Title
Staff Report for the Matter of Authorizing the City Manager to Execute an Improvement Agreement with Chang Income Property Partners, LP for Public Improvements on Martinez Street; Resolution of Intention Calling for a Public Hearing to Vacate Portions of the Public Right-of-Way and Retain Public Utility Easements on Martinez Street Between West Estudillo Avenue and Thornton Avenue; and West Estudillo Avenue Between Alvarado Street and Martinez Street; and Setting the Date for a Public Hearing on the Vacation of Portions of the Public Right-of-Way for July 21, 2014
Staffreport
SUMMARY AND RECOMMENDATIONS
The recommended and requested action authorizes the City Manager to execute an improvement agreement with Chang Income Property Partners, LP to guarantee the completion of improvements to public right-of-way.
The action will also provide for the vacation of the public right-of-way on Martinez Street between Parrott Street and Thornton Street; the westerly half of Martinez Street between West Estudillo Avenue and Parrott Street; and West Estudillo Avenue between Martinez Street and Alvarado Street and reserving easements for the remaining utilities. The action sets a date for the public hearing for the requested vacation of public right-of-way.
Staff recommends authorizing the City Manager to execute an agreement with Chang Income Property Partnership, LP for public improvements on Martinez Avenue.
Staff also recommends the adoption of a resolution declaring the City Council's intention to vacate portions of the public right-of-way and reserving public utility easements on Martinez Street and West Estudillo Avenue, and setting a public hearing for the July 21, 2014 City Council meeting.
BACKGROUND
Westlake Development Group, L.P (Westlake), on behalf of Chang Income Property Partnership, LP. (Chang), the owner of 1333 Martinez Street, has requested that the City vacate portions of the public right-of-way, as shown on Exhibit A, to accommodate the construction of the proposed Downtown Tech Campus. The areas to be vacated are Martinez Street, between Parrott Street and Thornton Street; the westerly half of Martinez Street between West Estudillo Avenue and Parrott Street; and West Estudillo Avenue between Martinez Street and Alvarado Street. Existing utility easements within the vacated areas will be retained. Chang Income Property Partnership, LP currently owns 1333 Martinez Street and has proposed to develop the site for the Downtown Tech Campus.
These sections of Martinez Street and West Estudillo Avenue are bounded by the Downtown San Leandro BART Station on the east, Alvarado Street on the west, Davis Street on the north and Thornton Street to the south and are currently used for parking primarily by BART patrons.
In addition, the developer will improve the easterly half of Martinez Street into a bicycle and pedestrian paseo which will ultimately become a portion of the East Bay Greenway. The improvements will include a twenty-foot paved pedestrian and bicycle path, streetlights and storm water treatment facilities. The project will also include undergrounding of all overhead utilities. The Development Agreement between the City and Westlake requires that Westlake maintain the improvements on both the vacated and retained portions of the public right-of-way.
The City's involvement with Westlake and the entitlement of Westlake Development Partner's property began in 2008 with the original residential-focused San Leandro Crossings Master Plan. The plan at the time included multi-housing units and office spaces. With the housing downturn, Westlake refocused on developing 1333 Martinez Street into an office complex, while a non-profit developer partner, Bridge Housing Corporation, assumed the efforts to develop housing units at 1400 San Leandro Boulevard.
Westlake and the City have spent a substantial amount of time and work over the past six years to create a viable and innovative Transit-Oriented Development (TOD) development plan to arrive at the current plan, which is expected to become a catalyst for economic growth.
Analysis
The City supports the Downtown Tech Campus project (Project), and finds it to be vital for implementing the City's Downtown Transit-Oriented Development Strategy (TOD Strategy) goals. The project is in line with the City's vision to tap into economic opportunities generated from the growth of the Silicon Valley and the San Francisco Bay Area high tech industry. As the first privately funded project in the TOD Strategy area, the project has strong potential to attract similar developments.
The proposed project will create an opportunity for a unique workplace district in Downtown San Leandro for more than 1,800 new employees. It will provide an opportunity to attract and retain businesses that can benefit from the high-speed broadband capacity created by Lit San Leandro. The project will transform a site, which has been vacant for a substantial amount of time, into a high density office campus and potentially an important municipal revenue driver for years to come.
The project has made provisions to absorb some of the BART patrons' overflow parking spaces on Martinez Street onto the proposed project's parking facilities. Westlake submitted a preliminary plan and estimate of work within the public right-of-way. The City drafted an agreement for the work shown on the plans, setting forth the responsibilities of each party with respect to the work, such as the requirement that Chang obtain an improvement surety bond for the value of the work to ensure its completion. The proposed public improvements are in line with the City's vision for the East Bay Greenway project in the TOD, of which this partial segment will be fully funded by the developer.
The street vacations are conditioned such that the City Clerk can accept dedications for the vacated streets for public right-of-way if the improvements related to the street vacations are not initiated within twenty-four (24) months of this action. To implement the said condition, Chang has deposited an executed dedication with the City, which will be kept in the custody of the City Clerk pending compliance. Upon compliance, the Dedication document will be returned to the developer. If the developer fails to comply, the City Clerk will file the Dedication with the County, reestablishing the streets as public right-of-way.
Applicable General Plan Policies
· Policy 6.01; Downtown Plan: In accordance with the adopted Downtown Plan and Urban Design Guidelines and the Downtown San Leandro Transit-Oriented Development Strategy, ensure that new Downtown Development is attractive and creates an image conducive to revitalization
· Policy 6.05; Pedestrian-Friendly Environment: Provide public and private improvements that create a safe, friendly, and pleasurable environment for pedestrians in Downtown
· Policy 6.09; Business Partnership: Support public and private efforts to enhance and market Downtown San Leandro, encourage partnerships between the City, Redevelopment Agency, the Chamber of Commerce, the Downtown Association, and private entities (such as property owners, tenants, developers, etc.)
· Policy 6.10; BART Area Revitalization: Foster the development of the BART Station area as a mixed use "transit village," with a full complement of office, high-density residential, and retail uses, along with pedestrian plazas, open space, BART parking, and other transit facilities (possibly including a Capitol Corridor rail station)
Environmental Review
As indicated in the General Plan Conformance Finding, the property disposition was covered in the Initial Study and Mitigated Declaration for the proposed development project. The street vacations are exempt from the California Environmental Quality Act (CEQA) because the associated Mitigated Negative Declaration has not demonstrated potential for a significant effect on the environment.
Board/Commission Review and Actions
On February 20, 2014, the Planning Commission reviewed and approved the project.
Summary of Public Outreach Efforts
Staff corresponded with utility agencies affected by the proposed vacation.
Fiscal Impacts
· There is no fiscal impact from this project
· All costs incurred in preparing and processing both the improvement plans and the street vacation documents will be paid by Chang
· All construction and inspection costs for the public improvements for the project will be paid by Chang
ATTACHMENTS
Attachment to Staff Report
· Public Improvements Exhibit
Attachments to Related Resolutions
· Public Improvements Agreement
· Dedications of Public Rights-of-Way
· Legal Descriptions of the proposed public right-of-way vacation areas
PREPARED BY: Austine Osakwe, Senior Engineer, Engineering and Transportation, Department