MINUTES OF A REGULAR MEETING OF THE
REDEVELOPMENT AGENCY OF THE CITY AND
COUNTY OF SAN FRANCISCO, HELD ON THE
1ST DAY OF AUGUST 2006
The Commissioners of the Redevelopment Agency of the City and County of San Francisco met in a regular meeting at City Hall, 1 Dr. Carlton B. Goodlett Place, Room 416, in the City of San Francisco, California, at 4:00 p.m. on the 1st day of August 2006, at the place and date duly established for holding of such a meeting.
President Richard H. Peterson Jr. called the meeting to order at 4:05 p.m. Mr. Peterson welcomed members of the public and radio listening audience, and asked that all electronic devices including pagers and cellular telephones be turned off during the meeting. Mr. Peterson asked members of the public who wish to address the Commission to fill out speaker cards, and to state their names for the record, and to limit their remarks to three minutes. Mr. Peterson stated that the appropriate time for members of the public to address the Commission on matters not on the current Agenda, but are related to general Agency business would be Item 6 on the agenda. This portion of the Agenda is not intended for debate or discussion with the Commission or staff, and members of the public should simply state their business or matter they wish the Commission or staff to be aware of, and if they had questions, to follow-up with staff or Commissioners during a break or after adjournment. It is not appropriate for Commissioners to engage in a debate or respond, on issues not properly set in a publicly-noticed meeting agenda.
1. RECOGNITION OF A QUORUM
The Commission Secretary announced the presence of a quorum with the following Commissioners present:
Richard H. Peterson Jr., President
Ramon E. Romero
And the following were absent:
London Breed, Vice-President
Benny Y. Yee
Marcia Rosen, Executive Director and staff members were also present.
2. REPORT ON ACTIONS TAKEN AT PREVIOUS CLOSED SESSION MEETING, IF ANY. None.
3. MATTERS OF UNFINISHED BUSINESS: None.
4. MATTERS OF NEW BUSINESS:
4 (a) Approval of Minutes: Meeting of July 18, 2006
4 (b) Resolution No. 97-2006, Authorizing an extension of time of up to 150 days for completion of Contract RPSB 004-03 with Angotti & Reilly, Inc., a California corporation, from July 22, 2006 to December 21, 2006, for South Beach Park and Harbor Improvements; Rincon Point - South Beach Redevelopment Project Area
4 (c) Resolution No. 98-2006, Authorizing the execution of the Bayview Hunters Point Redevelopment Project Area and Survey Area loan agreement in an amount not to exceed $921,000, and limitations on the expenditure of the loan amount, for implementation and planning activities with the City and County of San Francisco; Bayview Hunters Point Redevelopment Project Area
4 (d) Resolution No. 99-2006, Authorizing the execution of the Visitacion Valley Redevelopment Survey Area loan agreement in an amount not to exceed $531,000 for planning activities, with the City and County of San Francisco; Visitacion Valley Redevelopment Survey Area
ADOPTION: IT WAS MOVED BY MR. ROMERO, SECONDED BY MS. COVINGTON, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT), THAT CONSENT AGENDA ITEMS 4 (a) APPROVAL OF MINUTES: MEETING OF JULY 18, 2006, 4 (b) RESOLUTION NO. 97-2006, AUTHORIZING AN EXTENSION OF TIME OF UP TO 150 DAYS FOR COMPLETION OF CONTRACT RPSB 004-03 WITH ANGOTTI & REILLY, INC., A CALIFORNIA CORPORATION, FROM JULY 22, 2006 TO DECEMBER 21, 2006, FOR SOUTH BEACH PARK AND HARBOR IMPROVEMENTS; RINCON POINT - SOUTH BEACH REDEVELOPMENT PROJECT AREA, 4 (c) RESOLUTION NO. 98-2006, AUTHORIZING THE EXECUTION OF THE BAYVIEW HUNTERS POINT REDEVELOPMENT PROJECT AREA AND SURVEY AREA LOAN AGREEMENT IN AN AMOUNT NOT TO EXCEED $921,000, AND LIMITATIONS ON THE EXPENDITURE OF THE LOAN AMOUNT, FOR IMPLEMENTATION AND PLANNING ACTIVITIES WITH THE CITY AND COUNTY OF SAN FRANCISCO; BAYVIEW HUNTERS POINT REDEVELOPMENT PROJECT AREA, AND 4 (d) RESOLUTION NO. 99-2006, AUTHORIZING THE EXECUTION OF THE VISITACION VALLEY REDEVELOPMENT SURVEY AREA LOAN AGREEMENT IN AN AMOUNT NOT TO EXCEED $531,000 FOR PLANNING ACTIVITIES, WITH THE CITY AND COUNTY OF SAN FRANCISCO; VISITACION VALLEY REDEVELOPMENT SURVEY AREA, BE ADOPTED.
Items 4 (e) and (f) were presented together and acted upon separately.
4 (e) Resolution No. 100-2006, Authorizing the execution of a Purchase and Sale Agreement with the Japanese American Religious Federation Assisted Living Facility, Inc., a California nonprofit public benefit corporation (“JALFI”) for the acquisition of land at 1881 Bush Street, for the appraised value of $5,000,000; and authorizing a First Amendment to the Tax Increment Loan Agreement with JALFI for the refinancing of the Kokoro Assisted Living Facility; Western Addition Redevelopment Project Area A-2
4 (f) Resolution No. 101-2006, Authorizing a ground lease with the Japanese American Religious Federation Assisted Living Facility, Inc., a California nonprofit public benefit corporation (“JALFI”), for a term of 69 years with a 30 year option, to operate 54 units of assisted living, including 37 permanently affordable units, at 1881 Bush Street; Western Addition Redevelopment Project Area A-2
Presenters: David Sobel (Agency staff)
Speakers: Caryl Ito, Rosie McCormick, Richard Grange, Stephanie Fuji,
Laura Takeuchi, Ron Miao, Jeff Mori
Commissioner Romero stated that he was one of the Commissioners who had been there since the inception of the project, and could recall the early meetings with the positive energy and high hopes for the project. Mr. Romero stated he thought the one thing that had remained true throughout all of the ups and downs was that everyone associated with the project, the developers, community organizations, Agency staff and Commissioners, all had very good intentions, and everyone tried to do their noble best to do a project that most everyone had not done before, and everyone had to learn some difficult lessons. Mr. Romero stated it was important to remember the original goal of the project, which was to provide for the critical needs of the elderly in the community, and that Commissioners were very sensitive to that need. Mr. Romero stated he hoped that the proposed purchase and sale agreement, refinancing and ground lease was a solution to the long-term viability of the Kokoro assisted living facility. Mr. Romero put forth a motion to adopt item 4 (e).
Commissioner Singh stated he attended the opening of Kokoro and visited the facility twice after that, and thought that it was a wonderful facility. Mr. Singh asked staff to provide information on how members of the Board of Directors were selected. Mr. Singh seconded Commissioner Romero’s motion to adopt item 4 (e).
Commissioner Covington stated unlike the senior members of the Commission, she was not on the Commission when Kokoro was first voted upon, but she certainly thought that care of the elderly in the community was of paramount importance. Ms. Covington asked staff to provide a comparison contrast as to what happened to the original projections for the project and how the Agency found itself in the present situation, and to highlight for the Commission the changes proposed in order to avoid the same problem from occurring.
Mr. David Sobel, Senior Development Specialist, stated the initial underwriting for the project was done by outside consultants, including a development corporation affiliated with lender National Cooperative Bank, who claimed to be among the preeminent experts in developing affordable assisted living in the nation. All parties involved were relying upon that expertise for the projections on the project. The Agency had not financed an assisted living facility before, and an affordable assisted living facility was a unique development, for which there were no successful precedents in the country. Mr. Sobel stated staff believed that the Agency had come up with a solution to ensure Kokoro’s financial stability that would serve as a national model for affordable assisted living facilities. Mr. Sobel stated the proposed financial restructuring along with a reconstituted board of directors would not only resolve the financial issues, but also place stewardship of the facility in the hands that would ensure a stable future, without relying upon the Agency’s financial assistance.
Commissioner Covington stated Mr. Sobel made reference to coverage in the Japanese press and asked if there were copies of news articles printed in the Hokubei Mainichi and Nichi Bei Times.
Mr. Sobel stated he had copies of the news articles in the office, which were all favorable of the proposed refinancing. Mr. Sobel added that both the Planning and Development Subcommittee and the full Western Addition Citizens’ Advisory Committee (CAC) endorsed the Agency’s proposed refinancing. Mr. Sobel stated the project sponsor and the Agency presented at the Japantown Task Force, which also endorsed the proposal.
Commissioner Covington requested that copies of the news articles be provided to the Commission, and asked what the Agency’s involvement would be in monitoring the restructuring.
Mr. Sobel stated the ground lease would have performance milestones and contractual obligations as to when the new bylaws would have to be submitted to the State for approval, and when the new board of directors would be in place. Mr. Sobel stated this would be the first level of the Agency’s monitoring, and, in addition, the Agency would conduct its annual asset management of all of its projects with a review of financial statements, and for Kokoro, the Agency would receive monthly financial statements. Mr. Sobel stated staff was considering technical assistance to the board of directors to help them develop and form a strategic plan, through the local Initiatives Support Corporation.
Commissioner Covington thanked Mr. Sobel for the information and lent her support for the project.
President Peterson stated that earlier in the year, it was a desperate situation for the Kokoro facility, and recalled meeting with Mr. Steve Nakajo, Ms. Sandy Mori and Mr. Olson Lee from the Agency. Mr. Peterson commended everyone involved, in particular Agency staff, and stated that this was a good example of people working together and being creative. Mr. Peterson congratulated everyone and stated he was sure that the project would have the Commission’s unanimous support.
ADOPTION: IT WAS MOVED BY MR. ROMERO, SECONDED BY MR. SINGH, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 4 (e) RESOLUTION NO. 100-2006, AUTHORIZING THE EXECUTION OF A PURCHASE AND SALE AGREEMENT WITH THE JAPANESE AMERICAN RELIGIOUS FEDERATION ASSISTED LIVING FACILITY, INC., A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION (“JALFI”) FOR THE ACQUISITION OF LAND AT 1881 BUSH STREET, FOR THE APPRAISED VALUE OF $5,000,000; AND AUTHORIZING A FIRST AMENDMENT TO THE TAX INCREMENT LOAN AGREEMENT WITH JALFI FOR THE REFINANCING OF THE KOKORO ASSISTED LIVING FACILITY; WESTERN ADDITION REDEVELOPMENT PROJECT AREA A-2, BE ADOPTED.
ADOPTION: IT WAS MOVED BY MR. ROMERO, SECONDED BY MR. SINGH, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 4 (f) RESOLUTION NO. 101-2006, AUTHORIZING A GROUND LEASE WITH THE JAPANESE AMERICAN RELIGIOUS FEDERATION ASSISTED LIVING FACILITY, INC., A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION (“JALFI”), FOR A TERM OF 69 YEARS WITH A 30 YEAR OPTION, TO OPERATE 54 UNITS OF ASSISTED LIVING, INCLUDING 37 PERMANENTLY AFFORDABLE UNITS, AT 1881 BUSH STREET; WESTERN ADDITION REDEVELOPMENT PROJECT AREA A-2, BE ADOPTED.
4 (g) Resolution No. 102-2006, Authorizing the Executive Director to cast assessment ballots in the affirmative on behalf of the Agency Commission as the owners of the Muni Substation parcel and the Ellis Street driveway parcel for a combined annual assessment of approximately $10,752, for a total maximum amount of $53,760 for five years, as part of the Fillmore Jazz District Community Benefit District; Western Addition Redevelopment Project Area A-2
Presenters: Denise Blades (Agency staff), Karin Eklund (MJM)
Commissioner Singh put forth a motion to adopt item 4 (g). Commissioner Romero seconded the motion.
Commissioner Covington asked if a simple majority was required during the 45-day voting period.
Mr. Marco LiMandri of New City America, stated the election was based on a weighted majority as dictated under the State Constitution, Proposition 218, and that they estimated between 60 and 70% of the weighted majority would actually return the ballots.
Commissioner Covington asked if there were requests for waivers other than from the First Union Baptist Church.
Ms. Karin Eklund of MJM Management Group stated they had not received an actual request for waiver, but that West Bay Conference Center had asked about the waiver process. Ms. Ekland stated that First Union Baptist Church had been removed from the proposed Community Benefit District.
Commissioner Covington asked how future requests for waivers would impact the ability to raise funds for the district.
Mr. LiMandri stated that everyone would pay into the district, and if there was a demonstration of a hardship, then the owner requesting a waiver would go to the management corporation’s board of directors, who would consider the request from an application of a waiver, and it would be up to the management corporation to reimburse the property owner for any portion of the assessments that was waived.
Commissioner Covington requested verification that the request would not necessarily be for 100%.
Mr. LiMandri stated that the management corporation could decide to grant up to 100% or less, based upon the hardship conditions. Mr. LiMandri stated the management corporation would have to look at the overall budget and see how much the requests for waivers would impact the overall budget.
Commissioner Covington asked how many non-profit organizations were included in the district.
Mr. LiMandri stated there was only one that they were aware of, and that most of the other ecumenical property owners had been excluded from the proposed district.
Commissioner Covington stated she was not asking about the ecumenical property owners, but community-based non-profit organizations, because she recalled that was one of the concerns from both Commissioner Breed and herself, that the proposed district would not adversely impact the fiscal viability of non-profit organizations included in the district.
Mr. LiMandri stated there was only one community-based non-profit organization included in the district, and that it was not the intent of the district to adversely impact the non-profit organizations’ fiscal viability.
ADOPTION: IT WAS MOVED BY MR. SINGH, SECONDED BY MR. ROMERO, AND UNANIMOUSLY CARRIED THAT ITEM 4 (g) RESOLUTION NO. 102-2006, AUTHORIZING THE EXECUTIVE DIRECTOR TO CAST ASSESSMENT BALLOTS IN THE AFFIRMATIVE ON BEHALF OF THE AGENCY COMMISSION AS THE OWNERS OF THE MUNI SUBSTATION PARCEL AND THE ELLIS STREET DRIVEWAY PARCEL FOR A COMBINED ANNUAL ASSESSMENT OF APPROXIMATELY $10,752, FOR A TOTAL MAXIMUM AMOUNT OF $53,760 FOR FIVE YEARS, AS PART OF THE FILLMORE JAZZ DISTRICT COMMUNITY BENEFIT DISTRICT; WESTERN ADDITION REDEVELOPMENT PROJECT AREA A-2, BE ADOPTED
4 (h) Resolution No. 103-2006, Conditionally approving a schematic design and adopting environmental findings pursuant to the California Environmental Quality Act for the development of 131 units for low- and moderate-income first-time homebuyers at 330 Berry Street and 335 Berry Street (Block N4/Parcel 2 and Block N4a/Parcel 2) by BRIDGE Regional Partners, Inc., a California nonprofit public benefit corporation; Mission Bay North Redevelopment Project Area
Presenters: Jeff White, Thomas Ma (Agency staff), Richard Stacy (Architect)
Commissioner Covington stated she was delighted with the green building design, and asked if it was anticipated that the majority of the occupants would utilize the two automobiles under the City Car Share program, or would other people from the surrounding neighborhood expected to use the vehicles.
Mr. Jeff White, Development Specialist, stated the proposed development was not going to provide one-to-one parking for the 131 units, and there would only be 116 parking spaces, because of the transit-rich location and the green building strategy to promote and encourage the use of public transit. Mr. White stated the use of the automobiles under the City Car Share program could not be restricted to residents of a building, but it was expected that mostly the occupants would utilize the program.
Commissioner Covington stated she thought the project was wonderful and that some of the Commissioners’ hesitations when the project was first presented had been overcome. Ms. Covington stated she knew that the color scheme was yet to be finalized, but that the current proposal had a nice warm palette and very pleasing to the eye, and that she understood that the landscape design for the parking garage would be forthcoming. Ms. Covington stated she really applauded the efforts and although there were still items outstanding, the proposed development was heading in the right direction. Ms. Covington put forth a motion to adopt item 4 (h).
Commissioner Singh stated he thought it was a good project and that BRIDGE had done other wonderful projects. Mr. Singh seconded Commissioner Covington’s motion to adopt item 4 (h).
President Peterson asked who did the architectural models, which he thought were wonderful.
Mr. Richard Stacey, Project Architect, stated they used a firm that specialized in building architectural models.
ADOPTION: IT WAS MOVED BY MS. COVINGTON, SECONDED BY MR. SINGH, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 4 (h) RESOLUTION NO. 103-2006, CONDITIONALLY APPROVING A SCHEMATIC DESIGN AND ADOPTING ENVIRONMENTAL FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT FOR THE DEVELOPMENT OF 131 UNITS FOR LOW- AND MODERATE-INCOME FIRST-TIME HOMEBUYERS AT 330 BERRY STREET AND 335 BERRY STREET (BLOCK N4/PARCEL 2 AND BLOCK N4A/PARCEL 2) BY BRIDGE REGIONAL PARTNERS, INC., A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION; MISSION BAY NORTH REDEVELOPMENT PROJECT AREA, BE ADOPTED.
4 (i) Resolution No. 104-2006, Approving a fiscal year 2006-2007 budget for the Bayview Hunters Point Project Area Committee in an amount not to exceed $130,000 and authorizing a personal services contract with Business Development, Inc., a California corporation, to provide fiscal agent and administrative support services to the PAC for a one year period from August 15, 2006 to June 30, 2007 in an amount not to exceed $130,000; Bayview Hunters Point Redevelopment Project Area
Presenters: Thor Kaslofsky (Agency staff)
Speakers: Angelo P. King, Ollie Burgess, Dorris Vincent, Rev. Arnold
Commissioner Covington stated she was happy to see that things were moving forward in Bayview Hunters Point, but that she appreciated Mr. Angelo King’s comments because understandably, the Project Area Committee (PAC) was working very hard on the adoption of the redevelopment plan, and that they did not have a lot of time to devote to the PAC budget because of the pressing matter of adopting the redevelopment plan. Ms. Covington stated that she thought it was appropriate for Agency staff to ask members of the PAC if the proposed budget was adequate to support the volume of work involved in implementing the redevelopment plan, because the Agency was the expert and the PAC members were the citizen volunteers. Ms. Covington stated that she thought that the PAC should meet about the budget and be very clear about its needs, and present that to staff to bring before the Commission for consideration. Ms. Covington stated it was very important to be successful with the Agency’s efforts in the southeast sector of the City, and to not have adequate staff could result in unanticipated consequences that could cause more problems. Ms. Covington stated the Agency would like the work to be done and done very well, and it seemed that more monies would be needed, and that she would appreciate feedback from staff. Ms. Covington put forth a motion to adopt item 4 (i).
Commissioner King stated he was glad to see Business Development Inc. involved, and recalled his earlier efforts with Mr. Alex Pitcher and Mr. Calvin Hayes to allow the Redevelopment Agency to work in the Bayview. Mr. King stated he thought that the proposed budget for the PAC was weak and agreed with Commissioner Covington’s statements. Mr. King asked if staff met with members of the PAC to discuss the budget.
Executive Director Rosen stated staff had discussions with the PAC and would continue to do so, but the Agency was somewhat impaired this year because there was no tax increment yet generated for the project area, and the Agency could not expend funds generated from other project areas to meet the needs of the Bayview Hunters Point project area because of statutory limitations. Ms. Rosen stated that, earlier in the Commission meeting, the Commission approved a loan from the City and County of San Francisco for implementation and planning activities for the Bayview Hunters Point project area, and that during the budget period, she did explore a larger loan amount from the City in order to meet the needs of the PAC, but the loan amount approved by the Board of Supervisors and Agency Commission was the amount that was negotiated. Ms. Rosen stated staff was cognizant that the PAC over the coming years, would be stepping up its activities and would need to expand its budget, and that she looked forward to working directly with the chair of the PAC, its budget committee and Agency staff to explore other ways to augment the resources available, and to plan adequately for the next fiscal year, when tax increment would be generated and available to meet the needs of the project area. Ms. Rosen stated staff would be working closely with the PAC to see what else could be done from other Agency resources for administrative needs like meeting rooms and mailing costs, and to do a thorough planning for a time when there would be dedicated resources for the project area that could be spent. Ms. Rosen stated the Agency had serious fiscal limitations this year, and thought that the PAC understood that, and they worked very hard during the plan adoption, but that she was cognizant of the Agency’s overall budget restrictions until there was tax increment generated to meet the true needs of the project area.
Commissioner Covington stated she wanted assurance that the efforts described by the Executive Director would be made before the budget presentation for the next fiscal year was before the Commission.
Executive Director Rosen stated that staff was already working with the PAC on the budget issue, that Mr. Thor Kaslofsky and Mr. Stan Muraoka had been meeting with the PAC’s Executive and Budget Committees to address the budget issue, that staff looked forward to working with the PAC’s new administrator, and that she was glad to see Ms. Wanda Whittaker continue in that role. Ms. Rosen welcomed aboard Mr. Calvin Hayes, and stated the Agency would look to his vast experience in community outreach and looked forward to continuing the dialog.
Commissioner Romero seconded Commissioner Covington’s motion to adopt item 4 (i), and wished the best to Business Development Inc.
President Peterson stated he thought the $130,000 budget was a good start, and as the year progressed, he urged members of the PAC to keep the Commission informed of any additional needs they may have, and that as the Agency gets further through the budget year, perhaps there may be other resources that could be used for the PAC’s work. Mr. Peterson stated he thought that arguably, Bayview Hunters Point was the Agency’s most significant project area in terms of size, and that it was very important for the Agency to support the work of the PAC and to provide the resources necessary to do the important work on behalf of the community.
ADOPTION: IT WAS MOVED BY MS. COVINGTON, SECONDED BY MR. ROMERO, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 4 (i) RESOLUTION NO. 104-2006, APPROVING A FISCAL YEAR 2006-2007 BUDGET FOR THE BAYVIEW HUNTERS POINT PROJECT AREA COMMITTEE IN AN AMOUNT NOT TO EXCEED $130,000 AND AUTHORIZING A PERSONAL SERVICES CONTRACT WITH BUSINESS DEVELOPMENT, INC., A CALIFORNIA CORPORATION, TO PROVIDE FISCAL AGENT AND ADMINISTRATIVE SUPPORT SERVICES TO THE PAC FOR A ONE YEAR PERIOD FROM AUGUST 15, 2006 TO JUNE 30, 2007 IN AN AMOUNT NOT TO EXCEED $130,000; BAYVIEW HUNTERS POINT REDEVELOPMENT PROJECT AREA, BE ADOPTED.
Items 4 (j), (k) and (l) were presented together and acted upon separately.
4 (j) Resolution No. 105-2006, Authorizing an Owner Participation Agreement with Jos Levin Realty Corporation of San Francisco, a California corporation, for the proposed development at 1618, 1620, and 1630 Jerrold Avenue, located between Third and Phelps Streets (Assessor’s Block 5272, Lots 11, 14, and 15); Bayview Industrial Triangle Redevelopment Project Area
4 (k) Resolution No. 106-2006, Conditionally approving the schematic design for the proposed development at 1618, 1620, and 1630 Jerrold Avenue, located between Third and Phelps Streets (Assessor’s Block 5272, Lots 11, 14, and 15); Bayview Industrial Triangle Redevelopment Project Area
4 (l) Resolution No. 107-2006, Approving the Replacement Housing Plan related to the proposed development at 1630 Jerrold Avenue located between Third and Phelps Streets (Assessor’s Block 5272, Lots 14, and 15); Bayview Industrial Triangle Redevelopment Project Area
Presenters: Tiffany Bohee (Agency staff)
Speakers: Angelo P. King
Commissioner Covington stated she was glad to see the full support of the PAC for the project. Ms. Covington asked how the Agency would offset the loss of the one dwelling unit.
Ms. Tiffany Bohee, Development Specialist, stated the proposed Replacement Housing Plan provides that the Agency would replace the unit, which was a very low-income two-bedroom unit, with a comparable very low-income replacement housing unit within a redevelopment project area. Ms. Bohee stated there were affordable housing units in the pipeline for the Hunters Point Shipyard and South of Market project areas, and the Mid-Market survey area. Ms. Bohee stated that if the unit was replaced outside of a redevelopment project area, such as in a survey area, there would be a two-for-one replacement pursuant to the California Health and Safety Code, and the Agency had adequate means in its approved budget to do so. Ms. Bohee stated the Agency would have four years to replace the unit after demolition.
Commissioner Covington asked how the Agency would track the particular replacement housing unit since the Agency was building so many affordable housing units.
Ms. Bohee stated that the Agency’s Housing Division would designate a unit in an upcoming affordable housing development.
Commissioner Covington asked if there was an upcoming affordable housing development with 98 units, as an example, would the Agency increase the number of units by one and designate the 99th unit as the replacement unit for the Jerrold Avenue unit.
Ms. Bohee stated that if a particular development had 100 units, some of which were two-bedroom units, the replacement unit would be designated within the envelop of that particular affordable housing development, and the Agency’s asset management staff would monitor to ensure that the unit was so designated.
Commissioner Covington put forth a motion to adopt item 4 (j).
Commissioner Romero seconded Commissioner Covington’s motion to adopt item 4 (j), and thanked the owner and developer for their cooperation with the Agency.
ADOPTION: IT WAS MOVED BY MS. COVINGTON, SECONDED BY MR. ROMERO, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 4 (j) RESOLUTION NO. 105-2006, AUTHORIZING AN OWNER PARTICIPATION AGREEMENT WITH JOS LEVIN REALTY CORPORATION OF SAN FRANCISCO, A CALIFORNIA CORPORATION, FOR THE PROPOSED DEVELOPMENT AT 1618, 1620, AND 1630 JERROLD AVENUE, LOCATED BETWEEN THIRD AND PHELPS STREETS (ASSESSOR’S BLOCK 5272, LOTS 11, 14, AND 15); BAYVIEW INDUSTRIAL TRIANGLE REDEVELOPMENT PROJECT AREA, BE ADOPTED.
ADOPTION: IT WAS MOVED BY MS. COVINGTON, SECONDED BY MR. ROMERO, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 4 (k) RESOLUTION NO. 106-2006, CONDITIONALLY APPROVING THE SCHEMATIC DESIGN FOR THE PROPOSED DEVELOPMENT AT 1618, 1620, AND 1630 JERROLD AVENUE, LOCATED BETWEEN THIRD AND PHELPS STREETS (ASSESSOR’S BLOCK 5272, LOTS 11, 14, AND 15); BAYVIEW INDUSTRIAL TRIANGLE REDEVELOPMENT PROJECT AREA, BE ADOPTED.
ADOPTION: IT WAS MOVED BY MS. COVINGTON, SECONDED BY MR. ROMERO, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 4 (l) RESOLUTION NO. 107-2006, APPROVING THE REPLACEMENT HOUSING PLAN RELATED TO THE PROPOSED DEVELOPMENT AT 1630 JERROLD AVENUE LOCATED BETWEEN THIRD AND PHELPS STREETS (ASSESSOR’S BLOCK 5272, LOTS 14, AND 15); BAYVIEW INDUSTRIAL TRIANGLE REDEVELOPMENT PROJECT AREA, BE ADOPTED.
Items 4 (m) and (n) were presented together and acted upon separately.
4 (m) Resolution No. 108-2006, Authorizing exclusive negotiations with Habitat for Humanity San Francisco, a California nonprofit public benefit corporation, and Em Johnson Interest, Inc., a California corporation, for the disposition of Agency Parcel EE-2, located at Whitney Young Circle and Hudson Avenue to develop affordable housing for first time homebuyers; Hunters Point Redevelopment Project Area
4 (n) Resolution No. 109-2006, Authorizing a Tax increment Predevelopment Loan Agreement in an amount not to exceed $439,640 to Em Johnson Interest, Inc., a California corporation, in conjunction with the development of affordable housing for first time homebuyers on Parcel EE-2 located at Whitney Circle and Hudson Avenue; Hunters Point Redevelopment Project Area; Citywide Tax Increment Housing Program
Presenters: Vanessa Dandridge (Agency staff)
Speakers: Angelo P. King
Commissioner Covington stated she supported the item and put forth a motion to adopt item 4 (m). Commissioner King seconded the motion.
ADOPTION: IT WAS MOVED BY MS. COVINGTON, SECONDED BY MR. KING, AND UNANIMOUSLY CARRED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 4 (m) RESOLUTION NO. 108-2006, AUTHORIZING EXCLUSIVE NEGOTIATIONS WITH HABITAT FOR HUMANITY SAN FRANCISCO, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION, AND EM JOHNSON INTEREST, INC., A CALIFORNIA CORPORATION, FOR THE DISPOSITION OF AGENCY PARCEL EE-2, LOCATED AT WHITNEY YOUNG CIRCLE AND HUDSON AVENUE TO DEVELOP AFFORDABLE HOUSING FOR FIRST TIME HOMEBUYERS; HUNTERS POINT REDEVELOPMENT PROJECT AREA, BE ADOPTED.
ADOPTION: IT WAS MOVED BY MS. COVINGTON, SECONDED BY MR. KING, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 4 (n) RESOLUTION NO. 109-2006, AUTHORIZING A TAX INCREMENT PREDEVELOPMENT LOAN AGREEMENT IN AN AMOUNT NOT TO EXCEED $439,640 TO EM JOHNSON INTEREST, INC., A CALIFORNIA CORPORATION, IN CONJUNCTION WITH THE DEVELOPMENT OF AFFORDABLE HOUSING FOR FIRST TIME HOMEBUYERS ON PARCEL EE-2 LOCATED AT WHITNEY CIRCLE AND HUDSON AVENUE; HUNTERS POINT REDEVELOPMENT PROJECT AREA; CITYWIDE TAX INCREMENT HOUSING PROGRAM, BE ADOPTED.
5. MATTERS NOT APPEARING ON THE AGENDA
Commission Secretary Erwin Tanjuaquio announced that there was an item that staff wished to add to the August 1st Agenda and recited the following:
Section 54954.2 (b) (2) of the Ralph M. Brown Act states that the Agency Commission may take action on items of business not appearing on the posted agenda under the following condition: Upon a determination by a two-thirds vote of the total members of the Agency Commission (in this case, all five Commissioners in attendance), that there is a need to take immediate action and that the need for action came to the attention of the Agency subsequent to the agenda being posted.
Executive Director Rosen stated this was an unusual situation, and as the Commission knew, the Gene Suttle Plaza was the desired location for the Fillmore Friday events and barbeque this year. Ms. Rosen stated because the use of the plaza was governed by an agreement that the Agency had to negotiate with Mr. Szeto, staff was not able to reach agreement by the time the August 1st agenda was finalized and posted. Ms. Rosen stated Deputy General Counsel Andrico Penick was able to negotiate a satisfactory solution just the day before (July 31st). Ms. Rosen stated under the Brown Act, the Commission was permitted to take action because the matter was not foreseeable at the time the agenda was posted, further, because the first two Fillmore Fridays would occur before the next Commission meeting on August 15th, there was a need for immediate action by the Commission at today’s meeting. Ms. Rosen stated staff was recommending that the Commission take action on the matter, and as the Commission Secretary reported, the Commission first, must vote with a unanimous vote, to consider adding the item to the agenda, and the Commission having considered adding the item, staff would do a presentation, and staff had provided the Commission with a memorandum and a resolution for consideration.
President Peterson stated he would entertain a motion to consider adding to the August 1st Agenda, the proposed Letter Agreement between the Agency, Safeway, WCPI and WCPII for the use of the Gene Suttle Plaza.
Commissioner Covington put forth a motion to consider adding the item to the August 1st agenda. Commissioner Romero seconded the motion.
MOTION: IT WAS MOVED BY MS. COVINGTON, SECONDED BY MR. ROMERO, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT THE PROPOSED LETTER AGREEMENT BETWEEN THE AGENCY, SAFEWAY, WCPI AND WCPII FOR THE USE OF THE GENE SUTTLE PLAZA, BE ADDED TO THE AUGUST 1, 2006 COMMISSION MEETING AGENDA.
5 (a) Resolution No. 110-2006, Authorizing a Letter Agreement between the Redevelopment Agency of the City and County of San Francisco, Safeway Inc., WCP I and WCP II to temporarily modify use restrictions on Gene Suttle Plaza to allow FillmoreLive events from August to October 2006; Western Addition Redevelopment Project Area A-2
Presenters: Alicia Bert (Agency staff)
Speakers: Rev. Arnold Townsend
Commissioner Covington asked what the attendant costs would be for the proposed Letter Agreement, because she did not see an increase in the budget.
Ms. Alicia Bert, Development Specialist, stated the pre-event walk-through would be conducted by designated Agency staff, representatives from Safeway and WCP#I, so there would not be any additional costs. Ms. Bert stated the provisions contained in the Letter Agreement for trash removal, security and additional parking monitors had already been built into the budget for the Fillmore Friday events.
Commissioner Covington asked how many security personnel would be on hand at the events, because the Letter Agreement provided for a minimum number.
Ms. Bert stated the Letter Agreement included a provision that if an event exceeded a certain size, additional security officers would be provided based upon advice from the Northern Police Station.
Commissioner Covington stated in order for the Agency to be good shepherds of the events, she would encourage providing two security officers on hand as a bare minimum, because it was essential for the large property and was warranted. Ms. Covington stated she noted that one of the conditions for the use of the plaza was to include language in event promotional materials notifying attendees that event parking is prohibited in Safeway’s parking lot, but that the promotional materials had already been distributed.
Ms. Bert stated in order to remedy that, staff would ensure there were conspicuous postings throughout the event informing attendees not to park on the Safeway parking lot, and there would also be announcements from the stage.
Commissioner Covington asked if there would be postings for people to see as they enter the Safeway parking lot entrances.
Ms. Bert stated there would be signs at the Safeway parking lot entrances and throughout the plaza.
Commissioner Covington asked if the Agency was using outside press to get the word out about the events, and if there were media sponsors.
Ms. Bert stated she knew that the events had been widely disseminated by the event contractor, United Projects, which had an extensive mailing list and had done extensive outreach through its association with the music industry. Ms. Bert stated that radio stations KKSF and KPOO were broadcasting the events, and the musicians and performers were also promoting the Fillmore Friday events.
Commissioner Covington suggested that the radio announcements include information about the parking and to encourage car-pooling and public transit, and to the extent that the Agency’s relationship with KPOO allowed such public service announcements, she would encourage doing so. Ms. Covington put forth a motion to adopt item 5 (a).
Commissioner Romero seconded Commissioner Covington’s motion to adopt item 5 (a). Mr. Romero asked how many years the Fillmore Friday events had been held.
Executive Director Rosen stated the events were held two years in a row, in 2003 and 2004, and there were no events in 2005, with the 2006 events as the third year.
Commissioner Romero stated he was curious, because the Agency did not have the situation of last-minute negotiations for the use of the plaza in the previous years, and asked who the Agency was negotiating with for the use of the plaza, and what the hesitancy was.
Ms. Bert stated the Agency was negotiating with the property owner, Mr. Szeto of WCPI, and his concern was due to an incident at a past event where an electric plate was left on top of a box, which was quickly found and resolved by the Agency as soon as Mr. Szeto notified the Agency. Ms. Bert stated that Mr. Szeto wanted a higher level of protection.
Commissioner Romero stated it did not sound like much to him, and asked if that was the extent of Mr. Szeto’s hesitancy.
Executive Director Rosen stated staff had to negotiate the terms of the Agency’s indemnity, and there was a broad request by Mr. Szeto, which would have a potential liability for the Agency for events the Agency had nothing to do with.
Commissioner Romero asked it the concern was based upon a specific experience or incident.
Ms. Bert stated the only concern was the incident she cited earlier.
Executive Director stated staff was very happy that the matter was resolved to everyone’s satisfaction and that Rev. Townsend was to be thanked for whatever part he may have played in that.
ADOPTION: IT WAS MOVED BY MS. COVINGTON, SECONDED BY MR. ROMERO, AND UNANIMOUSLY CARRIED (MS. BREED AND MR. YEE ABSENT) THAT ITEM 5 (a) RESOLUTION NO. 110-2006, AUTHORIZING A LETTER AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY AND COUNTY OF SAN FRANCISCO, SAFEWAY INC., WCP I AND WCP II TO TEMPORARILY MODIFY USE RESTRICTIONS ON GENE SUTTLE PLAZA TO ALLOW FILLMORELIVE EVENTS FROM AUGUST TO OCTOBER 2006; WESTERN ADDITION REDEVELOPMENT PROJECT AREA A-2, BE ADOPTED.
6. PERSONS WISHING TO ADDRESS THE MEMBERS ON NON-AGENDA, BUT AGENCY RELATED MATTERS
- Al Norman, Angelo P. King
7. REPORT OF THE PRESIDENT None.
8. REPORT OF THE EXECUTIVE DIRECTOR
- Executive Director Rosen stated she wanted assure Mr. Norman and Mr. King that she was very engaged in the Hunters Point Shipyard transaction, and in fact, spoke to Mr. Kofi Bonner shortly before the Commission meeting, as well as met with both Mr. Bonner and Mr. Michael Cohen of the Mayor’s Office last Friday. Ms. Rosen stated she would welcome the opportunity come to the Hunters Point Shipyard CAC meeting at its invitation and looked forward to doing so, and requested Mr. Norman to convey her sentiments to other members of the CAC. Ms. Rosen stated as Mr. Angelo King reminded the Agency, there would be more opportunities to have joint meetings of the Bayview Hunters Point Project Area Committee (PAC) and the Hunters Point Shipyard CAC, with the recent adoption of the Bayview Hunters Point Redevelopment Plan and the community benefits planning for the Shipyard, and the Agency looked forward to that. Ms. Rosen stated staff was very close to bringing matters for consideration to the Commission, and the Agency was waiting for information from Lennar regarding its true cost of the horizontal development and pro-forma for the housing development, and this information was necessary for staff to do adequate projections and analysis that would be presented to the Commission on Lennar’s proposal. Ms. Rosen stated she thought the Commission had seen a letter she wrote to Mr. Bonner previously stating the staff’s support for the concept of both adding additional housing units to Parcel A, and for looking at the tenure split to transfer some of the housing from rental to market-rate condominiums with inclusionary affordable units. Ms. Rosen stated although she had not been at the CAC meetings, she had been continually engaged with Lennar while leading the Agency staff team, and meeting with the Mayor’s Office, and that she did not believe that the Agency was at a point where the Agency was at risk of losing the development. Ms. Rosen stated to the contrary, she thought the Agency was at a point of insuring the goals of the Disposition and Development Agreement (DDA) that the community embraced and the Commission supported, could be fulfilled with the new economic challenges that the project was facing, and that she felt confident that a resolution would be reached. Ms. Rosen shared that earlier in the day, Mr. Bonner assured her that he would be pressing his staff to complete the missing information and to provide it to the Agency, so that it could engage the CAC in the appropriate review. Ms. Rosen stated she was hopeful that could be accomplished in the next few weeks or sometime in September. Ms. Rosen urged Mr. Norman and Mr. King to call her if they had other concerns.
President Peterson stated on behalf of the Commission, he would be happy to lend his support and personally participate in attending CAC meetings, and that Mr. Angelo King knew how to get in touch with him.
- Executive Director Rosen reported that the Museum of the African Diaspora won an American Institute of Architects (AIA) design award, with Mr. Phil Freelon heading the architectural design team.
- Fillmore Friday events, beginning on Friday August 4th from 5:00 to 7:30 p.m., at the Gene Suttle plaza, and weekly thereafter through September 15th.
- Commissioner Yee called about an inquiry from the Ministry of Construction of China who was visiting the Bay Area – Agency staff would be hosting 25 delegates at the Agency offices and touring them at some of the Agency’s project areas, on Monday August 7th. Ms. Rosen stated that Commissioners would be welcomed to attend.
- Executive Director Rosen stated she wanted to alert the Commission that the first Commission meeting in September would be the Tuesday after the Labor Day holiday, September 5th, and looking at the Agency’s forward planning calendar, there were no items currently listed for September 5th, and in the past, the Commission had frequently cancelled the meeting around the Labor Day weekend. Ms. Rosen stated at the present time, she did not foresee a need for a meeting, but there would be more information at the August 15th Commission meeting.
Commissioner Singh stated he thought the September 5th Commission meeting should be cancelled.
President Peterson asked if Commissioners would be opposed to canceling the September 5th meeting if there were no items that needed Commission consideration.
Commissioner Covington stated that her concern was that the agenda would be twice as long because a meeting was cancelled, and the enormous amount of reading necessary to be fully informed of various items. Ms. Covington stated she would prefer not to cancel a meeting just to have a lot of lengthy agenda items at the next Commission meeting.
Executive Director Rosen stated the Commission could wait one week to decide, but that she had reviewed the September 19th meeting, which was a reasonable length, as did the August 15th calendar.
Commissioner Covington stated she would like to wait one week to decide to cancel the September 5th meeting, for items that may come up.
Executive Director Rosen stated she would be discussing the schedule with the Agenda-setting committee.
Commissioner Romero stated he was not opposed to canceling the September 5th meeting, but that he did not see any items listed for that meeting date.
9. COMMISSIONERS’ QUESTIONS AND MATTERS
- Commissioner Romero stated he wanted to thank the Executive Director for the informational memorandum about the costs of re-issuance of the Central Freeway Parcel G Request for Proposals (RFP). Mr. Romero stated he thought that sometimes Commissioners lost sight of the fact that sometimes, the Commission’s actions had a monetary cost, and that he thought that Commissioners should think about that. Mr. Romero stated he recalled it was represented to the Commission that the issuance, review and consideration of the RFP was all consistent with Agency procedures, and staff followed the rules, and then there was a little bit of a mix-up about the CAC review, but even with that, no one said that something untoward or unfair happened, and that some people were upset that there was not a vote by the CAC. Mr. Romero stated the re-issuance of the RFP had cost the Agency almost $30,000, not to mention the developers’ costs of over $100,000, maybe near $200,000, and most of the non-profit developers did not have deep pockets with endless resources. Mr. Romero stated the Commissioners, staff, community organizations, PACs, CACs, should be very careful about when making decisions that may result in unnecessary costs to the public. Mr. Romero stated the City faced challenging economic times, and that he wanted people to be aware of costs to the Agency. Mr. Romero stated there were always people coming to the Commission meetings who complained about how slow the Agency did things, but when the Agency had to reissue an RFP at a cost of $30,000, plus the 6-month delay and increases in the cost of construction, that was a significant cost to the City.
10. CLOSED SESSION None.
It was moved by Mr. Singh, seconded by Ms. Covington, and unanimously carried that the meeting be adjourned. The meeting adjourned at 6:43 p.m.
Erwin R. Tanjuaquio