COUNTY OF SAN MATEO

Inter-Departmental Correspondence

 

ENVIRONMENTAL SERVICES AGENCY

 
 

DATE:

August 3, 2005

BOARD MEETING DATE:

August 16, 2005

SPECIAL NOTICE/HEARING:

None prescribed

VOTE REQUIRED:

None

 

TO:

Honorable Board of Supervisors

   

FROM:

Marcia Raines, Director of Environmental Services

   

SUBJECT:

Pillar Point Harbor Village Status Report

 
 

RECOMMENDATION

 

Accept status report and attachments.

 

VISION ALIGNMENT

 

Commitment: Responsive, effective and collaborative government.

 

Goal(s): To ensure that the original intent of project approval is maintained through on-going monitoring and reporting during the construction of the Pillar Point Harbor Village project. The project underwent full environmental review and all required Planning approvals were obtained. The project is designed to address the need for visitor-serving facilities on the Coast and to enhance the economic vitality of the Midcoast area.

 

BACKGROUND

 

On May 24, 2005, the Board of Supervisors extended the time limit within which the Pillar Point Harbor Village project must be completed to May 22, 2007 and directed the Director of the Environmental Services Agency to memorialize the extension in writing. The letter memorializing the extension is attached for the Board’s information (Attachment A).

 

At the May 24th meeting, the Board requested that Planning staff report back within 60 days on the overall status of the project including the following three specific items: 1) status of Condition No. 16 regarding an agreement between the developer and the Half Moon Bay Fire Protection District (HMBFPD) requiring the developer to assist in funding the additional personnel needed to service the project; 2) timing of the improvements required in the public right-of-ways adjacent to the project; and 3) clarification of the language in the Development Agreement regarding project phasing.

 

At a subsequent meeting with the applicant and County staff on June 14, 2005, it became apparent that additional information needed to be prepared by the applicant and reviewed by staff to meet the Board’s request for a status report. Due to the level of detail provided, it has taken staff 85 days rather than 60 to prepare this status report.

 

DISCUSSION

 

The following discussion addresses the Board’s request for a project status report.

 

Firefighting Services Agreement:

 

Condition No. 16 of the original project approval requires the applicant to execute an agreement with the HMBFD that provides for fully funding the first year’s assessment for fire services generated by the project. The Agreement is required prior to the issuance of building permits for the project. The applicant has executed that Agreement (Attachment B). The Agreement stipulates that the developer shall fully fund the first year’s fire assessment at either: 1) a level equal to one and a half firefighters salaries, to be adjusted proportionately as additional areas within the special fire zone area, established by Condition No. 16, are developed; or 2) at a comparable level of service to that referenced in Condition No. 16 according to a formula determined by the HMBFD and the developer.

 

The clause in the Agreement that permits the developer to fund a comparable level of service, to be determined according to a formula developed by the involved parties, allows the HMBFD to obtain funding based on current needs rather than on projections estimated ten years ago when the original Development Agreement was approved.

 

The Firefighting Services Agreement requires the developer to pay the funding to the HMBFD no later than 20 days prior to the occupancy of the project. The Agreement further stipulates that the developer shall not seek a certificate of occupancy for any use of the structures that comprise the project until 20 days after the developer has paid the HMBFD the required funds. These stipulations ensure that the HMBFD will be fully funded for the first year of fire services prior to any occupancy of the project.

 

Public Improvements:

 

The original conditions of project approval require the developer to construct roadway improvements along portions of Capistrano Road and Highway 1 (Conditions 1-7 of Attachment C – Summary Chart of Project Conditions). The improvements are a high priority for the applicant. The design and engineering of the improvements have been approved and the County and Caltrans have issued the appropriate encroachment permits. The driveway entry at the northwest side of the property has been completed and the sidewalk on the hotel entry side of the site is partially installed. The construction bids have been accepted and PG&E has given approval to start work on the two left turn lanes onto Capistrano Road from northbound Highway 1 along with one free right turn lane in the same location. PG&E has given approval for the developer to begin work on the improvements to southbound Highway 1 and Capistrano Road as outlined in Condition No. 5, however SBC has required an easement and $41,000 to move an existing fiber optic line. The need to move the fiber optic line prior to beginning the roadway improvements will delay the start of the roadway improvements approximately six to eight months.

 

The need for the public improvements is generated by the build-out and occupancy of the site. As the fiber optic line is moved and construction traffic subsides, the remaining public improvements will be installed immediately. The developer understands that the project cannot be occupied prior to completion of these public improvements and that the County will not issue Certificates of Occupancy for any portion of the site until all public improvements are installed. Additional details on the road improvements are included under conditions 1 - 7 in Attachment C.

 

Clarification of Phasing:

 

The Development Agreement allows the owner of the project to develop the project in phases, the timing and manner of such phases to be determined by the project owner (Section 5.C of Attachment D – Excerpt of 1995 Development Agreement). Section 5.C of the Development Agreement further states that if the project is phased, the first phase will include the public improvements described in the development Plan (roadway improvements along Capistrano Road and Highway 1). While the Development Agreement does not specifically define the term “phase”, a phased project typically is one in which independent portions of an overall project are fully constructed and in operation prior to other portions of the same project being completed. Each portion or phase of the project can operate independently of another in terms of parking and other development standards or requirements. Frequently, there are a number of months or years between the phases of the overall project.

 

The developer of the Pillar Point Harbor Village project has not indicated a phased approach to the operation or occupancy of the project. The project will be constructed as a whole and when occupancy permits are granted, they will be granted for the entire project. Finishing the landscaping and details of the public improvements toward the end of project construction will ensure that the sensitive aspects of the improvements will not be damaged during construction. Because the project is being constructed as a whole and is not being phased, completing the public improvements as part of the construction of the entire project complies with the requirements in Section 5.C of the Development Agreement. The developer understands that no part of the project can be occupied prior to completion of the entire project, including public improvements.

 

Summary Chart of Project Conditions and Status:

 

A chart summarizing the most recent status of all 45 conditions of project approval is attached (Attachment C). Building permits for the underground parking, the hotel foundation and a small accessory building have been issued. Building permit applications for the hotel and restaurant have been submitted. The permit for the hotel is anticipated to be issued in mid-August and the building permit for the restaurant will be issued as soon as construction of the hotel is far enough along so that construction vehicles no longer need to access the hotel by crossing the restaurant location.

 

Planning staff will provide additional project status reports every six months from this date forward.

 

FISCAL IMPACT

 

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

 

ATTACHMENTS

 

A.

Letter Memorializing Extension

B.

Agreement with Half Moon Bay Fire District

C.

Summary Chart of Project Conditions

D.

Excerpt of 1995 Development Agreement