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HomeMy WebLinkAbout8.1 PCSR AMB/Prologis DA Extension or Daei 0 STAFF REPORT i9� —4* 82 PLANNING COMMISSION O�LIFOR�� DATE: March 25, 2014 TO: Planning Commission SUBJECT: PUBLIC HEARING: PLPA-2014-00006 Development Agreement extension for the AMB/Prologis mixed-use office/residential project at 6700 Golden Gate Drive in Downtown Dublin Report prepared by Kristi Bascom, Principal Planner EXECUTIVE SUMMARY: The Applicant is requesting an extension to the existing Development Agreement that has vested the Site Development Review and Tentative Map entitlements since their original approval in 2004. The Development Agreement will expire on June 3, 2014 unless extended before that time. The Developer has requested to extend the Development Agreement, and Staff recommends an additional eighteen months. The Planning Commission will review the proposed extension and make a recommendation to the City Council. RECOMMENDATION: Staff recommends that the Planning Commission: 1) Receive Staff presentation; 2) Open the public hearing; 3) Take testimony from the Applicant and the public; 4) Close the public hearing and deliberate; and 5) Adopt a Resolution recommending that the City Council adopt an Ordinance approving an amendment to the Development Agreement between the City of Dublin and Prologis, Inc. to allow for an eighteen month time extension with conditions. Submitted By Re • wed By Principal Planner Asst. Community Development Director COPIES TO: Applicant File Page 1 of 4 ITEM NO.: a ' DESCRIPTION: Prologis, Inc. (formerly known as AMB Properties) received approvals in 2004 to develop a mixed-use office and residential project that is comprised of a 150,000 square foot office complex and an adjacent 308-unit multi-family residential project. The project site is currently occupied by a 225,000 square foot warehouse building that houses tenants including Sky River RV and Coast Building Supply. The project received Site Development Review and Tentative Map approval along with a Development Agreement with a ten year term (Attachment 1). The Development Agreement "locked in" the land-use rules in effect at the time the Agreement became effective. The Development Agreement provided the developer certainty that they could proceed with their projects, even if the City's land use policies change in the future. Although it was originally anticipated that the new development would be constructed once the leases for the existing tenants at the site expired, the economic downturn hampered efforts to bring the project to fruition. Over the past several years, the property owners had considered re-entitling the site with a different project that could be more marketable given changing conditions, but no projects moved forward. At this time, the Development Agreement is close to expiring and Prologis has submitted a request to extend the existing term to allow them to process an application with a new development partner for a new project on the site. (Attachment 2) Staff is supportive of the request and has crafted terms for the extension that will provide incentive for the development team to move forward quickly with entitling the new project. It is in the City's interest to see this project site redevelop with commercial and residential uses, as it is a key property in the Transit-Oriented District with excellent access to BART and adjacent to the newly-opened Connolly Station apartment building. ANALYSIS: Following is an overview of the terms of the proposed amendment to the Development Agreement: • Prologis will receive an extension to the existing Development Agreement for an initial six month term at no cost with the option to extend for two additional six months terms at the cost of $100,000 with each extension. The total extension time could be eighteen months. • In order to receive the first six month extension, Prologis is required to have submitted a preliminary application and concept plans for the new project no later than May 24, 2014. • In order to receive the second six month extension, Prologis is required to pay $100,000 to the City and shall have a full and complete Planning Application on file with the City for the new project no later than December 3, 2014. • Granting the third six month extension is at the discretion of the City if Staff determines that the Developer is moving forward in good faith and is expected to have the full project entitlements completed by the end of the third six month period. Prologis is required to pay $100,000 to the City for the third extension. If Prologis does not comply with the terms outlined in the Development Agreement Amendment (Exhibit A-1 to Attachment 3), the Development Agreement expires. 2 of 4 Development Agreements are approved by an Ordinance of the City Council upon recommendation by the Planning Commission. The proposed Development Agreement Amendment was drafted with input from City Staff, Prologis, and the City Attorney. Staff is recommending that the Planning Commission recommend approval to the City Council. ENVIRONMENTAL REVIEW: On April 20, 2004, the City Council adopted Resolution 67-04, adopting a Mitigated Negative Declaration (MND) and Mitigation Monitoring Program for the AMB Properties Transit Village Project (PA 02-003). Approval of the Development Agreement was an action covered by the MND and therefore an extension to the time period does not require additional environmental review. PUBLIC NOTIFICATION: In accordance with State law, a Public Notice was mailed to all property owners and occupants within 300 feet of the proposed Project as well an expanded area which includes surrounding developments. A Public Notice was also published in the Valley Times and posted at several locations throughout the City. To date, the City has received no objections from surrounding property owners regarding the Project. A copy of this Staff Report was also forwarded to the Applicant. ATTACHMENTS: 1. City Council Ordinance 18-04 (original Development Agreement) 2. Request from Prologis dated February 14, 2014 3. Resolution recommending that the City Council adopt an Ordinance approving an amendment to the Development Agreement between the City of Dublin and Prologis, Inc. to allow for an eighteen month time extension with conditions, with the City Council Ordinance included as Exhibit A and the Development Agreement Amendment attached as Exhibit A-1. 3 of 4 GENERAL INFORMATION: PROPERTY OWNER/APPLICANT: Mark Hansen, Prologis, Inc., Pier 1 Bay 1, San Francisco, CA 94111 LOCATION: 6700 Golden Gate Drive ASSESSORS PARCEL NUMBER: 941-1500-04-04 EXISTING ZONING: Downtown Dublin Specific Plan —Transit Oriented District GENERAL PLAN DESIGNATION & DOWNTOWN DUBLIN SPECIFIC PLAN: Downtown Dublin —Transit Oriented District 4 of 4