HomeMy WebLinkAboutCED BioMarin Development Agreement____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: November 4, 2024
Disposition: Accepted the 4th Anniversary Annual Report for the Executed Development Agreement
(Ordinance No. 1982) Between BioMarin Pharmaceutical and the City of San Rafael for the
Development of An Expanded San Rafael Corporate Center (750-790 Lindaro Street and 781-791
Lincoln Avenue and 999 3rd Street)
Agenda Item No: 8.b
Meeting Date: November 4, 2024
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community & Economic Development
Prepared by: Micah Hinkle, Community &
Economic Development Department Director
City Manager Approval: ______________
TOPIC: BIOMARIN DEVELOPMENT AGREEMENT
SUBJECT: ACCEPT THE 4th ANNIVERSARY ANNUAL REPORT FOR THE EXECUTED
DEVELOPMENT AGREEMENT (ORDINANCE NO. 1982) BETWEEN BIOMARIN
PHARMACEUTICAL AND THE CITY OF SAN RAFAEL FOR THE DEVELOPMENT OF
AN EXPANDED SAN RAFAEL CORPORATE CENTER (750-790 LINDARO STREET
AND 781-791 LINCOLN AVENUE AND 999 3RD STREET); CASE NO.: DA18-001
RECOMMENDATION:
Adopt the Resolution Approving the 4th Anniversary Annual Report for the Executed Development
Agreement (Ordinance No. 1982) Between BioMarin Pharmaceutical and the City of San Rafael for the
Development of An Expanded San Rafael Corporate Center (750-790 Lindaro Street and 781-791 Lincoln
Avenue and 999 3rd Street).
EXECUTIVE SUMMARY:
On March 23, 2020, the City Council adopted Ordinance No. 1982, approving a Development Agreement
(DA) between BioMarin Pharmaceutical (BioMarin) and the City of San Rafael. This DA permits the
phased development and expansion of the San Rafael Corporate Center and the 999 3rd Street property
with laboratory, research, and development (R&D) buildings. The DA vests the land use and development
entitlements/approvals for ten years.
The procedures and requirements for reviewing and approving DAs are prescribed by City Resolution
No. 6089. The procedures require periodic review to ensure that the project continues in good faith and
that the terms of the DA are being met. Ordinance No. 1982 specifically requires an annual review for
this DA. This report presents the 4th-anniversary annual review, and a public hearing is required to solicit
comments on the Annual Review Report. BioMarin has submitted an Annual Report (Attachment 1),
which demonstrates progress and compliance with the terms of the DA.
BACKGROUND:
In 2012, BioMarin purchased the San Rafael Corporate Center (SRCC), a 15.54-acre campus of office
buildings located south of Second Street. Since the initial purchase, BioMarin has built out the original
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campus of buildings (five office buildings and two parking garages) and now occupies the campus with
corporate office, R&D, and laboratory uses. In 2015, BioMarin was granted entitlements to expand the
SRCC campus to develop a sixth office/lab building on the surface parking lot west of Lindaro Street (755
Lindaro Street) and to expand the existing parking garage located east of Lincoln Avenue. This expansion
has not been built.
In 2018, BioMarin purchased the three-acre site at 999 3rd Street, formerly owned and occupied by Pacific
Gas & Electric (PG&E). This property, which also fronts Lindaro Street and 2nd Street, is contiguous to
the SRCC. This three-acre site previously underwent a two-phased soil remediation project administered
by PG&E and BioMarin. The fully remediated site is now vacant and paved with asphalt.
BioMarin & Vivalon/EDEN Housing Development Approvals
On March 23, 2020, the City Council approved entitlements to redevelop the 999 3rd Street site and
append this site to the SRCC for an expanded campus. BioMarin intends to develop the properties in
phases to maintain its corporate campus and increase laboratory, research, and development space.
The City Council’s actions for this approval included the following:
• Certification of a Final Environmental Impact Report (FEIR).
• Expansion of the Planned Development (PD) zoning District adopted for the SRCC to
encompass/incorporate the 999 3rd St. property. Within the expanded PD District, a General Plan
Amendment was granted to allow for a new floor area ratio allowance (development intensity) to
govern the expanded SRCC as one project site. The approvals also extended and incorporated the
previously approved expansion of the SRCC campus, which, as noted above, is the development of
an office/lab building at 755 Lindaro Street and an expanded parking garage.
• Approval of a Master Use Permit, Environmental and Design Review Permit, and Tentative Parcel
Map. The Vesting Parcel Map divides the three-acre, 999 3rd Street into two parcels: a large parcel
(116,680 square feet) and a small parcel (15,000 square feet) at the northwestern portion of the site.
• Approval of most of the 999 3rd Street site (large parcel reference above) for development of the
expanded BioMarin campus with 207,000 sq. ft. of laboratory, research, and development (R&D) and
office space (split about equally between the two uses). This development consists of two 72-ft tall,
four-story buildings. The ground floor is designed to provide amenities to support the BioMarin
campus, including lobbies, an auditorium, conference rooms, a small café, and dining space. A
useable rooftop deck (above the ground floor between the two buildings) is proposed for employee
use, as noted in the concept drawing package.
• Approval of a senior center and senior housing on the northwest portion of the property (the 15,000
square-foot small parcel reference above) was allocated to Vivalon (formerly Whistlestop), and EDEN
Housing was approved for the development of a six-story building for a new senior center, and senior
housing (67 low-income rental units). The expanded PD District does not apply to this parcel.
• Approval of a Development Agreement (DA) (adopted on April 6, 2020) to vest the approvals for an
extended period (10 years). The DA freezes the City’s development fees at the current fee schedule
rates in exchange for BioMarin providing certain public benefits (discussed below). The DA applies
only to the expanded BioMarin campus development. Vivalon and EDEN Housing are not party to
this DA, so the vesting does not apply to the senior center and senior housing.
A complete and detailed background and project description discussion can be found in the January 28,
2020, Planning Commission staff report and the March 23, 2020, City Council staff report. The Planning
Commission and City Council meetings can also be viewed online at the Meeting Agendas & Videos at
http://www.cityofsanrafael.org/meetings. Referenced application material exhibits are also included
within FEIR attachments, and they are online at https://www.cityofsanrafael.org/999-3rd.
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Terms of the Development Agreement
The DA afforded the City and the developer (BioMarin) the opportunity to negotiate terms and conditions
and public benefits in exchange for the 10-year vesting of the project approvals. The executed DA, which
can be accessed here, includes the following list of public benefits, as well as other obligations and
requirements:
1. Northwestern Portion Donation. BioMarin is required to donate the 15,000 square-foot
northwestern parcel on the 999 3rd Street site to Vivalon (formerly Whistlestop) as part of a land
exchange. Based on the final appraisals of the two properties exchanged and the delta in value
reflected in those appraisals, BioMarin’s donation to Vivalon is One Million Three Hundred and
Thirty Thousand Dollars ($1,330,000).
2. Remediation. For the benefit of the development of a healthy aging campus and affordable senior
housing, BioMarin must complete the second phase of the soil remediation for the 999 3rd Street
Property by performing an investigation and cleanup under the State Department of Toxic
Substance Control (DTSC) Voluntary Cleanup Program. BioMarin is responsible for funding this
remediation ($2,000,000). The total remediation costs for the entire three-acre site are over
$16,000,000.
3. Retail Space. BioMarin agreed to provide 3,500 square feet of retail space on a portion of the 999
3rd Street property (the actual layout and location of such space will be determined by BioMarin).
The retail space must be open to the public during BioMarin’s business hours (from 9 a.m. to 5:00
p.m.).
4. Public Plaza. BioMarin agreed to provide an approximately 6,000 square-foot landscaped plaza
called the “Front Porch” at the corner of 3rd Street and Lindaro Street (BioMarin will determine the
layout). This plaza must be open to the public from dawn to dusk.
5. Striping for Bike Lane. BioMarin must add striping for a Class II Bike lane on Lindaro Street from
3rd Street to Andersen Drive or up to one mile of an equivalent section of roadway in San Rafael
that is determined by the City to meet the City’s Bicycle & Pedestrian Master Plan.
6. Restriping for Pedestrian Safety. BioMarin is required to improve pedestrian safety by restriping
the corner of Lindaro Street and 3rd Street.
7. Contribution to Traffic Light Synchronization. BioMarin must contribute $500,000 to the City
towards synchronizing traffic lights along the 2nd and 3rd Street corridors to improve traffic flow or
for other traffic/circulation/parking improvement measures as reasonably determined by the City.
This obligation may be payable in full at the first anniversary of the effective date, or $125,000
each year for four (4) years (starting on the first anniversary of the effective date), at the option
and sole discretion of BioMarin.
8. Contribution to Shuttle Service. BioMarin must contribute $400,000 to the City to implement a
first-mile/last-mile shuttle service or other traffic/circulation/parking improvement measures as
reasonably determined by the City. This obligation shall be payable in increments of $100,000
each year for four (4) years (starting on the first anniversary of the effective date).
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9. City’s Use for Public Parking and Ancillary Uses. Upon the effective date of the DA and until
BioMarin submits any construction-related permit (grading, building, etc.) for either Building A or
B, BioMarin is required to allow the City to utilize up to 70% of the surface area of the 999 3rd
Street property (the exact layout to be reasonably negotiated and agreed to by the parties to
maximize the utility of the portion to be used by the City and the remaining portion) for public
parking and ancillary uses (such as food truck market, etc.) until the commencement of
construction activities for either building on this property.
10. Donation of Lease to Vivalon. Upon BioMarin’s acquisition of the Vivalon property at 648 Lindaro
Avenue (land exchange referenced above), BioMarin must donate to Vivalon a leaseback of 930
Tamalpais Avenue for three (3) years.
Additional Obligations. BioMarin agreed to the following additional obligations if certain timing milestones
in the DA are not met:
• If construction on the 999 3rd Street property (now 801/815 Lindaro (APN011-265-02) has not
commenced by the sixth (6th) anniversary (2026) of the effective date of this DA, then BioMarin is
required to construct the Class II Bike lane along Lindaro Street from 3rd Street to Andersen Drive
(Item #5 Above) and required improvements to the 2nd Street and Lindaro Street intersection; and
• If construction of the second building at the 999 3rd Street property (now 801/815 Lindaro
(APN011-265-02) has not commenced by the eighth (8th) anniversary (2028) of the effective date
of the DA, then the vesting of the entitlements for the SRCC expansion (approved office/lab
building at 755 Lindaro Street) shall expire.
Continuing Obligations Relating to the Original SRCC Development Agreement. The 1998 DA executed
for the SRCC campus (initially executed between Fair Isaac and the City of San Rafael) included the
following ongoing obligations (in perpetuity), which were carried over into the current DA between the
City and BioMarin:
1. Public Parking on Nights and Weekends. The project shall continue to make public parking
available on the western SRCC surface parking lot and garage (west of Lindaro Street) during
evening and weekend hours.
2. Park Area. The project shall continue to provide the publicly accessible park located along the
south side of the SRCC campus (south of and between Building A at 750 Lindaro Street and
Building B at 781 Lincoln Avenue). This park area shall open to the public from dawn to dusk. The
public’s use of the park area shall be subject to the Reservation Rules and Policies on file with
the City.
3. Conference Facility. The project will continue to offer an after-business-hours publicly accessible
interior conference facility consisting of 2,500 square feet. At the sole option of BioMarin, this
facility may be relocated from the current location on the SRCC property to a location within the
999 3rd Street property that provides substantially equivalent amenities and space, as determined
upon the completion of the retail and plaza portions of the R&D Development Property. The
public’s use of the Conference Facility shall be subject to the scheduling, fee, priority use, rules,
regulations, and guidelines provisions in the Reservation Rules and Policies on file with the City.
Annual Reporting. Upon the City’s request, BioMarin must report to the City, no more frequently than
once per calendar year, on the status of its development plans related to the DA.
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ANALYSIS:
Annual Report on Development Agreement
Per City Resolution No. 6089, periodic review is required to ensure that the project is proceeding in good
faith and that the terms of the DA are being met. Per the terms of the DA, BioMarin has submitted an
Annual Report (Attachment 2), which represents the 4th year anniversary status of the project. While the
Annual Report states that there are no updates on the start of the project construction, it reports on the
status of the DA terms and obligations. The following is the status of the key terms and obligations (listed
above) that are pertinent to this 4th-year anniversary annual review:
Item #1-Northwestern Portion Donation [COMPLETED IN 2022]. BioMarin and Vivalon
(previously Whistlestop) negotiated and executed a Charitable Contribution and Exchange
Agreement on September 14, 2020, to effectuate BioMarin’s donation of the northwest portion of
the property for the benefit of the development of a healthy aging campus and affordable senior
housing. Parcel separation and transfer to Vivalon was completed on January 21, 2022. Based
on the final appraisals of the two properties exchanged and the difference in value reflected in
those appraisals, BioMarin’s donation to Vivalon is One Million Three Hundred and Thirty
Thousand Dollars ($1,330,000).
Item #2-Remediation [COMPLETED IN 2021]. BioMarin has completed the remediation of the
western portion of the 999 3rd Street property. Final site certification for the completed remediation
(for the entire three-acre site) was provided by DTSC on March 24, 2021.
Item #3- Retail Space [NOT COMPLETED]. BioMarin is required to include 3,500 square feet of
retail space within the development of the property at 999 3rd Street. This obligation will start upon
issuance of the certificate of occupancy for either building A or B; therefore, it is not yet required.
City staff will report on this item in future annual reports.
Item #4-Public Plaza [NOT COMPLETED]. BioMarin is required to construct a 6,000 square foot
plaza at the corner of 3rd Street and Lindaro Street. This obligation will start upon issuance of the
certificate of occupancy of the plaza; therefore, it is not yet required. City staff will report on this
item in future annual reports.
Item #5-Striping for Bike Lane [NOT COMPLETED]. BioMarin is required to add striping for a
Class II Bike lane on Lindaro Street from 3rd Street to Anderson Drive or up to one mile of an
equivalent section of roadway in San Rafael that the City determines to meet the City’s Bicycle &
Pedestrian Plan. This obligation is required upon issuance of the certificate of occupancy for either
building A or B; therefore, this item is not yet required. City staff will report on this item in future
annual updates.
Item #6-Restriping for Pedestrian Safety [NOT COMPLETED]. BioMarin is required to improve
pedestrian safety by restriping the corner of Lindaro Street and 3rd Street. This obligation is
required at issuance of the certificate of occupancy for either building A or B; therefore, it is not
yet required. City staff will report on this item in future annual updates.
Item #7-Contribution to Traffic Light Synchronization [COMPLETED IN 2024]. BioMarin submitted
a check for $125,000 to the City of San Rafael in March 2024 as a contribution towards the
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synchronization of traffic lights along the 2nd and 3rd Street corridors to improve traffic flow or for
other traffic/circulation/parking improvement measures as reasonably determined by the City.
This is the fourth of four annual required payments. The total amount paid to date is $500,000,
which is the total amount required.
Item #8-Contribution to Shuttle Service [COMPLETED IN 2024]. BioMarin submitted a check for
$100,000 to the City of San Rafael in March 2024. This contribution supports the City of San
Rafael in implementing a first-mile/last-mile shuttle service or other traffic/circulation/parking
improvement measures as reasonably determined by the City. This is the fourth of four annual
required payments. The total amount paid to date is $400,000, which is the total amount required.
Item #9-City’s Use for Public Parking and Ancillary Uses [COMPLETED IN 2022]. BioMarin
negotiated a license agreement with the City of San Rafael for temporary public parking and
ancillary uses, and the agreement was fully executed on February 2, 2022
Item #10-Lease to Vivalon [ON-GOING]. BioMarin is required to donate the lease of the property
located at 930 Tamalpais for a period of three years. The property continues to be leased back to
Vivalon and is expected to be leased back through Jan. 2025 (beyond the three years).
City staff has concluded that BioMarin has demonstrated good faith in meeting the terms and obligations
of the DA. Through the City Council’s acceptance of BioMarin’s Annual Report, the Council will find and
determine, based on substantial evidence, that the property owner has complied in good faith with the
terms and conditions of the agreement during the period of review and that the 4th-anniversary annual
review is concluded.
Status of Vivalon/EDEN Housing Senior Center and Senior Housing
As discussed above, the Vivalon/EDEN Housing Senior Center and Senior Housing project was entitled
concurrent with the BioMarin project approvals. However, Vivalon/EDEN Housing is not a party to the
DA. The Vivalon Healthy Aging Campus announced its grand opening on January 2, 2024.
ENVIRONMENTAL REVIEW:
As discussed above, the BioMarin and Vivalon/EDEN Housing development projects were subject to
environmental review, and a Final Environmental Impact Report was prepared and certified. As required
by State law (California Environmental Quality Act), action on the annual review of the Development
Agreement must be reviewed to determine if it is subject to environmental review. As the Annual Review
is an informational report, it will have no physical impact on the environment and is therefore exempt from
environmental review per CEQA Guidelines under 14 CRR Section 15061(b).
FISCAL IMPACT:
There is no direct fiscal impact associated with the acceptance of this annual report. This project is a
private development, and as such, costs associated with plan review and processing of these applications
are fully recovered through fees paid for by the applicant.
As discussed above, the DA for the project is subject to the City’s development fees, with the required
fees and fee amounts locked in at the time the DA is executed. In exchange for the vesting of the fees,
the DA obligates BioMarin to make other financial contributions to the City, which are discussed above.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Accept the Annual Report as recommended by staff;
2. Accept the Annual Report with modifications; or
3. Continue the public hearing and request staff return with additional information, study, or analysis.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
ATTACHMENTS:
1. BioMarin Annual Report, March 19, 2024
BioMarin Annual Report
Obligations Relating to the R&D Development Agreement
March 19, 2024
BioMarin Annual Report
Obligations Relating to the R&D Development Agreement
San Rafael, CA
March 30, 2024
As required by the Development Agreement (“DA”), BioMarin is pleased to submit this annual report to
provide an update on the status of the new projects and compliance with the DA’s terms and obligations,
due on each anniversary of the Effective Date. the following addresses compliance with the obligations
to date.
Development Update: BioMarin has growing & immediate needs for laboratories and is currently
evaluating several options including the new Lab building at 801 Lindaro, one of the two approved
buildings on the site. Construction of the lab building is anticipated to start early next year or sooner,
pending the result of the evaluation.
Northwestern Portion Donation. Developer shall donate the Northwestern Portion to Whistlestop as
part of a land swap through which the delta in value of the swapped properties, as of a June 2018
appraisal, results in a One Million Two Hundred Thousand Dollars ($1,200,000) donation. Developer
shall donate the Northwestern Portion in its then current as-is condition, for development of a healthy
aging campus and affordable senior housing.
BioMarin and Vivalon (previously Whistlestop) executed a Charitable Contribution and Exchange
Agreement on September 14, 2020 to effectuate BioMarin’s donation of the northwest portion of the
property for the benefit of development of a healthy aging campus and affordable senior housing. The
agreement was completed in 2021 and Parcel separation was completed.
Remediation. For the benefit of development of a healthy aging campus and affordable senior housing,
Developer shall complete the second phase of the soil remediation for the 999 3rd Street Property by
performing an investigation and cleanup under the DTSC’s Voluntary Cleanup Program. Developer shall
complete such second phase of remediation prior to commencement of construction and development
activities for the R&D Development Property, resulting in out-of-pocket costs for Developer of over Two
Million Dollars ($2,000,000) and total remediation costs of over Sixteen Million Dollars ($16,000,000).
BioMarin completed the remediation of the west portion of the property and received DTSC’s final site
certification for the entire property on March 24, 2021.
Retail Space: Developer agrees that a portion of the R&D Development Property consisting of
approximately 3,500 square feet of retail space (the actual layout and location of such space to be
determined by Developer) (the “Retail Space”) shall be open to the public during Developer’s business
hours (from 9 a.m. to 5:00 p.m.). This obligation shall commence upon the issuance of the certificate of
occupancy for the Retail Space and when the Retail Space is open for business and continue until such
time as the Retail Space is vacant because a tenant cannot be found despite commercially reasonable
efforts to market the space at a commercially reasonable rent for three years.
This obligation will commence upon the issuance of the certificate of occupancy for retail space.
Public Plaza: Developer agrees to provide an approximately 6,000 square feet of landscaped plaza “Front
Porch” located at the corner of 3rd Street and Lindaro Street (the actual layout of such plaza to be
determined by Developer) that will be open to the public from dawn to dusk. This obligation shall
commence upon the issuance of the certificate of occupancy for such plaza.
This obligation will commence upon the issuance of the certificate of occupancy for retail space.
Striping for Bike Lane: Developer shall add striping for Class II Bike lane on Lindaro Street from 3rd
Street to Anderson Drive or up to one mile of an equivalent section of roadway in San Rafael that is
determined by the City to meet the City’s Bicycle & Pedestrian Plan. This obligation shall be required at
the time of the issuance of the first certificate of occupancy for either Building A or B, unless otherwise
required by Section 4.11.1.
This obligation will commence upon issuance of the first certificate of occupancy for either building A or
building B.
Contribution for Traffic Light Synchronization: Developer shall contribute $500,000 to the City
towards the synchronization of traffic lights along the 2nd and 3rd Street corridors to improve traffic flow
or for other traffic/circulation/parking improvement measures as reasonably determined by the City. This
obligation may be payable in full at the first anniversary of the Effective Date, or $125,000 each year for
four (4) years (commencing on the first anniversary of the Effective Date and continuing for the next
three (3) anniversaries of the Effective Date), at the option of Developer, in Developer’s sole discretion.
In exchange for this $500,000 contribution and in light of significant concerns about pedestrian safety and
the fact that a parallel public path already exists, the City is eliminating a prior requirement that the
Lindaro and Parking Expansion Project develop and maintain a trail along the backside of the Lincoln
Avenue garage which is along southern edge of the campus abutting Mahon Creek.
BioMarin submitted checks each in the amount of $125,000 to the City of San Rafael in 2021,2022, 2023
& 2024 as contribution towards the synchronization of traffic lights along the 2nd and 3rd Street corridors
to improve traffic flow or for other traffic/circulation/parking improvement measures as reasonably
determined by the City. BioMarin’s 2024 payment is the final annual payment for a total contribution of
$500,000.
Contribution for Shuttle Service: Developer shall contribute $400,000 to the City for purposes of
implementing a first mile/last mile shuttle service or for other traffic/circulation/parking improvement
measures as reasonably determined by the City. This obligation shall be payable in increments of
$100,000 each year for four (4) years (commencing on the first anniversary of the Effective Date and
continuing for the next three (3) anniversaries of the Effective Date).
BioMarin has submitted checks each in the amount of $100,000 to the City of San Rafael in 2021, 2022,
2023 & 2024. This contribution is to support the City of San Rafael implementing a first mile/last
mile shuttle service or for other traffic/circulation/parking improvement measures as reasonably
determined by the City. BioMarin’s 2024 payment is the final annual payment for a total contribution of
$400,000.
City’s Use for Public Parking and Ancillary Uses. As of the Effective Date of this Agreement and
until Developer submits any construction related permit (grading, building, etc.) for either Building A or
B, the Developer shall allow the City to utilize up to 70% of the surface area of the R&D Development
Property (the exact layout to be reasonably negotiated and agreed to by the parties so as to maximize the
utility of the portion to be used by the City and the remaining portion) for public parking and ancillary
uses (such as food truck market, etc.) (the “Temporary Public Parking Parcel”) until such time as
commencement of construction activities for either building on the R&D Development Property. City
shall be financially and legally responsible for (i) any improvements or modifications to the R&D
Development Property that
BioMarin entered into the License Agreement for a Right of Entry for Temporary Use with the City of San
Rafael on February 2, 2022. This License Agreement, which was amended in November 2022, allows for
temporary public parking and ancillary uses, including construction lay down activities. The City of San
Rafael has been using the area for construction layout to support the 3rd street improvements and Eden
Housing and Vivalon’s construction activities.
