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Cupertino approves massive development agreement for Vallco Mall

The city of Cupertino approved a specific plan and development agreement Wednesday night that could aid in bringing nearly 3,000 residential units and millions of square feet in commercial space to replace its dying Vallco Shopping Mall.

In a 3-2 vote, the council reluctantly approved the densest development ever proposed for the 58-acre site that sits about a mile from Apple Inc.’s new headquarters.

Cupertino Mayor Darcy Paul and City Councilmember Steven Scharf, who both favored a less dense redevelopment option, voted against the plan.

The vote marks the first move by city council members to willingly pave the way for a dense project on the site after years of community disagreement over what should replace the nearly empty, 1.2 million-square-foot mall has kept redevelopment in limbo.

That stalemate ended early this year when Vallco property owner, Sand Hill Property Co. invoked SB-35, a new and highly controversial state law aimed at speeding up residential development in housing starved California. That proposal set a tight deadline for the city to either approve Sand Hill’s redevelopment plans or come up with something better that the Palo Alto-based developer would consider building instead.

Read more on Silicon Valley Business Journal

 

 

 

 

Business fees to fund housing will be studied in San Jose

The concern, even for some council members who voted for the study, is that despite its housing shortage, San Jose still has many more residents than jobs, which is the opposite of the situation in many surrounding cities.

The imposition of commercial linkage fees to fund below market-rate housing is still alive in San Jose after Tuesday’s 9-2 City Council vote to add a discussion of them to next week’s agenda.

The vote came on an item of how the city should respond to a Santa Clara civil jury report issued in June that included among its findings that the fees are overdue and would increase housing.

Five council members, including Mayor Sam Liccardo, wrote memos changing the staff-authored response of disagreement with the finding to say the city would consider a study to confirm the causal relationship between job creation and an increased need for housing and a second study of the feasibility of enacting fees.

 

 

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BART picks developers for huge housing and office development at Lake Merritt in Oakland

Bay Area Regional Transit officials selected a development team to revamp three city blocks above the Lake Merritt BART Station in Oakland.

The agency picked Strada Investment Group and the East Bay Asian Local Development Corp. to develop 1.4 acres into two high-rise towers with 519 homes and 517,000 square feet of commercial space.

EBALDC is one of Oakland’s top nonprofit housing developers with 27 communities in the city. San Francisco-based Strada has owned multiple office buildings in downtown Oakland and has developed multiple projects in various Bay Area cities.

The winning team beat out proposals from global real estate investor Hines, Menlo Park-based Lane Partners and a partnership of Oakland-based McGrath Properties Inc. and Canadian investor Brookfield Residential. Lane Partners came in second, according to a BART staff report.

The BART board will formally vote to select the Strada/EBALDC Team at its meeting Thursday and start a two-year exclusive negotiating agreement to finalize the project. if the two sides fail to negotiate a project in that time frame, BART could then give Lane Partners a shot without having to do another selection process.

BART has wanted to develop its land above the Lake Merritt Station for years. The goal is to boost BART ridership and attract more residents, businesses, and pedestrians to a relatively quiet stretch of Oakland nestled between the city’s core downtown and the lake.

 

Read more on San Francisco Business Times

 

 

 

Mayor wants to lure modular housing factory to SF to provide both homes, jobs

As San Francisco officials continue to scout locations for a factory that can churn out modular housing units, Mayor London Breed is lining up the city to be the first customer.

Breed is expected to announce Monday that the city is prepared to spend $100 million on hundreds of modular apartments that would grow the city’s stock of affordable housing.

Who will run the modular housing factory won’t be known for some time, though the leading plan is to seek a private operator on city-owned or city-leased property. And even after a site is selected, it will take years to get a factory up and running.

But Breed and other officials hope the early — and sizable — promise to buy will entice interested operators to set up shop in San Francisco.

Read more on SF Chronicle

Exclusive: East Bay’s NewPark Mall pushes plan for 1,500 homes next to stores

As malls across the country struggle to stay afloat in the face of stiff competition from online retailers, NewPark Mall in Newark is pushing ahead on a $1 billion redevelopment project.

Brookfield Retail Properties, which took over NewPark when it acquired the mall’s previous owner, Rouse Properties, in 2016, wants to redevelop the mall and surrounding land into a vibrant community of apartments, parks, hotels, office space and event centers.

“We want to see the mall repositioned to take it to the next level,” said Terrence Grindall, Newark’s assistant city manager.

 

 

Read more on San Francisco Business Times

 

 

Sinking Millennium Tower’s window cracks, SF seeks answers about safety

The sinking Millennium Tower in San Francisco has another problem.

A cracked window on the 36th floor that’s prompted San Francisco officials to issue a citation requiring building engineers to report on the condition of the glass panel.

The window cracked early Sunday morning.

“At this time, we do not know what caused this fracture, though it appears to be limited to this one specific unit,” Bill Strawn, spokesman for the San Francisco Department of Building Inspection, said in a statement.

The 58-story residential tower has sunk more than 17 inches since it opened in 2009.

 

 

Full article on SFGate

 

 

 

 

UC Berkeley professor blames rent control for California’s housing shortage

Kenneth Rosen hopes to sway voters against Proposition 10.

Kenneth Rosen, a UC Berkeley economist and real estate consultant, published a paper Wednesday titled The Case For Preserving Costa Hawkins, in hopes of swaying voters against Proposition 10.

Proposition 10, which will go before voters in November, would repeal the 1995 Costa-Hawkins Act, a state law that severely curtails rent control in California cities. For example, under Costa-Hawkins, only San Francisco apartments built before 1979 may be subject to rent control.

Passing Proposition 10 would not in and of itself create any new rent control housing, but it would allow cities to expand rent control stock for the first time in decades if they so choose.

Rosen, however, argues that turning the clock back to 1994 will stifle new housing and drain apartment stock.

 

Read more on Curbed SF

 

Oakland leaders declare Section 8 landlord incentive program a success

An incentive program aimed at bringing new landlords into the Section 8 low-income housing program — and keeping them around — has yielded positive results, with hundreds of new units added this year, Oakland city leaders announced today.

The three-tiered incentive program was launched by the Oakland Housing Authority in January. As of June 30, 75 new property owners had signed up to accept Section 8 housing vouchers.

“In just six months, 684 families have found stable, secure, affordable housing in Oakland. That is something to celebrate,” Mayor Libby Schaaf said at a press conference today.

Section 8, a federal program that provides rental assistance to qualifying low-income families, has been struggling in Oakland in recent years.

From 2015 to 2016, the Section 8 program shed more than 1,000 owners, according to Eric Johnson, executive director of the Oakland Housing Authority.

Since then, the program has been in “recovery mode,” he said, looking for ways to attract new owners.

“It can be a challenge to get to know us,” Johnson said. “We have lots of forms, and the first time through them is not easy.”

At a 2016 cabinet that discussed ideas to address Oakland’s housing and displacement crisis, city leaders identified incentives for Section 8 landlords as a priority.

 

 

Read more on Hoodline

 

 

Richmond vacant property tax headed to November ballot

Richmond voters in November will decide whether to tax vacant properties to pay for homelessness services, affordable housing and other things.

The vacant property tax measure was inspired by one in Oakland, which was approved for the November ballot a few weeks ago, said Richmond Mayor Tom Butt. If Richmond voters pass the measure — it needs a two-thirds majority vote — a special parcel tax will be placed on vacant properties at the rate of $3,000 a year per vacant developed parcel and $6,000 a year per undeveloped parcel.

The tax would generate an estimated $5.4 million a year for the next 20 years, according to a report from Butt and Councilman Eduardo Martinez. That money will be earmarked for homelessness services, housing, blight, fighting illegal dumping and other specific programs.

There are 980 to 1,180 vacant parcels in the city and 250 vacant structures — most of which are abandoned homes, the report said. About 998 would be subject to the tax.

“In addition to creating a dedicated funding source, by taxing vacant properties, this measure will help encourage people to put those properties back into use, thus increasing the housing supply,” Martinez and Butt said in the report.

The measure passed unanimously at Tuesday’s City Council meeting. Only one member of the public spoke on the measure; she was concerned that a vacant lot that she has owned since the 1980s and had turned into a garden would be taxed. City officials at the meeting said it would not be subject to the tax.

Property would be classified as vacant and subject to the tax if it is used less than 50 days a year. The tax would not apply to properties used as gardens or to host farmers markets, the report said.

A hardship exemption would be available to people who qualify as “very low-income” under the U.S. Department of Housing and Urban Development’s guidelines. Very low-income is defined by the federal Department of Housing and Urban Development as households who make 50 percent of the area median income. For Richmond in 2018, a family of four with an income of less than $58,100 would be classified as very low-income.

Vacant property owners who can prove that specific circumstances prevent the use or development of the property are also eligible for an exemption. For example, if a natural disaster damaged the property, or if an undeveloped property was being used as a yard for an adjoining property, it would be exempt. If the measure passes in November, the City Council would include details of that exemption in a  separate ordinance, the report said.

 

 

Read more on East Bay Times

 

 

 

As San Jose boosts job growth, the challenge will be where to house new employees

With the potential for Google to add around 15,000 employees at its planned 8M SF Google Transit Village, San Jose is presented with an ongoing challenge: How can a city grow jobs in a largely undersupplied housing market?

In the next 10 years, San Jose will benefit from more development and have a vastly different skyline, but also increase its population.

“We’re just going to have more humans,” Swenson Senior Director Josh Burroughs said during Bisnow’s Silicon Valley State of the Market event Thursday. “I think that’s the biggest change.”

He said in the next 10 years, downtown and the immediate area around Diridon and Midtown from Valley Fair and Santana Row to Downtown will be more crowded with people.

The current pipeline has 6,000 units nearing or waiting for entitlement with 4,000 units under construction.

“There is a demand for those 10,000 units today,” Burroughs said. “If Google builds and adds 15,000 employees where are they going to live? We have a constant need for housing.”

In addition to the impact Google would have on the multifamily market, panelists discussed rising interest in the North San Jose and Milpitas office and mixed-use market and the benefits of investing in those markets. The Bisnow event was held at DivcoWest’s Century Plaza office complex in Foster City.

Swenson is currently working on a 260-unit off-campus student housing project near San Jose State University. Burroughs said what makes the project naturally affordable is that students pay by the bedroom instead of by the unit.

One of the biggest challenges developers and cities face is ongoing opposition to much-needed housing.

 

Read more on Bisnow Silicon Valley