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Home My WebLink AboutPRESENTATION - 75A3rdand BroadwayPBA/CDANovember 17, 2020Slide 13rd and BroadwayPublic Hearing75A 3rdand BroadwayPBA/CDANovember 17, 2020Slide 2Site Address: 201 W. 3rdStreetSite Size: 1.43 acresCurrent Use: Public Parking Structure with 440 parking spaces (built in 1980) 3rdand BroadwayPBA/CDANovember 17, 2020Slide 3BackgroundIn 2013, the Development and Transportation City Council Committee were presented with two options:1. Repair parking structure to bring it to baseline standard - Estimated cost: $8.6 million2. Demolish the structure and develop a mixed-use project that would connect 3rdand 4thStreets in the heart of downtown 3rdand BroadwayPBA/CDANovember 17, 2020Slide 4Background• 2014 - Released Request for Qualifications• 2016 - Entered into an Exclusive Negotiation Agreement with Caribou Industries• On September 28, 2020 the Planning Commission voted 6:0:1 to approve the Addendum, Variance and Tentative Map and recommended City Council approval of the Addendum, Density Bonus and Site Plan Review applications• October 17, 2020 the Council extended the ENA to January 5th2021 3rdand BroadwayPBA/CDANovember 17, 2020Slide 5Proposed Development: Mixed-Use•Residential– 16-Story – 171 unit apartments (19 very-low income)• 95 studios (56%)• 51 one-bedrooms (30%)• 25 two-bedrooms (14%)•Retail– 13,419 sq. ft.•Hotel– 10-Story– 75 rooms•Parking– 196 Residential spaces– 83 Hotel spaces– 211 Public parking spaces 3rdand BroadwayPBA/CDANovember 17, 2020Slide 6Site Plan Review171 Residential Units 13,419 SF of Commercial 75 Room Hotel444 parking spaces46 parking spacesVALET 3rdand BroadwayPBA/CDANovember 17, 2020Slide 7Public Parking•211 public parking spaces (Levels P1 to 4)•Currently 440 public parking spaces on siteVehicle Entry/Exit and LobbyP1 3rdand BroadwayPBA/CDANovember 17, 2020Slide 8Building Heights16‐STORIES – 194 feet10‐STORIES – 128 feet 3rdand BroadwayPBA/CDANovember 17, 2020Slide 9Pedestrian LevelPlaza at 3rdand BroadwaySycamore Street Special Event Promenade 3rdand BroadwayPBA/CDANovember 17, 2020Slide 10Addendum• 2010 Transit Zoning Code EIR analyzed: 4,075 residentialunits, 387,000 SF of retail development, and 15.5 acres ofopen space• Project Studies Prepared: Shade and shadow, air qualityand GHG emissions, traffic, parking, noise, Phase I,hydrology, preliminary water quality management plan,and sewer capacity analysis• SB 743: aesthetic and parking impacts are not considereda significant impact within a Transit Priority Area• Addendum concludes no new or substantially greaterimpacts would occur with the proposed development whencompared to the 2010 EIR 3rdand BroadwayPBA/CDANovember 17, 2020Slide 11Density Bonus State Law• 19 very-low income units• 55 years, 30-50% of the AMI• 10 studios, 6 one-bed, 3 two-bed• Density Bonus (35%)• 127 to 171 units• Parking Standard (State Law)• 1 space per studio• 1 space per one-bed• 2 spaces per two-bed• 196 spaces total• Floor Area Ratio Waiver• 4.2 FAR (3.0 max.)• Stories Waiver• 16 stories (10-stories max.)• Open Space Concession 1• Designed as roof decks(courtyard or forecourt required)• Massing Concession 2• 93 % on the 3rd level (85% max.) 3rdand BroadwayPBA/CDANovember 17, 2020Slide 12What is a DDA?• Contract between a developer and City involving disposition of City-owned property• Formalizes Negotiated Deal Points• Outlines the terms of the transaction• Milestones for the developer to achieve• Method of conveyance of the property, parking structure operational agreements, and all city participation options if the project is sold in the future 3rdand BroadwayPBA/CDANovember 17, 2020Slide 13What’s in this DDA?• DDA establishes– City’s Responsibilities– Developer Responsibilities– Performance Schedule– Hotel conversion option of hotel if underperforming after year 2– Share of City profits should project sell to new developer– Parking related responsibilities– A process by which the 211 parking spaces will be sold– Reciprocal access– A Community Workforce Agreement 3rdand BroadwayPBA/CDANovember 17, 2020Slide 14City Responsibilities• Public Improvements Funded by City:– Demolition of existing parking structure– Site Prep for construction of project– Construction of 211 public parking spaces– Reconstruct Sycamore as a Private Street providing a public right-away• Land Donation– $3M• Estimated expense– $6M public improvements – $7M public parking$13M Total 3rdand BroadwayPBA/CDANovember 17, 2020Slide 15Developer Responsibilities• Process all entitlements• Provide funding for development (estimated at over $100 million)• Build all improvements including Public Improvements• Design and operate hotel (with option to convert to residential)• Manage and operate public parking • Fund all operating expenses including City debt service 3rdand BroadwayPBA/CDANovember 17, 2020Slide 16Performance ScheduleFUNCTION TIME OF PERFORMANCEConstruction Drawings and Grading PlanWithin 8 months of City Council Approval.Proof of Financing and Hotel Operator CommitmentWithin 90 days of approval of construction drawings.Opening of Escrow Within 60 days of Developer proof of financingFinancing for Public Improvements (City)Within 90 days of Developer proof of financing.Issuance of Demolition, Grading Permits and Building PermitsWithin 90 days of closing of escrowCompletion of Construction On or before 24 months from start of construction 3rdand BroadwayPBA/CDANovember 17, 2020Slide 17Criteria for Conversion of Hotel to Residential• During the first 5 years, but not sooner than 2 years, certain economic criteria will be set to allow for conversion• Can request to be converted to residential if the revenue per available room falls below the amount as follows:• 2 years less than $125• 3 years less than $125• 4 years less than $125• 5 years less than $125 3rdand BroadwayPBA/CDANovember 17, 2020Slide 18City Participation and Revenue Sharing • Should the Project be Sold, City receives a share of profits based on participation formula• City shares in profits above 15% of developer’s costs 3rdand BroadwayPBA/CDANovember 17, 2020Slide 19Parking Operations• Applicable to 211 Public Parking Spaces• Developer to manage Public Parking in perpetuity• Developer services City’s debt and all operating costs• If hotel converts to residential or after 30 years, City receives 40% of net parking revenues 3rdand BroadwayPBA/CDANovember 17, 2020Slide 20Purchase Option for Public Parking• Developer has option to purchase 211 public parking for $15 million for first 15 years. After that, higher of $15 million or appraised value.Example: – 5 years = $3.5 million net to City– 10 years = $5 million net to City– 15 years = $8 million net to City• Parking to remain Public in perpetuity 3rdand BroadwayPBA/CDANovember 17, 2020Slide 21Downtown Parking Inventory3rd& Broadway5th& Spurgeon3rd& Birch5th& Main3rd& Bush LotTotal# of total spaces 440 700 400 400 55 1995# of Users at Peak Time*331 223 312 234 13 1113# of spaces for daily users109 477 88 166 42 882% of total spaces available for public24% 68% 22% 41% 76% 44%*Peak Time Data Collected on 12/5/19 at 12pm 3rdand BroadwayPBA/CDANovember 17, 2020Slide 22Downtown Parking Walking Distances 3rdand BroadwayPBA/CDANovember 17, 2020Slide 23Project Benefits• Estimated annual revenue: $737,000• Estimated to create 510 construction jobs for CityTaxes AmountProperty $340,000Hotel Visitor’s Tax $270,000Sales Tax $82,000Utility Tax/Misc. $45,000 3rdand BroadwayPBA/CDANovember 17, 2020Slide 24Community Benefits• 19 Very-Low Income Units On site• Publicly Accessible Space:– Sycamore St. and special event promenade– Hotel rooftop lounge– Outdoor areas and meeting room• 211 Public Parking Spaces in Perpetuity• Long-term Jobs; Property, Sales, and Hotel Visitor’s Tax Increase General Fund Revenues for the Community 3rdand BroadwayPBA/CDANovember 17, 2020Slide 25City Council Will Consider• Addendum • Density Bonus Agreement with Concessions and Waivers• Site Plan Review Applications• Disposition and Development Agreement 3rdand BroadwayPBA/CDANovember 17, 2020Slide 26Staff Team•Community Development Agency– Steven Mendoza– Marc Morley– Elisa Stipkovich– Judson Brown•Public Works Agency– Nabil Saba– Taig Higgins•Planning & Building Agency– Minh Thai– Vince Fregoso– Selena Kelaher•CEQA– Bill Halligan, Placeworks•Architect– Tobin White, Studio 111