Laserfiche WebLink
7.A. — Pa99R?A?9f36andum <br />Financial Review of Proposed Sequoia Station Development <br />September 28, 2020 <br />Page 7 <br />analysis is based on data from Costar and other third -party sources related to typical lease and <br />occupancy rates for the type of development envisioned in each alternative. It also includes <br />standard assumptions related to operating and development costs for the various building <br />prototypes under consideration. <br />Based on this analysis, only the "High Density Office" and "High -Density Office with Housing" <br />projects are expected to generate a residual land value sufficient to cover the significant site <br />acquisition and improvement costs needed to enable vertical development. While several other <br />land use programs also generate a positive residual land value (i.e., "Lower Density Office" and <br />the Lower -Density Housing), the total project values fall significantly below the $620 per square <br />foot site acquisition and improvement costs. Even the Higher Density Office focused project are <br />estimated to generate a relatively low financial returns given the complexity, risk, and scale of <br />investment accompanying this redevelopment project. <br />It is worth noting that the "lower -density residential" product type (a multi-level wood rather <br />than steel frame structure) was determined to be financially feasible at this location only if the <br />City's affordable housing requirements are satisfied as a separate, stand-alone project on site <br />(rather than as inclusionary component that is integrated into a particular building). While <br />inclusionary residential projects have been successfully built elsewhere in the DTPP, the specific <br />design and land use requirements associated with redeveloping the Sequoia Station site make it <br />infeasible. In particular, the need to include 175,000 square feet of retail on the site will requires <br />multiple levels of subterranean parking, a highly expensive format. Other wood frame multi- <br />family residential projects in the City have accommodated most if not all of their parking with a <br />combination of podium and surface spaces, at significantly lower cost. In addition, most/all of <br />these projects have only nominal accessory ground floor retail and have no dedicated retail <br />parking. <br />z:,Ihar.d�r�.�vlak 211111,v211112 1.d...d­ 1 1-- ao �4�o�a oo oa���a�e�asa4�o�a111-I.mo1_21_2121d`198 <br />