San Francisco Redevelopment Agency

RESOLUTION NO. 111-2007

Conditionally Approving the oPEN spACE Schematic

Design for phase 1 of the Hunters Point Shipyard and

adopting environmental findings pursuant to the

CaliforniaEnvironmental Quality Act;

Hunters Point Shipyard Redevelopment Project Area

BASIS FOR RESOLUTION

1. July 14, 1997, by Ordinance Number 285-97, the Board of Supervisors of the City and County of San Francisco adopted the Hunters Point Shipyard Redevelopment Plan (the “Plan”).  On December 2, 2003, by Resolution No.

179-2003, the Agency Commission approved the Disposition and Development Agreement Hunters Point Shipyard - Phase 1, as the same has been amended from time to time (the “DDA”), between the Redevelopment Agency of the City and County of San Francisco (the “Agency”) and Lennar-BVHP, LLC (“Lennar”). 

1.   Lennar retained SMWM, CMG, Stevens Associates, and Hood Design to produce the Hunters Point Shipyard Open Space and Streetscape Master Plan for Phase 1 (the “Master Plan”), which includes design concepts for the Hilltop and Hillside portions of Parcel A.

1. January 16, 2007, the Agency Commission conditionally approved by Resolution No. 6-2007 the Phase 1 Master Plan for the Shipyard.  The Master Plan’s open space design contemplated open spaces including Hillpoint Park, Innes Court, the Galvez Steps, Central Park, several pocket parks, adjacent bluffs, and a network of pathways that connect these spaces.

1. chematic Design (the “Schematic Design”) have been drafted in accordance with the Horizontal Design Review and Document Approval Procedure for Infrastructure Development (the “H-DRDAP”) and the Hunters Point Shipyard Design for Development, both of which are attachments to the DDA.

1.  The DDA requires Lennar to prepare and obtain approval of a Schematic Design for the Phase 1 development.  This Schematic Design contains drawings and plans for Innes Court Park, Hillpoint Park, Central Park, the pocket parks, lights, and park furniture and equipment.  Under the

H-DRDAP, the Agency reviews the plans and specifications to ensure that they conform to the DDA, the Plan, and the Design for Development.  Schematic designs for individual pocket parks must be submitted with the vertical design of each of the buildings proposed to be built in Phase 1.  

1.   On February 8, 2000, by Resolution No. 12-2000, the Agency Commission adopted findings pursuant to the California Environmental Quality Act (California Public Resources Code Sections 21000 et seq.) (“CEQA”), a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program to support the adoption of the Plan.

1.   The addenda concluded, based on the findings of the FEIR that the proposed refinements would not create any significant environmental impacts not already studied in the Final EIR and that the conclusions reached in Final EIR remained valid.

1.   The addenda to the Final EIR were prepared pursuant to State CEQA Guidelines Section 15164.

FINDINGS

The Agency finds and determines that the Schematic Design is an Implementing Action within the scope of the January 16, 2007 Master Plan and the Project analyzed in the Final EIR and addenda and requires no additional environmental review pursuant to State CEQA Guidelines Section 15180 and 15164 for the following reasons:

A.        The Implementing Action does not incorporate substantial changes into the Project analyzed in the Final EIR and addenda, and will not require any further Final EIR revisions due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects.

B.         No substantial changes have occurred with respect to the circumstances under which the Project analyzed in the Final EIR and addenda was and will be undertaken that would require further revisions to the Final EIR due to the involvement of new significant environmental effects, or a substantial increase in the severity of effects identified in the Final EIR.

C.        No new information of substantial importance to the Project analyzed in the Final EIR and addenda has become available which would indicate any of the following:  (i) the Implementing Action will have significant effects not discussed in the Final EIR and addenda; (ii) significant environmental effects will be substantially more severe; (iii) mitigation measures or alternatives found not feasible that would reduce one or more significant effects have become feasible; or (iv) mitigation measures or alternatives that are considerably different from those in the Final EIR will substantially reduce one or more significant effects on the environment.

RESOLUTION

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco (1) that it has reviewed and considered the Final EIR together with the addenda thereto and any additional environmental documentation in the Agency’s files and hereby adopts the CEQA findings set forth in the previously adopted resolutions that have been incorporated herein by reference and those findings set forth above; and (2) that the Open Space Schematic Design dated September 4, 2007 is hereby conditionally approved, subject to resolution of the following design concerns to Agency staff’s satisfaction at the next phase of design:

1.   The total and partial dimensions must be consistent with scaled dimensions provided in the Schematic Design documents.

1. Bicycle racks shall be included outside the children playgrounds in Innes Court Park and in the middle portion of Hillside Central Park.

1. Drinking fountains shall be included in the lower and upper portions of Hillside Central Park.

1. Alternative locations for the Historic Timeline for the Cultural Historic Recognition Program shall be considered.

1. Alternative designs for the installation of the Children’s Mural Project tiles at the Picnic Area of Hillpoint Park from the Cultural Historic Recognition Program shall be prepared.

1. Refine installation options and designs for the Cultural Historic Recognition Program elements.

APPROVED AS TO FORM:

_________________________

James B. Morales

Agency General Counsel

RESOLUTION NO. 112-2007

AUTHORIZING A SECOND AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT WITH JESSIE SQUARE GARAGE PARTNERS LLC, A DELAWARE LIMITED LIABILITY COMPANY, AND

CB-1 MUSEUM PARTNERS LLC, A DELAWARE LIMITED LIABILITY COMPANY, TO REVISE THE DEVELOPMENT BUDGET TO AN AGGREGATE AMOUNT NOT TO EXCEED $6.0 MILLION FOR THE JESSIE SQUARE IMPROVEMENTS TO BE CONSTRUCTED ON CENTRAL BLOCK ONE AND ADOPTING ENVIRONMENTAL FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT;

YERBA BUENA CENTER REDEVELOPMENT PROJECT AREA

BASIS FOR RESOLUTION

1. October 22, 2002, (the “Garage DDA”), by Resolution No. 185-2002, that provides for the lease and development of the Jessie Square Parcel, Garage Parcel and Mexican Museum Parcel located on Central Block One (“CB-1”), bounded by Market, Mission, Third and Fourth Streets, to construct a public parking facility (the “Garage”), surface improvements to be known as Jessie Square and the foundations for two structures to be developed as museum facilities (collectively referred to as the “Jessie Square Improvements”).

1.   (a) Jessie Square Garage Partners LLC, a Delaware limited liability company (the “Garage Developer”), that has constructed the Garage and the foundation of the proposed museum facility that will be completed on the Jessie Substation site by The Contemporary Jewish Museum and that will construct Jessie Square, and (b) CB-1 Museum Partners LLC, a Delaware limited liability company (the “Mexican Museum Developer”), that has constructed the foundation for the proposed Mexican Museum Building (the “Museum Substructure”) and that will construct the superstructure of the proposed Mexican Museum building (the “Museum Superstructure”) (the Garage Developer and the Mexican Museum Developer are collectively referred to the “Developers”).

1. On August 22, 2005, the Agency Commission, by Resolution No. 122-2005, authorized a First Amendment to the Garage DDA to provide changes to the schedule for the construction of the improvements on the surface of the Jessie Square Parcel and the Museum Superstructure, which work had been delayed due to delays in the construction of the two museum structures, and the need to utilize portions of the Jessie Square Parcel for construction access and staging for the proposed museum to be developed through The Contemporary Jewish Museum’s adaptive reuse of the Substation building.

1.   In accordance with the Agency’s obligations and the Garage DDA, the Developer’s Jessie Square Replacement Architect has completed the construction documents for the surface improvements for Jessie Square and has provided the Agency with a guaranteed maximum price contract for the construction of these improvements.

1. Agency staff recommends a second amendment to the Garage DDA to revise the budget for the Jessie Square Improvements, based on the design costs for the Jessie Square Replacement Architect, the guaranteed maximum price for construction, and on estimated costs for related “soft” costs, and set-aside of funds for contingencies.

1. California Environmental Quality Act (“CEQA”) determinations in connection with the Yerba Buena Center Redevelopment Plan and its implementation:

1. The original Redevelopment Plan for the Yerba Buena Center Approved Redevelopment Project (“Yerba Buena Center”) was adopted on April 25, 1966, by Ordinance No. 98-66, before the adoption of CEQA.

1. County of San Francisco, as joint lead agencies, pursuant to CEQA.

1. The First Supplement to the YBC Final EIR (“First YBC EIR Supplement”) was certified on July 21, 1981 by the Agency Commission and Planning Commission, as joint lead agencies.

1. The Second Supplement to the YBC Final EIR (“Second YBC EIR Supplement”) was certified on January 4, 1983 by the Agency Commission and Planning Commission, as joint lead agencies.

1. The Yerba Buena Center Final Subsequent Environmental Impact Report (“YBC Subsequent EIR”) was certified on December 3, 1992 by the Agency Commission and Planning Commission, as joint lead agencies.

1. The Agency prepared three Addenda to the YBC Subsequent EIR, including Addendum #1 in June 1994, Addendum #2 in October 1994, and Addendum #3 in January 1997.
2. On July 26, 1994, in connection with an amendment of the YBC Redevelopment Plan that changed the scope of development for the YBC Central Blocks, the Agency Commission adopted Resolution No. 97-1994, which included environmental findings and a Statement of Overriding Considerations pursuant to CEQA and Resolution No. 95-1994, approving the Mitigation Monitoring and Reporting Program for the YBC Redevelopment Project.

1.   The Agency Commission adopted Resolution No. 44-1998 on March 3, 1998 that amended the DDA, for the CB-1 Market Street Parcel.  On June 20, 2000, the Agency Commission adopted Resolution No. 89-2000, authorizing a second amendment to the DDA to add the Jessie Square Parcel, provide for the construction of Jessie Square, and made environmental findings for the Jessie Square Parcel.  The Agency Commission determined that all environmental effects of the development of the Jessie Square Parcel had been analyzed in the YBC environmental documents pursuant to Sections 21090 and 21166 of the Public Resources Code, including the documents cited herein, and no further environmental review was required.

1. In adopting Resolution No. 185-2002 on October 2, 2002, the Agency Commission cited Agency staff’s October 17, 2002 memorandum entitled “Application of YBC Subsequent EIR to Jessie Square Improvements to YBC Central Block 1” and determined that the environmental impacts of the Garage DDA was within the scope of the environmental impacts previously analyzed for the YBC Central Blocks, and no further environmental review was required.

1. The YBC Subsequent EIR and related documents have been and continue to be available for review by the Agency Commission and the public and are part of the record before the Agency Commission.

CEQA FINDINGS

The Agency Commission has independently reviewed and adopts the Agency staff’s determination that the changes to the budget for the Jessie Square Improvements, based on the design prepared by the Jessie Square Replacement Architect, which are the subject of the second amendment to the Garage DDA are within the scope of the Project analyzed in the YBC Subsequent EIR and Addenda, and no additional environmental review is required.  The Agency Commission also finds and determines, based on its independent judgment, that the revised budget for the Jessie Square Improvements approved by this resolution and the development schedule changes contained in the second amendment to the Garage DDA is an Implementing Action within the scope of the Project analyzed in the YBC Subsequent EIR and Addenda and requires no additional environmental review pursuant to Sections 21090 and 21166 of the Public Resources Code and CEQA Guidelines Section 15168 for the following reasons:

1. the Agency Commission were and remain adequate, accurate and objective and are incorporated herein by reference.

1. Pursuant to Sections 21090 and 21166 of the Public Resources Code, the YBC Subsequent EIR is a redevelopment plan EIR and a subsequent EIR.  The YBC Subsequent EIR is also a program EIR under CEQA Guidelines Section 15168.  Approval of the second amendment to the Garage DDA is an undertaking pursuant to and in furtherance of the YBC Redevelopment Plan in conformance with Sections 21090 and 21166 of the Public Resources Code and CEQA Guidelines Section 15168 (“Implementing Action”).

1. The Implementing Action is within the scope of the Project analyzed in the YBC Subsequent EIR and Addenda and no major revisions are required due to the involvement of new significant environmental effects or a substantial increase in the severity of significant effects previously identified in the YBC Subsequent EIR.

1. No substantial changes have occurred with respect to the circumstances under which the Project analyzed in the YBC Subsequent EIR and Addenda was undertaken that would require major revisions to the YBC Subsequent EIR due to the involvement of new significant environmental effects, or a substantial increase in the severity of effects identified in the YBC Subsequent EIR.

1. No new information of substantial importance to the Project analyzed in the YBC Subsequent EIR and Addenda has become available which would indicate that (a) the Implementing Action will have significant effects not discussed in the YBC Subsequent EIR; (b) significant environmental effects will be substantially more severe; (c) mitigation measures or alternatives found not feasible which would reduce one or more significant effects have become feasible; or (d) mitigation measures or alternatives which are considerably different from those in the YBC Subsequent EIR will substantially reduce one or more significant effects on the environment.

RESOLUTION

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that (1) it adopts and approves the CEQA findings set forth above and (2) it authorizes the Executive Director to execute the Second Amendment to the Disposition and Development Agreement dated October 22, 2002, as amended by a First Amendment dated August 2, 2005, with Jessie Square Garage Partners LLC, a Delaware limited liability company, and CB-1 Museum Partners LLC, a Delaware limited liability company, substantially in the form lodged with the Agency General Counsel, and also authorized to execute and conform related documents and conveyance instruments necessary to effectuate such amended Disposition and Development Agreement. 

APPROVED AS TO FORM:

_________________________

James B. Morales

Agency General Counsel

110-4207-002                                                                                             Agenda Item No. 4 ( g )

September 20, 2007                                                                          Meeting of October 02, 2007

INFORMATIONAL MEMORANDUM

TO:                 Agency Commissioners

FROM:           Fred Blackwell, Executive Director

SUBJECT:     Workshop on the Visitacion Valley Redevelopment Plan Adoption Process

Executive Summary

On June 7, 2005, the San Francisco Board of Supervisors (the “Board”) passed a resolution designating the Visitacion Valley Survey Area (“Survey Area”) and endorsing the Schlage Lock Strategic Concept Plan (“Concept Plan”, Resolution Numbers 425-05 and 425-06). The designation of the Survey Area tasks the Agency to conduct initial studies to determine the appropriateness of adopting a redevelopment plan within Visitacion Valley. A Preliminary Plan for the Visitation Valley Survey Area (“Preliminary Plan”) was approved by the Planning Commission on November 09, 2006 (Motion No. 17340).

The redevelopment plan adoption process begins with designation of a survey area and concludes with the consideration of a redevelopment plan by the Board.  In between these Board actions, San Francisco Planning Department (“Planning Department” or “Planning”) and Agency staff are working together to complete several technical studies, including a report detailing redevelopment finance projections and blight findings, a site master plan, development controls and new zoning for the Schlage Lock site, and an Environmental Impact Report (“EIR”).  In general, Planning staff has led the physical site planning and the crafting of development regulations. Agency staff has managed the redevelopment technical studies and EIR.  Both the Planning and Redevelopment Commissions will be asked to take various actions before the final consideration of adoption of the proposed Visitation Valley Redevelopment Project Area reaches the Board.   

BACKGROUND

Visitacion Valley

The Survey Area is a 46-acre area including approximately 112 parcels, centered on Bayshore Boulevard and Leland Avenue, in the Visitacion Valley neighborhood, at the southeastern corner of the City.  The focal point of the Survey Area is the vacant, former Schlage Lock manufacturing facility on Bayshore Boulevard and the surrounding vacant properties.  This area consists of approximately 20 acres of formerly industrial properties adjacent to three transit stations of the T-Third Street Light Rail Line.  The land has remained underutilized since the closure of the Schlage Lock facility.  The soil and groundwater on the site and some of the surrounding land contain hazardous materials that have not been remediated.  The Survey Area includes, in addition to the Schlage Lock site and surrounding properties, four blocks of Leland Avenue, and five and a half blocks of properties on the west side Bayshore Boulevard.

Past Planning Efforts and Documents

In 2002, in response to a proposal for a Home Depot store on the Schlage Lock site, members of the Visitacion Valley community, with the Planning Department, developed the Concept Plan.  This plan calls for a mixed-use, transit-orient development with residential and neighborhood-serving commercial uses, accompanied by open space and pedestrian-oriented street designs.  The plan also called for the revitalization of Leland Avenue and the west side of Bayshore Boulevard, which have historically served as the neighborhood commercial streets for Visitacion Valley.  The Concept Plan was endorsed by the Board on June 07, 2005 (Res. No. 425-05) as the document to guide planning efforts in Visitacion Valley.

The Agency and the Planning Department are working together with the community to complete the steps necessary to propose a redevelopment plan for the Survey Area and revised land use controls for the Schlage Lock site and, potentially, Bayshore Boulevard.  Agency staff and consultant teams are currently working on the technical reports for the Survey Area, including a Preliminary Report and an EIR.  Funding for these reports was included in the General Fund request in the FY 06-07 Budget, and provided via a tax increment loan agreement with the City and County of San Francisco approved by the Commission on August 01, 2006 (Res. No. 2006-099).

A Visitacion Valley Citizens Advisory Committee (“CAC”) appointed by the Mayor is currently advising the Agency and the Planning Department on proposed redevelopment and land use policies.  The Visitacion Valley CAC had its first meeting on July 11, 2006, and has been meeting monthly to discuss redevelopment goals, site plans, toxic remediation, affordable housing policies, economic development tools, open space needs, and sustainable development criteria.

On November 7, 2006 the Planning Commission approved the Visitacion Valley Preliminary Plan (“Preliminary Plan”, Motion no 17340).  It reinforces the mixed use transit village ideas generated by the Concept Plan. The Preliminary Plan proposes land uses for the Schlage Lock site to include medium density residential, neighborhood commercial, cultural/institutional, and open space.  Densities are proposed to range from 60 to 80 dwelling units per gross acre and heights from 3 to 8 stories.  The Preliminary Plan outlines the new streets to be configured on and around the Schlage Lock site as extensions of existing streets to complement the existing neighborhood block pattern.  The Preliminary Plan also states that the power of eminent domain will not be exercised on any properties that contain residential units within the proposed Visitacion Valley redevelopment project area.

Framework Plan and Community Planning Workshops

The Planning Department has conducted a new round of community workshops to further refine the Strategic Concept Plan into zoning and development controls to be put in place with the redevelopment plan.  Over the course of five large public workshops and multiple CAC meetings, community members have advised Planning Department staff on the drafting of appropriate land use rules and development controls.  These workshops have thus far covered issues of street layouts, development densities, design guidelines, open space programming, building heights and sustainable development goals.  Agency staff have participated in and assisted with all aspects of these neighborhood planning efforts.  These workshops have led to the Framework Plan (Illustrated in Attachments 2 and 3) and have informed the Visitacion Valley Design for Development (“Design for Development”) currently under development. The Planning Department is also drafting specific zoning designations and a special use district to enable the Design for Development and to synchronize the San Francisco Planning Code (“Planning Code”) with the allowed land uses under the proposed redevelopment plan, discussed below.  At this point, the Agency and Planning Department are considering the sharing of land use jurisdiction over development proposals in a manner that provides thorough and efficient review and approval of projects, consistent with goals of the redevelopment plan.

REDEVELOPMENT PLAN ELEMENTS

Redevelopment Plan

Agency staff has worked with the CAC to prepare initial drafts of a Draft Visitacion Valley Redevelopment Plan for eventual consideration by the Commission and the Board (“Draft Redevelopment Plan”). The Draft Redevelopment Plan is the document that creates a new redevelopment project area and enables redevelopment activities in the area.  The Draft Redevelopment Plan includes a set of redevelopment goals and objectives written by the CAC.  It establishes the land use and development parameters that are then further defined by a Design for Development and the Planning Code.  The Draft Redevelopment Plan also creates the structure for tax increment financing, outlines a framework for community revitalization programs and gives the Agency the authority to develop specific economic development and affordable housing programs.  The Draft Redevelopment Plan also authorizes the development of a numerous companion policy documents to provide further details regarding future development, such as Owner Participation Agreements, affordable housing policies, local workforce programs Open Space and Streetscape plans and an Infrastructure Plan.  These documents would all reflect the outcome of the community planning workshops and the recommendations of the CAC.

Environmental Impact Report

Potential changes to the physical environment by proposed redevelopment activities must be evaluated by an EIR under the California Environmental Quality Act.  The Commission approved a Personal Services Contract (“PSC”) with Wagstaff and Associates in December of 2005 (Res. No. 2005-211) in order to prepare the EIR.  The EIR will describe existing conditions and anticipate the impact of future growth on the character of the Survey Area.  The EIR will include impact analyses on a wide variety of elements in the Survey Area, such as aesthetics, air quality, cultural and historic resources, hydrology and water quality, hazards/hazardous materials, noise, land use, population and housing, public services and utilities, transportation and parking.  The publication of the Draft EIR has been delayed because of the need to complete a regional transportation planning study with the San Francisco Transportation Authority and refinements to the hazardous materials clean-up plans, discussed below.  Agency staff now hopes to publish a Draft EIR by November of 2007.

Existing Conditions Survey and the Preliminary Report

The Commission authorized a PSC with Seifel Consulting in December 2005 (Res. No 2005-202) in order to prepare the Preliminary Report and the Report to the Board.  The Preliminary Report provides documentation of the physical and economic conditions in the Survey Area.  If conditions of both physical and economic blight are found, redevelopment tools such as tax increment financing and land acquisition and assembly will be considered as methods to be used to alleviate the conditions of blight.  The Preliminary Report will discuss the elements of a proposed redevelopment program and evaluate how such programs may be financed, including detailed tax increment projections for the proposed project area.  The Preliminary Report is distributed to all taxing entities that may be affected by the creation of a redevelopment project area. 

Seifel has completed the existing conditions analysis and other documentation to evaluate the Survey Area for potential adoption as a redevelopment area. Last year, the California Legislature adopted SB 1206 which tightened the definitions and standards for blight determinations under the Community Redevelopment Law (“CRL”), which went into effect in 2007.  The existing conditions or blight analysis conducted by Seifel has determined that both physical and economic conditions of blight are present, as defined in the 2007 revisions to the CRL. 

Seifel found the Survey Area contains two prevailing factors of physical blight: 1) unsafe and unhealthy buildings and 2) conditions hindering viable use.  The Survey Area contained a large number of buildings determined to be dilapidated or severely dilapidated and thus potentially unsafe or unhealthy.  Conditions of buildings found in the survey included deteriorating structural systems, dilapidated roofs, faulty plumbing, dry rot, exposed wiring, and serious foundation problems.

Seifel’s analysis also found multiple conditions of economic blight in the Survey Area: impaired investment/hazardous waste, indicators of distressed buildings, and high crime rate.  Perhaps the most prevailing condition of blight in the Survey Area is hazardous material contamination.  The Schlage Lock site contains a complex array of sub-surface contamination affecting both the soil and groundwater.  Because of the conditions of the Schlage Lock site, the formerly industrial properties are considered impaired investments requiring significant remediation investment before reuse.  The Survey Area also has numerous other properties, primarily on Bayshore Boulevard with known hazardous material releases requiring investigation and potential remediation. There are numerous vacant properties and buildings in the Survey Area along both Leland and Bayshore Boulevard.  Seifel also found a disproportionately high crime rate in the area.  Although not a stand-alone factor of blight, the Survey Area is also served by inadequate public improvements. 

These conclusions will be incorporated into the full redevelopment Preliminary Report.  Agency staff expects to publish the full Preliminary Report in the Fall of this year.  They will also become chapters of the Report to the Board.

Report to the Board

The Report on the Redevelopment Plan or “Report to the Board” is provided to the Board for its consideration with any proposed redevelopment plan.  The contents of the Report to the Board are mandated by the CRL.  It builds off the Preliminary Plan to provide additional and updated background information regarding the Survey Area and proposed redevelopment programs.  Within the Report to the Board is a five-year “Implementation Plan” that details potential redevelopment programs, affordable housing proposals, and uses of tax increment. The Report to the Board also includes a “Neighborhood Impact Report” that assesses any potential impacts of a redevelopment plan on transportation, community services, affordable housing and schools.  The Neighborhood Impact Report must also discuss any issues of displacement that may result from the implementation of the redevelopment plan. 

Schlage Lock Site Clean Up and Remediation Settlement

The industrial area referred to as the Schlage Lock site contains a number of parcels that are under the ownership of two companies. Ingersal Rand Corporation owns the property and buildings, along Bayshore Boulevard that were at one time used by Schlage Lock Company.  Universal Paragon Corporation (“UPC”) owns the former rail yard properties along the eastern side of the survey area.  The Department of Toxic Substance Control (“DTSC”) has previously issued a clean up order against Ingersal Rand Corporation, requiring the property owner to develop and initiate a plan to remediate the hazardous materials spilled into the soil and groundwater during the industrial operations of the site. 

While some clean up efforts have been underway, full remediation has not occurred. UPC contends that the toxic chemical plume on the Ingersal Rand property has brought contaminants under their property and initiated court proceeding to seek a remedy for this loss of property value and additional clean up burden.  Earlier in 2007, the DTSC, UPC and Ingersal Rand entered into court ordered mediation and a settlement agreement was proposed whereby Ingersal Rand would transfer title of their properties to UPC as settlement and release of liability for the hazardous materials on their site.  UPC issued a Request for Proposals seeking teams on environmental clean up contractors and insurance packages that would facilitate the remediation and development of the Schlage Lock site.  In August of this year both private parties decided to pursue a conditioned clean up and property transfer agreement, agreeing to initiate a contract with a selected clean-up/insurance team.  This agreement contains a number of contingencies including unresolved insurance issues.  The outcome of the settlement discussion is expected by November.  Assuming the settlement agreement is finalized, Agency staff has drafted a redevelopment plan that anticipates the Agency will enter into an Owner Participation Agreement with UPC serving as a master developer of the Schlage Lock site.

Leland and Bayshore Revitalization

Staff has worked with staff of the Planning Department, the Mayor’s Office of Economic and Workforce Development, and the Mayor’s Office of Community Development in order to develop redevelopment programs to facilitate the economic revitalization of the Leland Avenue and Bayshore Boulevard commercial corridors.  Many efforts are underway by other city departments and local organizations, and the goal of the redevelopment program is to enhance these efforts after plan adoption.    The Planning Department has completed a streetscape design, with substantial community input, for Leland Avenue and have secured some funding for much of the reconstruction according the these plans.  The redevelopment plan would continue this design into the new site and support expansion of the improvements along the full corridor.  

STEPS TOWARD PLAN ADOPTION

The following table provides an update on the key milestones and projected dates toward the potential adoption of a Visitacion Valley Redevelopment Project Area. Agency and Planning Department staff will continue to work with the Visitacion Valley CAC through every step of this process.

(Originated by Tom Evans, Planning Supervisor)

Fred Blackwell

Executive Director

Attachments: 

1. Visitacion Valley Redevelopment Survey Area Map
2. Visitacion Valley Framework Plan
3. Renderings of Visitacion Valley Framework Plan
4. Draft Visitacion Valley Redevelopment Plan