Title
Ordinance approving the First Major Amendment to the Development Agreement for 1051 Mission Road (known as the "PUC Site") to revise the economic terms, to provide support for the affordable housing portions of the project, and extend the term of the Development Agreement, and a determination that the amendments are consistent with the General Plan and with previously adopted environmental documentation.
Body
WHEREAS, a development proposal by SSF Housing Partners, LLC (“Applicant”) on the PUC Site (1051 Mission Road) was approved by the South San Francisco City Council on November 13, 2019, for entitlements to construct a high-density, mixed-use residential development, consisting of 800 rental units, including 158 affordable units, an approximately 8,307 SF childcare facility, approximately 12,992 SF of retail space (market hall), 1 acre of public open space, and 800 parking spaces over 5.9 acres on 1051 Mission Road (current APNs: 0933120580 and 093312090) collectively referred to as “the Project” in the City; and
WHEREAS, the Project (P18-0081) was located within the previously adopted El Camino Real/Chestnut Avenue Area Plan (“ECR/Ch Area Plan”) area; and
WHEREAS, the Applicant received approval of a Conditional Use Permit (UP19-0008), Design Review (DR19-0028), Transportation Demand Management Plan (TDM19-0004), Density Bonus (DB19-0003), Waivers and Modifications Request (WM19-0002), Parking Management and Monitoring Plan (PMMP19-0001), Vesting Tentative Tract Map (SA19-0001) and Development Agreement (DA19-0002) for the Project; and
WHEREAS, the applicant’s proposal was considered a “project” for purposes of the California Environmental Quality Act, Pub. Resources Code §21000, et seq. (“CEQA”); and
WHEREAS, the City Council certified an Environmental Impact Report (“EIR”) on July 27, 2011 (State Clearinghouse #2010072015), in accordance with the provisions of the CEQA and CEQA Guidelines, which analyzed the potential environmental impacts of the development of the ECR/Ch Area Plan; and
WHEREAS, the City Council also adopted a Statement of Overriding Considerations (“SOC”) on July 27, 2011, in accordance with the provisions of CEQA and CEQA Guidelines, which carefully considered each significant and unavoidable impact identified in the EIR and found that the significant environmental impacts are acceptable in light of the project’s economic, legal, social, technological, and other benefits; and
WHEREAS, the City Council certified a Supplemental Environmental Impact Report (“SEIR”) on December 13, 2017 (State Clearinghouse #2010072015), in accordance with the provisions of CEQA and CEQA Guidelines, which analyzed the potential environmental impacts of a new civic center that would include a library, recreation center, new police station, new fire station, and make minor edits to the ECR/Ch Area Plan; and
WHEREAS, the City and applicant prepared an Environmental Consistency Analysis for the Project pursuant to CEQA Guidelines § 15162 and determined that the Project would not result in any new significant environmental effects or a substantial increase in the severity of any previously identified effects beyond those disclosed and analyzed in the ECR/Ch EIR and SEIR certified by City Council nor would new mitigation be required; and
WHEREAS, on October 17, 2019, the Planning Commission for the City of South San Francisco held a lawfully noticed public hearing to solicit public comment and consider the proposed entitlements and environmental effects of the Project and take public testimony, determined that the proposed project is consistent with the City’s adopted General Plan pursuant to Government Code section 65402, and determined that the proposed project is consistent with the adopted ECR/Ch EIR as updated by the Community Civic Campus Project SEIR and, based on the Environmental Consistency Analysis, would not necessitate the need for preparing a subsequent environmental document pursuant to the criteria of CEQA Guidelines Section 15162; and
WHEREAS, on November 13, 2019, the City Council for the City of South San Francisco held a lawfully noticed public hearing to solicit public comment, consider the proposed entitlements and environmental effects of the Project, and take public testimony and approved the project; and
WHEREAS, since approval of the project seven years ago, the global COVID-19 pandemic, capital market realignment, and interest rate shock have rendered the Project financially infeasible without an influx of additional local and state dollars and revisions to the Project expectations detailed in the Development Agreement (DA19-0002); and
WHEREAS, on November 28, 2022, the City and Applicant executed the First Administrative Amendment to the Development Agreement, through City Manager approval, to make minor clarifications as authorized under Section 7.2 of the Development Agreement; and
WHEREAS, City staff and the Applicant have negotiated a First Major Amendment to the Development Agreement (DAA26-0002), requiring City Council approval, with revised economic terms to provide support for the affordable housing portions of the Project and extend the term of the Development Agreement; and
WHEREAS, there are no proposed changes to the project under the terms of the First Major Amendment to the Development Agreement that alter the density, height, and land use requirements contemplated in the General Plan and Zoning Ordinance; and
WHEREAS, the First Major Amendment to the Development Agreement does not substantively change the project concept, footprint, or site planning and therefore remains consistent with previously adopted environmental review; and
WHEREAS, the modifications contemplated in the First Major Amendment to the Development Agreement are minor in nature, the approval of which would not result in any new significant environmental effects or a substantial increase in the severity of any previously identified effects beyond those disclosed and analyzed in the ECR/Ch EIR as updated by the Community Civic Campus Project SEIR and the 2019 Environmental Consistency Analysis approved by City Council, nor does the First Major Amendment to the Development Agreement constitute a change in the Project or change in circumstances that would require additional environmental review; and
WHEREAS, on April 16, 2026, the Planning Commission for the City of South San Francisco held a lawfully noticed public hearing to solicit public comment and consider the request and related evidence and testimony and recommended approval to the City Council.
NOW, THEREFORE, the City Council of the City of South San Francisco does hereby ordain as follows:
SECTION 1. Findings
Based on the entirety of the record before it, which includes without limitation, the California Environmental Quality Act, Public Resources Code §21000, et seq. (“CEQA”) and the CEQA Guidelines, 14 California Code of Regulations §15000, et seq.; the South San Francisco General Plan and General Plan EIR; the El Camino Real/Chestnut Avenue Area Plan and associated EIR and SEIR; the South San Francisco Municipal Code; the Project applications; the Project Plans, as prepared by BAR Architects, dated September 17, 2019; the Environmental Consistency Analysis, as prepared by the Developer and City staff dated October 2019, including all appendices thereto; all site plans, and all reports, minutes, and public testimony submitted as part of the Planning Commission’s duly noticed October 17, 2019 meeting; all site plans, and all reports, minutes, and public testimony submitted as part of the City Council’s duly noticed November 13, 2019 meeting; all site plans, and all reports, minutes, and public testimony submitted as part of the Planning Commission’s duly noticed April 16, 2026 meeting; all site plans, and all reports, minutes, and public testimony submitted as part of the City Council’s duly noticed April 22, 2026 meeting and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), the City Council of the City of South San Francisco hereby finds as follows:
General
1. The foregoing recitals are true and correct and made a part of this Ordinance.
2. The Exhibits attached to this Ordinance, including the First Major Amendment to the Development Agreement (DAA26-0002) (Exhibit A), are each incorporated by reference and made a part of this Ordinance, as if set forth fully herein.
3. The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco, 315 Maple Avenue, South San Francisco, CA 94080, and in the custody of the Chief Planner.
First Major Amendment to the Development Agreement (DAA26-0002)
1. The First Major Amendment to the Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan as it conforms to all governing land use requirements and only alters the economic terms of the Project and does not substantively affect the land use, density, or site planning of the previously entitled project; and
2. The First Major Amendment to the Development Agreement does not change the authorized land use, density, or site planning and remains compatible with the uses authorized in, and the regulations prescribed for the land use district in which the real property is located; and
3. The First Major Amendment to the Development Agreement is in conformity with public convenience, general welfare, and good land use practice given the revised economic terms will permit the project to proceed and provide affordable housing, public open space, and community amenities as envisioned under the original entitlement approval; and
4. The First Major Amendment to the Development Agreement will not be detrimental to the health, safety, and general welfare given the revised economic terms will permit the project to proceed and provide affordable housing, public open space, and community amenities as envisioned under the original entitlement approval so that the PUC Site does not remain undeveloped land adjacent to the Bay Area Rapid Transit Station and the newly constructed Library and Parks and Recreation facility; and
5. The First Major Amendment to the Development Agreement will not adversely affect the orderly development of property or the preservation of property values and instead will contribute to economic vitality, new housing opportunities, and access to new public open space and amenities as envisioned under the original entitlement approval.
SECTION 2. Approval of Development Agreement.
A. The City Council of the City of South San Francisco hereby approves the First Major Amendment to the Development Agreement (DAA26-0002) with SSF Housing Partners LLC attached hereto as Exhibit A and incorporated herein by reference.
B. The City Council further authorizes the City Manager to execute the First Major Amendment to the Development Agreement (DAA26-0002), on behalf of the City, in substantially the form attached as Exhibit A, and to make revisions to such Agreement and to take such other actions deemed necessary or appropriate to carry out the intent of this ordinance, subject to the approval of the City Attorney, which do not materially or substantially increase the City’s obligations thereunder.
SECTION 3. Severability.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.
SECTION 4. Publication and Effective Date.
Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk’s Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk’s Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption.
Exhibits
A. First Major Amendment to the Development Agreement By and Between City of South San Francisco and SSF PUC Housing Partners, LLC (DAA26-0002)
B. First Administrative Amendment to the Development Agreement By and Between City of South San Francisco and SSF PUC Housing Partners, LLC
C. Development Agreement By and Between City of South San Francisco and SSF PUC Housing Partners, LLC (DA19-0002)