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Report regarding a resolution making findings and determining that the acquisition of real property located at 226-246 Grand Avenue is in conformance with the South San Francisco General Plan (Adena Friedman, Chief Planner).
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RECOMMENDATION
Recommendation
It is recommended that the Planning Commission adopt a resolution making findings determining that the acquisition of real property at 226-246 Grand Avenue (APNs 012-315-130, 012-315-140, and 012-315-150) is in conformance with the South San Francisco adopted General Plan in accordance with provisions of State Planning Law (Govt. Code Section 65402)
MOTION FOR THE COMMISSION TO ADOPT STAFF RECOMMENDATION:
1. Move to adopt a resolution making findings that the acquisition of the 226-246 Grand Avenue property is in conformance with the South San Francisco adopted General Plan.
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BACKGROUND
The long-time owners of four consecutive buildings spanning three parcels on Grand Avenue approached the City roughly one year ago with interest in selling 226-230 Grand Avenue, 232-238 Grand Avenue, and 240-246 Grand Avenue (the “Properties”) (See Attachment 1). The sellers of the Properties have held them within the same family for over one hundred years. Currently, the Properties are home to successful ground floor commercial uses with vacant second floors. The General Plan designation for these properties is Grand Avenue Core (GAC), which the General Plan describes as the historic retail center of the city (maximum Floor Area Ratio (FAR) from 1.5 up to 4.0 with community benefits; maximum residential densities up to 100 du/ac). The zoning is also GAC, implementing the General Plan.
The Properties each measure approximately 7,000 square feet with 50 feet of frontage on Grand Avenue and Fourth Lane. Together they comprise roughly one-half of an acre. Located on the Properties are three two-story buildings with commercial uses on the ground floor and vacant single room occupancy hotels on the second floor. The Properties also include one single-story commercial building. Additionally, the Properties contain two garage/warehouse spaces fronting on 4th Lane.
The full detail of the improvements found on each parcel includes:
• 226-230 Grand Avenue (APN 012-315-130) includes 10,200 gross square feet within a two-story reinforced concrete building as well as 800 square feet of garage/storage space. The approximately 5,000 square feet of ground floor commercial space is occupied by Café Bunn Mi and Oasis Day Program. The upper floor is vacant.
• 232-238 Grand Avenue (012-315-140) includes 9,400 gross square feet within a two-story reinforced concrete building. On the ground floor of the building there is an opening in the eastern wall which connects to the ground floor space of the 226-238 Grand Avenue building. The approximately 4,600 square feet of ground floor commercial space is occupied by Oasis Day Program and the Soccer Shop. The upper floor is vacant.
• 240-246 Grand Avenue (012-315-150) includes two buildings fronting Grand Avenue. The easternmost building is a single-story wood-frame building (addressed as 238½ Grand Avenue) of approximately 700 rentable square feet. Additionally, there is a two-story wood frame building containing 4,785 rentable square feet. There are three ground floor commercial units between the two buildings which are occupied by Country Cottage Cafe, Bitters & Bottles, and Burrell’s Hair Cutting Place. The upper floor contains three residential units (a three bedroom - one bathroom unit, a 2 bedroom - one bathroom unit, and a one bedroom - one bathroom unit) which are all vacant.
DISCUSSION
City Council met in closed session on April 26, 2023 to discuss the possible acquisition of the Properties, both as a potential affordable housing development site as well as a way to protect existing ground floor commercial tenants. Council provided authorization to staff to begin evaluating the condition and value of the Properties. The City commissioned a Property Condition Assessments to understand the conditions of the Properties and better assess the cost of any future maintenance or retrofitting. The City engaged an economic development consultant, which subcontracted with an architecture firm, to complete proforma analysis contemplating various renovation and redevelopment scenarios. This served to demonstrate any future costs and value to the City of acquiring the properties. And finally, the City commissioned an appraisal to form the basis of its price negotiations.
After completing this work, Council authorized staff to make a purchase offer and to negotiate with the property owner. The property owner accepted the City’s best and final purchase offer, and staff will present the Purchase and Sale Agreement to the City Council for approval on February 14, 2024.
Future Property Uses
The Properties are proposed to be acquired using the City’s Commercial Linkage Fee fund, Fund 823, which is collected from commercial developments exclusively for affordable housing programs and projects. There are many potential uses of the site - restoration of the single room occupancy hotels and returning them to service as affordable housing, renovating the upper floors of the buildings to more modern residential standards including a mix of studios and one-bedrooms, or a complete redevelopment of the site. The benefit of City ownership under this last scenario is that the historic nature of the commercial facades may be maintained, and the design and massing of the building is more closely controlled. This will allow the City to provide much-needed affordable housing, while also preserving commercial tenants that add vibrancy to the Downtown and facilitate the construction of buildings at a more pedestrian-scale, with ornamented design.
GENERAL PLAN CONFORMANCE
In accordance with provisions of State Planning Law (Govt. Code Section 65402), prior to acquisition of real property by the City, the Planning Commission, as the planning agency for the City, is required to find such acquisition is in conformity with the adopted general plan.
The General Plan contains policy direction relevant to the acquisition of the subject parcels, including:
• Land Use Goal 3: A diverse range of housing options that create equitable opportunity for people of all ages, races/ethnicities, abilities, socio-economic status, genders, and family types to live in South San Francisco.
• Land Use Policy 3.1: Create affordable and workforce housing.
• Land Use Policy 3.3 Encourage diversity of housing types and sizes.
• Land Use Goal 4: High-quality residential neighborhoods.
• Land Use Goal 9: High level of quality in architecture and site design in all renovation and construction of buildings.
• Land Use Policy 9.2: Encourage architectural and visual interest in new development.
• Downtown Sub-Area Goal 1: The City supports existing neighborhood commerce and provides opportunities to expand commercial Downtown.
• Downtown Sub-Area Policy 1.2: Support small locally-owned businesses.
• Downtown Sub-Area Goal 3: The City promotes new residential, mixed use, and employment uses to add business patrons and residents to create a sustainable and thriving Downtown, while maintaining a scale and character that is complementary to existing uses.
• Downtown Sub-Area Policy 3.5: Encourage Downtown parcel aggregation.
• Downtown Sub-Area Policy 4.1: Preserve existing affordable housing.
• Downtown Sub-Area Policy 4-2: Leverage publicly-owned land.
• Downtown Sub-Area Goal 5: New improvements are focused on Grand Avenue and Linden Avenue to restore these historic corridors to once again being the focus of the community.
• Downtown Sub-Area Policy 5.2: Maintain Downtown properties and businesses.
• Downtown Sub-Area Policy 6.1: Develop new buildings to be compatible with Downtown building scale and character.
The purchase of these properties will allow the City to provide much-needed affordable housing in the Downtown, and facilitate the construction of attractive, appropriately scaled residential development, while also supporting commercial tenants, all in support and consistent with the goals and policies listed above, thus conforming to the City’s General Plan.
ENVIRONMENTAL REVIEW
The proposed purchase of these properties is consistent with the General Plan and does not contemplate additional development, therefore, no environmental review or CEQA action is required by the Planning Commission at this time. Individual projects will be evaluated in accordance with CEQA for project specific impacts.
CONCLUSION
It is recommended that the Planning Commission make findings that determine that the purchase of real property located at 226-246 Grand Avenue (APNs 012-315-130, 012-315-140, and 012-315-150) is in conformance with the South San Francisco adopted General Plan in accordance with provisions of State Planning Law (Govt. Code Section 65402).
Attachments:
1. Grand Avenue Properties Map