Liccardo / Peralez memo proposing extension of downtown residential high-rise incentives
Mayor Liccardo and Council Member Peralez are requesting that the Rules Committee agendize for City Council deliberation on December 13, 2016, to direct the City Manager to extend the Downtown High-Rise Incentive Program for new construction of residential buildings of at least 12-stories in height for the next 1,500-units (including existing allocations) in the Downtown Growth Area, as defined by the Planned Growth Area Diagram in the Envision 2040 San José General Plan.
The renewed incentive program will include: Reduction of the aggregate fee and tax burden at levels commensurate with the following: 1. Reduce Park Fees by 50%; 2. Reduce Construction-related Taxes by 50%; and 3. Other fees or taxes that staff may publicly propose to Council, upon Council approval.
To qualify for the incentives, a development must:
- Break ground by July 2018, and be completed by December 2020;
- Retain contractors licensed by the State of California and the City of San Jose;
- Employ only construction workers who possess licenses and certifications required by the State of California; [not clear if this requirement flows down to subcontractors] and
- Post bids on websites such as The Bay Area Builders Exchange for sub-contractors to readily access work to bid on for local workers in the 9 Bay Area Counties, including Santa Cruz, Monterey, and San Benito Counties.
In addition, the developer who opts in to the Downtown High-Rise Residential Incentive Program shall make good-faith efforts to: a. Comply with the State of California’s apprenticeship program requirement that at least 16.7% of the hours worked by their respective construction workforces on the project must be worked by registered apprentices from approved apprenticeship training programs; and b. Ensure that 25% of those registered apprentices are identified as having an employment barrier such as homeless, veterans, or at-risk youth.
Excerpts from memo: “Through a period in which development in Silicon Valley has soared to record levels, we haven’t seen a high-rise tower break ground in Downtown since February of 2015. We have heard roundly from the development industry that while many projects have obtained permits, or sit on the verge of doing so, the financing required to begin construction remains beyond their reach… Unlike mid-rise or single-family construction, high-rises entail substantially higher construction cost…[and] comes with substantially greater risk; developers cannot “phase” high-rise projects to sell units as they build; they must take the $150 million “leap” all at once. … [Moreover,] San Jose’s Downtown possesses uniquely challenging topography—with a low airport flight path and a high water table—substantially reducing the margins of high-rise builders here.”
“We must also recognize what this proposal is not: it is not a “giveaway” of public money. … if successful in stimulating a couple of projects to break ground, this fee reduction incentive will still generate tens of millions of fees and construction taxes. … We can either wait for things to happen, or make things happen. We urge Council to join us in the latter endeavor.”
Where: San Jose Rules Committee
When: November 30, 2016, 2:00pm, Wing 118-120
Link to memo: http://sanjose.granicus.com/MetaViewer.php?meta_id=603149
Link to agenda: http://www.sanjoseca.gov/DocumentCenter/View/62777
Report on Business Tax and Minimum Wage outreach plan
Accept staffs report on the Business Tax Modernization and Minimum Wage Increase Outreach Plan; (b) Approve an ordinance adding a new Section 4.76.290.5 to Chapter 4.76 of Title 4 of the San Jose Municipal Code to extend the deadline from July 1, 2017 to December 15, 2017 for residential landlords of 1 or 2 units to register with the City and pay the Business Tax owed as of July 1, 2017 without incurring interest or penalties; and (c) Refer this item to the December 13, 2016, City Council meeting for full Council consideration.
Where: San Jose Community and Economic Development Committee
When: November 28, 2016, 1:30pm, Wing 118-120
Link to item: http://sanjose.granicus.com/MetaViewer.php?meta_id=603088
Link to agenda: http://www.sanjoseca.gov/DocumentCenter/View/62654
Appoint Sergio Jimenez early as interim District 2 Councilmember
Recommendation to appoint Sergio Jimenez as the interim representative for the anticipated vacancy in Council District 2 to serve from the date of vacancy of the Council District 2 seat until the remaining term of office expires on December 31, 2016. Ask Kalra will be sworn into the CA State Assembly on Monday, December 5.
*New memo from City Clerk
Where: San Jose City Council
When: November 29, 2016, 1:30pm, Council Chambers
Link to memo: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2660&meta_id=603039
Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=c85dd2f5-ce40-4e71-8ee8-a0c3ebc155f7
Approving updated timeline for Minimum Wage Ordinance to reach $15 by January 2019 with exemption for youth under 18
Replacement memo to correct typographical errors in dates for the years 2018 and 2019 in the Basis for Recommendation. On November 15, 2016, City Council directed staff to return on November 29, 2016 with an ordinance to modify the existing minimum wage ordinance as follows:
- Increase San Jose’s minimum wage to $10.50 in January 2017, for consistency with the state schedule across employers of all sizes.
- Increase San Jose’s minimum wage to $12 on July 1, 2017, $13.50 on January 1, 2018 and $15 on January 1, 2019.
- Include an ‘off ramp’ provision with two economic triggers similar to the State of California, providing option to delay scheduled increase to the minimum wage if a severe recession occurs during the ramp up to $15.
- Change the CPI index used for annual increases from the U.S. All Cities CPI-W to the San Francisco Oakland-San Jose Consolidated Metropolitan Statistical Area (CMSA) CPI-W to more accurately account for the cost of living adjustments in this area, capped at 5% and rounded to the nearest five cents.
- Include an exemption for youth (below 18 years of age) in training/education employment programs, limited to 120 days annually per position and per trainee.
Where: San Jose City Council
When: November 29, 2016, 1:30pm, Council Chambers
Link to replacement memo: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2660&meta_id=603043
Link to ordinance: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2660&meta_id=603027
Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=c85dd2f5-ce40-4e71-8ee8-a0c3ebc155f7
Updates on sale/lease of City lands
Accept verbal report where City staff will be providing the Committee with an update on the streamlining efforts that are in process in the Office of Economic Development in the Real Estate Services and Asset Management Division. The update will specifically address the efforts by the Real Estate staff in the areas of the sale of surplus City owned property; the leasing of facilities with both the City as Landlord, the City as a tenant; and the leasing of City facilities for telecommunication providers.
Where: San Jose Community and Economic Development Committee
When: November 28, 2016, 1:30pm, Wing 118-120
Link to memo: http://sanjose.granicus.com/MetaViewer.php?meta_id=603092
Link to presentation: http://sanjose.granicus.com/MetaViewer.php?meta_id=603094
Link to agenda: http://www.sanjoseca.gov/DocumentCenter/View/62654
Amending housing impact fee to exempt rental projects between 3-19 units; recommendation not to reduce the fee for mixed-use projects
Accept the status report on the Affordable Housing Impact Fee (AHIF) program. Adopt a resolution that amends the Housing Impact Fee Resolution to: a. Add an exemption to change the threshold size of rental projects to which the AHIF applies from 3 units to 20 units; and b. Amend the provisions exempting for-sale projects from the AHIF to make the standard consistent with the staff report and the adopted AHIF regulations and the adopted Inclusionary Housing guidelines.
Staff recommends that rental projects of 3 to 19 units be exempted from the AHIF.
The Housing Department recommends no change to the current approved Fee for mixed-use development (this is a change from the initial recommendation to reduce the fee from $17 to $13/sf). Staff also recommends no change to the AHIF program for assisted living/memory care facilities for seniors.
The staff report states that as a practical matter, new rental developments of fewer than 20 units are extremely rare. In the past four years, out of an estimated 80 residential development applications, the City has received only one rental housing development application with 20 units or fewer. However, for-sale developments between 3 and 20 units, even though they are exempted from the fee, are still required to be reviewed under the current AHIF program.
Letter from SV@Home opposes the proposal to increase the small project exemption threshold to 20 units. With regard to the overall AHIF, SV@Home also requests that the City explore allowing developers to build new on-site or off-site affordable units, or dedicate land for affordable units, as an alternative to paying the fee.
Where: San Jose City Council
When: December 6, 2016, 1:30pm, Council Chambers
Link to memo: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2661&meta_id=603370
Link to reso: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2661&meta_id=603372
Link to letters: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2661&meta_id=603352
Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=a9406ced-7a07-46b8-8b79-ead6ce0fa421
Updates to City’s Workers’ Comp program
Report on RFP responses and authorizing agreement with Intercare (Orange, CA) to administer Workers Compensation claims processing with an initial term beginning November 29, 2016 through June 30, 2018, with an option to extend annually through June 30, 2021, for a not to exceed total compensation amount of $16,264,409 based on an estimated caseload of 1501-1700 claims, and subject to annual appropriation of funds.
*Memo added
Where: San Jose City Council
When: November 29, 2016, 1:30pm, Council Chambers
Link to memo: http://sanjose.granicus.com/MetaViewer.php?view_id=&event_id=2660&meta_id=603047
Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=c85dd2f5-ce40-4e71-8ee8-a0c3ebc155f7
Item dropped – Airport concession agreements
Item to be dropped from the agenda. (a) Approve the Fifth Amendment to the Airport Retail Concession Agreement to add the Airport retail concession areas currently operated by AMS SJC-JV dba The Hudson Group (Hudson) through June 30, 2024, provide WDFG with storage space to support its concession operations and extend the term of the Agreement from June 30, 2020 to June 30, 2026. (b) Approve the Sixth Amendment to the Hudson Airport Retail Concession Agreement to terminate the Agreement upon incorporation of the Airport retail concession areas currently operated by Hudson into the WDFG Airport Retail Concession Agreement on the same terms and conditions as the current Hudson Agreement. (c) Adopt a resolution authorizing the Director of Aviation to amend the WDFG Airport Retail Concession Agreement at any time prior to its expiration to rebalance the two retail concession packages by revising those concession areas that will expire on either June 30, 2024 or June 30, 2026 and revise the Minimum Annual Guaranteed Concession Fee to reflect any such revisions, to maximize revenue and customer service and to provide for an equitable bidding opportunity for the future retail solicitations.
Where: San Jose City Council
When: December 6, 2016, 1:30pm, Council Chambers
Link to item: n/a
Link to agenda: http://sanjose.granicus.com/GeneratedAgendaViewer.php?event_id=a9406ced-7a07-46b8-8b79-ead6ce0fa421
City of Santa Clara City
Study Session on updates to Core Companies project at BAREC site
Council will be holding a study session focused on an update on the Santa Clara Sustainable project proposal to be developed at 90 N. Winchester Boulevard (the former BAREC site) prior to the submittal of a formal application with the Planning Division. The proposed design largely reflects the design concept, layout and unit count that was presented as part of the RFP for the project site. The proposed project includes a total of 359 housing units, comprised of 34 for sale market rate townhomes, 144 market rental units and 181 affordable rental units, of which 165 are for seniors with 20 percent set aside for a veteran preference for those over age 62. It also includes an “agrihood” component, an urban farm within the development.
The last time the project was discussed with the Council and Housing Authority was in February 2016 for the purpose of approving an Exclusive Negotiating Rights Agreement (ENA) with the developer, Core Affordable Housing, LCC (Core). Over the last nine months City staff and Core have engaged in parallel efforts to advance the project, including community outreach meetings to seek input on the project along with efforts through the State legislative process that led to the approval of Senate Bill 680 (Wieckowski) (SB 680). SB 680 authorizes the director of the State Department of General Services (DSG) to modify existing terms and conditions of the transfer to the Housing Authority of the City of Santa Clara.
The study session will include updates on community engagement for the development concept; the development concept and design; SB 680 and status of work with DGS; review of financial framework of project; and next steps.
Where: Santa Clara City Council
When: November 29, 2016, 2:15pm
Link to item: http://sireweb.santaclaraca.gov/sirepub/agdocs.aspx?doctype=agenda&itemid=55888
Link to agenda: http://sireweb.santaclaraca.gov/sirepub/mtgviewer.aspx?meetid=1924&doctype=AGENDA
Approving final Lawrence Station Area Plan (LSAP) & certifying FEIR
Staff are recommending that Council adopt a resolution certifying the Final Environmental Impact Report (FEIR) on the Lawrence Station Area Plan (LSAP), including a statement of overriding considerations. Staff are also recommending that Council adopt the Lawrence Area Specific Plan, amend the General Plan creating a new Very High Density Residential land use designation, update the Climate Action Plan to recognize this new land use designation, and pass an ordinance creating the LSAP zoning district, creating standards for bicycle parking spaces and other clarifying changes.
Where: Santa Clara City Council
When: November 29, 2016, 2:15pm
Link to item: http://sireweb.santaclaraca.gov/sirepub/agdocs.aspx?doctype=agenda&itemid=55892
Link to agenda: http://sireweb.santaclaraca.gov/sirepub/mtgviewer.aspx?meetid=1924&doctype=AGENDA
City of Mountain View
Study Session on North Bayshore Precise Plan Public Draft, with focus on affordable housing strategy, parking standards, mobility options, and FAR transfer policy
Council will be holding a study session focused on several topics related to the North Bayshore Precise Plan Public Draft, which the City has been amending since early 2015. The Public Draft includes vision, guiding principles, and land use and urban design strategy for the Plan. This study session will focus on Council input regarding the overall vision and guiding principles, including the Plan’s proposed affordable housing strategy, Floor Area Ration (FAR) transfer policy and expedited review process, parking standards and mobility topics, and the Bonus FAR guidelines.
Additional transportation analysis will be presented to the EPC and Council at meetings in spring 2017 based on the additional transportation scope authorized in October by Council. It will include more detailed information on how the proposed Plan may impact the local roadway system, particularly the “gateways” into the area, based on different traffic model assumptions and network changes such as a potential new Stevens Creek Bridge connection from NASA-Ames to North Bayshore. The analysis will also show the potential impacts of new residential uses on the multimodal network in North Bayshore. In early 2017, staff will also work on additional Plan revisions based on policy direction from Council. These revisions will be brought forward to the EPC and City Council as part of the Plan adoption hearings scheduled for June 2017, or in separate meetings, depending on additional revisions.
Where: Mountain View City Council
When: November 29, 2016, 4:00pm
Link to item: https://mountainview.legistar.com/LegislationDetail.aspx?ID=2893366&GUID=26ECC824-5A47-48F1-9B8F-D8058DA66B2D&Options=&Search=
Link to agenda: https://mountainview.legistar.com/View.ashx?M=A&ID=452525&GUID=36B332E3-9876-4D91-8B47-FE52ED410703
City of Sunnyvale
Negotiating agreement with Milpitas to use Sunnyvale’s SMaRT Station for municipal waste and recyclables processing & disposal
Staff are recommending that Council authorize the City Manager to negotiate and bring back to Council an agreement with City of Milpitas for the SMaRT Station to process, transfer and market or dispose recyclables, yard trimmings and municipal solid waste. Staff are also recommending that Council authorize the City Manager to discuss SMaRT Station options with other jurisdictions such as the City of Cupertino and if appropriate, present alternate agreements to Council for approval.
Consistent with prior Council direction to pursue uses for the excess capacity of the Sunnyvale Materials Recovery and Transfer Station (SMaRT Station®), staff has been assessing the feasibility of providing SMaRT Station solid waste and recycling services to City of Milpitas (Milpitas) in response to a Request for Proposals (RFP) issued by Milpitas. This opportunity was made possible because the SMaRT Station has some excess processing capacity that can be marketed to serve the needs of other entities. Adding materials from Milpitas to those already handled at the SMaRT Station would result in economies of scale that, with appropriate pricing and terms, would reduce costs and increase revenues for the existing partner agencies (cities of Mountain View, Palo Alto, and Sunnyvale).
On November 14, 2016 the Milpitas City Council awarded a new, 15-year refuse collection franchise to GCS, with services to begin in September 2017. The franchise agreement provides for GCS to deliver recyclables, yard trimmings and construction and demolition (C&D) wastes at various “approved” and “alternate approved” facilities. The SMaRT Station is listed as an “alternate approved facility,” which can be utilized if there is an agreement between Milpitas and Sunnyvale that allows use of the facility.
Where: Sunnyvale City Council
When: November 29, 2016, 5:00pm
Link to item: https://sunnyvaleca.legistar.com/LegislationDetail.aspx?ID=2891945&GUID=926A64A4-FA3F-481C-8B15-5A2C603C43C6&Options=&Search=
Link to agenda: https://sunnyvaleca.legistar.com/View.ashx?M=A&ID=512880&GUID=8130C00C-0DA7-4072-AB9F-97A0D76129D9
Do you have a news tip you would like to share? Would you like to contribute to The Left Hook? Email us at LeftHookBlog@gmail.com
No Comments