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Long Beach, San Luis Obispo and Santa Cruz. All of the projects continue to perform well. As noted in an earlier meeting, one project has come and gone, that being in downtown San Jose. 28. Concerns assert that downtown merchants have not bought into the project. A survey of downtown businesses was conducted as part of the economic study. Approximately 250 questionnaires went out to both retail and nonretail businesses and the result of the 102 questionnaires returned is included in Chapter 6 of the economic report. The purpose of the survey was to help understand booth retail and nonretail context in which the project would be developed. If merchants are interpreted to mean retail, what resulted is that of the merchants who returned surveys, opinion was fairly evenly divided among those who thought the project would have a positive effect, no effect at all, or a negative effect. Some of the negative effect came from the small number of people who actually would be displaced by the project. How projects of this nature really work is that merchants recognize expanding opportunities as those expanding opportunities occur and then decide when or how they will take advantage of those opportunities for their own businesses. Merchants are not required to respond, but the opportunities for increased business are often very attractive and very seductive which is why redevelopment projects of this kind work so well. Not every merchant needs to participate in those opportunities in order for many merchants to experience positive benefits of the project. David Irmer, representing the Innisfree Companies, co-developer of the project, addressed the following questions. 29. What is the long-term maintenance program and guarantees in maintaining not only the buildings, but also the surrounding areas of the buildings? They have initiated a license agreement that would spell out in some detail the scope of the building maintenance, grounds maintenance and sidewalk maintenance plans. It calls for a painting schedule, maintenance of landscaping, sidewalk, furniture, steam cleaning and other issues. Mr. Irmer stated it is incumbent on the developer and they certainly want to enter into the license agreement at the same time as the development agreement. 30. Will there be a priority or allowance for the displacement of businesses currently at the site? Under the Redevelopment relocation and under the Redevelopment authority these businesses that will be displaced will be relocated and those that are interested in being part of the project are encouraged to discuss the options with the developer. Mr. Irmer stated they are open to discussions with all merchants currently at the site. JOINT ADJOURNED REGULAR COUNCIL MEETING JANUARY 8, 2001 MINUTES PAGE 13 MINUTES Book No.58 Page NO. 309