CITY COUNCIL STAFF REPORT
MEETING DATE: August 5, 2015
PREPARED BY: Leslie A. Little, Asst. City Manager/Community Development
APPROVED BY: City Manager
Title
AUTHORIZATION TO NEGOTIATE SALE OR EXCHANGE OF PROPERTY WITH WESTON MILES ARCHITECTS FOR THE EXPANSION OF THE GRANARY
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution authorizing negotiations for the sale, exchange or lease of the Depot building parking lot property with Weston Miles Architects for the expansion of the Granary.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
2015 Focus Areas
Stimulate Economic Development
Advance Downtown Revitalization
REPORT NARRATIVE:
Weston Miles Architects are the developers and owners of the Granary complex located just north of one of two, City-owned parking lot parcels on Depot. The Granary Phase I is a successful mixed use project, containing offices, service tenants and a popular, high-volume restaurant. Weston Miles owns the adjacent private parking lot, which contains 14, full sized (1 handicapped) parking spaces. Phase II of the Granary, will be the construction of a 30-unit condominium complex, directly north of the Granary Building, on the corner of Depot and Main. This condo project will extend the Granary to create a "district" to complete the Depot block from the parking lot to Main Street.
To facilitate the condominium development, an existing garage building must be demolished or relocated. Weston Miles proposes to relocate the building, and then more than double the size by adding more retail/restaurant space, at a location south of the Granary Building extending the "district" to the south. To do this, Weston Miles, working with staff, have discussed swapping parking lot areas (taking WM's private lot and making it public in exchange for development of the 10-space lot), or facilitating the long-term lease/ out-right sale of the independent portion of the northern Depot parking lot, to accept the building and new construction.
The lot in question is the 10-space, small lot immediately adjacent to the Weston Miles parking lot and part of a larger City-owned, 52 space public parking lot. This lot is situated within 1 1/2 city blocks of the new public parking structure, adding 271 parking spaces to the Downtown expected to open in November 2015. The larger lot is anchored on the south by the "depot" building, currently home to Jonty's restaurant, and situated between another city lot directly south, containing 92 public parking spaces. This lot is proposed to give up 50 spaces in January, when a new, active children's park is planned to begin construction.
The Morgan Hill Specific Plan encourages mixed use development on nearly all parcels downtown. This development concept presents an opportunity to continue to expand the Downtown Core with a mix of buildings and uses supportive of the community's vision. Centrally located, and proximate to a wealth of parking supply, the further intensification of the Granary has many positive benefits. Therefore, Weston Miles and the Economic Development team are seeking authority to explore options to utilize the 10 space lot for expansion of the Granary and negotiate terms to facilitate the development subject to City Council direction. A conceptual plan and a map detailing the properties impacted by this and other development in the immediate vicinity are attached.
The current action simply would authorize negotiations with Weston Miles to explore options in connection with possibly facilitating the development described above.
COMMUNITY ENGAGEMENT: Inform
There has been no action to inform the community to date. With City Council action to allow the discussion/negotiation a public discussion will begin. The purchase, sale, lease would require a public hearing and the development site and architectural/design review.
ALTERNATIVE ACTIONS:
The alternative action would be to choose not to explore the expansion of the Granary.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
There have been no previous actions related to this development. The public site in question was once owned by the Morgan Hill Redevelopment Agency (RDA). In the spring of 2011, after dissolution of California Redevelopment Agencies, and subsequent to the City's receipt of a Certificate of Compliance from the State Department of Finance, former RDA public assets were transferred to the City and or appropriate public agency, to be utilized for public purposes. This 10 space parking lot was transferred to the City of Morgan Hill for public purposes. The property was transferred without deed restriction, and therefore the City of Morgan Hill may use it for a myriad of public purposes or activities consistent with the land use regulations in place in Downtown.
FISCAL AND RESOURCE IMPACT:
There is no fiscal impact associated with this action.
CEQA (California Environmental Quality Act):
Not a Project
Any development resulting from this authorization would require CEQA review and is expected to comport with the activities contemplated by the Master Environmental Impact Report for the Morgan Hill Downtown specific Plan (November 2009).
LINKS/ATTACHMENTS:
1. Conceptual Development Plan
2. Map
3. Resolution