Redevelopment Agency Minutes, July 9, 2007
DALY CITY REDEVELOPMENT AGENCY
DALY CITY CIVIC CENTER - COUNCIL CHAMBERS
MINUTES – JULY 9, 2007
The meeting was called to order by Chair Gomez at 7:29 P.M.
ROLL CALL: Members Present:
Maggie Gomez, Chair
Carol L. Klatt, Vice-Chair
Judith A. Christensen, Director
Michael P. Guingona, Director
Sal Torres, Director
Patricia E. Martel, Executive Director
Rose Zimmerman, Agency Attorney
Maria Cortes, City Clerk
Terry Sedik, Director, Economic & Community Development
Richard Berger, Assistant Director, Economic
& Community Development
Joint Session with City Council:
10. Public Hearing Regarding Disposition and Development Agreement for Phase III of Pacific Plaza
Chair Gomez indicated the purpose of the joint public hearing of the City Council and the Redevelopment Agency was to consider the proposed development, through a Disposition and Development Agreement, of the commercial project along Junipero Serra Boulevard at Pacific Plaza for the Phase III office development. A fundamental component of the Agreement is the sale of certain Agency-owned real property.
Chair Gomez noted there would be a presentation by staff regarding the proposed Disposition and Development Agreement and then the meeting would be open for public testimony.
Terry Sedik, Director of Economic and Community Development, presented the staff report. He entered into the record the actual Agreement and a summary of the Agreement, both of which had been on file in the City Clerk’s Office and available for public review. He noted that there were two agreements for the Phase III project under consideration, but only one, the Disposition and Development Agreement, is the subject of the joint hearing. The agreement between Agency and Dewey Land Company, a California Corporation, or its nominee assures development in accordance with the Planned Development PD-54 standards for Phase III.
The date in the staff report that the property 2147 Junipero Serra was acquired was corrected to June 2007. Mr. Sedik also indicated the staff report uses the terms “usable” and “leasable” square footage interchangeable and they refer to space within the building that is usable.
Under the terms of the Disposition and Development Agreement, Dewey Land Company will provide a $200,000 deposit and will purchase the property for $3,530,000, or $33.66 per square foot. Mr. Sedik explained the difference between what the Agency had spent acquiring the property, i.e. $4,000,000 and the sales price to Dewey Land Company, i.e. $3,530,000, results form the Agency buying land and improvements and selling just the land.
The appraisal value of $4,000,000 was adjusted to account for poor soil conditions along northern portion of the site and savings resulting from no marketing costs or sales commission costs to the Agency. Applying these two adjustments results in a Fair Market Value of $3,530,000. Mr. Sedik noted the Agency will relocate current tenants, remove, as necessary, all asbestos and lead paint and demolish existing buildings. The agreement also contains prevailing wage and hire Daly City first provisions.
Mr. Richard Dewey, CEO and President of Dewey Land Company, provided a summary of the company’s previous project in Daly City and introduced John McNulty, Founding Principal, MBH Architects, architect for the proposed project. Mr. McNulty summarized the new design principles proposed to improve upon the earlier design for the Phase I building.
Chair Gomez opened the hearing for public comment.
Annette Hipona, 448 Woodrow, Stated she felt the proposal was a sweetheart deal for the developer. She stated the land should be valued at $100 per square foot and the jobs being created are not new jobs, but rather jobs being relocated from San Francisco that are low paying jobs. She also felt workers do not use BART to commute to work.
Dana Smith, 434 San Diego, spoke and said the land is worth more than $33 per square foot and she believed the value was closer to $174 per square foot. She stated the Agency sold land to Dunn Edwards for $33 per square foot and that price does not make sense.
Bill Nack, Executive Director, Building Trades Council of San Mateo County, expressed his support for the project and indicated Summit Commercial Properties had an excellent track record and he expect Dewey Land would do the same. He noted that the project would create hundreds of hours of work for skilled, union workers from the building trades.
Director Christensen stated she disagreed with the sales price and she felt the fair market value should be much higher than the proposed sales price. She cited office rent data from an article in the San Francisco Examiner and also referred to the Agency’s sale of land as a part of the Dunn-Edwards project. Ms. Christensen said she had read the appraisal and needed more information.
In response to concerns expressed in the hearing, Mr. Sedik stated that the Agency had retained the services of professional real estate appraisers to provide a value of the site. He noted that the value was as of May 2007. He indicated it is the appraiser’s professional duty to examine comparables and to make adjustments to those sales for differences in size, location, zoning limitations, suitability of the site and other factors that affect land value. He stated the Agency would pay for the
demolition of the existing buildings under a contract with a demolition contractor furnished by Dewey Land Company and that contractor would be fully insured.
It was moved by Director Guingona, seconded by Vice-Chair Klatt, and carried 3-1 by roll call vote, with Director Christensen voting nay, to adopt the following resolution:
A Resolution of the Governing Board of the Daly City Redevelopment Agency Authorizing Execution of Disposition and Development Agreement for Pacific Plaza Phase III with Dewey Land Company
End of joint session
APPROVAL OF MINUTES:
It was moved by Vice-Chair Klatt seconded by Director Guingona and carried to approve the minutes for the Regular Meeting of June 11, 2007.
Claims: Expenditures and Claims for May 2007
It was moved by Vice-Chair Klatt, seconded by Director Guingona, and carried to adjourn the meeting at 9:28 PM.
Secretary of the Redevelopment Agency
Approved this _ 23rd __ day
of July , 2007
Chair of the Redevelopment Agency