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Report regarding a resolution approving a Reimbursement Agreement with In-N-Out Burger Restaurant for a new signalized intersection at El Camino Real and Southwood Drive/1st Street in connection with the new restaurant project at 932 and 972 El Camino. (Nell Selander, Economic & Community Development Director, Matt Ruble, Principal Engineer, and Stephanie Skangos, Senior Planner)
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RECOMMENDATION
Recommendation
Staff recommends City Council adopt a Resolution approving a Reimbursement Agreement with In-N-Out Burger for installation of a new traffic signal at the intersection of El Camino Real and Southwood Drive / 1st Street, as required by the project’s Conditions of Approval for the new restaurant project at 932 and 972 El Camino Real.
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BACKGROUND
On July 17, 2025, the Planning Commission of the City of South San Francisco adopted Resolution Nos. 12-2025 and 13-2025 approving a new In-N-Out Burger Restaurant on El Camino Real. The approvals included a CEQA determination and entitlements for the In-N-Out Burger Restaurant Project, including Design Review, a Conditional Use Permit, and a Master Sign Program. A copy of the approved resolutions is included as Attachment 1 to this report.
Site Overview and Project Description
The Project Site is located at 932 and 972 El Camino Real, along the east side of El Camino Real (State Route 82), within the T5 Corridor (T5C) Zoning District, and is comprised of two parcels, APNs 014-011-320 and 014-011-330, totaling 65,493 square feet in size (approximately 1.5 acres). The project site is developed with a two-story mixed-use building, a one-story former Burger King restaurant (now vacant), a surface parking lot with a drive-through lane, and an overflow vehicle stacked striped area. All existing buildings on the Project Site will be demolished.
The approved Project is for the construction of a new 3,887 square foot In-N-Out Burger Restaurant with a drive-through. The project will provide a seating capacity of 112 people (84 seats indoor and 28 seats outdoor under a covered canopy), a drive-through with a dedicated queuing lane with a capacity of up to 39 cars, and a surface parking lot with 51 parking stalls. Site improvements also include a covered trash enclosure, landscaping, outdoor seating area, pedestrian walkways, including a pedestrian connection to the adjacent Centennial Way Trail via a gate at the back of the Project Site, and vehicular circulation elements. Additionally, as part of the Project, the applicant has agreed to install a new traffic signal at the intersection of El Camino Real and Southwood Drive / 1st Street. Because El Camino Real is a state highway, the traffic signal design will require approval by Caltrans prior to installation.
Community Outreach
During the review process for the Project, the applicant held a community meeting in January 2025, providing an overview of the proposed project, obtaining feedback, and addressing questions. Approximately 70 community members attended as well as several City Council Members, City Staff, and members of the Planning Commission and Bicycle and Pedestrian Advisory Committee. A large portion of the attendees were members of the Maltese American Social Club, a community organization located at 924 El Camino Real, directly south of the Project Site. The main concerns expressed by the community at the meeting centered around the Project’s impact to traffic in the surrounding area. Meeting attendees asked the applicant team questions about parking lot capacity and drive-through queuing overflow onto El Camino Real. They discussed their concerns about vehicular and pedestrian safety at the intersection of El Camino Real and Southwood Drive / 1st Street and questioned how the Project would impact already poor conditions in this area. Members of the Maltese American Social Club were concerned with the Project’s impact on their building and operations, as well as pedestrian safety at the same intersection. The applicant prepared a summary of the meeting, along with additional information and responses to any outstanding questions and sent it to all meeting attendees after the meeting.
Additionally, after the community meeting, the applicant continued open discussions with neighboring properties to further address issues and collaborate on solutions. The applicant sent an additional mailer to property owners and tenants in the surrounding area with updates on the project prior to the Planning Commission meeting in July 2025. At the Planning Commission meeting, several members of the Maltese American Social Club were in attendance and spoke in support of the project and expressed their desire for the applicant to maintain and continue their open dialogue with the Club throughout the next phases of the project. The applicant has made a commitment to continued communication with the community.
Traffic Signal
Following In-N-Out Burger’s application for the new restaurant on El Camino Real, staff identified the need for a traffic signal at the intersection of El Camino Real (SR-82) at Southwood Drive/1st Street primarily to achieve operational and safety improvements, responding to existing deficiencies and anticipating the traffic associated with the proposed restaurant. This location already requires attention as the unsignalized intersection operates below acceptable standards. Crucially, analysis shows that based on existing traffic volumes alone, the intersection already satisfies the peak hour traffic control signal warrant outlined in the California Manual on Uniform Traffic Control Devices, leading to the recommendation that the City consider installing a signal. Furthermore, installing a signal is the preferred solution for addressing existing safety and circulation issues for vulnerable users; El Camino Real is designated as part of the City’s High Injury Network, and the current unsignalized crossing lacks marked crosswalks, complicating access for pedestrians, including those using the adjacent SamTrans and South City Shuttle bus stops. The new restaurant development will contribute additional traffic volume that maintains the signal warrant condition and notably introduces a high volume of vehicles performing U-turn movements at this intersection due to the project's right-in/right-out access design, thereby increasing the difficulty of safely utilizing the unsignalized crossing. The proposed traffic signal is therefore recognized as the necessary ultimate improvement to optimize operation, while simultaneously providing pedestrian signals, push buttons, and signal interconnection to adjacent signalized intersections, as recommended by planning documents like the City’s Bicycle and Pedestrian Master Plan.
DISCUSSION
Through negotiations between In-N-Out representatives and City staff, mutual agreement has been reached on a Reimbursement Agreement, which is the subject of the associated resolution and will provide for a new traffic signal at El Camino Real and Southwood Drive/1st Street. In-N-Out will design, permit, and construct the new signalized intersection at their own cost, with the City reimbursing In-N-Out up to $600,000 from the City’s Transportation Impact Fee (TIF) fund. Additionally, In-N-Out will have no obligation to pay its TIF, estimated at $118,825.59. While In-N-Out estimates the new signal will cost approximately $1,200,000, their out of pocket costs are not capped in the same manner that the City’s out of pocket costs are capped at $600,000. In-N-Out will be responsible for any cost overruns above the initial estimate.
In addition to this cost-distribution, the City is afforded up to ten years to provide the reimbursement from the TIF fund. While an initial $200,000 reimbursement to In-N-Out is required upon the completion of the signal, to the satisfaction of the City, the remaining $400,000 is metered out through TIF fund growth. Two percent of the annual revenue generated by the TIF will be paid to In-N-Out until $400,000 is reached. If no revenue is generated in a given year, no payment is made to In-N-Out that year. As discussed in the Background section above, the signal is warranted even without the addition of the approved In-N-Out Burger Restaurant. Staff recommends the Reimbursement Agreement as presented because it maximizes the amount of time the City has to reimburse In-N-Out for a portion of the project costs, In-N-Out is responsible for all costs above the City’s out of pocket costs of $600,000, and it places responsibility for signal design, permitting, and construction on In-N-Out while maintaining City authority to approve the design and improvements as installed.
In-N-Out’s financial contribution to the new signalized intersection will be at least $600,000 and perhaps more if the signal design and construction ends up costing more than the initial estimate of $1,200,000. This is well above the fair share contribution of 17.3% that the traffic analysis for the project asserted In-N-Out should be responsible for in a new signalized intersection. Below are other considerations detailed in the Reimbursement Agreement.
In-N-Out Responsibilities & Initial Investment
• In-N-Out Burger will be responsible for the design and construction of the traffic signal improvements generally conforming to the conceptual plan included as Attachment 2.
• Cal Trans, the governing authority for the traffic signal and intersection, has not reviewed or approved the design. Reasonable adjustments to the design set forth in the conceptual plan based on feedback or requirements from Cal Trans will be considered as “generally conforming.”
• The existing street on El Camino Real does not currently meet the accessibility requirements of the Americans with Disabilities Act (ADA). In-N-Out will work with the City engineers to reasonably resolve the street slopes within the boundaries outlined in the conceptual plan.
• In-N-Out will cover the full upfront cost of the signal installation, including payment of prevailing wages.
Project Timeline & Contingencies
• The traffic signal must be installed within two years of the new restaurant receiving a Temporary Certificate of Occupancy (TCO). In-N-Out may request an extension on this timeline if the City finds that the applicant has made a good faith effort to advance the project.
• Prior to the start of traffic signal construction and installation and before Final Occupancy of the on-site improvements, In-N-Out will install No-U Turn signs on El Camino Real at Southwood Drive / 1st Street.
• In-N-Out must submit complete traffic signal plans for City review and approval prior to submittal to Caltrans.
• If CalTrans denies the request for the permanent traffic signal, In-N-Out and the City will engage in good faith negotiations to determine appropriate next steps, including but not limited to In-N-Out’s payment of an amount equal to the TIF and a fair share contribution of 17.3% to the cost of the signal (together this is estimated at $326,425.59). Caltrans’ denial of the traffic signal will not relieve In-N-Out of all mitigation measures that may be reasonable and appropriate.
GENERAL PLAN CONSISTENCY
The reimbursement agreement is consistent with the City’s General Plan, as it will enable the construction of a traffic signal that will improve safety, access, and mobility on El Camino Real. Specifically, the improvement is consistent with General Plan Mobility Goal MOB-1: South San Francisco prioritizes safety in all aspects of transportation planning and engineering.
FISCAL IMPACT
There is no impact to the General Fund associated with adopting the associated resolution. However, there is a $600,000 impact to the TIF fund. The City’s contribution to the cost of the new signalized intersection will be paid overtime to minimize the impact to the TIF fund in any given fiscal year.
RELATIONSHIP TO STRATEGIC PLAN
The construction of the new signal helps to implement the City’s strategic plan, as it supports Priority #2, Quality of Life, by improving multi-modal transportation, safety, and connections on El Camino Real.
CONCLUSION
Staff recommends City Council adopt a Resolution approving a Reimbursement Agreement with In-N-Out Burger for installation of a new traffic signal at the intersection of El Camino Real and Southwood Drive / 1st Street, required by the project’s Conditions of Approval for the new restaurant project located at 932 and 972 El Camino Real.
Attachments
1. Planning Commission Resolution Nos. 12-2025 and 13-2025
2. Signalized Intersection Conceptual Plan
Exhibit to Associated Agreements Resolution (25-1202)
A. Reimbursement Agreement