Title
Report regarding an Ordinance approving the Second Amendment to the Second Amended and Restated Development Agreement to the Gateway Business Park Master Plan Project between the City of South San Francisco and BMR Gateway of Pacific I LP, BMR Gateway of Pacific II LP, BMR Gateway of Pacific III LP, and BMR Gateway of Pacific IV LP to make minor modifications to the previously approved Development Agreement, and determining that the certified 2009 Environmental Impact Report continues to serve as the environmental document and there are no changes in circumstances that would require additional environmental review. (Billy Gross, Senior Planner)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council follow the recommendation of the Planning Commission and introduce an Ordinance approving the Second Amendment to the Second Amended and Restated Development Agreement to the Gateway Business Park Master Plan Project between the City and BMR Gateway of Pacific I LP, BMR Gateway of Pacific II LP, BMR Gateway of Pacific III LP, and BMR Gateway of Pacific IV LP to make minor modifications to amend provisions relating to the agreement duration, and waive further reading, and determining that the Project continues to comply with and be subject to a previously adopted 2009 EIR and subsequent Addendum, and no subsequent environmental document would be necessary pursuant to the criteria of Section 15162 of the California Environmental Quality Act Guidelines .
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BACKGROUND/DISCUSSION
Overview
In February 2010, the City Council approved a General Plan Amendment, Zoning Ordinance Amendment, Design Review, Transportation Demand Management (TDM) Plan, Development Agreement (DA) and Environmental Impact Report (EIR) to facilitate construction of an approximately 1.23 million square foot office/R&D campus to incrementally replace single story buildings that were built in the late 1980s and early 1990s.
In April 2013, the City Council approved modifications to the Master Plan, Phase 1 Precise Plan, TDM Plan and First Amended and Restated Development Agreement (First Amended DA), to allow for a revised phasing plan and modifications to the interior circulation and building designs. The shell and core of the Phase 1 Precise Plan project has been completed and tenant improvements for both spaces are currently under construction.
Previous Development Agreements
As part of the 2010 Project approvals, the City and the prior developer negotiated a Development Agreement to clarify and require several Project features and mitigation measures including transportation impact fees, public improvements in the East of 101 Area, Fire Department obligations, phasing, provisions for child care, park in-lieu fees, and TDM reporting and monitoring requirements.
The First Amended DA, approved in 2013, extended the expiration date to 2025, incorporated the Public Safety Impact Fee and Park-in-Lieu Fee, and also included a number of non-substantive changes to reflect the current parties, update the applicable municipal code citations, and adjust Project timelines. Subsequent to the First Amended DA, BMR-Gateway/Oyster LLC gave notice to the City of transfers and assignments of the property to four affiliate entities that are under common control: BMR Gateway of Pacific I LP (formerly BMR-700 Gateway LP); BMR Gateway of Pacific II LP (formerly BMR-750, 800 and 850 Gateway LP); BMR Gateway of Pacific III LP (formerly BMR-900 Gateway LP); and BMR Gateway of Pacific IV LP (formerly BMR-1000 Gateway LP).
In 2018, the City Council approved a Second Amended and Restated Development Agreement (Second Amended DA), which reflected the substitution of new owners for each of the four separate parcels, referenced previous and potential future lot line adjustments, clarified that DA obligations are to be applied separately to each phase, and clarified the childcare obligation, as that obligation cannot be applied to each phase separately.
In February 2020, the City Council approved a First Amendment to the Second Amended DA, which substituted payment of a fee that will enable the City to build a childcare facility in lieu of having the applicants construct or open a replacement childcare facility on or within one mile of the project site. The Second Amended DA and the First Amendment to the Second Amended DA are both attached to this staff report (Attachments 1 and 2).
Second Amendment to the Second Amended and Restated Development Agreement
The applicant’s request for a Second Amendment to the Second Amended and Restated Development Agreement (Second Amended DA) seeks only minor modifications to the agreement. The modifications include:
• Extend the expiration date from 2025 to 2030. (The Development Agreement for the 475 Eccles / GOP Phase 5 Project is also proposed to be amended to expire in 2030. That proposed amendment is being considered separately by the City Council.)
• Acknowledgement of the Updated Park Fee Requirement, in keeping with the Parks and Recreation Impact Fee that was adopted in 2016, and reference to this updated fee estimate in the exhibits.
The proposed Second Amendment to the Second Amended and Restated DA is included as Attachment 1 to the accompanying draft City Council Ordinance.
GENERAL PLAN CONFORMITY AND ZONING CONSISTENCY ANALYSIS
The Project site is located in the Gateway Specific Plan District and is part of the “East of 101” Planning Sub-Area as defined by the City of South San Francisco’s General Plan. The site’s General Plan designation is Business Commercial.
The Project remains consistent with the guiding and implementing policies in the General Plan as it has been designed to promote campus-style uses, such as biotechnology, high-technology and research and development uses. The site layout and overall architecture would help shape the urban character of the East of 101 Area. The Second Amendment to the Second Amended and Restated DA will not result in any substantive changes, and the overall project will remain consistent with the intent and purpose of the Gateway Specific Plan District and comply with all development standards of the District.
ENVIRONMENTAL REVIEW
Potential environmental impacts for the Gateway Business Park Master Plan Project were analyzed by the Gateway Business Park Master Plan EIR (State Clearinghouse #2008062059). Upon the unanimous recommendation of the Planning Commission, the City Council certified the EIR on February 10, 2010, via Resolution No. 18-2010. A Mitigation Monitoring Program was included as an appendix to the certified EIR. On February 10, 2010, the City Council also approved a Statement of Overriding Considerations that evaluated the benefits of the Project against certain unavoidable impacts related to air quality, noise, and transportation for which no feasible mitigation exists. On May 8, 2013, the City Council approved an Addendum to the EIR that made additional findings related to the modifications to the Master Plan, TDM Plan, Precise Plan, and First Amended Development Agreement. The Addendum was accompanied by a Mitigation Monitoring and Reporting Program.
The Project continues to be subject to the previously-adopted EIR and Addendum. The project setting has not significantly changed since the adoption of the environmental documents. Surrounding properties have either remained undeveloped or have developed in accordance with the City of South San Francisco General Plan and Gateway Specific Plan consistent with the General Plan and General Plan EIR. No significant new information has arisen since reliance upon the Addendum on May 8, 2013. The Second Amendment to the Second Amended and Restated DA makes minor changes related to the duration of the agreement. These project changes do not involve any physical changes in the environment and therefore will not cause any new or more adverse significant impacts on the environment. Accordingly, no supplemental or subsequent EIR is required, and all mitigation measures, impact findings, environmental conclusions and overriding considerations remain applicable to the Project.
PLANNING COMMISSION
On August 6, 2020, the Planning Commission held a public hearing, reviewed the proposed Second Amendment to the Second Amended and Restated DA, and voted unanimously to recommend that the City Council approve the proposed revisions. The Planning Commission resolution is attached to this staff report.
CONCLUSION
The proposed Second Amendment to the Second Amended and Restated DA is consistent with the originally entitled project in 2010 and the revised project in 2013. The amendment extends the duration of the agreement and clarifies fee requirements. There are no new or increased environmental impacts that would occur as a result of the proposed Second Amendment to the Second Amended and Restated DA.
Therefore, staff recommends that the City Council follow the recommendation of the Planning Commission to conduct a public hearing and introduce an Ordinance approving the Second Amendment to the Second Amended and Restated DA (DAA20-0003), and waive further reading, and determine that the Project continues to comply with and be subject to a previously adopted 2009 EIR and subsequent Addendum.
ATTACHMENTS
1. Second Amended and Restated Development Agreement
2. First Amendment to the Second Amended and Restated Development Agreement
3. Planning Commission Resolution 2857-2020 - Amended DA Resolution (no attachments)
ASSOCIATIONS
1. Draft Ordinance approving a DA Amendment (Legistar File 20-531)
A. Exhibit A - Second Amendment to the Second Amended and Restated Development Agreement