RES 01063 - Laserfiche WebLink

Mr. Brim Swi~ l~y 16, 2~01 Page 7ofl! We ha~ also mnsidered a mixed-use ~~ll~e and residential, and we do not believe such a project is economically feasible or practical. The site is not a good resident/al site, and Pleasanton is not a highly urbanized city akin to San Francisco, Oakland, or even San Jose whe~ you might find such mixed-nse projects. Short of a red- hot housing market with no vacancies whatsoever, this site will be a renter's second or third ciz~ce simply due to its location. As a result, rents would tend fo be lower than the rest of the market, and we've seen from the Archstone numbers that even a high density project at today's market rents is not feasible. Second, in this suburban market, housing on top of office space will be perceived as Class B or C office space. High-end businesses do not mix well with all the informal activities of residential uses. For example, if a visitor to an office tenant such as Morgan Stanley has to park their car next to a resident changing the oil in their car, Morgan Stanley would not be our tenant for long. Other examples such as residents walking their pets in front of the windows of Class A tenants, family disputes taking place in parking lots and in front of Class A spaces, or even the joyful events of children playing or a group of people having a get together are not conducive to a Class A environment, espedally not at this location. A nmted-use proJeCt nught be feastble on a neighborhood cornmeraal type of site where a Class B or C office building is actually appropriate. The location of our property and the cost of the land do not fit that description by any means. Due to the cost of the land, we ueed to develop a high-end office product that will command Class A rents. Housing on top of the office would prevent us from accomplishing this. Thus, a mixed-nse project would result in both lower residential rents and lower office rents, which is a sure recipe for finandal disaster. Opposition by Hacienda Business Park Owners Association (HBPOA) The Hacienda Business Park CC&R's and the Park PUD require that all proposed projects in the park must be approved by the HBPOA. As expressed in HBPOA's letter to the Mayor dated May 14, 2001, the essodation does not feel our site is an appropriate location for housing in the Park. Although the HBPOA believes other sites in the park could work for housing, they oppose such a use at our location, and they have indicated to us that they would not approve such a proposal. Given this position of the HBPOA, we could find ourselves in the middle of a divisive battle between the city and the Park that could tie up redevelopment of our property for quite some time. Conclusion The housing situation in the Bay Area is definitely problematic, and there is an understandable desire to considar all sites for housing. After considering all of the information and facts concerning the site, however, housing on our property does not make sense. The site is not a good residential location, housing is not economically