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<br />~ A --2- <br />The Architectural Review Committee is concerned that industrial land is being converted to <br />office use. City staff reports that the demand for office space is reaching into the <br />neighborhood commercial districts, the ground floor of the downtown retail core (CBR <br />District), and the General Commercial and Industrial Districts. <br /> <br />Within the past two years the City has approved 2.9 million square feet of new office space. <br />Currently, there is an additional 602,148 square feet of office space proposed, bringing the <br />total to 3.5 million square feet of office space. Office development has become the most <br />profitable, and therefore the preferred, use of commercial and industrial land. The market is <br />directing that most commercial and industrial land be used for offices. In this economic <br />setting even more commercial and industrial land is actively and potenti~lIy for sale <br />throughout the City. <br /> <br />It is the strong demand for office space coupled with the fact that offices are a permitted use <br />in every commercial and industrial district in Redwood City that is driving the replacement of <br />non-office uses with office uses. It is easy to replace retail, entertainment, restaurants, <br />motels, auto dealerships and industrial uses with offices (please see Attachment 1 for office <br />uses permitted and conditionally permitted in commercial and industrial zoning districts in <br />Redwood City). Additionally, office is permitted in two office districts, two office/high-density <br />residential combining districts and in the case of public facility offices, in the Public Facility <br />District. <br /> <br />Trends <br />a) Strong demand for offices in an array of sizes, but especially for land that can <br />accommodate at least 80,000 square feet of office - enough for a single tenant. <br />b) More employees in a given space because land costs have risen due to the dwindling <br />supply of land for offices in cities to the south. Often employees are added after the initial <br />move into an office building - an easy way to expand and maximize the use of a building, <br />but which results in more workers, cars, and traffic than planned by the City. <br />c) More employees due to recently approved office development, for example soon there will <br />be 5,000 new workers in Pacific Shores. <br />d) Rising land costs - The price of office space has sky rocketed in Palo Alto and has risen <br />substantially in Menlo Park and throughout the entire sub-region. The City Council in <br />Menlo Park is disinterested in adding office space because this use generates peak <br />period traffic on streets already experiencing Level of Service F (LOS F). San Carlos has <br />over 300,000 square feet of office development currently planned or under construction <br />and a recent analysis projects a demand for at least another 700,000 square feet over the <br />next 15 years. <br />e) Conversion of buildings in the Industrial Restricted (IR) and Industrial Park (IP) Districts to <br />office space. <br />f) The projected addition of 1,100,000 people to the Bay Area between 2000 and 2020. <br /> <br />Effects of Rapid Office Growth <br />Office development in Redwood City is transforming the activity and character of the <br />commercial and industrial areas in the following ways. Although these changes are both <br />positive and negative, the issue of the desired balance of land uses in Redwood City is the <br />central question. <br /> <br />. Loss of potential housing sites; <br />. Displacement of non-office commercial and industrial by offices; <br />. Visual impacts of streets filled with offices and gateway locations with massive <br />offices; <br /> <br />2 <br />