Memo: Recommendation to Provide Direction on an Outline for a Request for Qualifications and Form of Exclusive Negotiation Agreement for a New Development Site in the Main Street Neighborhood at Alameda Point, May 16, 2017

Excerpt:

Exhibits:

1. Map of Development Site and Collaborating Partners Site with Infrastructure Package

2. Request For Qualification Outline

3. Form of Exclusive Negotiation Agreement

4. Main Street Workforce Housing Analysis

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BACKGROUND

On March 21, 2017, the City Council adopted an ordinance approving the Main Street Neighborhood Specific Plan (MSN Plan). The MSN Plan fulfills the General Plan policy objectives for a transit-oriented mixed-use, mixed income neighborhood with diverse housing options, parks and open spaces, neighborhood serving businesses and transitional commercial uses. The City Council’s action was a key milestone in that the MSN Plan’s adoption is a required first step for development to occur as required in the 2014 Zoning Ordinance Amendment.

On April 4, 2017, the City Council approved an Implementation Term Sheet with Mid-Pen Housing, Alameda Point Collaborative, Building Futures with Women and Children, and Operation Dignity (“The Collaborating Partners”) for the relocation and construction of new supportive housing facilities on a 10.4-acre parcel (Collaborating Partners Site) south of W. Midway, in the northeastern corner of the Main Street Neighborhood bounded by Orion Way and Main Street (Exhibit 1). One of the key business terms in the term sheet is the City’s responsibility to make best efforts to enter into an agreement with a qualified developer to provide the backbone infrastructure for the Collaborating Partner’s site consistent with the Master Infrastructure Plan (MIP) and their development plans.

Similar to the adoption of the Waterfront and Town Center Plan, which initiated the Request for Qualifications (RFQ) from developers process for Site A, staff proposes to issue a RFQ from developers for a development site at Alameda Point, referred to in the attached map as Main Street South (Exhibit 1) in the Main Street Neighborhood Sub-district. The new development site, Main Street South (Site) consists of 22.8 acres, south of West Midway, bounded by Main Street on the east, Pan Am Way on the west and West Tower to the south, excluding the Collaborating Partner’s site.

The selection of the Site for a first phase of development in the Main Street Neighborhood is consistent with the Phasing Plan in the MSN Plan, which proposes that the first phase of development facilitate the construction of a sufficient amount of appropriate market rate housing to help finance the relocation of the Collaborating Partners to their preferred site by constructing all of the infrastructure (including demolition, grading, and all backbone utilities) of both the Site and the Collaborating Partners’ site.

Staff seeks Council input on a detailed outline of the proposed RFQ that will guide the preparation of the RFQ and the type of new development the City would like to see in this first phase of the Main Street Neighborhood.