COUNTY OF SAN MATEO

Inter-Departmental Correspondence

 

ENVIRONMENTAL SERVICES AGENCY

 

DATE:

May 9, 2005

BOARD MEETING DATE:

May 24, 2005

SPECIAL NOTICE/HEARING:

None prescribed

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

 

FROM:

Marcia Raines, Director of Environmental Services

 

SUBJECT:

EXECUTIVE SUMMARY: Consideration of a request to extend the time within which the Pillar Point Harbor Village project must be completed under Section 15.E of the Project Development Agreement.

 

RECOMMENDATION

Extend the time within which the Pillar Point Harbor Village Project must be completed under Section 15.E of the Project Development Agreement to May 22, 2007, and direct the Director of Environmental Services to memorialize such extension in writing.

 

VISION ALIGNMENT

Commitment: Responsive, Effective and Collaborative Government.

 

Goals: Government decisions are varied on careful consideration of future impact, rather than temporary relief or immediate gain.

 

This project has gone through a full environmental review, with all required Planning approvals obtained. The project was designed to address both the need for visitor-serving facilities in that area of the Coast, and to bolster the economic vitality for the Midcoast.

 

BACKGROUND

In 1989, the San Mateo County Board of Supervisors certified the EIR and approved the required permits for the Pillar Point Harbor Village project, which includes a hotel, a restaurant/bar; an enclosed shopping mall, parking for 450 vehicles, and a 4-parcel subdivision. The project approval was subsequently upheld by the Coastal Commission and survived a legal challenge, in 1993, with the subdivision being recorded in 1994.

 

On May 23, 1995, the Board entered into a Development Agreement with the project owner and developer, which provided that project construction must begin within five years of the effective date of the Agreement’s adoption: June 23, 1995. The Agreement further provided that, subject to extension caused by events described in Section 15.E., the project must be completed within a 10-year term, which expires on June 22, 2005.

 

The project’s first building permit for the retail office building was issued in April 2000, with construction commencing within the 5-year period specified in the Agreement. The remaining four building permits necessary to complete the project have all been submitted, with two issued for the underground garage/mall shell and hotel slab foundation. The other two permits for the hotel and restaurant are undergoing their final review prior to issuance. In addition, compliance with all conditions associated with the project’s 1989 approval have already been met or will be confirmed prior to the project’s final completion.

 

DISCUSSION

Section 15.E. of the Development Agreement specifies these events which can serve as a basis to extend the Agreement: (1) the parties must agree that one or more of the listed bases for extension apply and on the time of the enforced delay of a mutually agreeable longer period, (2) the extension of time must be granted in writing, and (3) extensions cannot exceed more than five years in the aggregate. No previous extensions of time have been granted under this provision.

 

In January 2005, the County received an application from the current owner of the project for a 2-year extension of time under Section 15.E. The application cited delays in: (1) the ability to obtain financing, due to the events of September 11, 2001, (2) obtaining necessary sewer permits for the project, and (3) in plan checking by the Half Moon Bay Fire Department. Upon submittal of additional information, staff supports a determination that the project has experienced at least two years of delay as a result of causes covered by Section 15.E of the Agreement. Staff believes that a 2-year extension would provide more than ample time to complete the project.

 

ALTERNATIVES

The following alternatives to the staff recommendation could also be determined by the Board:

1.

That there is insufficient information to establish the grounds for any extension under Section 15.E. of the Agreement. In this event, the Development Agreement would expire on June 22, 2005.

2.

That there is insufficient information to establish some of the claimed grounds for extension, and grant a lesser extension based on that determination.

3.

That the claimed grounds for extension exist, but choose to grant a greater time extension than the time representing the delay, as authorized by Section 15.E.

 

FISCAL IMPACT

The total revenues associated with all building, electrical, plumbing and mechanical permits applied for to date is approximately $967,125. Additionally, the assessed tax revenue on the project parcel will increase significantly.