►
Description
San Bruno City Council Meeting September 27, 2011
8. Terminate the Skycrest Development Agreement
A
A
debate,
public
hearings,
notices
have
been
published,
boasted
and
mailed
tonight
we're
going
to
hold
a
public
hearing
way
the
first
reading
and
introduced
an
ordinance
which
conditionally
terminates
the
sky,
dress
development
agreement
and
adopt
a
resolution
signing
the
affordable
housing
agreement,
improvement
agreement
from
katras
partners,
LP
2dr
accord
a
pink
staff
report.
Thank.
B
However,
after
years
of
decline
several
years
ago,
both
the
property
owner
of
the
entire
complex,
as
well
as
the
developer
skycrest
partners,
approached
the
city
requesting
to
demolish
a
majority
of
the
center,
as
well
as
build
24
homes
on
the
southern
end
to
the
site
and
expand
and
remodels
of
the
nardy
site
in
2005-2006,
the
developer
did
developer
of
the
24
homes
did
receive
several
entitlements.
These
included
rezoning
the
site,
so
it
could
be
a
medium
density.
B
Development
included
a
planned
development
permit,
as
well
as
a
development
agreement
and
affordable
housing
agreement
and
an
improvement
agreement.
Since
that
time,
12
of
these
24
homes
have
been
developed.
They
all
are
all
occupied.
At
this
point,
all
of
the
public
improvements
associated
with
this
development
have
been
installed
and
were
accepted
by
the
city
in
2008
and
lunardi's
was
successfully
remodeled
facade
improvement,
as
well
as
an
expansion
in
back
adding
about
fifty
percent
on
to
their
store.
B
The
final
12
homes
because
of
the
decline
in
the
housing
market
that
started
to
occur
in
2007
tonight,
the
developers
request
is
to
fold
is
number
one
for
the
City
Council
to
adopt
an
ordinance
that
conditionally
terminates
the
development
agreement
and
I'll
get
more
into
the
detail
with
that,
as
well
as
the
second
request
is
to
assign
an
affordable
housing
agreement,
as
well
as
the
improvement
agreement
to
the
new
developer.
That's
interested
in
the
site,
which
is
dr
horton
bay.
B
What
a
development
agreement
is
a
development
agreement
isn't
involved
in
every
single
development.
We
had
one
for
the
crossing.
We
had
one
for
this
development
and
what
it
does.
It
has
specific
things
outside
the
development
entitlements
to
that
both
the
city
must
do,
and
the
developer
must
do
in
this
case,
skygrid
skycrest
partners,
the
major
things
that
they
had
to
do.
They
had
to
provide
two
hundred
thousand
dollars
in
landscape
funding
for
the
medians
that
has
been
done.
That
money
has
been
paid
in
the
median
tasbih
have
been
installed.
B
They
also
had
to
provide
a
loan
to
lunardi's
in
the
amount
of
$250,000.
This
loan
was
given
to
the
city
and
then
would
be
given
to
lunardi's
that
loan
was
given.
However,
lunardi's
was
able
to
secure
private
financing
and
they
never
did
take
us
up
on
the
offer
for
the
loan,
so
that
loan
was
given
back
to
the
developer
earlier
this
year
there
was
also
an
affordable
housing
agreement
for
the
developer.
B
Instead
of
providing
housing
on
site,
affordable
housing
on
site,
they're
required
to
pay
forty-three
thousand
dollars
per
unit,
and
for
the
first
twelve
for
the
first
twelve
homes
that
amount
has
been
paid
and,
of
course,
they're.
The
one
thing
that
still
has
a
bit
that
hasn't
been
accomplished
with
the
development
agreement
is
the
payment
of
all
fees.
At
these
are
always
do
at
the
time
of
building
permit
issuance.
B
So
in
this
case,
there's
of
course,
the
building
permit
fees,
there's
the
affordable
housing
fees
and
there's
also
the
school
fees
that
go
directly
to
the
school
district.
So
in
this
case,
what
the
developer
is
asking
for
is
a
conditional
termination,
and
what
this
conditional
termination
would
do
is
the
development
we
would
go
away
no
longer
be
recorded
against
these
parcels
once
the
developer
pays
all
these
fees.
However,
even
when
this
development
agreement
goes
away,
there
are
parts
of
the
development
agreement
that
live
on
they're.
B
All
noted
in
your
in
your
staff
report,
but
I'll
go
through
them
quickly.
There's
first
is
that
there's
a
remedies,
a
breach
section,
there's
cooperation
in
the
event
of
a
third
power,
a
challenge
and
there's
an
indemnification
and
joint
liability
clause.
I,
let
mark
explain.
The
city
attorney
explained
those
if
you
have
any
specific
questions
on
those,
but
those
are
important
aspects
of
those
will
live
on
and
protect.
B
It
protect
the
city
in
the
long
run
regarding
the
affordable
housing
agreement
I'm,
as
a
state
of
the
developer,
has
already
paid
forty-three
thousand
dollars
per
home
and
they
would
be
still
required
to
pay
43.
The
new
developer
would
be
required
to
pay
the
same
43
thousand
dollars
per
home
and
the
city
takes
in
that
amount
before
the
building
permit
is
issued
and
same
with
the
improvement
agreement.
B
Although
all
the
improvements
have
been
made,
all
the
sidewalks
all
the
drains
and
everything
has
been
in
solid
and
accepted
by
the
city,
but
we
were
concerned
about
that
is
that
there
was
any
damage
to
those
sidewalks
and
damage
to
the
streets.
During
the
second
phase
of
construction,
we
still
wanted
to
have
an
improvement
agreement,
so
the
improvement
agreement
would
live
on
until
all
those
12
homes
are
constructed,
and
we
could
sign
off
that
the
sidewalks
and
streets
are
still
in
good
position
in
terms
of
what
the
final
result
would
be.
B
This
development
would
be
the
same
development
that
was
approved
by
the
planning
commission
that
was
approved
by
the
City
Council.
There
would
be
no
changes.
Our
development
entitles
live
on
all
the
conditions
of
approvals
live
on,
so
that
would
be
untouched.
In
fact,
I've
talked
to
the
developer,
who
is
here
tonight?
It
can
speak
to
this
further,
but
they
also
have
a
vested
interest
to
make
sure
that
this
is
the
same
high
quality
developments,
because
they
actually
still
owned
several
of
homes
in
the
initial
phase
of
their
renting
out.
B
So
they
actually
have
something
within
the
clause
and
in
the
sales
that
the
same
high
quality
standards
be
met
that
were
met
in
the
first
phase
anytime,
we
assign
an
affordable
housing
agreement
or
an
improvement
agreement
or
any
agreement
that
the
city
is
in
with
the
developer
to
a
new
developer.
We
want
to
make
sure
that
developer
can
meet
all
the
requirements
of
those
agreements.
City
staff
has
looking
over
looked
over
DR
Horton
they're
a
nationally
recognized
I,
think
the
number
one
builder
in
the
United
States
right
now.
B
It
is
good
to
see
that,
even
though
some
of
these
smaller
developers
still
can't
move
for
with
some
of
these
development
that
these
large
developers
are
taking
interest
in
san
bruno
and
think
that
this
is
a
good
place
to
do
business,
we
have
lennar
recently
break
ground
on
the
cedar
mills
project
and
now
we
have
DR
Horton
now
interested
in
breaking
ground
in
this
project
and
if
all
goes
well,
they
would
be
interested
in
breaking
ground
next
year.
So
I
could
take
any
questions
at
this
time.
Any.
A
B
A
C
C
We
have
kind
of
mixed
feelings.
We
would
have
liked
to
have
finished
it,
but
given
the
economic
downturn
in
the
real
estate
market,
we're
a
relatively
small
developers,
small
builder
and
some
of
these
larger
builders
like
the
airport
and
Lennar
they're,
much
more
capable
at
this
point
of
going
forward
when
it
would
still
take
us
another
year
or
two
to
wait
for
the
economy
to
recover.
So
they
approached
us,
we've
talked
to
them.
We
have
I,
think
complied
with
everything.
We've
ever
promised
that
we
would
do.
C
C
Finished
exactly
the
way
it
was
approved
and
in
the
addition
to
the
city
having
doll
the
conditions
of
approval
still
applying.
We
have
inserted
that
dr
Orden,
if
they
purchased
the
property
record
covenants
against
it,
that
require
the
same
exterior
finishes
the
same
architecture,
the
same
landscaping,
basically
all
the
same
materials.
They
might
change
the
interiors
of
the
house,
but
they're
not
going
to
change
the
outside
labs
from
our
standpoint
and
I
hope
the
city
views
it.
C
Obviously,
Sam
Brno
has
a
need
for
single-family
housing,
we're
not
in
a
position
to
be
economic
situation,
to
probably
build
the
next
twelve
houses
for
to
it
for
a
year
or
two
more,
and
these
folks
are
and
that
way
they
can
finish
off
the
development
and
the
project
will
be
done.
So
unless
you
have
any
questions,
I
could.
D
Have
a
question:
I
could
I
just
wanted
to
say
yeah,
it's
mixed
feelings,
because
you
you're
almost
like
one
of
the
pioneers
of
San
brand
redevelopment
and
to
see
that
a
portion
of
our
redevelopment
area
was
done
by
the
book.
I
mean
lunardi's
was
improved
and
you
know
we
changed.
We
changed
use
of
that
site
and
you
came
in,
and
things
aren't
easy
in
san
bruno
because
we
get
hit
with
a
recession
right
when
right
when
we're
rolling.
C
Thank
you,
yeah
we'd,
like
to
you,
know,
someday,
come
back
and
do
something
else
in
san
bern.
It's
been
a
great
city
to
work
in
staffs,
been
phenomenal.
All
of
you
have
been
phenomenal
and
it's
been
a
tough
economy,
though,
and
so
this
is
a
way
for
us
to
move
on
and
for
that
project
to
get
finished
through.
E
The
chair
they
could
be
on
the
same
note,
mr.
Russell,
I'm
reading
the
staff
report
and
listening
it
seems
what
you
intended
came
in.
You've
taken
care
of
you've
met
your
obligations,
and
we
appreciate
that
and
my
concern,
which
aaron
already
alluded
to,
was
just
the
quality
that
the
assurance
that
the
second
phase
and
the
same
type
of
quality
that
we
had
in
the
first
phase
continues
on
with
the
same
footprint
and
facade.
I
think
that's
important,
so
we
add
to
the
integrity
what's
already
began.
E
A
You
know,
okay,
this
is
a
public
hearing.
Would
anyone
else
like
to
speak
to
us
regarding
this
item
should
know
that
if
we
close,
the
public
hearing
you'll
be
precluded
from
talking
about
this
item
again
move
to
close
public
hearing
second
promotions?
Second,
close,
the
public
hearing
all
in
favor
aye,
good
action
on
behalf
of
the
council,
the.