Council Special Meeting

MINUTES CITY COUNCIL SPECIAL MEETING CITY OF MONTEREY Wednesday, January 23, 2019 4:00 to 6:00 p.m. FEW MEMORIAL HALL OF RECORDS, 580 PACIFIC STREET MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Albert, Haffa, Smith, Williamson, Roberson Absent: None City Staff City Manager, City Attorney, Community Development Director, Public Present: Works Director, Housing and Community Development Manager, Acting City Clerk, Property Manager CALL TO ORDER Mayor Roberson called the meeting to order at 4:06 p.m. PUBLIC COMMENTS Mayor Roberson opened the floor for public comments on non-agendized matters. Tom Rowley urged the City to review its mixed use policies. Esther Malkin, citing the needs of families, said that Fremont Street and Garden Road are areas appropriate for high density, not existing neighborhoods. Sa'ad Ahmed, Tiny Toronto, asked the City to consider backyard accessory dwelling units (ADUs) as a housing option, and Mayor Roberson clarified that the City has an ADU Ordinance in place. Bob Faulis said that the City’s General Plan needs to be reviewed from time to time to avoid questions about spot zoning and to plan for future generations. With no further requests to speak, Mayor Roberson closed public comments. CONSENT ITEMS Mayor Roberson opened public comments on the Consent Agenda, and receiving none, closed public comments. On a motion by Councilmember Haffa, seconded by Councilmember Albert, and carried by the following vote, the City Council approved the Consent Agenda: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Other 1. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 101 Fisherman's Wharf (Big Fish Grill); Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: Daniel McGilloway, Jr.; Under Negotiation: Terms and Conditions for Assignment of Lease (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Plans & Public Works - 206-03) Action: Appointed negotiators  City Council Minutes Wednesday, January 23, 2019 2. Appoint Agency Negotiators for Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: 1 Old Golf Course Road (Hyatt Hotel); Agency Negotiators: Kimberly Cole and Janna Aldrete; Negotiating Parties: FWREF Monterey, LLC; Under Negotiation: Terms and Conditions for Potential Sale of Land (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Public Works - 206-03) Action: Appointed negotiators ***End of Consent Agenda*** PUBLIC APPEARANCE 3. Discuss Fort Ord Property Development Potential and Direct Staff to Release a Request for Proposals (Not a Project under CEQA Article 20, Section 15378 and under General Rule Article 5, Section 15061) (Plans & Public Works - 203-02) Action: Discussed; Directed staff to bring to Council for review a draft general RFP, which would leave options open, test the development community, and express preference for providing workforce and/or affordable housing to the neighboring community, and wherever possible collaborate with the City of Del Rey Oaks City Manager Uslar provided background information to explain the impact made to the community, economy, and environment by Fort Ord’s closure in the 1990s. He said that the Marina Coast Water District has committed to delivering 65 acre-feet of water to the City for its Fort Ord property, and clarified the original reasoning behind the property’s zoning. He asked Council to look at the City’s 126 acre property in the context of the Fort Ord Reuse Plan and the planned development by Del Rey Oaks. David Zehnder, consultant with Economic & Planning Systems, Inc. (EPS), gave a brief presentation about the property and associated opportunities and challenges, and asked Council to give direction regarding its vision for the site, including development potential and any interest in issuing a request for proposal (“RFP”) to developers. He described four potential alternatives for use of the property that he said were consistent with the available 65 acre-feet of water. On question, City Manager Uslar said that the site would require pipes at an estimated cost of $2 million for water and $2 million for sewer, costs which he said could be shared with Del Rey Oaks. Housing and Community Development Manager Caraker said that based on existing plans South Boundary Road would have sufficient capacity for residential use in the area. Mayor Roberson opened public comments. Kevin Dayton, Monterey Peninsula Chamber of Commerce, spoke in favor of Research and Development Flexible (R&D Flex) Light Industrial use for the property, with incubators in mind, and suggested that Council look at ideas from the Monterey Bay Economic Partnership (MBEP) for affordable housing. Bruce Zanetta shared an idea for a potential development of the City’s property that would provide housing, vehicle parking, and commercial use within the structure of a parking garage. Rosemary Foster, California Native Plant Society, asked the City to consider the seven category 1B endangered plant species on its property, which she said includes two critical habitats. Timothy Barrett spoke in favor of infill development to address housing and traffic congestion needs, and in favor of R&D Flex Light Industrial use for the property, citing resulting increased jobs diversity and livable wages. He questioned the accuracy of the residual land value cited by EPS. 2 City Council Minutes Wednesday, January 23, 2019 Michael DeLapa, LandWatch Monterey County, spoke in favor of infill development and against developing the Fort Ord property, citing concerns including water availability. Tom Rowley, citing water supply and traffic congestion concerns, said that highwaydevelopment concepts for the site are premature and referred to Measure M (1984) limiting future development along Highway 68. Esther Malkin, citing housing, traffic, and budgetary concerns, said that she expects Council to present viable alternatives and be prepared to answer how they would address pent-up housing demand and potential future loss of state funds. Carl Outzen echoed concerns raised by Mr. Barrett and Mr. Rowley, and said it is important to have sources of revenue outside of tourism during an economic downturn. Molly Erickson, Keep Fort Ord Wild, said she agreed with Mr. Rowley, spoke in favor of infill development, and referred to the native habitat and endangered species on the property and other projects already in line for the housing unit count. She suggested that Council ask the Marina Coast Water District and/or other parties to present on the Ford Ord water supply and the deep aquifer. With no further requests to speak, Mayor Roberson closed public comments. On question, City Manager Uslar said that legal repercussions associated with the 2004 development agreement with Fort Ord Reuse Authority (FORA) are not likely. He said munitions cleanup is complete for light industrial use, and further cleanup would be required for residential. He said that the airport would not have a say on the property’s use. He said that Marina Coast Water District assured the City that they would have 65 acre-feet of water. He said that changing the zoning through a general plan amendment would take about six months and the FORA board would be likely to agree to changes to the Base Reuse Plan (BRP). On question, Mr. Zehnder reported that the City of Del Rey Oaks is working with developers and consultants, working toward an RV park and evaluating the range of residential and non- residential uses that might be appropriate. He said that more specifics may be known within a few months about the potential range of uses, but there are likely to include mixed-use, with residential and commercial of various types. City Manager Uslar said that Del Rey Oaks is developing according to the BRP and plans to develop a hotel and additional housing. Mayor Roberson, citing concerns about housing, jobs, traffic, budget, infrastructure and cleanup costs, and the impact on the environment, expressed an interest in tabling the matter, saying that he would like to wait to see what happens with FORA and Del Rey Oaks. He said he would like to see infill housing developments that create minimal impact on existing neighborhoods, and sees the East Downtown neighborhood as an opportunity for infill housing. Councilmember Haffa said he doesn’t see a lot of demand for commercial use, expressed concern that some commercial spaces in Ryan Ranch and in mixed-use buildings are empty, and commented on the status of the UC MBEST light industrial/flex property. He said that the Council has bowed to concerns about accessory dwelling units (ADUs) and building height, and said there is a crisis and that he feels a sense of urgency to build housing for those who need it. Councilmember Williamson said that when people raise questions about potential development as it relates to housing, they need to be able to answer the question: “if not here, then where?” He said affordable housing was his main goal for the site, even above a potential fiscal surplus, and wondered if the Council should prioritize spending more of staff’s energy and time on developing policies to make it easier for developers to add infill housing. Councilmember Albert said that the Councilmembers have presented differing visions and need to decide together how they would like to proceed. 3 City Council Minutes Wednesday, January 23, 2019 Councilmember Smith said he would like to move ahead with developing the property, saying it is an opportunity to provide needed commercial and residential use. He said that because the purpose of receiving the property was to mitigate economic losses resulting from Fort Ord’s closure, he believes the 126 acres should produce a project that enables the City to be cost- efficient, fiscally prudent, and possibly generate extra revenue. Council discussed the urgent need for more housing, and the potential to rezone the property by amending the BRP with FORA’s approval. They expressed an interest in understanding development options under both FORA scenarios (continuation or sunset). It was stressed that the City should work closely with Del Rey Oaks on land use and infrastructure issues, and the idea was raised to potentially hold a joint meeting with the Del Rey Oaks City Council. Council cited traffic impacts that can arise from workers commuting and driving for services, and talked about the potential benefits of mixed-use at the site. Council discussed various options for a potential developer solicitation, including not developing all 126 acres, varying types and sizes of developments, giving priority to workforce housing that could serve Ryan Ranch and Garden Road area businesses, requesting inclusion of housing and light industrial uses, and requiring developers to undergo a fiscal analysis of matters such as presumed increased demands on public safety and infrastructure. It was agreed that Council would prefer to review the RFP and discuss it before submitting to developers. City Attorney Davi said that Council could solicit multiple ideas and proposals from developers, could direct staff with rankings of various options, and was not obliged to prohibit other alternatives. She said that the Council would have the right to reject all proposals. City Manager Uslar said that the site’s proximity to Ryan Ranch is a possible opportunity, citing the sizable number of professional medical assistants in the area and the aging population. He provided considerations that staff will bring forward to Council for decision-making. Mr. Zehnder and City Attorney Davi discussed the appropriate terminology for a solicitation and settled on RFP due to the City Code. Mr. Zehnder said that an RFP can be drafted to ask for vision from developers and require a detailed due diligence phase at the developer’s own cost—looking at water supply, traffic, open space, and other issues—if they were to move into exclusive negotiations. On a motion by Councilmember Haffa, seconded by Councilmember Albert, and carried by the following vote, the City Council directed staff to bring to Council for review a draft general RFP, which would leave options open and test the development community, express preference for providing workforce and/or affordable housing to the neighboring community, and wherever possible collaborate with the City of Del Rey Oaks: AYES: 5 COUNCILMEMBERS: Albert, Haffa, Smith, Williamson, Roberson NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None ***Adjourn to Closed Session*** Mayor Roberson opened public comments on the closed session agenda, received none, and closed public comments. The Council adjourned to closed session at 6:04 p.m. 4 City Council Minutes Wednesday, January 23, 2019 ANNOUNCEMENTS FROM CLOSED SESSION Acting City Clerk Klein announced the following: cs1. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: 101 Fisherman's Wharf (Big Fish Grill) Agency Negotiators: Kimberly Cole and Janna Aldrete Negotiating Parties: Daniel McGilloway, Jr. Under Negotiation: Terms and Conditions for Assignment of Lease (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Plans & Public Works - 206-03) Action: On a unanimous roll call vote, City Council gave confidential direction to its property negotiators cs2. Closed Session Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8 Property: 1 Old Golf Course Road (Hyatt Hotel) Agency Negotiators: Kimberly Cole and Janna Aldrete Negotiating Parties: FWREF Monterey, LLC Under Negotiation: Terms and Conditions for Potential Sale of Land (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) (Public Works - 206-03) Action: On a roll call vote of 4-1 (Councilmember Smith voting no), the City Council directed staff to decline to sell the property ADJOURNMENT The Council adjourned at 6:35 p.m. Respectfully Submitted, Approved, Clementine Bonner Klein Clyde Roberson Acting City Clerk Mayor 5