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HomeMy WebLinkAbout08.19.93 Minutes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REPORTER: PAUL SCHILLER, CSR #1268 CITY OF SOUTH SAN FRANCISCO PLANNING COMMISSION MEETING CONTINUED PUBLIC HEARING ON EAST OF 101 AREA PLAN Thursday, August 19, 1993 8:10 p.m. Municipal Services Building 33 Arroyo Drive South San Francisco, California SCHILLER'S REPORTING SERVICE (415)759-1477 1 1 PLANNING COMMISSION: 2 MARGARET WARREN, Chairman 3 ROBERT MANTEGANI, Vice Chairman 4 MICHAEL DE ZORDO, Commissioner 5 JOHN LUCCHESI, Commissioner 6 LEO PADREDDII, Commissioner 7 ALAN ZELLMER, Commissioner 8 9 CITY OF SOUTH SAN FRANCISCO: 10 STEVE SOLOMON, Chief Planner and Interim 11 Director of Economic & Community 12 Development 13 STEVE CARLSON, Senior Planner 14 15 BRADY & ASSOCIATES: 16 DAVID EARLY 17 18 19 20 ---000--- 21 22 23 24 25 SCHILLER'S REPORTING SERVICE (415)759-1477 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 LARRY DORSEY HARVEY LEVINE DOUG THOMAS DAVID BALDWIN MICHAEL DE ZORDO PUBLIC COMMENTS Paqe 4 6 23 29 COMMISSIONERS' COMMENTS 30 ---000--- SCHILLER'S REPORTING SERVICE (415)759-1477 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 EXCERPTS LARRY DORSEY: My name is Larry Dorsey, and I am with McDonald's Corporation at 2480 North First Street, Suite 220, in San Jose. It is a pleasure to be here and to participate in this review of the Area Plan and the EIR. In going over the policies, one item is of particular concern to us, because -- let me say it before I get to that -- within the area, McDonald's has long felt that the area could well support a use such as ours. There is more than adequate people that work there, shop there, visit there, so it's a viable marketplace for us. There are a few areas that we can locate it, the ones that provide half good accessibility. The areas that we feel we can locate in are areas that provide good accessibility for traffic, customers coming off the arterials, good, solid traffic flow. It is important to have good ease of traffic in and out of the site; good visibility is also important. Now, as far as the specific item that we're concerned about, it's in the Land Use Element, the policy LU-20 on page V-38; and the policy reads: "Drive-through restaurants may be built as components of commercial centers in the east of 101 SCHILLER'S REPORTING SERVICE (415)759-1477 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 area, which should not be built as stand-alone uses on single parcels." In trying to locate over the past years, we looked at various parcels and also looked at really what I think is the only center at this point that maybe fills this definition, although I'm not sure what a definition of a commercial center is, that center being the Price Club project. We would be delighted to develop a restaurant within a commercial center, but we find it very difficult and somewhat limiting to confine ourselves to only commercial centers. We are very sympathetic to the architectural and aesthetic development process that is envisioned for this area. The years of corporate architecture are somewhat behind us, and I feel confident that any development that we would develop, architecturally, landscaping-wise, can more than satisfy you in your desires for a good, representative development in that area. From a practical standpoint, it's going to be very difficult for us to develop only in shopping centers or in a commercial center. We certainly would like to do so, but we encourage you to develop some guidelines or some parameters, some goals, that we might try to achieve SCHILLER'S REPORTING SERVICE (415)759-1477 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 jointly in the site selection process, rather than confining this to a commercial center only. That's it for me. If you have any questions, please ask. HARVEY LEVINE: My name is Harvey Levine, 5000 Hopyard Road, Pleasanton, California, law offices of Hallgrimson, McNichols, McCann & Inderbitzen. I am here representing Sierra Point Associates Two, the owners of the property which, in the East of 101 Plan, is called the Koll property. I have a letter and some attachments which I will give to you at the end. I will try to be brief and summarize it before it gets too much. Sierra Point Associates Two have a number of objections, complaints, concerns. Those of you who have been here long enough probably heard them before. I am sure they will come up and remind you of them again. The basic overall complaint we have is the one, in fact, in the beginning of this process, which is the airport has bought a zoning change here, or we are in the process of having a zoning change produced, and we don't think it is appropriate in this matter, and your responsibility as a city is to exercise police power in the airport's appropriate behavior. SCHILLER'S REPORTING SERVICE (415)759-1477 6 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 Leaving that aside for a moment, there are a 2 number of things about the Plan we're also concerned 3 about: 4 One of the things that we feel the Plan does 5 is make it more difficult to market properties like the 6 Koll property in the Plan. The reason for that is the 7 Plan uses are segregated between the planned commercial, 8 planned industrial, light industrial, and categorized so 9 that properties like Koll, the 27-acre property that will take some time to build out, will be stuck with a designation when, in fact, there are lots of appropriate uses that could be built on that site, and, in fact, there is lots of people over time looking at that site for those uses. Office uses, of course, you're familiar with. Some people have looked at it and have not decided to build. That includes VISA. We have talked about residential uses with the City staff, and we brought in information showing how very high density use on that site would work. Industrial uses, we have been talking and trying to get UCSF to bring its biotechnology project to - that site; and we have talked to a number of other places as well, so there is a number of opportunities over time that I think are injured by a very Euclidian zoning SCHILLER'S REPORTING SERVICE (415)759-1477 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 approach, just saying, "we're going to have on this particular 27 acres planned industrial." It makes it much more difficult for the owner of the property and the developer to market it and bring in a project, and it limits in some ways the City's opportunity to capture good development as it comes through. So that is a general concern about the overall approach that this Plan takes. Existing zonings are much broader, allow more combined uses, and an easier opportunity to market. Some people said, when we made that argument, "well, when you have the right project, don't worry, just bring the use in, and we will change the General Plan zoning for you, if we like him." The difficulty with that is that the user can, in fact, go to places that have more flexible zoning, that does not take 18 months of planning, so not only does the landowner lose out ultimately, but so does the City. Going to the Plan itself and its details, we were much taken with a couple of things in the Plan which we think speak volumes: One of them is found at II-284a, and that is the discussion of the Bay Area Air Quality Management District Guidelines and Indirect Source Regulations, some SCHILLER'S REPORTING SERVICE (415)759-1477 8 1 of which have not gone into effect yet. 2 A brief review of that single page explains 3 why banning residential from East of 101 is a bad idea. I 4 will just read a little bit from it: 5 BAAQMD calls for "residential and workplace 6 densities sufficient enough to support cost-effective 7 public transportation systems." 8 Calls for: "Mixed land uses, residences, 9 workplaces, and services located closely enough that 10 private motorized transit between them would not be 11 necessary." 12 It recommends that "Cities and counties will 13 be encouraged to cooperate with the transit agencies in 14 planning for high density, mixed-use, cluster development 15 near BART, Caltrain and light rail stations." 16 All of those concepts, we think, should be 17 applied to the East of 101. You are making major 18 long-term decisions for the l,700-acre property. That is 19 exactly what was not done in the Plan, except for one 20 -policy that says "at 20% density, if you are a 21 quarter-mile from a transit stop." 22 The strength of having mixed uses with - 23 residential in your Plan goes not just to my client's need 24 to develop its land of course, that is why I'm here -- 25 abut it also helps the overall development of the project SCHILLER'S REPORTING SERVICE (415)759-1477 9 1 area. 2 One of the things that is hurting Silicon 3 Valley now, as you all know, is the lack of affordable and 4 reasonably priced housing to the massive development that 5 is coming on line. Companies are going out of Silicon 6 Valley rather than going into it, and it is because of 7 exactly the things that this Plan does; it bans housing in 8 the nearby areas and does not deal with the burgeoning 9 problem of the commuters from the East of 101 area getting 10 home. 11 A survey, which we will submit to you along 12 with documentation, points out that between 40 and 50% of 13 all the workers east of the 101 area now commute to 14 outside the county. 15 The freeway today is not in too bad a shape, 16 but as the airport expansion moves ahead and its 30,000 17 new workers in the next 15 to 20 years, it will bring with 18 it congestion, which is going to go up; and that is even 19 without your Plan. 20 So I think it is going to be important for 21 the PI~n writers to be sure that they have estimates of 22 the Airport Master Plan effects on 101, so that these - 23 estimates are correct. 24 The problem that the Bay Area Air Pollution 25 Management District is addressing goes to two issues: SCHILLER'S REPORTING SERVICE (415)759-1477 10 1 It goes to, one, the impact of community on 2 the system of air quality; and two, the lack of housing 3 near work when you drive longer and longer commutes. 4 This Plan talks about adding tens of 5 thousands of workers to this area, providing no housing. 6 We understand why that happens in this 7 particular Plan, but we think it is a bad policy, and it 8 is bad for the City, and we think the positive things that 9 are spoken of in the Plan, the expected income and 10 revenues that are going to come from the third 11 alternative, are not going to come. 12 The reason they are not going to corne is that 13 you're not going to get the new business you think you 14 are, as the freeway gets worse and the transportation 15 times get longer, and there is no housing. 16 So we think not only by not following the Air 17 Quality and Management Board's recommendations it will 18 hurt us, but it will hurt your Plan as well, and the 19 delays, the likelihood of getting what you think you will - 20 get out of the Plan; and it makes the increased tax base 21 less. 22 There is also in the Plan -- it indicates 23 "Market Study Section, if you're following this, 111-123 24 to 149 -- an extensive discussion of the demand for uses 25 in the Plan area. And our suggestion, in particular, is SCHILLER'S REPORTING SERVICE (415)759-1477 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 for rental housing, which is the very last section. When you look in there, you will see that, by conservative estimate, 2-1/2% capture rate, over 2,000 units would be expected to come east of the 101 area. That is a conservative need that we're looking at by this decision. At a higher cap rate of 5%, it is 4,600 units that can be expected. There is a reason why they are expected, because people want to live near their workplace. That's what people would prefer to do. What is more, enjoy -- I'm sorry, I gave you a wrong number. CHAIRMAN WARREN: You kept saying, I think, 3,000 units; and I'm sort of troubled, because I keep seeing twenty-two to twenty-eight hundred. MR. LEVINE: I'm sorry, you're correct. The 3,000 adds the owners as well as renters. That is the 19 total. The total on multi-family housing is 2,000 to 20 4,600; and it breaks out multi-family and home family. 21 While the market study is not expected to 22 show great demand for owned multi-family condominiums, it 23 is a serious problem out there for multi-family rental 24 housing and to create a demand for that and a high capture 25 rate, and there are virtually no projects on the horizon SCHILLER'S REPORTING SERVICE (415)759-1477 12 1 in our county for that type of housing. 2 We think that the City makes a big mistake in 3 not considering that type of project for the East of 101 4 Area. That is the kind of project that would also enhance 5 all of the business development that you are seeking, not 6 to mention the business development that is going to be 7 driven by the airport expansion. 8 In this particular area of the county, South 9 City and the airport, we are looking at a significant 10 number of jobs. 11 The tax benefits that are discussed in the 12 Plan on the Alternative Section, we think underestimate 13 the value of residential and overestimate the value of 14 commercial and industrial. 15 That happens two ways: 16 From office space, for instance, which is 17 valued for assessment purposes at $152 per square foot. In 18 fact, we think, in San Mateo County, it is more like $75 19 per square foot, roughly half of what the Plan says. 20 The way the Plan gets there is by overstating 21 the rents that are available and understating the expense 22 ratios, using overly aggressive cap rates. It inflates 23 - the value of the commercial and industrial, and the 24 numbers are too high. 25 On the other hand, it properly assesses the SCHILLER'S REPORTING SERVICE (415)759-1477 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 value of residential but then does not recognize the cost factors involved in reduction of public services. When you do a high density residential project, as opposed to single-family or low density projects, you are able to build in a number of cost savings factors -- private security, full sprinklers, not to mention use of use districts and capital school costs and library costs. There are ways, if you have sufficient density, to make multi-family pay for itself and not depend on the City. So I think it is worth looking at the numbers you have that make commercial and industrial greater and not residential for the tax purposes, and we don't believe that is the case. Also, those numbers don't include redevelopment revenues. Between the alternatives, it makes it far less desirable, not more desirable, than either the planned commercial alternative or the market alternative. There are some other things that we don't quite ~nderstand in terms of the reasoning of the Plan. I'll discuss just a few: The one that struck us, I thought, made us really confused, was the treatment of Shearwater versus the treatment of the Koll property on the preferred SCHILLER'S REPORTING SERVICE (415)759-1477 14 1 2 3 4 5 6 7 alternative. If you take a look at that, you will see that Shearwater is nicely striped; it has mixed planned commercial and planned industrial zoning under the General Plan; and then, when you get to the Koll property, you simply find industrial. This is particularly disturbing. The Koll 8 property is uniquely located in the Plan. In fact, it 9 looks like it falls off the map, but the map and the 10 jurisdiction lines don't reflect the actual geography. 11 The Koll property is at the freeway off-ramp; 12 it's next to a development that is partially developed and 13 has a marina. It has a lot of things going for it, rather 14 than just the end of the world. 15 One of the things that we're asking for is, 16 whatever else happens about residential, that you give us 17 the flexibility to try to meet the market on that site; 18 and clearly somebody in defining the property thinks that 19 the Shearwater site has some possibility; they striped it 20 for different uses. 21 In our real world of business, we would like 22 to see it striped with a third use, that we call mixed 23 uses; and that is what is lacking in this Plan; and mixed 24 use development would include residential, would include 25 commercial and retail, all of those things working hand in SCHILLER'S REPORTING SERVICE (415)759-1477 15 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 hand. 2 A wonderful example of mixed use are the 3 developments that are being built now in San Francisco; 4 and we think that the Plan lacks that notion; and we think 5 that would be very appropriate on the site. 6 Circulation Policy No. 5 is a particular 7 problem for us, and I direct your attention to that. It 8 has an odd statement, odd to us, at least, at this general 9 level of planning. It seems to have almost conditions, and I will just read it: "Roadway access to the Koll site shall be provided via a bridge across a portion of the Bay between the site and the Shearwater site or flyover ramps from the site to Bayshore Boulevard. If the bridge is built, it shall not allow access from Brisbane into the East 101 Area." I'll read it again: "If the bridge is built, it shall not allow access from Brisbane into the East 101 Area. Improvements shall be completed by the project _sponsor at the time of development of the Koll site." -- If you read on, it says that the reason for that kind of bizarre notation is that there is a fear that you'd get so much traffic from Sierra Point that it will SCHILLER'S REPORTING SERVICE (415)759-1477 16 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 overwhelm the Oyster Point interchange. 2 Well, aside from the legal and technical ways 3 of people driving their cars from Brisbane to a project on 4 the same side of the street as into the City, into the 5 East 101 Area, it suggests a number of problems with the 6 Plan itself. 7 The Plan does say in the Financing Section 8 that improvements should be paid for by all the users, and 9 fairly restrictive, but by saying that you're going to build a bridge across the Bay to get Koll connected to the rest of the 101 Area and, "oh, by the way, no one can use it except those 27 acres," you're virtually telling Koll to put their books away and not play the game on the costs the land value has, and you're forcing the entire cost of the bridge on them. The alternative to the Plan is a flyover to Bayshore Boulevard, which my guess is probably more than the bridge; but at least we could distribute that cost among several users, as Sierra Point builds out; and certainly it would be a major competitor to any development on the site. The question becomes, what happens with the - existing roadway structure that exists, albeit in Brisbane, adjacent to the property? You have clearly an interface property. It SCHILLER'S REPORTING SERVICE (415)759-1477 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 is adjacent to Brisbane; it's adjacent to development in Brisbane; it's owned by the same owner that owns development in Brisbane; it's the kind of property that is going to require, I think, common and careful working out through the two jurisdictions. This Plan seems to suggest that South San Francisco wants to turn its back on Brisbane, and we don't think that is correct for this site. Jumping to the Land Use Policies 4a, 4b, and 5a and 5b, those are the ones which describe the planned commercial and planned industrial uses, and the ones that set forth the FAR's. I want to briefly comment on the FAR's. The fact that Genentech's Plan exceeds FAR's in the Plan is not surprising, because they are rather low, and one of the things that interested parties that came and had looked at our site for development have said is that "the density restrictions in South San Francisco are far too low, that we can't build any appropriate kind of projects that make sense for us because of those restrictions." Now, that goes back to the Bay Area Air Quality Management which suggests the density, we think, of the FAR's should be increased and it should not be on a case-by-case basis. If you want to attract the kind of SCHILLER'S REPORTING SERVICE (415)759-1477 18 1 development you want, I think you should figure out what 2 those folks need, rather than having artificially high 3 priorities set and FAR's that people have to fight. 4 Well, Policy LU-ll, which says to prohibit 5 residential, was the reason for this Plan, aside from the 6 Bay Area Air Quality Management Guidelines, which I think 7 speak volumes on the subject. 8 It's clear to us that to maximize the 9 business benefits you're going to expect, you're going to 10 11 12 13 14 15 need some residential there. It is the synergies created with mixed use that gets you better business product, and that's a base that you're not getting much, in our view. San Francisco Airport has a responsibility to take care of their noise problem. They have the responsibility. For them to say to the City of South San 16 Francisco, "well, if you need to get rid of any particular 17 problems we're going to have in the future, we will then 18 give you money to take care of the problem we create," we 19 think is silly. 20 The Airport Expansion Master Plan is now out. 21 The EIR has been done and certified. It has been adopted. 22 It calls for $120,000,000 to be spent on retrofitting the 23 insulation, plus the importance of your 10,000,000 now 24 that has been promised. 25 Finally, if you look at the actual noise SCHILLER'S REPORTING SERVICE (415)759-1477 1 q 1 issue, I'm not going to spend any more time on this 2 tonight, but if you look at the actual noise issues, the 3 Koll property has no problem, using current knowledge and 4 current design, in avoiding airport and, more 5 significantly, freeway noises. 6 There is no problem in meeting those goals, 7 and the concern was raised in the Plan about Biotech not 8 coming, it was too close to residential, we think has some 9 general validity. But because the Koll property is so far 10 away from the rest of the Plan, we don't think that 11 residential noise is as great with the Koll property. 12 Finally, as I mentioned before, Land Use 13 Policy 25 calls for a density bonus from your commuter 14 transit station, and we think you should add to that, "or 15 the Plan provides shelter or other services to transit 16 stations." 17 We want to encourage transit as much as we 18 can, and you can do that by expanding that policy. 19 There is a couple of detailed things with the - 20 consultant, which I won't repeat here; but let me make a 21 couple-of final comments: 22 One, there is no housing element in this Area 23 Plan. And there is a smaller density in the Plan; there 24 is no housing element in the Plan; and the housing element 25 of the General Plan applies to the East of 101 Area. That SCHILLER'S REPORTING SERVICE (415)759-1477 20 1 is the only housing plan of the General Plan that applied 2 to the East of 101 Area. 3 We think that is done without fully analyzing 4 the impact of removing residential and without looking at 5 the jobs-to-housing balance in an honest and good way. 6 We think you should have a housing element in 7 your General Plan for this area, and the housing element 8 should explain all you should be talking about -- the 9 variety of housing, what's going on. 10 And I would simply like to request that the 11 following additional documents be added to the initial 12 record for this process: 13 First is a document by Charles Salter, called 14 Sierra Point & Environs; Accoustical Issues. I will leave 15 a copy of that tonight. I don't know that you have it in 16 your files. 17 Number two, a document by Sedway and 18 Associates, called Prolect and Fiscal Analysis re: 19 Residential Development at Sierra Point. 20 Number three is the EI Camino Corridor 21 General Plan and Redevelopment Plan Draft and Final EIR. 22 Number four is the Multi-City TSM Aqency, - 23 Traffic Survey, which I have a copy to leave with you. 24 Number five is a Caltrain Site Alternatives 25 Study for 101, which you have. SCHILLER'S REPORTING SERVICE (415)759-1477 21 1 And number six is San Francisco International 2 Airport, Master Plan Draft and Final EIR. 3 It is important that you add those to the 4 record, because I don't think the numbers jibe with your 5 numbers, the two biggest projects almost adjacent to each 6 other, with your project with the same number and impact. 7 Number 7 is the San Francisco Airports 8 Commission-City of South San Francisco Aqreement for 9 Airport Noise Mitiqation. That's why we're here, and that 10 will be part of the record. 11 And, finally, the SAMCEDA, Top Business 12 Issues, which is a small document from Wall Street. 13 CHAIRMAN WARREN: You mentioned some study 14 about the number of people who live outside the county. I 15 am wondering if you have copies of that study and if that 16 indicates what income level those people make, what their 17 income level is for those that are living out of the 18 county? 19 MR. LEVINE: I think that Multi-City TSM 20 agency has the data you're talking about. They won't make 21 it public to us; they just give the general numbers; but 22 the City can probably get the general information. 23 - But you do have the breakdown for each of the 24 areas, and that is what the document called Multi-City TSM 25 is. SCHILLER'S REPORTING SERVICE (415)759-1477 22 1 2 3 4 5 6 7 8 9 10 11 12 CHAIRMAN WARREN: The income level may have a great deal to do with it. A majority of people who live in our county may well be of the upper income level, and the fact that those people who live closer in pay lower rent, that is also a guess on my part. Another question here: You indicated that we underestimated the residential and overestimated the commercial. And, again, do you have specific documents that support that? MR. LEVINE: We explained on thing. It is in the letter; and if you would like more than that CHAIRMAN WARREN: I guess we have to look at 13 what is in there. 14 I was curious about the square-foot costs. 15 * * * 16 17 18 19 DOUG THOMAS: Just for the record, Doug Thomas with Sierra Point Associates, the developer of the Koll site. Where I got that information is really just 20 Kind of common knowledge. Some of it comes from various 21 public~tions, newspaper articles, etc. 22 I would be happy to help you put together 23 some more specific information. 24 25 CHAIRMAN WARREN: Perhaps if you could submit that information. SCHILLER'S REPORTING SERVICE (415)759-1477 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The problem is, when somebody says something like that, it is very difficult to latch onto it without something more specific. MR. THOMAS: Let me give you a couple of examples, if I could. I know the document refers to discussions with the City Assessor. What the County Assessor comes with is the value for office buildings of $152 per square foot. An example of a building that just sold or is in the process of selling is a building, the address is 577 Airport Boulevard in Burlingame. It is across the entrance to Kincaid. It is a rather new building, completed in 1985, foreclosed upon by the bank, now being resold for $60 a square foot. Okay, in terms of market rental rates around here, the document quotes a rental rate of $1.75 a square foot; operating expenses of 35 cents. A $1.75 times 12 is twenty bucks, expenses of 35 cents. That is a bit on the low side. We will submit the various documents. CHAIRMAN WARREN: I would appreciate, as far as my perspective is concerned, and probably the staff as well, where you're saying things like the square-foot cost is wrong, we're overstating the rents, we're overly aggressive in the cap rates -- those kinds of SCHILLER'S REPORTING SERVICE (415)759-1477 24 1 statements -- without sufficient supporting documentation, 2 don't have any real meaning. And it would be helpful if 3 you could supply that support documentation. 4 The same thing is true of the fact that 5 you're indicating our standards for the FAR's are too low. 6 And, also, your indication that Biotech and residential, 7 as a much more general rule, are much more compatible; and 8 my personal experience is that isn't the case. But I will 9 admit I work for UCSF, so I am very familiar with that 10 kind of problem. 11 MR. THOMAS: It is sensitive. 12 CHAIRMAN WARREN: Acutely, so it would help 13 if you can provide very specific examples of where Biotech 14 and residential are similarly, at least, situated, and 15 where there has been no problem, particularly since you 16 mentioned UCSF, Biotech of the nature of UCSF, because 17 that is a very intensive Biotech use. 18 You also mentioned Mello Roos District there, 19 and I'm curious about something, because I don't 20 understand this particular item. 21 I notice that in places like Discovery Bay, 22 they have enormous signs, billboards, that say "This is 23 - not," in huge letters, "not a Mello Roos District," and 24 there are extraordinary financial impacts to owners of 25 property, residential property, in Mello Roos Districts. SCHILLER'S REPORTING SERVICE (415)759-1477 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. LEVINE: There was a craze among certain growing municipalities to basically replace the loss of the property taxes with Mello Roos taxes, and that does not mean the vehicle isn't good. It's just way too much money. In Tracy, for instance, you pay what you would have paid before Prop T; and we certainly are not suggesting we overload the property. MR. THOMAS: May I wrap up with a summary? I just want to say that our desire is really to develop this property in a successful way, that the City could be proud of; and we really need your help there. Personally, I have been working on that project for eight years. When I was first hired, we were very optimistic about the office market. We felt we were going to attract all of these great tenants out of San Francisco, and our entire site was zoned for office. Well, the tenants are not there. Do I think they may come back? Maybe. I don't know. Over the years, _it is hard to say. We have had success in attracting some large companies that wanted to be in their own kind of self-contained environment. They wanted to create their own campus environment. SCHILLER'S REPORTING SERVICE (415)759-1477 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 I talked to Apple Computer about relocating to our site. I talked to Oracle. I talked to VISA. And I talked to some others. They liked the site in many ways, and that's the reason I think it would be a huge mistake to eliminate the planned commercial zoning from it. What we really need more than anything is flexibility, the flexibility to immediately build Biotech, if UCSF comes our waYi but if they don't, we need the flexibility to go and attract another Oracle-type of tenant. The one thing that has always been a constant problem to attract business to the area is the lack of housing, and it's not just the Sierra Point site that is sitting up there undevelopedi it is the HomeArt site, the Rouse site. Our County is losing jobs, the Bay Area is losing jobs, the State is losing jobs because of a lack of housing. We look at our site out there with the 20 water-oriented environment. It could be a beautiful place 21 22 23 24 25 to live in close proximity to many companies in the area, and I really think if you would consider housing, it would help attract businesses into the area, which fiscally would be very beneficial to the City. CHAIRMAN WARREN: From my point of view, if SCHILLER'S REPORTING SERVICE (415)759-1477 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you have it among your stuff, any documentation that might support housing in a similar locale near an international airport, such as San Jose, Oakland, Los Angeles, San Diego, that would be helpful. MR. THOMAS: Sure. CHAIRMAN WARREN: And how those areas have dealt particularly with outdoor uses related to residential. MR. THOMAS: I can easily do that. One thing I just want to point out: We are not right at the end of the runway; we are five miles north. We're not directly underneath the departure route; we're near the departure route; planes occasionally fly overhead, but rarely. It can be done, and it can be done successfully. It is done, and I will give you some specific examples. * * * PETER YEE: Good evening, members of the Commission. I'm Peter Yee, Genentech. I just want to follow up and expand a little bit. First, I wanted to thank Grady & Associates for the statement made today. I think the question I was SCHILLER'S REPORTING SERVICE (415)759-1477 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 going to ask tonight was answered. I do have to apologize to the Commission tonight. We don't have specific comments we want to bring to you verbally at this particular meeting. We are in the process of preparing a detailed comment report back to the Commission; and as you know, Genentech and the Commission and members of the staff have been working over the last year on a Master Plan and also the difficulty of the zoning regulation vehicle to allow the Master Plan, and the clarification we have from Brady & Associates, we will be able to evaluate some of our concerns regarding the FAR and how it will impact Genentech in terms of its Master Plan and in terms of the role potential. So I think today Brady answered many questions we have that our Master Plan potential is fully evaluated. We will work on the problem as soon as we can. Thank you. * * * DAVID BALDWIN: My name is David Baldwin. I am with Real Strategies, a real estate consulting company representing HomeArt. Its address is 651 Gateway Boulevard, Suite 100. I have a letter to present to the Planning Commission this evening, having to do with the Area Plan SCHILLER'S REPORTING SERVICE (415)759-1477 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 East of 101 Study. And you may recall I was here last week, and I indicated that we will be furnishing comments, also, on the Draft EIR; and those comments should be furnished within the next week or so. We hope it will be within the next week. So the letter that I would like to present to you this evening addresses HomeArt's concerns and comments about the Area Plan element of the study. I don't have any particular desire or need within myself to read the letter to you, to go through the issues that we are concerned about. I will pass the letter out to you at this point and just leave it with you to digest. And we stand 15 prepared to meet with staff or anyone else who would like 16 to meet with us in order to speak about some of the 17 clarifications that we're asking for, some of the 18 revisions we're asking for. 19 So unless there is some desire by the 20 Commission to have us go through some of the issues we are 21 concerned about, we will just leave the letter with you 22 and let you read it for yourself, and we are prepared to 23 have a dialogue with you at some future meeting. 24 * * * 25 COMMISSIONER DE ZORDO: There was one SCHILLER'S REPORTING SERVICE (415)759-1477 30 1 proposal in terms of the Marina, Mr. Callan, that is a 2 very viable thing to do. I have not talked to Mr. Callan 3 about that. If we can incorporate that in the Plan, then 4 we should. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SCHILLER'S REPORTING SERVICE (415)759-1477 11