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2010-09-07 Joint CC CIC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL AND COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING TUESDAY- - SEPTEMBER 7, 2010- -7:02 P.M. Mayor /Chair Johnson convened the meeting at 10:40 p.m. ROLL CALL — Present: Councilmembers /Commissioners deHaan, Gilmore, Matarrese, Tam and Mayor /Chair Johnson — 5. Absent: None. Councilmember /Commissioner Tam left the dais at 10:40 p.m. and returned at 10:42 p.m. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY & ANNOUNCMENTS (10 -65 CIC) Presentation on Facade Assistance Program for fiscal year 2009 -2010. The Development Coordinator gave a Power Point presentation. Chair Johnson stated the facade grants make a big difference within the community; the before and after pictures are unbelievable; that she wishes more money could be found for the Program. Commissioner Gilmore stated a lot of work has been done on Park Street and Webster Street; a critical mass has now been reached and the faces of the streets are changing. Speakers: Jon Spangler, Alameda; and Robb Ratto, Park Street Business Association. Commissioner deHaan stated the Facade Assistance Program has been extremely successful; involving new proprietors in the beginning is very important. MINUTES (10 -429 CC/10 -66 CIC) Minutes of the Joint City Council, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission Meetings held on July 20, 2010, and July 27, 2010. Approved. Vice Mayor /Commissioner deHaan moved approval of the minutes. Councilmember /Commissioner Matarrese seconded the motion, which carried by unanimous voice vote — 5. AGENDA ITEMS Special Joint Meeting Alameda City Council and Community 1 Improvement Commission September 7, 2010 (10 -430 CC) Recommendation to Authorize the Community Improvement Commission of the City of Alameda to Enter into an Exclusive Negotiation Agreement (ENA) with Warmington Residential for Redevelopment of the City's Corporation Yard Located at 1616 Fortmann Way and the City's Animal Shelter Located at 1590 Fortmann Way; and (10 -67 CIC) Recommendation to Approve an Exclusive Negotiation Agreement by and between the Community Improvement Commission and Warmington Residential for Redevelopment of the City's Corporation Yard Located at 1616 Fortmann Way and the City's Animal Shelter Located at 1590 Fortmann Way. The Deputy City Manager — Development Services gave a brief presentation. Mayor /Chair Johnson stated the project is small; inquired why the initial term of the ENA would be eighteen months. The Deputy City Manager — Development Services responded the timeframe is more of an issue with the City developing a relocation study and is more for the City's benefit. Mayor /Chair Johnson inquired what has been learned from the SunCal ENA. The Deputy City Manager — Development Services responded the City has standard and good faith provisions and termination dates in all ENAs; stated the project is for two acres and up to twenty -seven units; the ENA is simple and straightforward. Mayor /Chair Johnson stated no developer is perfect, but no developer is like SunCal; the City's relationship with SunCal totally broke down; inquired whether assurances are in place to avoid a similar breakdown with Warmington Residential. The Deputy City Manager — Development Services responded Warmington Residential has a proven track record in the City and is moving forward in very difficult economic times; stated staff feels comfortable with Warmington Residential. The Interim Executive Director stated staff needs to assess whether moving the two facilities [Corporation Yard and Animal Shelter] is feasible for the City; the ENA is not as complex as the SunCAI ENA. Commissioner Gilmore inquired whether the CIC budget includes $100,000 that would be needed to reimburse Warmington Residential for geotechnical and environmental testing if the project does not go through. The Interim Executive Director responded in the affirmative; stated every year, a small amount is budgeted for studies. Commissioner Gilmore inquired whether the project would be subject to affordable housing requirements, to which the Deputy City Manager — Development Services responded in the affirmative Special Joint Meeting Alameda City Council and Community 2 Improvement Commission September 7, 2010 Commissioner deHaan stated his concern is the Corporation Yard and Animal Shelter relocation; the Animal Shelter relocation would cost between $1.2 million and $3 million; the Corporation Yard relocation would be approximately $2 million; inquired where funding would come from. The Deputy City Manager — Development Services responded $376,000 is budgeted for a relocation study; stated a process would be needed to outline how the City would successfully relocate and construct the facilities. The Interim Executive Director stated costs would not be known until studies are completed; the City has real estate assets that are not used to the highest, best use; conversations need to address the fact that the Animal Shelter needs to move and the Corporate Yard location is not logical; that she has some financing ideas. Chair Johnson stated the entire northern waterfront is blighted; public waterway access has been very limited. Speaker: Andy McKinley, Grand Marina and Alameda resident. Chair Johnson inquired whether Mr. McKinley is using other property to satisfy parking requirements for his property. Mr. McKinley responded right now, the parking problem has no solution; stated that he is proposing everything west of the northern extension of Paru Street be excluded. Commissioner Matarrese stated the Corporation Yard and Animal Shelter need to be relocated; the area is complex; that he is not sure the ENA is the solution; that he sees a couple of incompatibilities: the area has a full service marina and shops in the Alaska Packers Building, which needs repair and investment; parking needed to maintain the shops is being eaten up by development; the Boat Yard generates noise; having houses next to a boat yard would result in a collision; mixed use sounds great in an urban planning textbook, but somebody is going to lose at some point; the ENA could be a tool to see what is feasible and practical; his yardstick would measure whether a true mixed use development would work. The Interim Executive Director inquired whether the waterfront plan states mixed use. The Deputy City Manager — Development Services responded mixed use is noted in the General Plan; stated the property is zoned residential. Chair Johnson stated staff ought to take another look at the zoning; the issue is similar to the Catellus project. Commissioner deHaan stated that he agrees; perhaps some retail would be needed Special Joint Meeting Alameda City Council and Community 3 Improvement Commission September 7, 2010 instead of ship operations; that he would like to look at the matter and flush out the $376,000 relocation study. The Deputy City Manager — Development Services stated the proposed use could be compatible with residential. Commissioner deHaan inquired what options have been reviewed for the Alaska Packers Building. The Deputy City Manager — Development Services responded the Tidelands Trust limits uses to maritime, visitor, retail, and restaurants. Chair Johnson stated the Alaska Packers Building should be considered in the plans for the site. The Interim Executive Director stated a parallel track could be initiated with the ENA; staff could come back with two proposals. The Deputy City Manager — Development Services stated the relocation study should be done at the same time also. Mr. McKinley stated Warmington Residential gave the City $100,000 to build a new facility when property was swapped. Commissioner Gilmore stated that she is intrigued with the proposal, which should be reviewed; she would be more comfortable seeing more information on the Alaska Packers Building before acting on an ENA; she would hate to get into a situation where one problem is solved by moving the Corporation Yard and Animal Shelter and revitalizing the property only to cause difficulty for the Alaska Packers Building, which is a City asset with restricted uses because of the Tidelands Trust; the upkeep [Alaska Packers Building] would fall on the City by not allowing a developer to develop the project in a financially feasible manner. Commissioner deHaan stated looking at the Corporation Yard and Animal Shelter construction costs is important; funding streams need to be known; the worst thing would be to get half way through the process and not have funding; that he would like to have the matter flushed out. Chair Johnson stated that she agrees with Commissioner deHaan; the purpose of bringing the matter before the Commission tonight is to start looking at the issues. Commissioner Matarrese stated that he has no problem with starting the ENA with Warmington Residential; an ENA would not allow negotiations with anyone else on the residential portion of the project; that he does not want to go eighteen months and then have the administrative ability to go three more months; things need to be brought back Special Joint Meeting Alameda City Council and Community 4 Improvement Commission September 7, 2010 regarding the Alaska Packers Building; a guide of the ENA should be to protect the Alaska Packers Building as a City asset to ensure that there would not be future incompatibilities with a working boat yard and adjacent residences; a project labor agreement would be needed; zoning should be reviewed to ensure compatibility; said issues should be spelled out as ENA conditions. Commissioner Tam stated tonight, she is not ready to craft a motion to enter into an ENA; that she is does not have the same level of comfort as her colleagues without a comprehensive review of relocation plans and financing; the Animal Shelter is a very sensitive, emotional issue in the community; public comment is needed before she is comfortable with moving forward. Commissioner Gilmore inquired what would be the timeframe for bringing the matter back; further inquired whether relocation sites and costs could not be started. The Deputy City Manager — Development Services responded the contract to do so [relocation study] is separate. Commissioner Gilmore stated she would like to move forward with looking at relocation sites and costs. The Deputy City Manager — Development Services stated the review would take eight months to a year. Commissioner Gilmore stated coming back with an [revised] ENA would not take eight months to a year. The Deputy City Manager — Development Services inquired whether Council would like staff to come back [with the ENA] in twelve months. Chair Johnson stated staff should get started on the relocation part. Commissioner Tam stated certain things need to be nailed down; that she does not know how long it would take to nail things down; the public process needs to be transparent. The Deputy City Manager — Development Services inquired whether the Commission wants the relocation study started or completed [before entering into the ENA]. The Interim Executive Director stated that she recommends a parallel track; a complete relocation analysis and study with a consultant would take several months. Chair Johnson stated that she likes an almost parallel track, suggested getting started on the relocation part. Special Joint Meeting Alameda City Council and Community cJ Improvement Commission September 7, 2010 The Deputy City Manager — Development Services stated some Commissioners want to know the financial aspects, which would be pretty far along in the study. Commissioner Tam inquired whether knowing how much the land would sell for would be important. The Deputy City Manager — Development Services responded what the land is worth versus relocation costs are two separate issues. Councilmember /Commissioner Tam left the dais at 11:47 p.m. and returned at 11:50 p.m. Commissioner deHaan stated a lot of loose ends exist; that he does not think the Commission is ready to go forward; costs could be calculated on the back of a napkin; the ENA does not have to be done immediately. The Deputy City Manager — Development Services stated concrete answers would not be known until the relocation study is done. Commissioner deHaan inquired what would be the square footage of the Animal Shelter, to which the Deputy City Manager — Development Services responded staff would hire someone to answer said question. Commissioner Matarrese stated the idea of the ENA would be to sit down with Warmington Residential to see their valuations and what they can do to build houses in the area; the output would be a Development Agreement (DA); the DA would need to be compatible with uses, including the Packers Building, and would have to account for relocating two City operations; moved approval of directing the Interim Executive Director to come back with an updated ENA for the Commission to discuss, to define a timeframe in the ENA for the CIC and Warmington Residential that would point to the parallel work that has to be done exclusively, including existing operations around the Alaska Packers Building, and to look at other rules and benefits for the City, including a labor agreement, appropriate zoning, and all public hearings necessary to ensure that the public knows the intent and milestones in between. (10 -431 CC/10 -68 CIC) Councilmember /Commissioner Matarrese moved approval of continuing past 12:00 midnight. Vice Mayor /Commissioner deHaan seconded the motion, which carried by unanimous voice vote — 5. Special Joint Meeting Alameda City Council and Community 6 Improvement Commission September 7, 2010 Commissioner deHaan stated the Commission is not asking for a lot of detail; other elements need to be considered in order to be successful. Chair Johnson stated the Animal Shelter would be better off in another location. The Interim Executive Director stated that she has recommendations on where the Corporation Yard and Animal Shelter could go; this year's budget has funds for a very extensive feasibility analysis for rebuilding, constructing, and relocating the Corporation Yard and Animal Shelter; the process should not be started until the CIC knows what the property can be sold for in order to put more cash into the deal; the Commission's comments and Commissioner Matarrese's amendments to the ENA have seven different components which would be put into the ENA; staff would come back regarding getting consultants on board to start the feasibility analysis; the CIC does not have the cash or funds to buy property and build something; the cost estimate would be based on the type of building and landscape, as well as the physical relocation cost; staff has other recommendations for the Commission in terms of what could happen with Alameda Municipal Power; through an asset management strategy, the CIC could have more than enough to pay for the Animal Shelter and approximately 50% to pay for the Corporation Yard; a deal might be able to be struck in a DA to offset costs; the situation is sequential. Chair Johnson stated ensuring a benefit to the City is important in terms of the economy of scale. Commissioner Gilmore inquired whether a bunch of dominos need to fall in order to finance the Corporation Yard and Animal Shelter relocation; stated the Commission has a sense of unease because the Interim Executive Director has a clear idea of where to move the Corporation Yard and costs; that she is not privy to the information. The Interim Executive Director stated that she needs to have some discussion regarding selling the property in order to validate numbers and theories; the cart is before the horse. Commissioner Gilmore stated Commissioner deHaan is asking for ballpark figures. Commissioner deHaan inquired how much two acres is worth to Warmington Residential. Michael McClellan, Warmington Residential, responded that he does not know until preliminary testing is done. Commissioner deHaan inquired how much two clean acres would be worth. Mr. McClellan responded approximately 20% of land value; stated the issue is that the property is small, irregular, and under bay mud; that he spoke to Pennzoil about the Special Joint Meeting Alameda City Council and Community 7 Improvement Commission September 7, 2010 plume; a lot of work has been done; Warmington Residential would test in proper places and provide information on the land value; Warmington Residential expects zoning issues to be resolved and is very excited to be part of the project. The Deputy City Manager — Development Services reiterated that the motion is to bring back an updated ENA that specifically contemplates parallel work related to the Grand Marina Lease, which would include what would happen with the reuse of the Alaska Packers Building relocation as well as the Corporation Yard and Animal Shelter relocation process and other rules regarding zoning, a labor agreement, and plumes future environmental compatibility. The City Clerk stated the motion includes compatibility with other uses and sufficient public hearings in order to address community needs. Commissioner Gilmore inquired whether direction would be given to staff to start on relocation issues right away, to which the Deputy City Manager — Development Services stated money has already been budgeted to start the process. Vice Mayor /Commissioner deHaan seconded the motion, which carried by unanimous voice vote — 5. Chair Johnson stated that she looks forward to having the Animal Shelter relocated; the Shelter is not optimal for the animals; she wants a better facility. Commissioner Tam stated Mount Trashmore is not the right place. Commissioner deHaan stated past discussions have included taking in other districts to make the Animal Shelter profitable. The Interim Executive Director stated staff has looked at other options, including doing what Berkeley has done. ADJOURNMENT There being no further business, Mayor /Chair Johnson adjourned the meeting at 12:03 a. m. Respectfully submitted, Lara Weisiger, City Clerk Secretary, CIC The agenda for this meeting was posted in accordance with the Brown Act. Special Joint Meeting Alameda City Council and Community 8 Improvement Commission September 7, 2010