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<br />9BS- <br /> <br />may be (as a disincentive) be built at an average of 850 sJ No FAR (floor area ratio) <br />would apply to the residential portion of the project on or off-site. Further, the shared <br />parking standard (a lesser requirement) would apply. <br /> <br />c. In-Lieu Fee <br />An in-lieu fee is recommended for parcels less than one acre in recognition that smaller <br />housing projects may be physically difficult to construct on-site and/or the loss of <br />economies of scale make the project difficult. The ordinance would allow the developer <br />of several smaller office projects to aggregate the housing unit requirement on one site <br />and take advantage of the lower square footage (640 s.f.) provided to on-site <br />developers. An in-lieu fee could also be collected in instances where housing would <br />not be appropriate on-site (among heavy industrial uses for example). <br /> <br />The in lieu fee is suggested at $56,320 per equivalent dwelling unit. This fee is less <br />than the cost to construct housing which, is éurrently about $180,000 per dwelling unit. <br />The $56,320 proposed fee is derived from the Building Code Valuation Table. This <br />table uses a construction cost of $88 per s.f. Applying this to a 640 s.f. unit produces <br />the $56,320 figure. <br /> <br />d. Zoning Districts Affected <br />The Work Force Housing Production Ordinance is applied to commercial, office and <br />industrial zoning districts including: PO, R-4-0, R-5-0 (Office); CN, CB, CB-R, CG, CG- <br />R, CP (Commercial); and IR, IP (Industrial). The ordinance is not proposed to apply to <br />the CA (Central Administrative (office)) or CBR (Central Business Retail) districts in the <br />downtown (see attached map). Although office development creates a need for <br />housing, there are competing factors, which on balance suggest an exemption. <br /> <br />Regarding the CA District, this zone is adjacent to the downtown between Brewster and <br />Marshall Street. The purpose of the district is "to provide a district for large scale office <br />and administration uses and buildings to promote the development of employment and <br />administrative activities near the central business district." Residential has been <br />proposed as a conditional use in the district (Report 1). However, it is the office zone <br />intended for a high intensity of office use and unlike some other commercial zones, it is <br />not intended to allow a diversity of uses such as ground floor retail. Office use <br />contributes to the daytime vitality of the Central Business District. Requiring application <br />of the Work Force Housing Production Ordinance could result in a disincentive to office <br />in this district and dilute other economic objectives for a healthy mix in the downtown. <br /> <br />Regarding the CBR District, this zone is the heart of the downtown. Its purpose is "to <br />strengthen the retail vitality and economic base of the downtown area and to <br />concentrate retail uses downtown which serve the needs of Redwood City residents, <br />businesses and workers." Report 1 and the July 24, 2000 staff report speak to the <br />issue of office creep into the ground floor of this district. To address this issue the <br />definitions and uses sections of the zoning ordinance for the district have been <br />proposed for amendment (Report 1). Residential is a permitted use, second floor and <br />above. The Work Force Housing Production Ordinance is not recommended for <br />application to this district. There are competing policy objectives for the district. <br />Although housing in the downtown can add economic vitality by introducing a 24-hour <br /> <br />5 <br /> <br />, "r---""-""""" <br />