HomeMy WebLinkAbout10/19/1999, 5 - EXCLUSIVE NEGOTIATING PERIOD: CHINATOWN-COURT STREET PROPOSAL council Mwi°°�
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CITY OF SAN LUIS OBISPO
FROM: John Dunn, CAO
Prepared By: Ken Hampian, Assistant CAOVW�
Bill Statler,Finance Director�y �
SUBJECT: Exclusive Negotiating Period: Chinatown-Court Street Proposal
CAO RECOMMENDATIONS
1. Authorize the Mayor to execute a 120-day exclusive negotiating agreement (ENA) with
Chinatown-Court Street Partners, LLC in order to further explore the Chinatown-Court
Street proposal, including assessing the feasibility of the required real property
transactions and the necessary planning and regulatory approvals, and to allow the
Copeland's added time to involve the community in reviewing and refining the proposal.
2. Approve the reallocation of $40,000 budgeted for the North Downtown Area Plan to
support City costs during the ENA period, including financial consultation and
representation and planning analysis.
3. Authorize the CAO to negotiate and execute two sole source contracts: (A) With Allan
Kotin of PCR Kotin for financial consultation and representation during ENA
negotiations; and (B) with Fred Sweeney of Phillips, Metsch, Sweeney, and Moore to
update the 1990 Civic Center Architectural Program and Space Needs study.
4. Direct staff to return to Council during the Mid-Year Budget Review in February 2000
with the recommended reprioritization of other goals and activities necessary to
accommodate this new and very substantial undertaldng.
5. Endorse the "Team Norms" adopted by the staff relative to the organization,
management, and team ethic necessary to carry out this project in the timely and
proactive way encouraged by the City Council.
REPORT-IN-BRIEF
This report recommends entering into an exclusive negotiating agreement for a period of 120
days with Chinatown-Court Street Partners, LLC. There are several reasons why an exclusive
agreement is appropriate, including that the proposed project can implement many community
goals, and that it cannot be accomplished without land owned by the developer. In essence, the
proposal offers the opportunity for a unique public-private partnership, and under such
circumstances,an exclusive negotiation is entirely legal and appropriate.
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There are a number of issues to be addressed during the 120-day ENA period, including the
preparation of a realistic project schedule and the determination of responsibility for various
longer-term processing and review costs. These and several other issues are outlined in both the
proposed ENA and in Exhibit 1.
While exciting, negotiating this transaction and accomplishing the project will be a complex
undertaking, involving added costs and some reprioritization of other activities. Most
immediately, it is recommended that the City acquire the services of PCR Kotin to assist in the
ENA negotiations, and the services of Fred Sweeney to update earlier City Hall expansion
studies. The Community Development Department will also need some added services during
the 120-day period, most likely in the areas of archeology and environmental study. It is
recommended that the City support these early costs with funds available in the 1999-00 Budget.
Finally, moving this project forward in a timely way will require excellent organization and
teamwork on the part of staff, advisory bodies, and the City Council. A set of"Team Norms"
has been prepared to help us achieve this standard of teamwork and management, and Council
endorsement of these norms is requested.
DISCUSSION
Background
On September 20, 1999, the Chinatown-Court Street team presented a proposal to the City
entitled "Chinatown-Court Street: A Vision for the Future of Downtown San Luis Obispo,
California, Inspired by its Past." In addition, Mr. Copeland asked that the City agree to engage
in a 120-day exclusive negotiating period with him in order to "work out the project details."
The Council received the presentation with great enthusiasm, and directed staff to return on
October 19, 1999 with a recommendation relative to whether the City should agree to an
exclusive negotiation,rather than a competitive proposal process.
Staff has evaluated this question,and in the spirit of moving ahead in a timely way as encouraged
by Council, we have taken the matter a few steps further by also addressing priorities, initial
support needs, and the "team norms" around which the staff will organize and support this
endeavor. Our recommendations in these areas are outlined below.
Exclusive Negotiations Versus Competitive Proposals
The City may legally enter into an exclusive negotiating agreement with Chinatown-Court Street
Partners, LLC, for the sale or lease of property. In fact,the California Municipal Law Handbook
states: "A city may sell property essentially in any way it chooses, if the sale is for the common
benefit of the city's citizens." The Handbook goes on to say that "there is no requirement the
city formally declare the property as surplus."
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On the other hand, the City's Property Management Manual says that the City should generally
declare property surplus before it is sold, and that the"sale or lease or property will be conducted
through a request for proposals (RFP), competitive bid, or auction process"(as determined by the
CAO). Policies of this kind, however, are adopted by the Council to guide decision-malting, and
policies can be changed or waived by the Council when circumstances warrant, as determined by
Council. For several reasons as summarized below, staff believes that current circumstances
warrant waiving our usual policy:
1. The proposed Chinatown-Court Street project would implement numerous City goals,
including (but not limited to): Downtown planning and vitality goals (as set forth in the
General Plan, Conceptual Physical Plan for the City Center, and a Major City Goal
established for the 1999-01 Financial Plan); historic preservation and enhancement goals
(consistent with the Chinatown Historic District); and overall economic development
goals (as set forth in the 1999-01 Financial Plan).
2. Due to its potential for implementing so many public policies and goals, there is an
extraordinarily high level of Council and community interest in further pursuing the
project through more detailed study and negotiation.
3. The Copeland's control much of the privately held property that is needed to successfully
implement the project. (If the City were to initiate an RFP, we could not appropriately
include the Copeland's property–therefore,we would essentially be requesting proposals
for a very different project).
4. The Copeland's have demonstrated their ability to complete a major project in Downtown
San Luis Obispo in a highly successful fashion, and in a way that has advanced many
City land use and economic goals for the City's center.
For these reasons, staff recommends entering into a 120-day exclusive negotiating agreement
(ENA) with Chinatown-Court Street Partners, LLC, in order to further explore their proposal, as
set forth in the attached exclusive negotiating agreement (ENA). The ENA outlines the general
areas to be explored during this period, and also highlights the Chinatown-Court Street team's
commitment to work closely with the community to further refine the project, culminating with
the filing of a formal project application to the City.
Other issues that are likely to be addressed, to one degree or another, during the ENA period are
outlined in Exhibit 1. The parties will address some of these issues more independently, and
others through negotiation. Suffice it to say, the issues are many, complex, and sweeping in .
their range. In order to move through these issues in a timely way, a number of strategies are
necessary, including the reprioritization of some current goals and activities.
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Reprioritization to Accommodate a New(and Now Our Largest) "Major City Goal'
San Luis Obispo is an ambitious community, and the process we use to establish the goals of
City government reflect these high aspirations. Every two years the Council engages in a
rigorous community goal-setting process, and through this process a number of "Major City
Goals" are established for the coming two fiscal years. The 1999-01 goal-setting and Financial
Plan process produced perhaps the most ambitious set of goals established by the Council since
the"Major City Goals"process was initiated nearly 10 years ago.
The Chinatown-Court street project far exceeds these other goals in its range and complexity.
Combined with very high time pressures, the project will have a major workload impact on
several staff persons and departments (indeed, it already has). Even with added "help," this
impact cannot realistically be absorbed without affecting other tasks and activities. So, as is true
in many other aspects in life, there are trade-offs that must be recognized and accepted in order to
accomplish this new community goal.
However, until we are further into the ENA process it will be difficult to determine to what
extent specific projects may be affected. Therefore, staff will defer specific recommendations;
most likely until the 1999-00 mid year budget review is presented to Council in February 2000
(although staff could bring this issue forward sooner, if circumstances warrant).
Staffs eventual recommendations regarding reprioritization will be based on three primary
considerations: (1) Staff/departments that will have the greatest work assignments caused by the
Chinatown-Court Street project – Administration, City Attorney, Community Development,
Finance and Public Works; (2) Goals or activities that currently exist independently, but can
instead be advanced by the Chinatown-Court Street project (North Downtown Area Plan); and
(3) Goals or activities which are less urgent.
Although we cannot be specific at this time, even with added assistance(as discussed below),we
can say that some current activities will be affected by this effort. Existing staff already meet
frequently, and work between meetings on matters directly related to the Chinatown-Court Street
project and negotiation. In the Development Review Division of the Community Development
Department, for example,we can expect some delay in work on the updated ARC Guidelines,the
Commercial Zoning Ordinance Update, and the updated Office Demand Study.
In the Transportation Division of the Public Works Department, the list of"top priorities"is very
long, and includes such major projects as the Marsh Street parking garage expansion, Prado Road
Interchange Project Report, Froom Ranch issues (and LOVR Interchange study), San Luis
Marketplace EIR, Santa Barbara Street corridor study, Downtown Transportation Center,
Railroad Transportation Center, several bike path projects, and numerous Council, citizen, and
neighborhood traffic studies and issues.
Administration and Finance Department staff will also be significantly impacted by this project.
For example, staff from these departments had but a few days to prepare this agenda report and
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the attached ENA – and in order to do so, staff from several departments had to meet, identify
and address numerous policy and organizational issues, and make many decisions.
Again, it is too soon to predict specific workload impacts,but we know it will be significant.
Immediate Resource Needs
During the "Communications" section of the September 21, 1999 Council meeting, the Council
discussed the possibility that added staff assistance might be needed to properly support the City
effort relative to the Chinatown-Court Street project. While added needs will undoubtedly
surface over time (depending in part on how Council addresses the reprioritization issue and
whether new significant tasks are added later), staff has identified three immediate needs, two
specific and one more general in nature:
Civic Center Architectural and Space Needs Update. In April 1990, the Council adopted an
architectural program and space needs analysis relative to the expansion and consolidation of
City office space in the "Civic Center" area. This study was prepared by Fred Sweeney, then of
Grant Pedersen Phillips Architects. However, work on the expansion of City Hall stopped shortly
thereafter due to budget shortfalls caused by the recession. In approving the 1999-01 Financial
Plan, the Council reactivated study of a possible City Hall expansion by appropriating$15,000 in
the Capital Improvement Plan for the purposes of"re-examining the Civic Center design and
expansion to determine whether or not it meets current needs." Given the time sensitivity of the
Chinatown-Court Street project, with Council concurrence, the CAO will immediately negotiate
an agreement with Fred Sweeney (now with Phillips, Metsch, Sweeney, and Moore) to review
and update this work. Mr. Sweeney has consistently performed very well for the City. Given
this prior history, his work on the Civic Center specifically, and the limited ENA period, we
recommend a sole source contracting approach.
Financial Consultation and Representation. Regardless of how enthusiastic we might be
regarding the Chinatown-Court Street concept, we need to be very business-like and analytic in .
dealing with the substantial public assets involved in the proposal, and the many other financial
aspects of the anticipated negotiation. For example, central to the proposal is the sale of City-
owned property and the abandonment of a public street. There are many other related critical
issues, such as:
1. Separation of the City's role as owner and regulator.
2. The question of sale versus ground lease of City property.
3. The extent to which parking(loss/gain)may interact with land value.
4. Establishing the value to be placed on the abandoned street (and whether the City
should reacquire it or if it should remain private).
5. The comparison of public to private value for the land.
6. Coming to agreement on appraisal methodology and evaluating the appraisal.
7. Establishing business terms for lease or purchase option on improvements and land
that might be built to satisfy City office space needs.
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8. Consideration of the financial issues associated with the relocation of 955 Morro
staff.
9. The prospect of replacing fairly low-cost public parking with a higher-cost structure
parking and how that cost is bome.
While it may be that all of these issues cannot be fully addressed during the 120 day ENA period,
they at least will need to be considered. Staff does not have the time or expertise to properly
analyze and negotiate these matters without assistance. For this reason, we recommend that the
CAO enter into a contract with Allan Kotin of PCR Kotin. The contract will be on a"time and
materials" basis, with a total cost through the ENA phase estimated to be about $25,000. This
cost will be funded from the $40,000 previously set aside for the North Downtown Area Plan
(which has been largely superceded by the Chinatown-Court Street proposal).
Mr. Kotin has represented the City for many years, most recently on the San Luis Marketplace
project. He is very familiar with the City, and with the Downtown specifically. For example,the
February 1999 fiscal impact study his firm completed included a focus on how the Downtown
could best compete with additional regional "power-center"development. The Chinatown-Court
Street proposal includes many of the elements recommended in Mr. Kotin's study. We are
confident in his analytic skills and financial acumen, and in the spirit of moving ahead in a
timely way, we wish to engage his services on this project on a sole source basis. In short, given
Mr. Kotin's competence and familiarity with the City, we see no reason to invest time in "re-
training"another consultant to take on this task.
Development Review Staff Assistance. The Community Development Department will have
many tasks associated with the study, review and processing of the Chinatown-Court Street
project. These tasks will first fall most heavily on the Department's Development Review
Division. For example, environmental and archeological study will be among the fust tasks to be
undertaken by the Division. While it is premature to identify the precise nature and level of
"outside assistance"needed to support such tasks, we are proposing that initial assistance(as it is
more specifically identified)be supported from the reallocated$40,000 discussed earlier.
Longer Term Needs. The tasks and support needs identified above are only those most
necessary to support the ENA process, and staff believes that it is appropriate for the City to
support these costs by reallocating General Funds already appropriated in the 1999-01 Financial
Plan. However, assuming agreement will be reached at the conclusion of the ENA period, there
will be many other study, review, and processing costs associated with the project. How these
costs are to be supported will be addressed through the negotiation process, as set forth in the
recommended ENA.
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Team Norms
Given the nature of this project, staff felt it necessary to establish a set of operating norms
("Team Norms') around which we can manage this complex, high-pressured undertaking
(Exhibit 2). For the norms to be fully useful, they need to be supported by the Council and
accepted by other parts of the City organization, including advisory bodies. Therefore, the CAO
requests your endorsement of these principles. These elements include establishing the
Chinatown-Court Street project as our"highest development project priority," and supporting the
reprioritization of goals and reallocation of resources we need to make this designation more than
a desire or hope; to cause it to happen. In addition, it is essential that members of the team play
their most appropriate "position" so that we can move ahead effectively and avoid unnecessary
delay. Along this line, we especially call your attention to the areas of"Setting the Course But
Not Rowing the Boat,""Navigating Through the Advisory Bodies,"and"Rowing in Unison."
Next Steps and the Major Questions We Hope To Answer
With Council support of the CAO recommendations,we will initiate formal negotiations with the
Chinatown-Court Street team and other work and studies. The negotiations will begin to address
the myriad of issues outlined in Exhibit 1 including establishing a realistic project schedule and
considering the phasing and financial issues discussed earlier. It is unlikely that all the issues
will be resolved by the end of the ENA period, and it may be appropriate to bring certain other
issues forward to the Council prior to the end of the 120 days.
Most importantly,however, it is our.hope that by the end of the 120-day ENA period, we will be
able to answer the following three fundamental questions:
1. What exactly is the proposed project?
2. Does the project and any proposed agreement meet the public interest? Are they fair to
the City and its citizens?
3. Does the project meet high standards — aesthetically, economically (for the City and the
Downtown), and over the long term?
FISCAL IMPACT
To summarize, fiscal impacts associated with the actions recommended in this agenda report are:
1. The reallocation of 540,000 appropriated in the 1999-01 Financial Plan from the North
Downtown Area Plan project to support immediate needs in the areas of financial
consultation/representation and community development.
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2. The utilization of$15,000 currently budgeted in.the 1999-.00 Capital Improvement Plan
to review and update the architectural program and space needs for the expansion of City
Hall.
Staff feels that these costs are appropriate costs to be bome by the City during the negotiating
period, and in the spirit of proactively pursuing a project of great interest to the City and to the
community at-large. However, it will also be important to address during the•negotiation period
the appropriate assignment of further review costs,.including possible staffing costs associated
with fast tracking this project without substantially delaying other projects already in the
"pipeline"(such costs are typically borne by the developer).
ATTACHMENT
Exclusive Negotiating Agreement
9XIHBI 'S
1. Issues to be Addressed"During the ENA period
2.. Staff-Team Norms
Note: The Chinatown-Court Street Proposal is available for review in the City Clerk's Office
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EXCLUSIVE NEGOTIATING AGREEMENT
511SM., lili� 101101000 am
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this 19t°day of October,
1999,by and between the CITY OF SAN LUIS OBISPO, a municipal corporation,hereinafter referred to as City,
and CHINATOWN-COURT STREET PARTNERS,LLC,hereinafter referred to as Copeland.
WITNESSETH:
WHEREAS, Copeland presented the City with a proposal for redeveloping a major portion of the City's
downtown(Chinatown-Court Street:A vision for the Future of Downtown San Luis Obispo, California,Inspired by
Its Past)on September 20, 1999,hereinafter referred to as the Project;and
WHEREAS, the Project has generated enthusiasm from a broad range of community members, and it
appears that it may help implement a number of City goals, including those set forth in the City's General Plan,
Conceptual Physical Plan for the City's Center and 1999-01 Financial Plan(Major City Goal:Downtown Plan);and
WHEREAS, Copeland successfully developed a major commercial project in the City's downtown (the
Downtown Centre),which reflects its ability to successfully undertake a similar project that will be well-received by
the community;and
WHEREAS,Copeland proposes to hold a number of community and stakeholder workshops facilitated by
a nationally recognized expert on"smart growth"before finalizing its development application in order to provide
meaningful community input on the Project and to incorporate the community's ideas and suggestions into its
overall design strategy;and
WHEREAS, Copeland has represented that it owns or controls much of the privately-held property that
will be needed to successfully implement the Project and the City's goals for the downtown;and
WHEREAS, Copeland has requested a 120-day exclusive negotiating period with the City to finalize the
details of its proposed Project, conduct initial environmental review and resolve real property issues that may arise;
and
WHEREAS,the unique nature of this Project calls for a unique approach in exploring its feasibility due its
private-public partnership approach,under which the City has dual roles in exercising its regulatory responsibilities
as a government agency in the development review process,and its proprietary responsibilities as a landowner;and
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Exclusive Negotiating Agreement Page 2
WHEREAS, for these reasons the City is willing to consider direct negotiations with Copeland in the
potential disposition of City properties rather than pursuing a request for proposals, competitive bid or auction
process as set forth in the City's Property Management Manual.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained,the parties hereto agree as follows:
1. 'PERM. The tern of this Agreement shall be for 120 days from the date this Agreement is made
and entered,as first written above.
2. PURPOSE. The purpose of this Agreement is to further explore the Project concept by: assessing
the feasibility of the real property transactions that will be required between the City and Copeland in implementing
the concept; and evaluating the planning and other regulatory approvals that will be required from the City. If the
parties mutually determine that the Project appears feasible,after the initial term of this Agreement,the parties may
extend the team for a reasonable period of time in order to develop a Memorandum of Understanding (MOU), or
other similar agreement, that will set forth the general business principles, framework and key procedures for the
disposition of any City properties to Copeland under the Project, including but not limited to, sale, lease, trade or
development. If executed,the MOU(or other similar agreement)would be a prelude to a subsequent Development
and Disposition Agreement(DDA), or other similar agreement, which would finalize the terms and conditions of
any sale, lease, trade or development of the City's property to or by Copeland The City and Copeland shall not
execute this DDA (or other similar agreement) until all discretionary approvals for the Project, including
environmental review, have been received Other than exploring the feasibility of this Project from the City's
perspective as set forth above,both parties agree that no other obligations are established under this Agreement.
3. CITY'S OBLIGATIONS. The City agrees to complete the following general tasks:
a. Analysis. Research and analyze the likely economic, fiscal and organizational issues
facing the City in its"proprietary" role as a landowner and potential Project participant in considering the Project
concept,and set policy parameters in negotiating the MOU accordingly.
b. Development Review Process. Prepare a,development review process and schedule that
will subsequently provide timely and expeditious review of the Project while at the same time ensuring meaningful
public input,and appropriate planning and environmental review.
c. Resource Needs. Identify the City's resource needs and funding sources in negotiating
the MOU and DDA(or similar agreement),and in processing the Project's development application.
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Exclusive Negotiating Agreement Page 3
4. COPELAND'S OBLIGATIONS. Copeland agrees to complete the following general tasks:
a. Finalized Project Concept. Prepare and submit a finalized Project proposal to the City
within forty five(45) calendar days after execution of this Agreement in as much detail as possible, including but
not limited to: building program;properties involved and their ownership;parking needs assessment and proposal
for how these will be met; Project phasing and methodology for ensuring that the Project will be completed;
proposed form of the City's contributing properties, such as sale, trade, lease or air rights; likely environmental,
traffic and archaeological issues that will be encountered by the Project and how these will be addressed; and
financial pro forma for the Project.
b. Financial Capability. Provide documentation satisfactory to the City evidencing:
Copeland's financial capacity to successfully fund and complete the Project; the form and identity of its
development team;and substantial pre-leasing commitments.
C. Community Workshops. Hold a series of community and stakeholder workshops
before finalizing its development application in order to provide meaningful community input on the Project and
incorporate the community's ideas and suggestions,as feasible,into its overall design strategy.
CL Formal Development Application. Finalize and submit a formal development
application for the Project to the City.
e. Compensation for City Review Costs. Discuss and finalize how City processing and
review costs will be funded, such as: those costs that will be directly paid by Copeland; those that will be paid by
the City but reimbursed by Copeland(including the level and method of reimbursement);and those that will be fully
paid and funded by the City.
f. Fiscal Analysis. Provide sufficient descriptive material for the City to initiate a fiscal
analysis of the Project
5. AMENDMENTS. This Agreement may be extended or modified with the mutual consent of the
parties hereto. Any such extension,amendment,modification or variation from the terms of this Agreement shall be
in writing and shall be effective only upon approval by the Council.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral
agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of
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Exclusive Negotiating Agreement Page 4
any force or effect,nor shall any such oral agreement,understanding or representation be binding upon the parties
hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage
prepaid by registered or certified mail addressed as follows:
City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo,CA 93401
Copeland Chinatown-Court Street Partners,LLC
Post Office Box 1348
966 Monterey Street
San Luis Obispo,CA 93406
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Copeland do covenant that each
individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute
Agreements for such party.
IN WITNESS WHEREOF,the parties hereto have caused this instrument to be executed the day and year
first above written
ATTEST: CITY OF SAN LUIS OBISPO,A Municipal Corporation
By:
City Clerk Mayor Allen Settle
APPROVED AS TO FORM: CHINATOWN-COURT STREET PARTNERS,LLC
�i1ce By:
rn
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Issues to Be Addressed During the Initial ENA Term
A. RESEARCH AND ANALYSIS
1. Properties Involved
a. Exactly what properties are involved?
b. Are there any title restrictions on the properties?
c. What are the legal requirements under State law for disposing of City properties and rights-of-
way?
d. What surveys need to be completed?
e. Who will contract for this work? Who will pay for it?
2. City Property Values
a. What City properties are affected?
b. How much are they worth?
c. How will this be determined?
3. Parking
a. How much existing parking—private and public—will be lost as a result of implementing the
Project?
b. How much parking demand—both replacement and new demand—will be generated under the
City's current zoning standards?
c. How will any resulting deficiencies be addressed?
4. Major Policies
a. How does the Project proposal compare with the City's major policy documents (such as the
General Plan, Conceptual Physical Plan for the City's Center, Facilities Master Plan and Civic
Center Master Plan)?
b. What uses are currently allowed under the City's zoning code?
c. What are the performance standards under this zoning?
S. City Space Needs
a. What are the City's future civic center space needs?
b. Is the proposed"City Hall"space interim or permanent?
c. If interim,how long is the likely interim period?
d. How should the City fund this space(lease,lease-purchase,acquisition)?
Issues to Be Addressed During the Initial ENA Term Page 2
e. How will the City house the staff currently located at 955 Morro Street during construction? Does
this space need to meet seismic safety standards?
B. POLICY ISSUES FOR THE CITY IN ITS PROPRIETARY ROLE AS LANDOWNER
1. Parking
a. What are the maximum number of parking spaces we will allow?
b. What are the minimums?
c. What role does the parking enterprise fund play in acquiring and managing the parking spaces
after construction?
2. Site Use
a. Who should own the walkways and plazas?
b. Should the creek be exposed on the Court Street property?
c. What is the maximum lot coverage we will allow?
d. What underground utility services will be affected (especially those on Morro Street), and how
will they be relocated?
3. Relationship to Other City Goals and Projects
a. Will we require public art? If yes,how much? (For example,will we require some value amount
as a percent of project construction costs?) And where are the appropriate locations?
b. What will be our likely archaeological resource preservation requirements?
c. What are the likely traffic problems? How can they best be mitigated? Can they be mitigated
through parking structure ingress and egress preferred solutions?
d. What are the significant fire plan check and inspection issues?
e. What are the significant building code plan check and inspection issues?
f. Is it possible to coordinate the Higuera Street bridge project with the construction of this Project?
If yes,what is the best way of doing this?
g. What other major goals, objectives and projects are we willing to defer in order to devote
adequate resources to completing this Project within an acceptable timeframe?
4. Property Disposition and Development
a. What is the City's position on sell versus lease or trade?
b. Will the City consider condemnation,if necessary,for those properties Copeland does not own?
c. What design/build construction options are allowed to the City under the Public Contract Code?
How will construction costs be accounted for?
d. How will construction on the sites be staged and phased?
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Issues to Be Addressed During the Initial ENA Term Page 3
e. How can existing developed properties best be addressed?
f. How can the project best be developed to minimise business disruptions on surrounding properties
that are not directly in the project area?
g. How can the City ensure that the Project will be completed?
h. What is the seismic retrofit status and future plans for adjacent properties? Does this need to be
addressed during Project planning and development?
C. NEGOTIATION AND REVIEW PROCESS
1. City Resources
What City resources will be required in negotiating a final development agreement and processing the
project on a"fast track?" Who will pay for them?
2. Development Review Process
What should the development review process look like to ensure meaningful community involvement,
M analysis of environmental and cultural/histoncal resource concerns,and an expedited process?
D. OVERALL"HIGHER LEVEL"QUESTIONS
1. Meet Public Interest
Is the Project and its component parts, any agreement that the City and Copeland may enter into, and
any actions either party may take,in the public interest and fair to the City and its citizens?
2. Meet High Community Standards
Does the Project meet high design standards? Is it economically viable, functional and aesthetically
pleasing? Will the Project stand the"test of time"over the years as a testimony to good City planning
and implementation? And will it be a significant factor in the long-tent strength and viability of the
downtown?
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Norms and Organization For Chinatown-Court Street:
October 1999
The Chinatown-Court Street concept has the potential of changing our downtown in perhaps the
biggest single way since the establishment of the Mission. The Council and the community have
embraced the concept with great enthusiasm, and the Council has "challenged"stafflo move
forward with the project in an expeditious way.
In order to 'fast track"a project of this complexity, we must "think outside the box"and do
things differently. At the same time, the project must be carefully managed in order to assure
organization and focus,proper planning and environmental review, and responsible use of
public resources. Undue haste, on the other hand, could lead to setbacks and delays. Consistent
with these sentiments, the following norms have been adopted by staff involved in the project:
Reordering Priorities to "Make It Happen"
• The Top Priority. The Chinatown-Court Street proposal is our highest priority
development project.
• Malting It Happen. Moving the project forward at a faster than usual pace will be
accomplished through a variety of methods,including: Council agreement to reprioritize
some activities;consultant and contract assistance in core project areas;reallocating
existing staff and other resources; sound planning and organization;and maintenance of
an orderly hierarchy of involvement.
O When Other Things Take A Backseat. When other projects are delayed as a result of
the project,staff members will be certain to advise the CAO,who in turn may advise the
Council,depending upon the significance of the project/delay. While every effort will
be made to avoid delays,they must be expected. It will be essential that we can accept
them when they do occur as"trade offs"in exchange for maintaining the"top priority"
status of the Chinatown-Court Street project.
Council and Advisory Body Leadership and Involvement
• Setting the Course But Not Rowing the Boat. The City Council should serve in an
overall leadership capacity,setting the tone and making decisions. Individual Council
member involvement should be limited and handled with great care to avoid confusion,
possible internal differences,and ultimately,delays. This is especially important during
the negotiation phase. Toward this end,the CAO will manage the process so strong
collective City Council leadership guides the way. The CAO will also work with
Council members to assure that individual Council member interests or concerns are
communicated through him,and are not"negotiated"by Council members directly with
the project applicant.
• Navigating Though the Advisory Bodies. Advisory body input will be very important
in achieving the best possible project,and several advisory bodies will be involved in the
formal processing of Chinatown-Court Street. However,if the project is to be processed
in a timely way,this involvement needs to be predictable,organized,and consistent with
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defined roles. Therefore, advisory body involvement should primarily occur at the usual
stages in the formal development review process,unless otherwise requested by the
Council or by the applicant(although advisory body members may wish to attend
community workshops or hearings on the project in an individual capacity). Advisory
bodies should not,however,prematurely involve themselves in the project at their own
independent initiative. This could lead to confusion for all involved.
Staff Leadership,Involvement, Organization
• The Rowing Teams. The staff effort will be lead.by the CAO,and will consist of two
major teams: the Negotiating Team(CAO,City Attorney,and negotiator/fiscal analyst)
and the Steering Committee(CAO,City Attorney,Assistant CAO,Community
Development Director,Finance Director,and Public Works Director). Other staff
members, such as the Development Review Manager,will augment these teams,as
needed.
• Added Help. With regard to the involvement of other staff,we will think outside the
box and,as needed,assign staff members to assist on project tasks that would not
normally be in their usual area of responsibility.
• "Rowing"in Unison. Staff members will not independently involve themselves in the
project in any way without first reviewing their proposed involvement with the Steering
Committee(e.g.staff members should not independently involve advisory bodies or, for
example,offer recommendations to individual Council members). All matters to be
reviewed by the Steering Committee should be scheduled through the Assistant CAO.
The Steering Committee will meet on a weekly basis.
The Team Ethic
• Communication and Teamwork. Extraordinary levels of communication and
teamwork will characterize our work on the project. Staff members will take personal
responsibility for keeping other appropriate staff members informed,and staff will share
a spirit of cooperation and positive follow-through. "Right hand-left hand"disruptions
will not occur with this project.
• Staying Positive. Recognizing the significance of this undertaking,team members will
share a positive,"can-do"attitude.
• Staying the Course. While people are often enthusiastic at the beginning of a project,
the number of decisions and the time flame of this project will provide a number of tests.
What is desired by,and in the long-term best interest of,the community will be the
teams' sustaining motivation.
• Having Fun. Recognizing the pressure staff will be under,team members will also
support one another and maintain a sense of humor!
G:Chhaw%m-Court StreeVream Norms
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TO THE COPELAND
� NATOWN/COURT STREET REDEVELOPMENT PROPOSAL
The presentation on September 20 by the Copelands was very impressive.
Though my enthusiasm for the project hasn't waned, there are two major questions,
I feel, should be addressed. Should one family control such a huge chunk of the
downtown, and is it really wise to build the whole thing in a year. I think the
answer to both of these questions is no. But, to keep the vision alive, how about
exploring the possibility of a public entity owning the development.
If a single family controlled that much of the heart of the city as proposed,
that financial muscle would be exercised from time to time. For the sake of
argument, lets say that the Copeland brothers became saintly and exercised no
more influence on city affairs than any other private citizen. They, as all of us, are
not going to live forever. We would hope that the proposed development, or at least
its vision, could. Who would control their estates? What if their vast retail empire
were to collapse, or control be wrest from them. Would much of our beloved
downtown be owned by a New York bank.
Even if it were possible to begin construction immediately, would it be
advantageous to complete such a large project in so short a time. The City's growth
management ideals would be shattered. What could be done for an encore. Once
the local infrastructure geared up to support such a frenzied work schedule, on
completion all would have to be down sized. What good could that bring to the local
economy, and at Christmas time no less. Also, doing the whole thing at once, along
with the Marsh Street garage expansion, would basically close the downtown for the
duration. What effect would that have on the existing retailers.
Why wouldn't it be possible to set up an entity, that was public and an arm of
city government, to own and oversee the vision. The city already owns the property!
This could relax the time pressure apparent in the present private offer. The
Copeland team could still be contracted with. A public entity could assure
participation on a very large scale instead of having just three public forums. Other
pertinent issues, such as transportation systems, could be discussed. A flexible
structure that was tailor made for this particular situation would have to be
devised, though there are models to draw from. Seattle's "Pike Place Market" is one
such model that is extremely successful, as I am sure there are others.
I then, am asking you the City Council to at least explore the possibilities of a
public entity overseeing the project. This could be done in tandem with granting
the Copelands an exclusive private entity right to negotiate. After the 120 days,
there could be at least a choice of two different approaches, one private and the
other public. For, without being given the opportunity to explore any other
possibility, other than selling to one sole bidder, would, I feel, be an error of great
significance.
By: Stan Ryan, RECEIVED
234 Broad St., SLO
Phone:593-0962, E-mail: sryan@slonet.org 6 r T 1 8 1999
SLO CITY COUNCIL