14 ATTACHMENTS 03-07 - Laserfiche WebLink

John Reynolds, Principal Property Developer, BART, reinforced what Commissioner Blank indicated about encouraging interest on the site and the opportunity to wrap in flexibility. He stated that based on having done this at BART for 19 years, the front end cost for the development here will be so significant with the replacement parking and the backbone and infrastructure costs, putting the roads in, and utilities. He added that being more flexible to maximize the opportunity for a return for the developer to recoup costs is commendable. Commissioner Blank agreed. He stated that a person told him that the buildings should be limited to two stories. He noted that while he is not a TOD expert, he tried to make the individual understand that this is not like residential development in the hills of Pleasanton. Commissioner Pearce asked Mr. Reynolds if BART had a preference with respect to the parking scenario. Mr. Reynolds replied that the preference is for Option 3 where the parking garage is linear and helps to buffer the development from the freeway, because it increases the footprint for development. He added that the other thing that has not been specifically stated but is obvious to those who intimately know the site, and given the fact that since the station is on an elevated berm, is that a considerable height is necessary before getting any visibility. He indicated that Mr. Fleissig is correct that the higher the building is able to go up increases the value both in the way of residential or hotel for those hotel rooms. Chair Narum inquired if it was BART's desire to come away with these three pieces of land with the ability to put residential, hotel, and office on it, and what the market is at that time will dictate what a developer will want to build, whether apartments or a hotel. Mr. Reynolds replied that having come from banking before starting to do this at BART, at the end of the day, the more uncertainty you can take away from the developer and the more definitive the opportunity, the higher the quality of both development and the projects the City will get because there is some sense of certainty that some combination of this is acceptable within the community. Chair Narum stated that it is no secret that the City is looking for high density units to satisfy its RHNA numbers and inquired if BART would accept if the City called out a minimum number of residential units that would be required. Mr. Reynolds replied that any time a minimum number is required, it becomes difficult. He stated that one element they have embraced is a minimum amount of retail because retail is needed to create a sense of place; but other than that, he encouraged not putting a minimum on residential, even though they want to be supportive and provide for the opportunity for residential, because what would come in the future is uncertain. He noted that since this is a major desirable site, this could be a site for major employment or high tech or financial industry or hotel. EXCERPT: PLANNING COMMISSION MINUTES, MAY 25, 2011 Page 12 of 18