Laserfiche WebLink
Page 5 of 8 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />In addition, because the City would likely prefer to replace some or all of the public parking, the cost to <br />construct replacement parking (subterranean and/or podium) is a material factor for the City. As the user <br />of the commercial space, the City should also expect to pay for the proportionate cost of construction of <br />the commercial space in the project. <br />Using data from recent projects that have been successfully financed in the region and considering the <br />project costs for the five development scenarios at prevailing wage, the RSG team estimated that the cost <br />to the City may range depending on the project pursued but still fall within reasonable thresholds. <br />These costs are summarized below: <br />Land donation2 <br />City office space construction between $800,000 and $1.0 million <br />Local affordable housing subsidy between $14.2 and $16.9 million ($150,000 - $200,000 per <br />unit), depending on the number of units constructed. State funding could reduce required local <br />subsidies. <br />Reconstruction of the public parking at a cost between $5.8 and $10.1 million, depending on the <br />number of stalls <br />Currently, the City has allocated all of its housing funds to new affordable housing projects or the Housing <br />Preservation Program. However, there are a few entitled projects that are required to pay a housing <br />impact fee prior to building permit issuance. Notably, this includes up to approximately $18 million from <br />the Harbor View (320-350 Blomquist) project, approximately $2 million from 1201 Main, and up to $5.6 <br />million from 1548 Maple. The 1201 Main project has indicated they plan to utilize the Temporary <br />Affordable Housing Incentive Program and pull permits by to June 2027. However, 1548 Maple and Harbor <br />View both have development agreements with longer timelines. 1548 Maple has a three-year term with <br />a potential two-year extension and Harbor View has a 10-year term with a five-year extension option. <br />Compliance with the Surplus Land Act and Soliciting Developer Proposals <br />As a public property, any future disposition or redevelopment of Lot B would be subject to the Surplus <br />Land Act (SLA). The SLA establishes a process for determining whether a property is surplus or exempt <br />and outlines requirements for offering land for affordable housing. Should the City Council wish to move <br />forward with potential redevelopment of the property, staff will evaluate and ensure Surplus Land Act <br />procedures have been met prior to soliciting developer interest. <br />The RFP would also clearly set forth the City’s goals and expectations for redevelopment of Lot B, including <br />input from the City Council received at the May 11, 2026 meeting. The RFP process generally would involve <br />at least a 90-day solicitation period, review and evaluation of proposals, interviews of a short list of <br />developers as appropriate. <br />2 The City would likely ground lease the property to an affordable housing developer. This approach would allow <br />the City to retain long-term ownership of the land, while granting the developer the right to construct and operate <br />the project for a term of at least 55 years. <br />9.B. - Page 5 of 8 <br />508