers Daysog, Knox White, Oddie, Vella and Mayor Ezzy Ashcraft – 5. [Note: Councilmember Vella arrived at 5:07 p.m.] Absent: None. AGENDA ITEMS (19-065) Presentations by Four Developer Finalists for Development of the West Midway Project at Alameda Point (22-Acre Mixed Use Project, Construction of Backbone Infrastructure, Up to 291 Residential Units, including Commercial Development) and Provide Direction on Next Steps in the Developer Selection Process. [New folder: 440-20 1) Correspondence/Reports, 2) West Midway Project – Alameda Point] The Base Reuse Manager gave a brief presentation. Sean Whiskeman, Catellus, gave a Power Point presentation. Bruce Dorfman, Joe Ernst, Ivana Micic and Kristopher Köster, Alameda Point Partners, gave a Power Point presentation. Michael Phillips, Michael Sorochinsky, and Remy Monteko, Jamestown, gave a Power Point presentation. Josh Roden and Barry Long, Brookfield, gave a Power Point presentation. Discussed his involvement and funding of programs provided by Catellus: Jeff Miller, Alameda Boys & Girls Club. Stated that he is grateful for the space at Alameda Point; expressed commitment to providing long-term positive impact; noted Brookfield contacts, Barry Josh and Keith, reached out with active, engaging conversation: Malyka Chop, Small Size Big Minds. Expressed support for Jamestown; outlined positive details in working with Jamestown : Michael Taft, Subpar Miniature Golf. Stated that she has worked with both Alameda Point Partners and Catellus; spoke in favor of Catellus: Tina Blaine, Rhythmix. Special Meeting Alameda City Council February 5, 2019 2 Stated that she is enthusiastic about the development of Alameda Point; discussed the arts involvement at Alameda Point and upcoming art projects: Janet Koike, Rhythmix. Stated the level of responsiveness and community engagement from Catell us over the years has been very responsive and expressed support of selection for Catellus : Courtney Shepler, Alameda. Urged the Council to select the developer that would provide the best project and create the most jobs: Michael McDonough, Chamber of Commerce. Stated all four developers are highly qualified; stated Alameda Point Collaborative cannot move forward until Council moves forward, and urged a selection be made as soon as possible: Doug Biggs, Alameda Point Collaborative. Stated that she knows the Alameda Point Partners team well; it is crucial to select the right partner that can help create jobs and support existing projects; expressed support of selecting Alameda Point Partners: Rachel Campos de Ivanov, Alameda. Urged Council to select Alameda Point Partners: Karen Bey, Alameda. Stated getting the Collaborating Partners project started as soon as possible is the top priority; urged Council to consider the housing element unit-count process moving forward: Brian McGuire, Bike Walk Alameda. Urged Council to consider marine innovation in their decision, including working waterfront access; expressed support for Jamestown: Vince Smith, Blue Endeavors. Mayor Ezzy Ashcraft stated she appreciates the time and effort spent by each development firm; all four candidates are well qualified; Council is being asked to provide next steps in the selection process. Councilmember Daysog stated the Request for Qualifications (RFQ) process lends itself to “want to know more” versus the Request for Proposals (RFP) process where developers create their own approach; he would like to hear more about how each developer will work with the Alameda Point Collaborative and other entities at Alameda Point to ensure the unique requests are achieved. Mayor Ezzy Ashcraft inquired whether narrowing the list down will help, to which Councilmember Daysog responded in the affirmative. Mayor Ezzy Ashcraft inquired whether a criteria has been established. Councilmember Daysog responded a proven capacity in working in th e environments established West of Main Street. Special Meeting Alameda City Council February 5, 2019 3 Councilmember Oddie stated that he would like to know more than what has been provided, including finances; noted previous development projects experience difficulty with project financing; stated some developers have provided substantial project financing and that he appreciates three development firms have a relationship with Alameda. Councilmember Vella stated that she is looking for a developer with dependable finances and able to provide housing units and commercial space; inquired whether space is being considered outside of Alameda Point Collaborative (APC), and if housing is being provided at all levels; outlined a 2017 Alameda design ordinance; stated that she is encouraging candidates to continue community outreach as a whole, throughout Alameda; transportation demand design is key moving forward. Vice Mayor Knox White stated all four development teams have strong ties to the Community; Council’s task is to select a developer that can deliver a pro ject; expressed appreciation of all development firms’ commitment to moving forward with APC; inquired how important past experience is to selecting a development firm. The Base Reuse Manager responded that Alameda is not unique in the process of a Disposition Development Agreement (DDA); stated the planning process is similar in other jurisdictions; staff has learned how to push the process forward. Vice Mayor Knox White inquired whether it is fair to assume all four development teams have money in place in terms of financing, or are there partners who will identify where funding will come from; how certain is funding. James Edison, Wildan Financial Services, responded all four development firms have the capacity in one way or another to finance the project; stated one important distinction is between firms that have capital on-hand versus firms that must obtain funding; all firms must complete a financial review process; all firms are capable and qualified developers. Vice Mayor Knox White inquired whether there is a distinction between firms that are self-capitalizing versus firms that must obtain financing, related to the ability to move forward quickly. Mr. Edison responded in the negative; outlined Goldman Sachs funding capabilities. Councilmember Daysog inquired whether there are higher expectations of return [investment] of a self-financing firm that could have an effect on what the City can expect in terms of money needed for infrastructure and other public benefits. Mr. Edison responded that a distinction is the source of the funding, whether third party or self-financed, the money can be more patient or more demanding, based on the source of funding in terms of returns; stated firms that are internally and self -financed typically are more patient; firms that receive financing from outside sources will need a Special Meeting Alameda City Council February 5, 2019 4 return on the investment quicker; neither model is superior, but there are different psychologies of how business is performed. Councilmember Oddie inquired whether each development firm stipulated splitting the net cash flow between the developer and the City after payment of the fixed return. Mr. Edison responded that he does not recall. Councilmember Oddie inquired what the rate of return would be in that instance, to which Mr. Edison responded that detail is worth knowing. Councilmember Oddie stated while negotiating, and during the DDA process, the details are unknown. Vice Mayor Knox White inquired whether staff can provide a recommendation of a firm that meets the needs of the community. The Base Reuse and Community Development Director responded that a process had been defined around staff’s evaluation of submitted proposals, including panel ranking criteria and an evaluation matrix included in the staff report for both Council and public review; staff is prepared to make a recommendation to Council and is able to provide information if requested; stated if Council determines that more information is needed from development firms, it is recommended that happen first before staff provides a firm. Councilmember Daysog inquired the recommendation on how to proceed. The Base Reuse and Community Development Director responded there is a desire for more information and that Mayor Ezzy Ashcraft has not yet provided her comments; stated a balance should be struck between the desire for more information and the desire to move forward quickly. Mayor Ezzy Ashcraft stated the decision is difficult; outlined the initial process to have staff come forth with a recommendation for Council to approve an Exclusive Negotiating Agreement (ENA) with one development team; stated the process is best provided with Council’s input, able to be heard by the public; all four development teams are well qualified; it is time to diversify at Alameda Point; an economic downturn is coming; expects any development firm to be a good community partner, but it should not be a criteria; Jamestown’s emphasis on job creation and job training center is very important for all community members; outlined Brookfield’s vision, starting with the Alameda Point – Rebuilding the Existing Supportive Housing (RESHAP) project ; stated both developers spoke about a diversity of housing to create for families and for people to age in-place with assisted living facilities; staff purposely sent out an RFQ not an RFP, and at this point a selection is being made to negotiate a one -year process of working out an ENA; proposed asking staff to work with two development teams. Special Meeting Alameda City Council February 5, 2019 5 Councilmember Daysog stated Catellus and APP have demonstrated their abilities in a difficult environment such as Alameda; Brookfield and Jamestown are both great developers, but APP took the time to work out a DDA that took into account the community needs; outlined Catellus’ work through Alameda; stated that he would like to see APP and Catellus move forward, then select one firm to enter into an ENA with. Councilmember Oddie stated the two new firms [Jamestown and Brookfi eld] bring an attraction to Council, but they have yet to perform at Alameda Point ; Alameda Point is unique and poses challenges; inquired how APP and Catellus would mitigate the potential risk if selected. Vice Mayor Knox White stated that he would like to hear more from his colleagues. Councilmember Vella inquired whether there have been projects in the area with any of the four development firms that have experienced significant delays at any stage; outlined potential delay types and project stages that she is interested in hearing; stated there is a reason the City decided to not hire a Master Developer; outlined the reasoning to not have a Master Developer; stated whichever firm is selected will have to work amongst the various projects already occurring; Catellus has been able to perform and complete projects; is willing to consider Catellus and one of the newer applicants. Mayor Ezzy Ashcraft stated Councilmember Vella’s inquiry is valid however, there are many reasons unique to a project that can result in delay. Councilmember Vella stated it depends on the nature of the delay. Councilmember Daysog outlined his request for additional information. Councilmember Oddie stated that he would like to see more financial data; allowing a comparison of what each team is looking for in terms of finances and the bottom line for the entire project; every developer experiences delays; outlined Catellus’ Bayport project as very successful; stated the Site A project has been a 25 year project, and is complex but is still moving forward; development of Alameda Point is not an easy task. Mayor Ezzy Ashcraft stated Council speaking time is narrowing for discussion; inquired whether a vote to suspend the speaking time should be brought. Councilmember Oddie stated cohesiveness must be looked at; the downside to the City being the Master Developer is the risk of patchwork resulting in Alameda Point not looking like one community and one Alameda; he would like to see how to ensure that happens. Vice Mayor Knox White inquired whether Council would like four or two development firms to return. Mayor Ezzy Ashcraft stated Council should make a decision and at least narrow the Special Meeting Alameda City Council February 5, 2019 6 decision to two development firms. Councilmember Vella stated that she concurs. Mayor Ezzy Ashcraft inquired whether Councilmember Vella can select two firms, to which Councilmember Vella responded in the affirmative. Mayor Ezzy Ashcraft inquired the two firms desired. Councilmember Vella stated that she would like to move forward with Catellus and one of the new applicants; this is not the last piece of Alameda Point t o be developed; all development firms are important partners and should know there are other opportunities to submit for. Councilmember Oddie requested staff make a recommendation. The Base Reuse and Community Development Director responded the select ion is at the Council’s pleasure; stated the process is being set in motion and under discussion, and there are follow up questions for staff to work on; staff should not interfere with Council’s current discussion; if the selection is to be narrowed, the Council may want to select a committee of Council members to work with staff to develop and refine questions to come back with a recommendation. Councilmember Daysog stated that he would like to move forward with Catellus and APP; the specific areas to f lesh out are social economic development. Vice Mayor Knox White stated from the Catellus presentation showing knowledge of dirt, it was compelling; Catellus has shown they know how to get things done; APP has team members that know how to move a project forward; is least familiar with Jamestown, but appreciates the work at South Shore Center; outlined his selection of APP and Jamestown. Councilmember Vella stated the affordable housing aspect in respect to APP causes reticence; funding for the RESHAP project is a key issue and concern; APP has performed well in finding ways to move forward on a number of different aspects. Mayor Ezzy Ashcraft stated that she agrees with Councilmember Vella; outlined project “Cliffbar” led by Catellus that was found to not be economically feasible; stated the history of development in Alameda requires flexibility and adaptability of changing circumstances; selected Catellus and Jamestown. Councilmember Oddie stated there is value in the experience of APP; outlined his selection of APP and Jamestown. Mayor Ezzy Ashcraft tallied votes, and narrowed selection to Jamestown and Alameda Point Partners; created subcommittee of Councilmember Daysog and Councilmember Special Meeting Alameda City Council February 5, 2019 7 Oddie to work with staff. ADJOURNMENT There being no further business, Mayor Ezzy Ashcraft adjourned the meeting at 7:30 p.m. Respectfully submitted, Ashley Zieba Deputy City Clerk The agenda for this meeting was posted in accordance with the Sunshine Ordinance.