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Mark Sawicki
Economic Development and Housing Manager
600 Elm Street
San Carlos, CA 94070
Phone: (650) 802-4263
Wheeler Plaza - Responses to Questions & Answers

Responses to Wheeler Plaza RFQ Questions

Updated 10/31/08

Selection Criteria and Process

What are the Agency’s prime objectives for the site —could you rank them in priority?

The main objectives share equal weight and none is individually more important than the next. They include the need for high-quality design and materials and adequate parking to replace the existing 187 spaces. If new housing units are built at least 15% of them must be made affordable to Very Low, Low and Median Income households under the current BMR Ordinance.

Does the financial statements for the developer and other team members count towards the 30-page minimum for submittals?

No, particularly if you are submitting third party audit or review statements.

Do we need to send a $15,000 deposit with our submittal?

No. The deposit requirement does not apply until we select a developer to execute an Exclusive Negotiating Agreement with.

I understand that the financial capacity portion of the RFQ can remain confidential, but what about the narrative description and initial design proposal?

It is our intent to use the information submitted for the sole purpose of evaluation and selection of a qualified developer.If you wish, we could return your materials if you are not selected. If you are selected to proceed to the RFP phase, we will likely want to disclose the designs and project descriptions of the finalists.

Land Acquisition, Deal Structure and Agency Assistance

How will the procurement of land take place? The RFQ says “The developer will be expected to secure financing for the project’s hard-cost and soft-cost categories including, but not limited to, possible land acquisition”. Does possible land acquisition mean there would be a financial cost for the land?

It is possible there will be a cost to the land.   The land value is negotiable and would be a function of what is proposed for the site.The Agencty recognizes that replacing 187 spaces in structured parking is an expensive requirement for a development. However, a preliminary analysis indicated that with a significant housing unit density level, there may be a positive residual land value.

Would the City or Agency own the land under the Wheeler Plaza project or could it be a land transfer?

The Agency and City are willing to explore all possible ownership options including a land lease, condominium of surface and air-rights parcels, or a sale of the property. The parking for downtown commercial must remain a public amenity.

Will the Redevelopment Agency provide financial assistance? I noticed in the Draft Midterm Review of Implementation Plan that $3,070,000 in non-housing funds is budgeted toward Wheeler Plaza and $2,000,000 is budgeted for a New Housing Project and may be applicable to Wheeler Plaza. Do either of these come into play with the developer of the site? If yes, how -- and what are the concessions required in return?

The RDA will consider contributing to various aspects of the project, as necessary based on mutual agreement of the feasibility of a desired site plan and project scope. If the RDA provides assistance, it would likely be in the form of funding for affordable housing, offsite improvements and for the provision of common public benefits and amenities. The projects and activities and dollar amounts cited in the Implementation Plan are rough estimates of potential Agency participation, if necessary. Until there is a real project and a determination of need for financial assistance, the Agency can not commit to any particular amount of assistance.

Adjacent owners: Has the City or Agency spoken to the owners of the Oriental Rug Store Building (fronting on San Carlos Ave) and the single family home (adjacent to 657 Walnut)? Have they indicated any willingness to sell or price/terms?

We have had discussions with both of these owners about potential acquisition. Both properties have been listed for sale.

Entitlement, Land Use and Zoning

I understand that the City is undergoing a General Plan Update process. How could that affect land designations and zoning?

The City is undergoing a General Plan Update and the current Preferred Land Use Alternative being proposed to Council calls for a density in this area of up to 59 units per acre. Existing land use designation allows up to 80 units per acre; however, the zoning requires discretionary approval for any development with more than 20 units. There are opportunities to increase density by providing affordable units through both the City’s BMR Ordinance and State Density Bonus Law. Development approval of the site would likely be through a Planned Community designation in which many of the development standards could be modified.

Was an environmental impact report completed for Wheeler Plaza?

A phase 1 environmental assessment was completed. A phase two is scheduled to be completed in the near future. A comprehensive Wheeler site-specific EIR has not been completed at this time.It should be assumed that an EIR will need to be completed as part of the entitlement process.

Isn’t there a Downtown Master Environmental Assessment that was completed sometime in the mid 1990s?

There was an MEA prepared. Staff is researching how or if it could be applied to a Wheeler mixed use project.

Could you walk us through the planning entitlement process with a discussion of how long this may take?

A developer should assume at least a one year process from application to approval, including the time for significant community outreach and neighborhood collaboration with residents and businesses. One of the criteria for selection of a qualified developer is the level of experience with successful community outreach. The project may require a full EIR which can add significant time to the process. Final review and approval will be at a public hearing by the Planning Commission and the City Council.

Has a title report for Wheeler Plaza been ordered showing potential easements?

The City has owned Wheeler Plaza for decades and we are not aware of any issues or questions about clean title. However, a title report is on order and would be made available to the selected developer(s).

Will the City require retail on Walnut Street?

The City will require ground floor uses that are compatible with our Central Retail Core District including retail and restaurant uses. Other options at the ground floor may be permitted by virtue of the Planned Community approval process.

Is the FAR of 3.0 applicable to all uses and areas of the project site?

TBD. This is being reviewed by staff.

What will the San Carlos Public Works Department require in fees or service improvements?

TBD. There is a variety of information on improvements and fees available on the website under the Public Works Dept. Until we have a better understanding of what the project scope will be, it would be difficult for PW to give a clear estimate of requirements.

I understand that a similar proposal for Wheeler Plaza was considered approximately 5 years ago—why did it not go forward?

The City had preliminary discussions with a developer on a proposed residential project. The potential for such a project was the impetus for acquisition of the two adjacent parcels. However, a proposal was never formally presented so it is not clear if would have been viable.

We understand that the GP is going through an update and zoning will follow but we needed some clear direction on:

A) Height: Understood as 50’ but what isn’t clear is how San Carlos measures height. Starts from grade, street, other? Up to plate, ridge, other? What about parapets, elevators and utilities? They tend to go higher, can they be above the 50’ limit? Are the definitions of height the same in for Planning & Bldg Depts?

San Carlos measures height from the tallest part of the ridge to the finished or natural grade below. Chimneys, vents and other required mechanical equipment can extend past the 50’ limit. Architectural features, elevator shafts and parapets have been approved that extend beyond 50’ on some projects with Planned Community or conditional use approvals.

What are the setbacks from public ROWs and all surrounding existing uses?

The right of ways (ROW) for the block includes San Carlos Avenue 100’ ROW; Walnut Avenue 60’ ROW; Cherry Street 50’ ROW; and Laurel Street 60’ ROW. The setbacks for the existing buildings surrounding Wheeler Plaza vary depending on the period when they were developed. The current setback requirements for this type of development would likely include a mix of zero lot line setbacks punctuated by required amounts of open space and streetscape planting. The final requirements of this are a function of the architectural program, building design, and the zoning code that is in effect during the approval of the project. All of San Carlos’ zoning information is available online at the City’s website.

Any other technical zoning issues we should incorporate in our original design?

Ground floor retail/commercial is the desired use on both the E. San Carlos Avenue and Walnut Street frontages of this project.

What is the current trash pickup circulation pattern for this lot and the rear of the businesses that surround it?

This would best be answered by the local waste contractor, Allied Waste.

Are the interior, parking lot sidewalks currently public or private and how does the city see this issue within the new development?

It appears that the sidewalks that run along the southern side of the buildings located on San Carlos Ave are privately owned. Keep in mind that one of those buildings is City owned and therefore the section of sidewalk for that parcel could be removed, altered or replaced during the construction of Wheeler Plaza.

It is unclear where building footprints are in relation to property lines for the buildings surround the subject property. Is there a civil engineer’s survey or other document in the city’s possession that would make this clear?

The City is currently retrieving the parcel maps and records that pertain to Wheeler Plaza. It is probable that the city will prepare a more refined project map later in the process.

Affordable Housing

Will the Agency consider a 100% affordable project on the site?

Yes, we are interested in having a range of options to consider for the site. We would also consider separating the market-rate and affordable components to the extent that it results in greater leveraging of State and Federal funding sources, enhances public benefits and improves the overall design and feasibility.

Will there be any changes to the BMR ordinance with the approval of the General Plan Update?

There may be changes to the BMR ordinance in the next year. These modifications are being considered through the Housing Element update process. At a minimum, the BMR Ordinance will be modified for consistency and clarity with regard to State Density Law and other changes may be considered to better align our policies with neighboring jurisdictions and best practices.

Will the Agency require the developer to relocate the tenants and residents of affected properties?

The Agency will have a replacement and relocation obligation if the existing residential units are removed.It is our expectation that these units will be replaced and those tenants will be offered to relocate within the project. The commercial tenants are all on short-term leases and have been notified of the City’s plans for Wheeler Plaza.

Reviewing the BMR Housing Program ordinance, it does not appear that in lieu fees are an option for the BMR’s. Is that correct?

That is correct.

Parking Requirements

The Agency may consider proposals with a lesser parking ratio than required by zoning under the probability that they will be shared with daytime retail uses, that the project is in close proximity to mass transit and may provide a substantial number of Below Market Rate units.

Will the developer be required to provide temporary parking during construction of Wheeler Plaza for those spaces that are disturbed or removed?

The City will investigate all options to accommodate adequate parking, a laydown area and site access during construction. Some possibilities include temporary shared parking agreements in nearby parking lots or vacant parcels or the potential for phased construction of the project allowing some existing parking to remain.

Does the City envision implementing permit parking or metered parking in this district in the near-future?

Not at this time. This has never been a popular idea and the need has not yet been demonstrated.

Can the parking be provided in a separate structure or must it be a podium with housing above?

The Agency will consider all design options. A separate parking structure would be possible if it is wrapped by housing or retail or otherwise well-designed to fit within its downtown context.

Design

Would the Agency prefer a classic or an urban look?

The current selection process is centered on qualifications and not specific design proposals. The Agency is open to reviewing all options. However, a final design would likely need to be in character with the neighboring buildings, which is more of a classic look.

Prevailing Wage

Would the developer be required to pay prevailing wages?

To the extent the Agency or City is a participant in the project, then prevailing wages will apply.

Open Space

What about the requirement in San Carlos for Open Space in all new developments—what will the City require?

The City will require a level of open space in the final design of Wheeler Plaza. Exterior open spaces, like the common areas created for the Pacific Hacienda project across the street, are in keeping with the City’s goals for Wheeler Plaza. A public paseo or pedestrian pathway connecting Walnut Street to Laurel—either mid-block or as a continuation from Pacific Hacienda—is a design feature the City would consider favorably. A gathering space for downtown patrons and residents is an amenity the Council has expressed interest in for the community.

What is the status of the proposed Cherry Street Park that appears on the conceptual drawings for a Wheeler Plaza project?

The Cherry Street Park was a conceptual design exercise initiated by Staff to consider where else open space might be created in the downtown. It is not a element to be considered as part of the Wheeler RFQ.

You may direct any additional questions to Mark Sawicki at msawicki@cityofsancarlsos.org or 650.802.4220, or to Gavin Moynahan at gmoynahan@cityofsancarlos.org or 650.802.4267.

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