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1998-02-03 Special CIC MinutesMINUTES OF THE SPECIAL COMMUNITY IMPROVEMENT COMMISSION MEETING TUESDAY- -FEBRUARY 3, 1998- -7:20 P.M. Chair Appezzato convened the Special Community Improvement Commission Meeting at 7:35 p.m. Commissioner Daysog led the Pledge of Allegiance. Reverend Don Taylor, Central Baptist Church gave the Invocation. ROLL CALL - PRESENT: ABSENT: MINUTES Commissioners Daysog, DeWitt, Kerr, Lucas and Chair Appezzato - 5. None. (98-12) Minutes of the Special Joint Community Improvement Commission/Economic Development Commission Meeting held on January 15, 1998, and the Special Community Improvement Commission Meeting held on January 20, 1998. Approved. Commissioner Lucas moved approval of the Minutes. Commissioner DeWitt seconded the motion, which carried by unanimous voice vote - 5. CONSENT CALENDAR Commissioner Lucas moved acceptance of the Consent Calendar. Commissioner DeWitt seconded the motion, which voice vote - 5. (Items so enacted or adopted asterisk preceding the paragraph number.] (*98-13) Recommendation to amend Contract Planning Systems. Accepted. REGULAR AGENDA ITEMS carried by unanimous are indicated by an with Economic and (98-14) Recommendation to authorize the Executive Director of the Community Improvement Commission to negotiate and execute an Exclusive Negotiation Agreement and other related Agreements with the Selected Fleet Industrial Supply Center Developer; and (98-14A) Recommendation to select Catellus Development Corporation as the Developer for the Fleet Industrial Supply Center. [Economic Development Commission] Special Meeting Community Improvement Commission February 3, 1998 6 Noel Weidkamp, Oakland, stated the City needs to look at the strongest financial partner to give this project the best chance of success; and that he applauds the [Economic Development Commission's] recommendation of Catellus. Bill Garvine, Executive Director, Chamber of Commerce, stated there has been a wonderful public selection process; Council should look at this as an opportunity to generate serious revenue for the City; the selected developer should be comfortable and receptive to working with those who live in Alameda and prepared to continue an on-going, open and public process during the design [phase of development]; the Chamber is excited to turn this underutilized property into a Silicon Island gem. Mayor Appezzato stated there was a front page story on Silicon Island in the Alameda Journal and the Contra Costa Times Newspapers. Michael Gregory, Member, West Alameda Business Association (WABA) Board of Directors, stated WABA's Board of Directors voted to unanimously support Catellus Development Corporation as the FISC developer. Gary McAFee, Alameda, stated established developers might not capture the uniqueness of Alameda; and the potential for tourism at the FISC site is not being given a chance. James Sweeney, Alameda, stated that he has three concerns: 1) public input should not fall between the cracks in the next stages; 2) the ability of the City to have oversight or veto power should be written into the Contract; and 3) a high density residential development will not foster Alameda's sense of community. Diane Lichtanstein, Alameda, stated one of the most important factors in selecting a developer is to choose one that will work with the community to understand issues and concerns; subjectively, the Martin Group makes her feel comfortable; and that she applauds the public involvement during the developer selection process. Marti Buxton, Catellus Development Corporation, stated Catellus has the best financial transaction for the City; Catellus is committed to a public planning process from which a plan will evolve that will meet both the needs and the character that the City would like to see; if selected, Catellus will be anxious to get started. In response to Commissioner DeWitt's inquiry about infrastructure financing, Ms. Buxton stated Catellus proposes public financing for major arterial collectors, public parks and the promenade along the waterfront; Catellus would privately finance other infrastructure; Catellus would work with the City on public financing, e.g. Mello Roos; on the major streets, parks, and the promenade, Catellus Special Meeting Community Improvement Commission February 3, 1998 proposes to use 60% of the tax increment that will be generated by said Project. Commissioner DeWitt further inquired about demolition costs. Ms. Buxton responded the approximately $6.8 Million demolition cost is based upon very preliminary estimates; if demolition costs are less, the City would realize a larger return on the land. Commissioner Daysog stated the City of Alameda is facing challenges straight ahead, and selection of a FISC developer is one of the first hurdles. Gerhard Degemann, Alameda, stated before Don Parker worked for Catellus, he [Mr. Parker] did an excellent job developing Marina Village; and urged Council to choose Catellus. Morten Wellhaven, Alameda, stated the development at the FISC site should not look like the drive-in [Kaufman Broad Development on Atlantic]; the Commission should pick a plan and developer which will have free space around homes and have the feeling of the rest of Historic Alameda. Councilmember Daysog stated all three developers have very strong proposals and development teams; the City would like to keep the business of all three developers; the Catellus corporation comes out first in terms of up-front dollars, guarantee, take down schedule, and design; the City of Alameda has faced base closure challenges straight ahead and this is the first hurdle. Commissioner Kerr stated the Martin Group proposes the lowest residential density and a more gracious project than the other developers; the Martin Group plans to direct traffic to and from a few major streets, which is good City planning; the net present value of Martin's proposal is good; the Martin Group has successful experience in base conversion; what happens at the FISC property will determine what happens at Alameda Point; input from residential organizations in or near the development should be given a strong say; and [the Commission] is approving a Negotiating Agreement, not a Final Development Agreement. Commissioner Lucas stated ideas from each of the developers will be used in the final designs--all ideas were excellent; [developer selection] is a very difficult decision; people working on the committees [Ad Hoc Working Group and the Economic Development Commission] are residents and citizens who care about the residential quality; Lincoln's residential designs emphasize the residential character of the community; each developer has outstanding features; Don Parker [Catellus] is an outstanding developer; and that she hopes all of the developers will continue to work in Alameda. Special Meeting Community Improvement Commission February 3, 1998 Commissioner DeWitt stated the Catellus proposal provides a guarantee of financial return to the City, and a primary financing capability, which makes Catellus the better economic return organization; at this point, concentration should be on the monies- -the financial return; the design plan will come back before the City; that Catellus is his choice; Lincoln Properties have an outstanding plan and should stay with the City in its pursuit to provide outstanding developments in the future; the Martin Group was honest and clear in its proposal; and the motion this evening should include that Lincoln Properties and the Martin Group remain as contenders in the process. Chair Appezzato stated all three developers are highly qualified; that he heavily weighed the advice of the Ad Hoc Working Committee and the Economic Development Commission; the strong financial guarantees and in-house components offered by Catellus weighed heavily on his decision; designs and density can be changed; that he will support Catellus; and that Lincoln and the Martin Group should stay committed in Alameda and be competitive in the next phase. Commissioner Lucas moved the Commission select Catellus [Development Corporation] for the Fleet Industrial Supply Center developer. Commissioner Daysog seconded the motion. Under discussion, Commissioner DeWitt stated the Commission would like the motion to include that Lincoln Properties and the Martin Group also remain as contenders until negotiations have been completed. Chair Appezzato concurred. Commissioner Lucas agreed to amend the motion accordingly. *** Commissioner Kerr stated the [staff] recommendation is that the Commission negotiate and execute the Exclusive Negotiation Agreement; that the Commission is not actually selecting a developer tonight; perhaps the wording in the staff recommendation might be more appropriate; that she believes the motion is to select a developer tonight and actually the Commission is entering into an Exclusive Negotiations Agreement. Commissioner Lucas stated that the Commission must first select a party [developer] to be negotiated with; it is understood that a Development Agreement is still necessary; the decision tonight does not mean their [Catellus] going to have the FISC Development lined up; first, the Commission needs to select a developer; then it is Special Meeting Community Improvement Commission February 3, 1998 understood that the Executive Director of the Community Improvement Commission is authorized to negotiate with the selected developer. Commissioner Kerr stated that she would prefer to have it in the motion, rather than have it understood. Commissioner Lucas stated that she did not believe there was a need to change the motion. Commissioner DeWitt inquired whether the Executive Director [City Manager] understood the motion. Executive Director Flint responded in the affirmative. On the call for the question, the motion carried by the following voice vote: Ayes: Commissioners Daysog, DeWitt, Lucas and Chair Appezzato - 4. Noes: Commissioner Kerr - 1. ORAL COMMUNICATIONS, NON-AGENDA (Public Comment) None. COMMISSION COMMUNICATIONS (Communication from Commissioners) None. ADJOURNMENT There being no further business before the Commission, Chair Appezzato adjourned the meeting at 8:29 p.m. Respectfully submitted, Diane B. Felsch, CMC Secretary, Community Improvement Commission The agenda for this meeting was posted in advance in accordance with the Brown Act. Special Meeting Community Improvement Commission February 3, 1998