Specific Plan Is NOT Working as Intended

November 19, 2013

Background – El Camino

General Plan calls for • New and upgraded retail along El Camino• Small-scale office in balanced pattern

with residential, retail

Consultant Memo justifying standards and thresholds, concluded:• New Base threshold essential to

stimulate development• Office uses unlikely, even in mixed use

projects on both small and large parcels

Specific Plan EIR and Financial Impact Analysis – illustrative 30 yr.

plan

Office 17%

Hous-ing

67%Retail

6%

Hotel10%

The Old Rules Work in Today’s Market

Projects approved under pre-Specific Plan rules are being built:• 389 ECR – housing (100%)• 1460 ECR – housing (47%) and office (53%)• 1706 ECR – medical office (100%)

Observations: Old maximum standards are adequate to stimulate ECR developmentOffice – 100% OR mixed use - “pencils”, even at prior allowed levels

Stanford Project Example

Office 64%

Housing33%

Retail 3%

November 2012

Office 43%

Housing55%

Retail 2%

April 2013

Office uses quickly became most desirable to developersAbility to influence project makes a big difference, but ability to negotiate not part of Base level

Base level standard

Office 25%

Housing52%

Retail 14%

Health Club9%

Prior Projects

Office 49%

Housing46%

Retail 5%

Current Proposal

Office is most desirable use to developers, even more than before Housing and Retail uses are crowded out by office

Greenheart Example

Total SF Office SF Housing SF Retail/Restaurant SF Health Club SF -

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Prior 1300 ECR Project, Derry Proposal Greenheart Proposal

Project Element

Squa

re F

eet

58% Increase

196% Increase 20%

Increase

35% Decrease

100% Decrease

Proposal Increases• 60% Larger than Prior Projects• 50% More Housing Units

Proposal Reduces• Housing/Office SF ratio

from 2:1 to 1:1 • Retail by 1/3• Eliminates Health Club

Former Cadillac site subject to lawsuit; prior project approvedOriginal Derry project subject of referendum; negotiated project resultedCurrent project much larger with nearly 200% more Office. May require new EIR less than 1-1/2 years into a 30 year plan

Greenheart Example Details

Office 64%

Housing33%

Retail 3%

Office 49%Housing

46%

Retail 5%

Conclusion: Specific PlanIsn’t Achieving Its Vision

Greenheart Project

Stanford Project

Office 17%

Hous-ing

67%Retail

6%

Hotel10%

Honor the 5 year Specific Plan process and Vision

Support the adopted Housing Element

Respect the General Plan

Follow Sierra Club/Save Menlo’s Recommendations:* Office maximum of 25% Base* Funding plan for public improvements

Lower the Base threshold* Encourages Vision* Structures negotiations

Recommendations To Make the Specific Plan Work Better

Revisit in ONE YEAR