AgdaPkt 2019-10-14 Joint SA PFA - Laserfiche WebLink

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8.A. - Page 17 of 56 buildings that require earthquake retrofitting, code upgrades or fagade improvements by providing grants or low interest loans. A potential funding source may be the RCIA's property - based assessments. 7. Consider using development incentives for new market rate and affordable housing developments in the Downtown to support retail uses such as reducing rent for retail space, or providing tenant improvement allowances. (Task Force Recommendation) Analysis: New state laws already allow developers higher densities in exchange for building affordable housing. If a project receives a density bonus in lieu of reducing rent for retail space or providing tenant improvements allowances, a process needs to be developed to determine how these community benefits are made available to prospective tenants. While lowering and subsidizing rents may help retailers, subsidizing rents can have a "boomerang" effect. Rents often increase each year and any subsidies that are provided will also need to increase potentially creating financial issues for the property owner. Subsidizing rent is also not preferred by many property owners who "merchandise" their buildings based on the specific type and quality of selected retailers. For these reasons using incentives in order to subsidize rents is not recommended. Recommendation: The longer term solution is for the City to consider approving an ordinance that requires retail space in new buildings and mixed use projects to be designed properly and delivered in a "vanilla shell" condition. 6 New retail space is often delivered in a "raw shell" condition. By requiring a "vanilla shell" condition the property owner can add value to the retail space up front and improve the chances it will be leased. In addition, a "vanilla shell" condition will attract the best tenants, thus resulting in a stronger retail environment in the Downtown. S. Create an active community of visitors, workers and residents in the downtown core (Attachment C. surrounding area of Broadway between El Camino and Maple), via a balanced approach of new housing, retail and office. Analysis: A thriving, vibrant downtown needs a community of visitors, workers and residents. In order to attract retail there needs to be critical mass/foot traffic (people/customers) for retail stores to locate, thrive and succeed. To accomplish this, the Downtown Core should have a work/housing balance that has nearly as many employees as residents and should include hotels. While office developments in the Downtown Core provide workers, some of whom may dine at restaurants during the lunch hour, residents who live downtown support retail stores .7 More visitors and residents in the Downtown Core who will dine in the evenings and weekends and shop at retail businesses will create a vibrant downtown that can help all businesses weather fluctuations from a changing market and economy. (See Attachment B: Existing and Planned Development Projects in the DTPP Area.) 6 A vanilla shell is a residential or commercial building with finished interiors, cooling and heating system, rest - rooms and plumbing, interior lighting, (the parameters may vary) etc. Businesses with a large number of employees that occupy office buildings often have on-site cafeterias for employees. 11 237