COUNTY OF SAN MATEO

Inter-Departmental Correspondence

 

ENVIRONMENTAL SERVICES AGENCY

 

DATE:

October 6, 2006

BOARD MEETING DATE:

October 24, 2006

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 ongoing 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 June 22, 2007.

 

At that 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 the agreement between the developer and the Half Moon Bay Fire Protection District; (2) timing of the improvements required in the adjacent right-of-ways; and (3) clarification of the language in the Development Agreement regarding project phasing.

 

On August 16, 2005, Planning staff reported to the Board on the status of these three items. As agreed at that meeting, staff returned to the Board again on February 28, 2006 to provide status updates on all pending conditions associated with the project’s original 1989 approval, as listed in Attachment A. Again as requested, this report represents the latest status update on the project. The next status report will be presented in March 2007.

 

DISCUSSION

 

The following discussion addresses the Board’s request for a project status report, with emphasis on the following.

 

Summary of Project Conditions and Status:

 

All 45 conditions of the project’s original 1989 approval have either already been met or are pending as the project progresses towards completion. Attachment A shows the chart summarizing the most recent status of all 45 conditions of project approval. Building permits for the underground parking, the hotel foundation, the hotel and mall building and a small detached office building have been issued. As a result of an ongoing dispute between the Granada Sanitary District and the developer over the amount and cost of sewer capacity to serve the restaurant facility, sewer permits have not been issued for the restaurant building and, as a result, the County has not issued permits to build the restaurant. This delay may jeopardize the ability of the developer to complete the project by the June 22, 2007 deadline, as discussed below.

 

We have been informed that the District and developer have reached a conceptual understanding and are negotiating a written agreement that would contemplate the construction of the building proceeding while they resolve their differences. The agreement would provide for the deposit in escrow of the maximum amount that could be charged for the permits, the agreement by the District not to protest the issuance of a foundation permit for the restaurant, and the commitment to resolve the dispute in an expeditious manner consistent with the current June 22, 2007 deadline established by the Development Agreement. As of this writing, and given assurances from Granada Sanitary District that capacity will be available when the dispute is resolved, the Community Development Director is considering the option of issuing a permit for the foundation only, with a proviso that permits for construction of the remainder of the building will not proceed until the dispute is resolved and sewer permits issued. Any such foundation permit would also provide a mechanism for removing the foundation, at the developer’s expense, if necessary in the event that, for any reason, the required capacity is not obtained. Further, the permit would be accompanied by security in an amount sufficient to cover demolition of the foundation. Discussions are being held with the developer and the District on the development of a three-way agreement that would incorporate all of the above provisions with a goal of committing all parties to meet the June 22, 2007 deadline.

 

We have discussed the timeline with the developer and he anticipates completing all aspects of the project by the June deadline. If it appears that the deadline cannot be met, due to weather or other unanticipated conditions, we will return to the Board with a reassessment of the timeline prior to the next six-month update, which is currently scheduled for April 2007.

 

Conditions Regarding 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 A – Summary Chart of Project Conditions). The improvements are a high priority for the applicant. The main and rear entrances and connecting sidewalks have been completed. Street curbs and gutters have been surveyed and graded, and the construction contracts have been awarded. Due to delays from last winter’s heavy rains, the entire roadway improvements are now scheduled for completion by December 2006. All plans and permits have been approved (including the encroachment permit from CalTrans and permission from PG&E) to start all work involving Capistrano Road and Highway 1 as outlined in Conditions 1 through 5. Discussions with SBC are complete regarding the easement for the placement of the fiber optic line.

 

The need for the public improvements is generated by the buildout and occupancy of the site. As the fiber optic line is moved and construction traffic subsides, the remaining public improvements will be installed immediately thereafter. 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.

 

Prevailing Wages:

 

Condition No. 45 requires the applicant, to the extent allowed by law, to pay prevailing wages at a level which would be required if the project was a Public Works project. Staff has received verification from the applicant through written agreements confirming that all contractors and subcontractors are or (for those yet starting) will be paid the required prevailing wages.

 

FISCAL IMPACT

 

The total revenues associated with the building, electrical, plumbing and mechanical permits applied for to date is over $970,000. Additionally, the assessed tax revenue when the project is completed will increase significantly.

 

ATTACHMENT

 

A.

Summary Chart of Project Conditions

   
   

DJH:kcd - DJHQ0893_WKU.DOC