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HomeMy WebLinkAboutItem 8.3 Dublin Crossing Community Benefitsor 19 82 /ii � 111 DATE: TO: FROM: SUBJECT STAFF REPORT CITY COUNCIL October 20, 2015 Honorable Mayor and City Councilmembers CITY CLERK File #600 -60 Christopher L. Foss, City Manager " Proposed Revisions to the Dublin Crossing Project and Re aced Community Benefits Prepared by Linda Smith, Assistant City Manager and Roger Bradley, Assistant to the City Manager EXECUTIVE SUMMARY: The City Council will receive a report on two revisions to the Dublin Crossing Project proposed by the developer. The modifications include changes to the Arnold Road frontage and elimination of the requirement to underground the large PG &E electric transmission lines along Arnold Road and along Scarlett Drive across Dublin Blvd. The developer (Dublin Crossing, LLC) and City Staff have agreed upon community benefits (detailed in the Staff Report) that would be provided in conjunction with the City's approval of the revisions. City Staff has the authority to approve the revisions to the project and is seeking direction on whether it should implement the proposed revisions. FINANCIAL IMPACT: Implementation of the changes would have various financial benefits. The developer would make $6 million in additional Community Benefit Payments under the project's existing Development Agreement. The developer would also accelerate the timing of certain other Community Benefit Payments due under the Development agreement. In addition, the developer would pay the Civic Center component of the public facility fees in advance, rather than with each building permit. Finally, Dublin Crossing, LLC will be responsible for making certain improvements to the potential school /park site, to be owned by the City, within the Dublin Crossing community. RECOMMENDATION: Staff recommends that the City Council direct Staff to proceed with implementing the proposed changes to the project proposed by Dublin Crossing, LLC, including the additional community benefits added to the development agreement. Page 1 of 6 ITEM NO. 8.3 "Reviewed By Assistant City Manager DESCRIPTION: Dublin Crossing, LLC (Developer) has requested that the City consider revising two aspects of the development of the Dublin Crossing Project. The revisions are related to the Arnold Road frontage improvements and the undergrounding of the PG &E transmission lines along Arnold Road and Scarlett Drive continuing across Dublin Blvd at both locations. Arnold Road Currently, the Plan anticipates the existing 30 -foot wide drainage channel along the west side of Arnold Road would be undergrounded. This would allow for certain frontage improvements (5- foot landscaped parkway, 8 -foot sidewalks, and a 10 -foot landscaped buffer). The resource agencies (in particular the Regional Water Quality Control Board) have indicated to the developer that they will most likely not issue a permit to underground the channel and would prefer that the channel remain in place. Accordingly, the developer is proposing to revise the Project to reflect the fact that the resource agencies will not likely approve undergrounding the channel. Developer proposes to improve the channel with native vegetation and develop a multi -use trail on the west4development -side of the channel, as a means of preserving the "feel" of the originally proposed interface. Staff has reviewed this request and, under the circumstances, supports it. While it would be desirable to have the channel undergrounded to provide aesthetic and pedestrian benefits along the west -side of Arnold Road, Staff believes that leaving the channel in place will create a natural buffer between the Dublin Crossing development and the street. Disturbing the site and the wildlife therein would also have an impact on the area. Additionally, the channel itself will be naturalized and improved to become an attractive feature within the area, mitigating the visual impact of the change. The Arnold Road plan, as presented within the Dublin Crossings Specific Plan, is clearly defined as conceptual in nature, indicating that modifications were envisioned, which may require different configurations to the roadway. Staff does not anticipate negative impacts to automotive or pedestrian traffic as a result of the proposed changes. Staff will be working with Developer to meet the intent of the conceptual improvements to Arnold Road. Transmission Lines The conditions of approval require the developer to underground utilities, including electrical lines. The property contains high -power transmission lines along Arnold Road and along Scarlett Drive with the lines continuing across Dublin Blvd (See Attachment 1 & 2) that the conditions require be undergrounded. High voltage transmission lines are distinct from the distribution lines that serve customers. Transmission lines span long distances and deliver high - voltage power from generating stations (power plants and hydroelectric facilities) to substations. Substations transform power to lower voltage for delivery to customers over distribution lines. It is much more costly to underground transmission lines. Developer has approached PG &E to discuss the undergrounding of the utility lines on the project, as required by conditions of Page 2 of 6 approval. PG &E has indicated that it is nearly impossible to place these large transmission lines underground and would likely not responded favorably to the request. Neither the City nor the Developer have the authority to force PG &E to allow the undergrounding to proceed. Thus, Developer has requested that the City waive the requirement to underground the transmission lines along Arnold Road and along Scarlett Drive and continuing across Dublin Blvd. However, Developer is working with PG &E on the possibility of decommissioning the transmission lines along Arnold Road, and if that is possible the lines be completely removed. Staff is supportive of this request. Staff has reviewed the proposed request and under the circumstances can support waiving the undergrounding requirement as to the transmission lines along Arnold Road and along Scarlett Drive. Community Benefits The Developer has offered to provide certain community benefits if the proposed changes are implemented. The benefits are described below. 1. Community Benefit Payments a. Additional Community Benefit Payments under the Development Agreement of $6,000,000 payable as follows- i. $3 million due June 30, 2018 ii. $1 million due June 30, 2019 iii. $1 million due June 30, 2020; and iv. $1 million due June 30, 2021. b. Acceleration of $15,000,000 in Community Benefit Payments to June 30, 2016. i. $10,000,000 from August 15, 2016 to June 30, 2016. ii. $5,000,000 from August 15, 2018 to June 30, 2016. Benefit: Provides general fund revenue for City projects and community needs. 2. Purchase of Wetlands Mitigation Easement. Developer will purchase a wetland mitigation easement from the City of Dublin on the City -owned parcel adjacent to the Iron Horse Trail south of Dublin Blvd. a. Final purchase price of mitigation easement/ endowment to be based upon recent appraisal for wetland mitigation, estimated at $460 per linear foot. The funding received would serve as an endowment to fund maintenance of the mitigation area for City -owned wetlands in any future right -of -way. Benefit: Creates economic value from City asset with little value. 3. Acceleration of Civic Center Component of Public Facilities Fee. Developer will pay the full 1,600 units at the City public facility fee rate effective October 15, 2015, which payment shall be due either June 30, 2016 or at the final appeal period /litigation settlement of DAA (and SPA if necessary) whichever is later. Provides cash flow for Civic Center CIP project. 4. Improvements/Temporary Maintenance of School /Park Site. Developer will fund and improve four acres of hydro seed turf with irrigation on the Dublin Crossing future Page 3 of 6 school /park site (to be owned by the City) within 18 months of acquisition from Army (acquisition anticipated in 2017). Developer will maintain the improvements for two years. Benefit: Results in additional improvements and two years of maintenance at no cost to the City. 5. Improvement of School /Park Site. Developer will fund and improve curb gutter and park strip around Dublin Crossing future school /park site within 18 months of acquisition from Army. Developer will provide maintenance of the facility for two years at no cost to the City. Benefit: Results in additional improvements at no cost to the City. 6. Cooperation in Expansion of Park. A third party, Scarlett Homes LLC, owns land that developer requires to construct the Scarlett Drive extension. Only a portion of Scarlett Homes LLC's property, which would be acquired by Developer, is required for the roadway improvements, but the remaining portion could be incorporated into the Dublin Crossing Park. Developer will attempt to acquire the entire parcel and, if successful, will dedicate it to the City for future park expansion. The Scarlett Homes LLC parcel currently includes a space leased to Kinder Morgan for the operation of its pipeline within the area. Kinder Morgan has indicated its willingness to relocate its site to an alternate location, potentially to a city -owned property. If an alternative location is available, and the City was able to accommodate Kinder Morgan within its property south of the site owned by the City, the City would forego a portion of the Community Benefit as the site south of Dublin Blvd. is also the proposed location for the wetland mitigation mentioned in Item 2 above. Benefit: Results in larger park footprint at no additional cost to City or Public Facilities Fee program. Implementation of the Proposal The City's approval of the process will become final only after a future City Council meeting in which the City Council approves an insubstantial amendment to the development agreement. Staff believes that it has the authority under the existing approvals to implement the proposed changes. Nonetheless, because of the nature of the changes in the Project, Staff will only approve the proposed changes with City Council consent. Staff's authority and the process for implementing the changes are described below. The community benefits require an amendment to the development agreement. Therefore, Staff is proposing that the Staff level approvals be made contingent upon the City Council approval of the development agreement amendment. This will provide the City Council an opportunity to review the details of the proposal. Community Development Director Determination of Substantial Conformance with Specific Plan As noted above, the Specific Plan anticipated that the drainage channel along Arnold Road would be undergrounded and overlain with certain roadway frontage improvements. Section 7.1.6 of the Specific Plan allows the Community Development Director to determine that variations are in conformance with the Specific Plan if the Developer demonstrates that the changes meet certain requirements. Staff believes at present that the developer could make the demonstration required by Section 7.1.6 of the Specific Plan. If the City Council authorizes Staff to proceed with implementing the proposed revisions, the Community Development Director Page 4 of 6 would consider whether leaving the channel along Arnold Road in place is in substantial conformance with the Specific Plan. Modification of Tentative Map Conditions The undergrounding condition is among the conditions of the tentative map approval. Conditions 10 and 11 in the tentative map approval give Staff the authority to make clarifications and minor modifications to conditions. Staff believes that waiving the requirement to underground the transmission lines along Arnold Road and along Scarlett Drive and across Dublin Boulevard in both locations can be considered a clarification or minor modification. Insubstantial Amendment to Development Agreement Section 13.3 of the Dublin Crossing Development Agreement allows the City to approve "insubstantial amendments" to the Development Agreement without notice and hearing before either the Planning Commission or City Council. This language is present in many of the City's development agreements. It allows the City Council to approve minor amendments to development agreements without the need to follow the notice and public hearing process ordinarily required for development agreements and amendments. In this particular case, the necessary amendments to the Development Agreements have the developer providing more (additional and accelerated community benefit payments) and the City not providing any more (other than vesting the modifications that would be approved by Staff) than the Development Agreement already requires. Therefore, Staff believes that the City Council can approve the amendment as an insubstantial amendment. Thus, if the City Council directs Staff to move forward, Staff will work with the developer to finalize its submittal on the project changes. The Community Development Director and Public Works Director will then consider the Specific Plan conformity and modifications to the tentative map conditions. If they are approved, they would be made subject to the City Council's approval of the amendment to the Development Agreement. Staff and the City Attorney will work with the applicant on the amendments to the Development Agreement. Use of Community Benefit Proceeds Staff has reviewed future facility needs for the community and has identified three projects where the funds could be expended. Public Safety Complex Buildout With the acquisition of the Public Safety Complex, it was envisioned that Police Services would ultimately move to and occupy the available space there upon completion of improvements to the facility, freeing up needed work space here at the Civic Center. With the funding coming from the Dublin Crossing Project, the City would be able to accelerate that timeframe and Buildout space within the Public Safety Complex, such that all of Police Services could move to that building. This proposal would be in lieu of the proposed modifications to the Police Services wing of the Civic Center building, whereby the City Council has established a $2 million set aside to make the space more usable in the future. Cultural Arts Facility The City's Parks and Recreation Master Plan calls for a cultural arts facility. Staff would propose to repurpose the existing Police Wing of the Civic Center for use as a cultural arts center. As envisioned, the facility would be primarily located on the first floor and offer classroom and program space as well as community rooms and gallery space. Page 5 of 6 Dublin Sports Grounds Staff would propose that any remaining balance of community benefit funds be placed towards the renovation of the Dublin Sports Grounds. Staff recommends that the City Council provide feedback on the negotiated deal terms with Developer. If directed to proceed, Staff would approve amendments to the Specific Plan, the Vesting Tentative Map, and the Development Agreement that would facilitate the tentative agreement. NOTICING REQUIREMENTS /PUBLIC OUTREACH: None. ATTACHMENTS: 1. View of Powerlines along Scarlett Drive 2. View of powerlines along Arnold Drive Page 6 of 6 Scarlett Drive at Dublin Boulevard Facing North Utility Pole and Transmission Lines along Scarlett Drive Attachment 1 Arnold Road at Dublin Boulevard Facing East Utility Pole and Transmission Lines along Arnold Road ATTACHMENT 2