RDA Min 1997-04-14 - Laserfiche WebLink

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I I I II Ms. Kearns said, "You do not by law have to achieve your production requirements - on a project by project basis, you can achieve them overall throughout the project Area, and given the restrictions that would be on the units at Main and Middlefield, Mezes Plaza, you're... exceeding the requirement. I don't think that is really that critical that in this project that you have the 15% set aside." In response to Board Director's questions, Ms. Kearns explained, "in order for a very low income household to afford a 'for sale' unit, the price would have to be effectively written down to about $50,000 a unit. That $50,000 effective price can be either covered by part of the profits on the other market rate units to achieve an overall return for the developer that is consistent with the market place, but probably a large portion would have to come ITom Redevelopment Agency funds in order to provide that subsidy." In response to Board Director's questions, Ms. Kearns said there is no requirement under the law that the affordable units have to be proportional, rental and "for sale" units. In response to Board Director's questions regarding renters preferring to live closer to work, Tim Kelly said people rent and buy units for diverse reasons, and although the majority will say they want a three bedroom house with a yard, "there is a subset of the market, that will live in a more urban situation and that is a life style they are choosing, - and one of the amenities is proximity to work." He suggested the Board Directors visit Park Place in Mountain View, a very successful and upscale apartment complex, with renters of varying income brackets, some quite high. In response to Board Director's questions regarding buyers renting out their new units, Tim Kelly said the market has changed and people do not invest in condos or townhomes as they did in the past, they are generally owner occupied. He quoted the figures provided by lAC that rents would range ITom $1,300 to $1,600. Bill Butler, developer, and owner of two sites adjacent to the Lonestar site, spoke in favor of "for sale" units rather than rentals. Mr. Butler, developer of the Whipple/ Warren project, which included affordable "for sale" units, asked the Agency Board to look at the whole area, not just the Lonestar site. He said the first development in the Franklin Street Area Plan will "set the tone for the whole rest of the downtown. If this is underdeveloped or underdeveloped so goes the rest of the neighborhood." He said the success of Sequoia Station has positively impacted that neighborhood and it is now appropriate for "for sale" units. Mr. Butler said it was his experience that people preferred "for sale" units rather than renting, the current proposal was too dense, tall and massive for the site, Redwood - SPECIAL REDEVELOPMENT AGENCY MEETING MINUTE BOOK N2.. 1 APRIL 14, 1997 MINUTES Page No. 407 PAGE 5