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From YouTube: NOV 1, 2022 | City Council
Description
City of San José, California
City Council, November 1, 2022
Today's City Council meeting will contain both a Regular Session and a Study Session. The City Council will begin the meeting with Regular agenda, and after the Consent Calendar items are completed, the Council will take up the Study Session agenda linked below. Upon completion of the Study Session agenda, the Council will return to Regular agenda.
Pre-meeting citizen input on Agenda via eComment at https://sanjose.granicusideas.com/meetings.
This public meeting will be held at San José City Hall and also accessible via Zoom Webinar. For information on public participation via Zoom, please refer to the linked meeting agenda below.
Regular Session Agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=999874&GUID=1A075DBC-A838-44F2-932F-010321071D85
Study Session Agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=1004843&GUID=D0CE027D-B571-456B-B492-EE23A6DD3283
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A
A
A
E
B
B
Thank
you
well
I'm
honored
to
have
our
indicator
join
us
today.
Reverend
Steve
Kingston
has
served
this
community
in
many
ways
at
Maranatha
church
here
in
San
Jose,
as
well
as
Christian
service
director
at
Bellarmine
and
teacher
and
council
member
Mayhem
will
tell
us
more
I
heard
it
was
your
teacher
mayor.
Well,
we
won't
go
into
that
good,
but
he
might
reverence.
E
E
His
dedication
to
serving
the
community
Through,
promoting
Service,
Learning,
coordinating
and
supporting
local
and
foreign
immersion
experiences
and
advancing
social
justice
as
the
Christian
service
director
within
the
school
Community
was
truly
inspiring.
Reverend
Pinkston
also
served
as
the
moderator
for
bellarmine's
black
student
union
in
the
Agape
service
Club
and
as
if
his
tireless
efforts
were
not
enough
within
just
the
Bellarmine
Community
he
serves
and
he
served
and
continues
to
serve
as
an
associate
pastor
at
the
Maranatha
Christian
Center.
E
F
F
We
look
outside
and
see
the
rain,
and
we
thank
you
for
that.
Lord.
We
even
thank
you
for
project
home
key
and
the
progress
that's
being
been
made
with
that.
As
that
will
be
discussed
this
afternoon,
Lord
help
us
to
reflect
on
the
words
the
challenging
words
by
the
prophet
Micah,
to
seek
Justice,
to
always
love
Mercy,
to
walk
humbly
with
you
and
with
others
Lord.
We
are
even
challenged
by
the
words
of
the
late
Supreme
Court
Justice
Ruth,
Bader
Ginsburg.
F
She
said:
let
us
heed
the
words
to
do
something
outside
of
ourselves,
something
to
repair
the
tares
and
the
tears
in
our
community
to
do
something
to
make
life
a
little
better
for
people
less
fortunate
than
us
to
do
something
that
makes
a
difference.
Thank
you.
Lord
now
bless
the
meeting
bless
those
in
attendance,
whether
they're,
here
or
whether
on
Zoom.
We
pray
this
through
your
lovely
and
great
name.
You,
the
omnipotent
one
and
all
said,
amen.
B
G
G
and
according
to
us
against
Alzheimer's,
more
than
250
billion
dollars
is
spent
annually
in
out-of-pocket
health
care
for
Alzheimer's
patients,
which
is
more
than
179
times.
The
amount
spent
on
finding
a
cure
us
against
Alzheimer's
also
adds
that
the
total
annual
out-of-pocket
payments
in
the
U.S
for
Health
Care,
long-term
care
and
hospice
care
for
people
with
Alzheimer's
and
other
dementias
are
projected
to
reach
1.1
trillion
dollars
by
2050.
If
we
don't
develop
a
treatment
or
cure.
G
Alzheimer's
is
a
progressive
brain
disease
that
slowly
destroys
memories
and
thinking
skills.
This
is
a
stability
debilitates,
the
individual
and
in
advanced
stages.
Symptoms
can
include
confusion,
mood
and
behavior
changes
and
inability
care
for
oneself
and
perform
basic
life
skills.
It,
ultimately,
results
in
the
death
of
an
individual
and
being
witness
to
someone
suffering
with
this
disease
is
incredibly
difficult.
I've
often
said
that
I
find
Alzheimer's
to
be
about
one
of
the
cruelest
diseases
that
we
have
as
it
robs
you
of
who
you
are
and
of
those
memories
that
you
share
with
your
loved
ones.
G
I
I
know
this
all
too
well,
as
I
mentioned,
my
father
battled
Alzheimer's
for
10
years,
the
last
two
years
of
his
life.
He
was
almost
entirely
bedridden
and
my
father
I
I,
can't
say
enough
of
my
of
my
father.
We
had
a
very
special
relationship.
I
was
an
only
child,
so
we
were
very
close,
but
he
was
very
kind.
He
was
very
generous.
G
He
rarely
rarely
ever
raised
his
voice
at
me,
including
doing
those
very
difficult
teenage
years
and
when
I
look
back
on
our
time
together,
as
we
were
caring
for
him,
I,
don't
think
I
would
have
changed
anything
other
than
maybe
have
a
bit
more
support
to
do
so.
The
financial
cost
of
caring
for
my
father
was
it
was
something
else.
On
occasion
it
pushed
us
to
make
very
difficult
decisions
as
to
whether
we
provided
recreational
enrichment
activities
for
my
children
or
whether
we
bought
his
medication.
G
G
It's
heartbreaking.
It's
truly
heartbreaking
to
see
what
it
does
to
the
person
and
what
it
does
to
the
family
members.
Well,
while
there's
no
certain
way
to
prevent
Alzheimer's
and
other
forms
of
dementia
research.
Researchers
from
the
NHS
have
good
evidence
to
suggest
the
healthy
lifestyle,
including
mental
exercise
like
Puzzles,
reading
and
even
being
bilingual
or
Multicultural,
can
help
reduce
your
risk
of
developing
dementia.
H
I
J
I
It
is
our
greatest
honor
to
accept
the
proclamation
on
behalf
of
the
Alzheimer's
Association
and
all
of
the
constituents
in
San
Jose,
and
to
thank
councilman
crossbow
and
the
entire
Council
for
your
leadership
and
raising
awareness
of
the
Alzheimer's
and
Dementia
I
just
want
to
say
this
year.
Our
walk
just
the
Silicon
Valley
walk
is
number
one
in
the
nation,
and
we've
raised
over
1.6
million
dollars.
So
that's
a
big
thing.
J
B
B
L
L
Thanks
to
the
diligent
actions
of
the
officers,
including
obtaining
and
utilizing
the
gun,
violence
restraining
order,
they
were
able
to
ensure
the
safety
of
the
domestic
violent.
Excuse
me,
the
domestic
violence
Survivor
and
ensure
a
clearly
dangerous
man
was
apprehended
and
did
not
have
the
opportunity
to
retaliate
with
even
greater
violence.
L
They
also
prevented
Untold
future
tragedies
through
shutting
down
this
illegal
ghost
gun
operation
in
2014.
In
the
aftermath
of
the
horrific
mass
shooting
in
Isla
Vista
near
the
UC
Santa
Barbara
campus
California
became
one
of
the
first
states
to
pass
a
red
flag
law
allowing
law
enforcement
and
family
members
to
apply
for
gun
violence,
restraining
orders
to
keep
guns
out
of
the
hands
of
those
at
serious
risk
of
using
them
for
violence
against
others
or
themselves,
and
in
2019.
L
The
state
legislature
and
Governor
Newsom
expanded
this
law
with
the
passage
of
ab61,
allowing
employers
and
Educators
to
apply
for
gvros
as
well.
This
law
is,
in
effect,
Statewide
it's
up
to
local
jurisdictions,
the
local
jurisdictions,
to
educate
communities,
about
the
use
of
gun,
violence,
restraining
orders
and
then
put
them
to
use
to
keep
our
communities
safe
and
our
Santa
Clara
County
District
Attorney's
office,
our
own
city
attorney's
office
and
the
San
Jose
police
department
have
been
Statewide
leaders
in
this
effort.
L
In
the
last
several
years,
Santa
Clara
County
has
been
one
of
the
top
three
counties
in
the
state
in
obtaining
gun,
violence,
restraining
orders
along
with
San
Diego,
County
and
Orange
County.
So
far
this
year,
sjpd
has
obtained
73
gun
violence,
restraining
orders,
that's
73
potential
tragedies
averted
as
we
continue
to
Grapple
with
a
nationwide
epidemic
of
gun,
violence
that
all
too
often
hits
close
to
home.
We
recognize
that
this
is
one
of
the
best
and
most
effective
tools.
L
Your
partnership
has
been
essential
in
allowing
us
to
become
a
state
leader
and
model
for
the
successful
use
of
gvros
I'd,
also
like
to
recognize
Chief
Mata,
an
assistant
Chief
Joseph,
for
their
leadership
in
making
gvros
part
of
our
Police
Department's
toolkit,
as
well
as
working
to
educate
our
officers
and
our
community
members
about
the
use
of
gbros
and
the
role
that
they
play
in
preventing
tragedies
and
a
big.
Thank
you
to
our
team
at
the
city
attorney's
office,
who
play
an
important
role
in
this
life-saving
partnership.
I'm
so
honored.
L
M
I
think
that
this
tool,
this
red
flag
law,
the
gun,
violence,
restraining
order
law
absolutely
saves
lives,
and
it
was
only
a
matter
of
education
and
informing
members
of
the
public
and
our
Police
Department
about
what
it
is
and
how
it
works
that
led
to
its
huge
use
and
roll
out
and
incredible
success
stories.
In
this
city
and
honestly,
this
police
department
has
been
a
partner
since
the
beginning,
I've
trained
personally
I.
M
Think
every
single
member
of
the
San
Jose
police
department
at
this
stage,
going
to
all
the
academies
and
Patrol
briefings
to
spread
the
word
and
once
they
heard
about
it.
It
was
used
in
cases
like
the
case
on
Mallet
drive
that
you
just
heard
about
with
Incredible
results
in
disarming
individuals
who
are
at
risk
of
harming
themselves
and
others,
and
so
it
can
be
done.
M
This
is
just
a
matter
of
understanding
and
using
this
incredibly
powerful
tool
to
get
guns
out
of
the
hands
of
individuals
who
are
suicidal,
who
have
threatened
to
do
harm
and
who
have
raised
a
red
flag
based
on
their
behavior.
So
I'm
really
grateful
to
this
city,
as
always
for
being
leaders
in
this
space.
M
I'm
really
grateful
for
the
recognition,
but
also
for
our
police
department
and
our
city
attorneys,
who,
over
and
over
are
partners
and
the
fact
that
we
hold
hands
on
issues
like
this
means
that
we
are
keeping
this
city
safe
day
after
day.
So
thank
you
especially
to
Nora
our
City
attorney,
who
is
at
one
of
those
very
early
meetings
in
the
early
days
and
I
just
want
to
say
when
we
did
our
first
gun
violence
restraining
order
here.
M
You
know
we
kind
of
faked
our
way
through
it,
because
we
hadn't
been
done
before,
and
you
can
do
that.
The
first
time
I
got
a
call
about
one
of
these.
It
was
in
the
midst
of
a
hot
call.
There
was
an
individual
who
was
threatening
to
shoot
police
officers
who
was
driving
up
from
San
Benito
County
into
our
County,
and
his
wife
had
alerted
the
authorities
and
I.
M
Remember
getting
a
call
from
the
officer
who
said
we
got
to
do
one
of
those
gun,
violence
order,
things
and
I
said
I,
don't
know
what
that
is
and
he's
like
Google
it
and
he
hung
up
and
no
joke.
We
Googled
it
and
so
I'm
here
to
say.
If
you
ever
don't
know
how
to
do
something,
you
can
Google
it
and
you
can
figure
your
way
out.
So
where
there's
a
will,
there's
a
way
and
there's
a
bunch
of
will
here.
So
thank
you
to
everybody
for
everything
we've
done
on
this.
N
That
should
not
have
these
these
weapons
and
can
cause
further
harm.
But
again,
thank
you
for
for
that,
and
just
as
a
quick,
a
quick
stats
back
in
2018,
we
had
very
few
restraining
orders.
Last
year
we
had
over
50
and
as
council
member
Esparza
mentioned,
we
have
over
70
gun
violence,
restraining
orders
that
our
officers
have
obtained
again
to
get
illegal
guns
or
guns
off
the
hands
of
individuals
that
are
potentially
kid
harm
our
communities.
N
B
O
B
Our
partners
of
the
DA's
office,
and
particularly
Marissa
and
James
for
their
hard
work
and
I
also
want
to
thank
some
people
might
think
this
is
an
imposter
who's.
Our
assistant
chief,
but
in
fact
Paul
just
is
undercover
today
with
a
mustache.
All
right,
we're
on
to
I
think
councilmember
I
believe
is
virtual.
Is
that
right?
B
P
Yeah,
thank
you
very
much
and
it
my
pleasure
to
be
able
to
recognize
and
present
Scott
with
this
accommodation
and
I
apologize.
I
could
not
be
there
in
person,
the
the
kids
and
then
my
they
got
me
sick,
but
I
got
two
kids
at
homestick
and
now
and
I
guess:
that's
how
it
transfers
over
to
the
parents.
Now
that
everybody's
back
in
school
we
went
a
couple
years
without
having
a
cold,
and
now
we
can't
go
a
couple
weeks
so
but
Scott.
P
You
know
about
that
and
it's
a
a
pleasure
to
be
able
to
recognize
you
and
everything
that
you've
done
for
our
community
today
and
and
share
a
little
bit.
I
know:
I
wasn't
able
to
attend
the
roast
either,
but
I
was
able
to
to
share
some
words.
Virtually
there
and
and
I'll
share
a
little
bit
here
as
well.
P
These
comments
recorded
virtually
at
the
Rose,
but
these
were
not
so
much
of
the
the
rose
type
of
comment,
but
it's
Scott
may
recall
a
couple
years
before
I
was
elected
for
office.
I
was
out
exploring
the
thought
of
it,
and
one
of
the
organizations
that
I
came
to
was
the
Downtown
Association
came
to
a
meeting
reached
out
to
Scott,
with
an
interest
to
be
able
to
learn
more
about
the
organization
and
and
really
just
in
my
exploration
for
for
running
for
Council
and
I
will
say.
P
Scott
was
very
quick
to
respond
in
just
a
couple
days.
We
were
having
coffee
downtown
and
at
that
point
most
people
were
looking
at
me
as
as
someone
that
didn't
have
a
chance
at
all
and
just
a
young
kid
that
had
an
interest
at
running
for
office,
but
Scott
really
opened
up
his
arms
and
and
invited
me
into
understand.
The
organization
was
sharing
their
input
and
documentation
with
me
the
work
that
they
were
doing.
P
What
he
knew
was
that
anybody
could
could
win
that
seat
for
downtown,
and
he
was
doing
his
part
to
ensure
that
everybody
was
going
to
be
a
true
advocate
for
our
downtown
core
and
really
well-versed
on
on
the
needs,
and
so
I
appreciate
that
Scott
I
want
to
say
thank
you
for
opening
up
that
opportunity.
It
was.
P
It
was
doing
well
and
and
finally,
he
upgraded
to
a
smartphone
several
years
ago.
So
we
appreciate
that
Scott
being
able
to
communicate
with
you
in
the
21st
century.
But
it's
been
a
pleasure
to
to
work
with
you.
You've
had
a
tremendous
34-year
run
and
and
again
I'm
sorry
I
can't
be
there
in
person.
But
thank
you
to
our
mayor
for
being
able
to
present
to
you
this
combination
for
34
years
of
service
to
our
downtown
in
San
Jose.
Thank
you.
Scott
foreign.
Q
Thank
you,
councilman
Perales,
for
establishing
what
a
Luddite
I
am.
That
is
that's
very
true.
There
are
some
City
staff
people
here
like
myself,
that
have
worked
in
this
community
for
decades,
I've
had
19
different
board.
Presidents
worked
with
five
Mayors
and
like
our
respective
organizations,
whether
it's
the
Downtown
Association
or
you
working
for
the
city,
the
electeds
were
they
do
the
policy
and
give
the
direction
we
do
the
work
we
get
the
work
done.
Q
We
are
the
ones
that
are
the
continuity
between
the
different
administrations,
the
different
board.
Presidents,
different
mayors
and
I,
look
around
at
the
different
cities
in
the
Bay,
Area
and
I,
see
dysfunction
in
San,
Francisco,
Oakland,
Richmond,
Santa
Clara,
but
not
in
San
Jose.
The
professional
staff.
Here,
the
leadership
here
exemplifies
the
very
best
in
public
service
and
the
way
that
you
partner
with
Community
groups
and
and
non-profits,
is
also
an
example
of
how
you
leverage
the
public
resources
that
you
have
because
of
my
position.
Q
Since
Downtown
San
Jose
is
everybody's
neighborhood
in
the
city,
I've
had
the
honor
of
working
with
almost
every
facet
in
the
city,
pbce,
the
library,
police
city,
attorney's
office,
housing
prns,
especially
Dot
and
OED,
and
Oka
and
I
know
I
just
said
an
alphabet
soup
of
acronyms
that
most
people
have
no
idea
what
I
said.
But
let
me
tell
you
behind:
each
of
those
functions
are
talented
and
dedicated
people
that
get
the
work
done
and
your
professionalism
has
inspired
Us
in
the
community.
You
do
meaningful
work
that
makes
a
difference
in
people's
lives.
N
Q
B
Many
amazing
things
that
have
happened
in
our
downtown
continue
to
happen.
Really
it's
an
imprint.
That's
been
left
by
Scott
and
his
his
small
team
and
I
know
that
blaggers,
who
is
here
now
with
the
city,
we're
fortunate
to
have
her
was
very
much
a
part
of
that
for
for
at
least
a
couple
of
decades.
We're
just
grateful
for
all
that
they
do
and
I'm
grateful
Scott
for
his
first
leadership
in
his
first
friendship.
Thank
you,
Scott
all
right.
Let's
move
on
to
our
final
accommodation
and
I
think
is
councilmember
crosco
on
remotely.
R
This
is
this
is
something
that
I
always
express
when
I'm
at
the
Gurdwara
When
I
visit
the
Gurdwara
and
we
we
pray.
It's
God's,
pure
one
Victory
to
God
and
I'm
honored,
to
be
here
today
once
again
to
recognize
November
as
seek
awareness
and
appreciation
month
and
I'm
really
thrilled
to
have
Sergey
Baines
here,
who
is
one
of
the
leaders
at
the
gurdwada,
but
with
him
is
also
harleen,
Kaur,
ashdeep,
Singh,
Malik
and,
of
course,
Harbor,
but
yeah.
R
So
welcome
everybody
this.
This
all
really
started
when
council
member
Ash
kalra
in
2012
presented
the
first
Sikh
American
awareness
and
appreciation
month
Proclamation,
and
it
was
a
really
special
moment
to
not
only
bring
awareness
about
our
Sikh
Community,
but
also
their
contributions
and
to
celebrate
diversity
and
Common
Ground
that
we
have
with
our
neighbors,
who
have
been
here
since
I,
think
it's
1800s
when
they
helped
with
Lumber
Mills,
Farms,
railroads
and
I.
Think
agriculture
as
well.
R
Yes,
Ten
Years
Later,
with
an
estimated
700,
000
Sikhs
and
my
honor
to
have
them
and
celebrate
this.
For
this
is
now
our
sixth
year
together
across
the
country
and
despite
the
long
history
there's
a
lot
of
folks
who
don't
know
much
about
our
Sikh
community
and
in
District
8.
We
have
the
home
to
the
largest
secret
water,
so
the
biggest
temple
or
church
outside
of
India
the
golden
temple,
and
it
serves
as
the
primary
place
of
gathering
and
prayer
for
the
sikha
American
community
in
San
Jose
and
the
greater
Bay
Area.
R
We
continue
to
Proclaim
all
of
November
as
Sikh
American
awareness
and
appreciation
month.
Just
last
week
we
celebrated
Diwali,
and
it
was
just
absolutely
beautiful.
So
this
is
a
a
wonderful
beginning
for
our
Sikh
American
awareness
and
Appreciation
Day
I
encourage
everyone
to
visit
The
Secret
Garden
who's
in
that
is
in
in
District
eight.
It
is
on
guruara
Avenue,
which
was
changed
to
honor
our
Sikh
community.
R
As
they
have
a
rich
history.
They
also
have
a
huge
heart.
They
serve
langar,
which
is
lunch
every
day
to
those
folks
who
are
not
able
to
eat
on
their
own
when
we
need
something
from
them.
As
when
crisis
happens
such
as
our
floods
they're
the
first
ones
to
offer
support
during
our
pandemic,
they
also
were
the
first
ones
to
call
me
and
say:
how
can
we
help
and
they
serve
as
critical
partners
for
our
our
city
of
San
Jose
in
more
than
ways
than
one?
R
We
have
a
airport
commissioner
right
next
to
me,
and
so
their
service
goes
beyond
just
the
guardwara.
It's
my
honor
to
present
this
proclamation
to
the
San
Jose
Guard
water,
in
recognition
of
Sikh,
American
awareness
and
appreciation
month
and
I'm.
Grateful
absolutely
grateful
for
their
continued
contributions
to
our
city
and
I'd
like
to
welcome
sir
jeepings
to
say
a
few
words
on
behalf
of
the
Sikh
goodwada.
S
Thank
you,
Serbia
and
all
all
the
all
the
council,
members
and
also
honorable
mayor,
so
so
I
just
want
to
thank
all
of
you
and
I
thank
herbivir.
She
is
going
to
say
a
few
things
about
our
SEC
history
and
with
that
one,
so
I
again,
thank
you
for
everything
to
promote
the
SEC
awareness
month
and
we
we
appreciate
all
your
helpers.
Thank
you.
T
I'm,
sorry,
I'm
a
little
bit
Daisy
or
hazy,
I
just
came
back
from
out
of
country,
came
back
from
Ukraine,
so
this
is
a
perfect
day
to
actually
talk
about
this.
So
you
know,
sikki
was
actually
founded
in
Northern
India,
but
it
is
practiced
by
people
of
all
Races
around
the
world
often
seeks
are
identify
by
their
five
articles
of
faith,
which
is
often
the
sixth
is
considered.
T
As
Sylvia
said,
six
came
in
the
1890s
and
California
was
founded
in
the
1850s.
So
that's
not
a
lot
later
than
California
was
founded.
It's
been
a
highly
productive,
Grassroots
organization,
like
other
communities
have
been,
and
especially
in
San
Jose
and
California.
San
Jose
is
actually
home
to
some
of
the
largest
Sikh
populations
in
the
United
States
I
actually
live
on
the
border
and
I
serve
at
the
San
Jose
Gurdwara,
but
as
well
as
community
members.
T
T
In
addition
to
that,
as
Sylvia
mentioned,
seek,
San
Jose's
has
a
larger
secret
dwara
in
the
western
known
hemisphere,
and
some
of
the
founders
of
the
high-tech
companies
live
in
your
neighborhoods
here.
So
some
of
the
most
productive
members
of
our
so-called
Silicon
Valley
are
members
of
this
beautiful
city,
not
only
that,
but
you'll
find
them
as
entrepreneurs.
Doctors,
scientists,
transportation,
service
members,
in
addition
to
public
leaders,
and
today,
I
want
to
highlight.
We
also
have
harleen
core.
T
Nanak
Heritage
walk
pretty
soon
the
trail
behind
the
San
Jose
graduara,
so
all
can
benefit
and
I
coming
back
from
Ukraine
right
now
can
tell
you
that,
whether
it's
Ukraine,
whether
it's
California,
whether
San
Jose
there's
violent
crimes
everywhere,
we've
seen
so
many
minorities
get
impacted
for
us
to
wish
and
and
celebrate,
seek
awareness
month
is
to
really
say
we
must
be
more
united
than
we've
ever
been
there's
just
too
much
destruction
in
the
world.
That
requires
us
to
be
more.
T
B
All
right,
we
will
start
then,
on
orders
of
the
day,
does
anyone
in
the
council
have
any
changes
to
the
printed
agenda?
Mm-Hmm
I'm
going
to
ask
if
Tony
can
see
anybody
online
raising
their
hand
this
time
there?
Okay,
thank
you,
I'll
be
getting
logging
on
in
just
a
moment.
Let's
go
straight
to
the
closed
session
report.
Nora.
B
V
Okay,
it's
working
for
me
go
ahead,
Paul
yeah!
Yes,
thank
you.
Paul
Soto
from
the
Horseshoe
I'd
also
like
to
acknowledge
the
suffering
that
the
Sikh
Community
had
experienced
during
9
11,
when
very
ignorant
people
had
had
assumed
that
the
Sikh
Community
had
some
kind
of
resemblance
to
those
that
the
United
States
held
responsible
for
9,
11
and
I
I
had
some
friends
that
were
connected
to
the
Sikh
community
at
that
time,
and
so
I'd
like
to
acknowledge
that
Community
for
the
suffering
that
they
had
experienced
during
that
time
period.
V
You
are
a
part
of
San
Jose
and
I
acknowledge
that
as
a
lifelong
generational
resident
of
not
only
San
Jose
but
California
with
respect
to
the
consent
calendar
there
are,
there
are
items
that
really
actually
do
need
to
be
pulled,
and
it's
getting
really
like
old.
The
fact
it
U10
and
the
attorneys
decide
what
the
public
can
or
cannot
comment
on
or
or
how
or
hear
a
discussion
about.
V
I
mean
that's
like
an
exercise
of
power
and
privilege
that
I
don't
really
think
the
voters
really
we're
thinking
of
when
they
voted
you
into
office,
because
I
certainly
don't
afford.
You
that
privilege
and
and
opportunity
to
do
that,
because
you're
making
decisions
that
have
literally
generational
consequences
and
those
consequences
we're
starting
to
like
bear
the
fruit
of
today
the
decisions
that
were
made
in
1939
with
respect
to
the
red
lightning
map
we're
dealing
with
today,
and
so
it's
there
needs
to
be
some
real
explanation
and
accountability.
With
respect
to
that
calendar.
C
W
B
B
Right,
so
this
is
a
report
on
the
cost
of
residential
development
in
San,
Jose
I.
Think
everybody
knows
why
we're
here.
We've
got
a
housing
crisis.
We've
got
to
find
a
way
to
get
housing
built
and
high
costs
make
it
challenging.
So
we're
going
to
learn
more
and
thank
you
to
our
esteem
panelists
for
helping
us
in
all
the
ways
you've
lent
your
expertise,
who's
taken
away.
Is
it
Roseland?
Yes,.
AA
Thank
you
mayor
good
afternoon,
mayor
city
council,
members
of
the
public
Rosalind
Huey
Deputy
city
manager,
I'm
joined
this
afternoon
by
Nancy
Klein,
our
director
of
The
Office
of
Economic
Development
and
cultural
Affairs,
Jared
Ferguson,
our
housing,
catalyst,
Rachel,
vanderveen,
deputy
director
of
housing
in
the
off.
In
the
audience.
We
also
have
housing
director,
Jackie,
Morales
ferrand,
and
we
have
Michael
Brio
and
Chris
Burton
from
planning
building
and
code
enforcement.
We
are
also
very
pleased
to
be
joined
by
a
guest
panel
who
I'll
be
introducing
in
just
a
moment.
AA
So
today
we
are
pleased
to
be
with
you
to
share
the
analysis
from
the
updated
reports
on
the
cost
of
residential
development
for
both
market
rate
and
affordable
housing
here
in
the
city
of
San
Jose,
previously
in
2018
and
in
2019,
the
city
council
health
study
sessions.
But
now
we
think
it's
very
important
to
share
the
updated
information
and
to
understand
the
changes
in
the
market
since
the
pandemic
and
really
to
understand
how
these
Dynamics
can
be
barriers
to
housing
construction
here
in
the
city.
AA
We
thought
it
was
important
to
provide
the
study
session
to
you,
as
in
the
coming
weeks,
actually
on
November
15th
we're
going
to
be
bringing
two
housing
items
to
you.
First,
the
transition
of
the
housing
crisis
work
plan,
which
was
first
approved
back
in
2018
by
the
city
council
and
talking
about
translation,
transitioning
that
work
and
then,
secondly,
we'll
be
bringing
an
item
regarding
the
residential
high-rise
program
for
your
action.
AA
So
we
are
very
excited
to
be
joined
today
by
a
panel
comprised
of
the
Urban
Land
Institute
or
Uli
San
Francisco
District
executive
board
members.
We
have
Libby
stifle
Eric
Tau,
who
is
the
current
board
chair?
We
have
drew
hadassek,
who
is
the
past
chair
of
the
board
and
we're
very
excited
to
also
be
joined
by
Nevada
Merriman,
who
is
director
of
policy
at
midpin
housing.
AA
So
first
we'll
hear
from
our
panel
there
will
be
opportunities
for
the
city
council
to
ask
questions
and
engage
in
discussion,
after
which
we
have
a
presentation
by
City
staff.
So
Jared
and
Rachel
will
lead
us
through
that
presentation.
Again,
there'll
be
another
opportunity
for
the
city
council
to
ask
questions
and
have
discussion,
followed
by
public
comment
and
before
I
hand.
AA
This
over
to
Eric
I
just
want
to
share
how
the
city
is
very
appreciative
of
our
continued
partnership
with
the
Uli
San
Francisco
they've
helped
us
on
a
number
of
different
projects:
they've
actually
provided
training
to
many
City
staff.
A
couple
of
years
ago,
they've
participated
in
a
technical
advisory
panel
on
parking
and
also
provided
an
urban
plan
workshop
for
public
officials.
So
we're
very
thankful
for
this
partnership.
AA
AB
Thank
you,
Rosalind
I'm,
Eric,
Tao
I'm,
the
current
chair
of
the
San
Francisco
Uli,
District,
Council,
I'm
glad
it's
not
a
full
house,
because
we
don't
have
all
the
answers
for
you
today.
What
we're
here
to
do
is
to
work
with
staff
with
Rosen
and
with
you
all,
to
try
to
understand
better
the
challenges
and
hopefully
by
understanding
the
challenges,
some
solutions
to
help
solve
our
housing
production
crisis.
Right
now,
a
little
bit
more
about
Uli,
Urban,
Land,
Institute,
San
Francisco
is
the
name
of
our
district
council.
We
are
more
than
just
San
Francisco.
AB
AB
Today
joining
me,
oh
I
gotta
learn
to
use
this
thing
there
we
go.
That's
some
of
the
things
we
do
and
Rosen
touched
upon.
It.
We've
already
done
technical
assistance
panels
for
the
city
of
San
Jose
and
again
we
continue
always
to
share
and
gather
information
about
best
practices
for
Real,
Estate
development
and
Housing
Development.
AB
AB
Also
joining
me
is
Drew
hudassic
he's
a
chief
investment
officer
of
Saras,
Regis
I.
Think
many
of
you
know
him.
Sarah's
Regis
has
been
around
since
1993
as
a
company.
Their
Founders
have
been
doing
this
for
much
longer
and
they've
built
over
15
000
units
of
housing
in
California,
so
everybody
in
San,
Jose
city
council,
now
probably
have
become
experts
in
how
complex
how
difficult
and
how
costly
it
is
to
produce
housing,
but
I
think
we
still
scratch
our
heads.
Why
is
it
so
costly?
Why
is
it
so
complex?
AB
What
we're
going
to
do
today
is
we're
going
to
try
to
unpack
everything,
we're
going
to
show
you
the
elements
and
the
segments
and
the
pieces
that
make
it
challenging
and
then
we're
going
to
take
each
of
those
pieces
and
try
to
analyze
it
and
our
experts
are
going
to
try
to
explore
levers
and
tools.
We
can
use
by
understanding
these
pieces
to
try
to
start
solving
the
larger
holistic
problem
of
housing
production
and
with
that
I
like
to
pass
it
on
to
Drew
hadassic.
AC
AC
So
you
know
what
are
we
going
to
cover
today?
One
thing
we
want
to
acknowledge
up
front.
You
know
the
four
of
us
on
this
panel
at
some
level
are
part
of
the
development
industry
or
our
developers
ourselves,
but
we're
we're
part
of
a
much
bigger
process.
Development
of
any
kind
involves
the
city
or
jurisdiction.
That's
approving
a
development
involves
the
community.
AC
You
are
the
tools,
hopefully
to
make
decisions
a
few
weeks
from
now
months
years,
Etc
and
there's
a
lot
of
different
ways
to
present
the
information
at
one
level
it
anything
in
the
development
world
can
be
a
number
on
a
spreadsheet
and
at
the
under
end
of
the
spectrum.
You
know,
we
know
that
these
things
have
real
effects
on
people's
lives
in
the
shelter
over
their
head
and
there's
a
there's
a
middle
ground.
AC
So
if,
if
some
of
the
information
seems
a
little
bit
calloused
in
the
way
that
it's
converted
to
numbers,
that's
just
one
way
to
look
at
it.
That
ultimately
needs
to
be
converted
into
public
policy
and
that's
way
above
our
pay
grade,
which
is
why
we're
we're
sitting
here
in
the
Box,
as
Rosalind
mentioned
to
us,
so
we're
going
to
cover
how
developers
and
investors
look
at
risk
and
return
at
a
broad
brush
level,
get
into
the
costs
and
valuations
of
multi-family
housing.
And
then
what
I'll
call
chapter
three
really
discussing?
AC
What
are
some
of
the
levers
that
you
may
or
may
not
be
able
to
pull
depending
on
policy
decisions,
so
risk
in
return?
You
know
there
are
many
many
types
of
of
real
estate
today.
Obviously
we're
focused
on
housing
we're
going
to
address
a
little
bit
of
affordable.
Mostly,
we
are
talking
not
about
for
sale,
housing
but
more
often
multi-family,
rental
housing,
it's
a
type
of
real
estate
that
produces
an
income
stream
and
ultimately
that's
the
way.
AC
You
know
the
investors
in
the
financial
markets
are
going
to
look
at
it
and
I
touched
on
this
a
little
bit
before,
but
there
seems
to
be
a
public
perception
that
developers
get
to
write
the
rules,
and
that
is
the
furthest
thing
from
the
truth
right
we
we
understand,
there
are
Market
forces
that
are
so
much
stronger
than
we
are
and
I.
You
know,
I
try
to
lighten
this
up
a
little
bit
put
a
picture
of
the
new
Coke.
AC
You
know
a
lot
of
people
did
a
lot
of
research
and
thought
that
new
Coke
was
going
to
be
a
fantastic
idea,
and
then
the
market
spoke
I.
Think
most
of
us
in
the
room
are
men.
Remember
that
and
probably
most
people
at
home
watching
remember
that.
But
it's
just
an
illustration
that
you
know
we
can
think
a
building
is
the
greatest
idea
in
the
world
or
the
worst
and
we're
not
always
right.
The
market
speaks.
AC
As
we
see
in
that
cloud
up,
the
top
tries
to
get
the
biggest
return
they
can,
with
the
smallest
amount
of
risk,
but
the
markets
are
competitive,
of
course,
so
the
investors
that
typically
put
money
in
our
projects-
and
they
can
include
you-
know
large
Pension
funds,
endowments
big
Banks
and
investment
Banks,
calstrs
and
Calpers,
as
a
matter
of
fact,
are
some
of
the
largest
investors
in
California
real
estate.
Investors
often
talk
about
real
estate
in
these
four
buckets
core
core
Plus
Etc,
but
really
the
first
three
on
the
lower
risk.
AC
AC
It
is
the
fact
there
are
markets
across
the
country
where
you
know
the
rents
move
up
and
down,
depending
on
how
much
that
housing
is
needed.
But
as
an
owner
of
Apartments,
you
can
always
lower
the
price
and
find
somebody
who
needs
to
live
there
as
an
owner
of
things
like
Office
Buildings,
hotel
rooms,
Etc
on
the
riskier
end
of
the
spectrum,
when
the
market
doesn't
need
it,
it
doesn't
need
it
at
any
price.
AC
So
you
know
when
I
talk
about
the
community
that
developers
are
dealing
with.
This
is
one
illustration
you
could
easily
turn
this
diagram
on
its
head
and
put
the
city
at
the
center
and
have
all
of
your
stakeholders
around,
including
the
development
Community.
As
one
of
the
spokes
or
one
of
the
nodes-
but
this
is
just
to
show-
there
are
so
many
different
voices
that
are
speaking
to
bring
a
development
project
together
and
we
have
to
listen
to
all
of
them.
AC
You
know
we
like
to
use
the
analogy
of
movie
production
and
in
the
movie
business
and
and
yeah
we
threw
in
a
HomeTown
slide.
We're
not
we're
not
above
that
the
the
the
movie
producer
brings
the
team
together
right
and
that
they
have
some
expertise,
but
they
are
hiring
the
screenwriters,
the
directors
they're,
bringing
the
money
together.
That
is
exactly
what
a
developer
is
doing.
We
may
have
anywhere
from
20
to
100,
Consultants
or
parties
that
we're
dealing
with
on
any
one
development
project
and
the
more
the
riskier.
AC
AC
The
first
one
here
is
what
makes
up
all
of
the
money
that
builds
a
building,
and
so
the
three
simplified
buckets
here
are
the
debt,
the
investor
equity
and
the
developer,
equity
and
typically
developers
are
going
out
and
bringing
in
other
Equity
investors
and
in
theory
the
equity
is
at
risk,
and
if
the
project
goes,
bad
Equity
can
be
lost.
If
the
project
goes
well,
the
equity
investors
and
the
developer
profit,
but
that
is
not,
as
always
the
case,
this
little
diagram
here
and
this.
This
is
a
HomeTown
nod
for
myself.
AC
I
grew
up
a
Giants
fan,
I
hate
to
say,
but
my
co-worker
threw
this
one
in
when
things
go
really
well,
you
build
something
illustrated
by
the
cost
on
the
left
and
it's
worth
its
value,
which
is
hopefully
larger
more
on
the
right.
The
bank
gets
paid
back
the
same
amount
of
debt,
but
again
the
investor
and
the
developer
benefit
when
things
don't
go
well
illustrated
by
this
left
and
right
cost
on
the
left
value
on
the
right.
It's
the
equity
that
loses
the
developer
and
the
investor
lose
together.
AC
The
bank
still
gets
their
money
back.
Then
you
have
times
like
the
great
financial
crisis,
and
this
is
when
value
drops
so
precipitously
or
somebody
has
made
a
new
Coke
type
of
decision
where
the
project
is
worth
not
just
so
little
that
all
the
equities
wiped
out,
but
that
the
debt
is
impacted.
This
happened
during
the
great
financial
crisis
in
08
9-10
and
one
of
the
tough
messages.
These
days
and
and
a
few
of
us
have
been
at
some
conferences
over
the
last
couple
weeks,
all
the
talk
of
inflation.
AC
But
one
of
the
messages
we
want
to
get
across
today
is
that
we're
going
to
be
talking
about
policy
decisions
that
you
make
for
the
long
term,
and
hopefully
it
tees
up
the
city
so
that,
when
conditions
are
are
ripe,
then
the
the
right
kind
of
development
will
come
into
play,
so
I'm
going
to
pass
it
to
Libby
here
in
a
moment,
this
is
a
different
way
of
looking
at
the
cost,
not
just
the
money
that
makes
it
up.
But
what
are
the
the
layers
of
cost
in
those
same
projects?
AC
And
it's
no
mistake
that
we've
highlighted
the
box
that
says
fees
and
extractions
and
or
exactions.
Excuse
me,
the
the
fees
and
exactions
can
be
anything
and
everything
from
you
know:
Park
fees,
development
fees
and
all
sorts
of
of
benefits
that
come
with
cost,
and
we
certainly
have
to
acknowledge.
You
know
everything
that
a
development
project
can
entail,
has
both
a
cost
and
a
benefit,
and
that
policy
decision
again
falls
into
your
lap.
AD
So,
building
on
what
Drew
just
said,
so
every
fear
exaction,
for
example,
requiring
an
off-site
infrastructure
Improvement
to
serve
affordable
housing
or
market
rate
housing
has
a
cost
associated
with
it.
That
cost
us
to
get
baked
into
the
proforma
the
development
budget,
and
it
adds
to
the
total
costs.
And
if
the
market
is
good,
as
Judah
said,
development
can
move
forward
with
new
projects
and
it
can
pay
for
a
lot
of
these
costs.
AD
It
can
fully
cover
Park
fees
and
amenities
and
Community
benefits,
and
all
of
the
things
that
we
really
value
and
think
are
so
important.
But
if
project
costs
go
up
to
a
certain
point
and
random
values,
don't
projects
die
and
it
really
is
often
like
the
straw
that
breaks
the
camel's
back.
Even
though
one
one
of
those
things
individually
isn't
the
issue.
It's
all
of
them
added
together,
and
the
last
bullet
is
really
important.
AD
Is
that
when
the
market
is
good,
it's
fabulous
but
they're,
typically
short
of
in
duration,
whereas
you've
got
to
be
thinking
for
the
long
term,
particularly
if
you're
doing
multi-family
housing
in
California
just
the
entitlement
process.
The
construction
process,
the
Lisa
process,
that
is
five
years
minimum,
often
and
so
you're
looking
you've-
got
to
make
it
through
usually
more
than
one
cycle,
and
it's
very
important
not
to
miss
that
window
foreign.
AD
So
we
want
to
talk
about
conceptually
something
that
the
two
sort
of
the
bookends
of
this
building
on
what
we
said
earlier
so
at
the
top
at
the
green.
When
everything
is
working
well,
you
have
a
developer
margin
or
return
also
called
profit,
but
the
reason
why
this
is
also
called
margin
and
return
is
it
has
to
deal
with
those
contingencies.
It
has
to
deal
with
the
fact
that
that
both
investors
need
to
get
their
returns,
but
the
things
don't
always
happen.
The
way
you
think
they're
going
to
happen.
Hence
the
term
margin.
AD
If
there
is
not
sufficient
return
for
the
investor
Community
to
have
any
interest
they
won't
play,
they
won't
give
the
developer
any
money.
If
the
developer
doesn't
think
that
there's
enough
in
it
for
the
developer,
if
they
can't
pay
their
cost
of
Staff,
if
they
can't
recoup
their
investment,
then
they're
not
going
to
play
so
that
green
bar
has
to
be
sufficient
enough
to
attract
the
investor
Capital
as
well
as
developer
interest
at
the
bottom
side,
the
blue
bar
is
the
land
cost,
the
residual
land
value.
AD
The
land
cost
is
not
always
a
fixed
amount,
but
it
is
a
fixed
amount
in
the
case
where
a
developer
is
agreeing
with
a
with
a
seller
as
to
what
they're
going
to
pay
for
the
property.
At
that
point,
it
becomes
a
fixed,
a
fixed
cost.
There
are
two
ways
in
which
those
costs
occur
in
development.
One
is
that
that
cost
is
just
an
agreed
upon
price
I'm
going
to
agree
to
pay
you
six
million
dollars
for
your
piece
of
property.
AD
Another
way
is
that
a
developer
may
enter
into
an
agreement
with
a
landowner
which
says
you
have
in
essence
a
participation
with
me
I'm
going
to
guarantee
to
pay
you
a
certain
amount,
but
if
I
get
these
entitlements,
I
may
pay
you
more.
So
there's
that
kind
of
a
deal
and
sometimes
developers
have
to
put
out
the
entire
amount
of
money
up
front.
Sometimes
they
option
the
property,
but
at
some
point
their
money
goes
hard.
AD
At
the
same
time,
when
a
developer
is
evaluating
a
deal
or
if
the
investment
Community
is
evaluating
a
deal
or
they're
comparing
deals
across
markets,
they
do
what's
called
a
residual
land
value
analysis
and
you're
going
to
hear
about
that
more
from
staff.
Today,
because
that's
the
analysis,
that's
been
performed
in
San,
Jose
and
they're
going
to
do
this.
AD
And
it's
going
to
have
to
be
high
enough
that
you
can
deal
with
some
of
the
contingency
of
things
that
are
going
to
happen
or
could
happen
for
you
and
the
Scott
and
I,
and
so
just
going
back
one
slide,
which
is
not
there.
We
go
so
the
value
of
land
is
tied
to
the
rights
that
you,
as
a
public
agency,
confer
to
it
right
as
part
of
the
entitlement
process.
AD
The
rights
are
associated
with
the
land
I
get
to
build
a
hundred
units
of
housing
on
it,
as
well
as
the
liabilities
that
are
associated
with
the
land,
for
example.
If
it's
got
toxic
cleanup
associated
with
it,
that
cost
has
to
be
factored
in.
It's
also
a
market-driven
situation
where
landowners
may
think
that
they
have
something
that's
a
lot
more
valuable
than
what
it
may
pencil
out
on
on
a
residual
land
value
basis.
AD
It's
an
existing
retail
property
with
existing
retail
on
it
and
we've
got
a
negotiated
purchase
price
of
six
million
dollars.
Of
course,
the
owner
would
prefer
more
and
you
might
have
to
pay
more
depending
on
how
long
the
process
takes,
because
sometimes
owners
require
that
if
you
don't
close
in
the
land
within
a
certain
amount
of
time,
you
have
to
pay
more
for
it.
The
proposed
building
characteristics
are
seven
stories
with
a
two-story
podium
and
the
investment
community
and
the
developer
are
going
to
run
some
sensitivity.
AD
What
if
right
now
I've
got
a
sense
of
what
I
think
the
offside
costs
and
the
fees
are,
but
what,
if
those
increase
by
twenty
thousand
dollars
per
unit,
which
can
happen
during
the
development
process?
What
if
construction
costs
increased
by
10
we're?
Definitely
in
a
construction
cost
increase
climate
right
now
it's
been
increasing
about
six
percent
per
year
recently
and
what
about?
If
we
have
an
alternative,
affordable
requirement
and
so
run
scenarios?
And
you
say,
okay,
we're
trying
to
hit
six
million
dollars
we're
running
four
independent
scenarios.
AD
So
my
base
case,
oh
I've,
got
lots
of
room.
I've
got
I'm
getting
residual
land
value
of
16
million
dollars,
but
if
my
fees
go
up
by
20
000
a
unit
that
residual
land
value
drops
construction
drops
the
construct.
Sorry,
construction
prices
increase
my
residual
land
value
drops
and
if
I
have
15
on-site
BMR,
my
residual
land
value
is
less
than
if
I
had
10
BMR
and
it
depends
on
the
income
targeting
which
we'll
talk
about
a
little
later
in
the
presentation
about
how
much
it
affects
it.
AD
But
what
if
we
also
look
at
a
fifth
scenario,
which
is
that
we're
allowed
to
have
parking
reduction,
which
is
something
you
as
a
policy
group,
have
actually
allowed,
is
parking
reductions
for
housing
and,
in
particular
for
ground
floor
retail?
It
can
be
very
important
to
allow
parking
reductions
for
that,
particularly
if
it's
structured
parking,
because,
if
you're
looking
at
the
parking
cost
per
space,
it
is
much
less
expensive
to
do
surface
parking.
AD
So
this
existing
retail
has
surface
parking
much
more
cost
effective,
but
as
soon
as
you
go
into
a
Podium
underneath
housing-
and
this
is
going
to
seven
story
building
it's
more
expensive
if
it
also
goes
partially
below
grade
it's
even
more
expensive
and
if
heaven
forbid
you've
got
to
go
down
two
levels
below
great.
It
gets
very
expensive
per
parking
space,
so
every
cost
of
parking
can
actually
make
a
difference
in
how
many
units
you
can
produce.
AD
So
we
run
this
analysis
and
we
say
Okay
independently.
Each
of
these
works
okay,
but
if
we
run
all
four
of
the
first
scenarios,
well,
actually
the
off-site
fees,
the
construction
cost
increase
and
the
15
on-site
bmrf
we
put
all
of
those
together.
Then
we
don't
generate
enough
residual
land
value.
In
fact
it's
less
than
a
million
dollars,
and
if
we
were
to
do
it,
though,
in
combination
with
a
parking
reduction,
then
it
starts
to
work
again.
What's
really
important,
I
think
oh
yeah.
AC
AC
This
slide
before
is
almost
if
you
envision
the
scales
of
Justice
right
and
the
goal
is
that
the
city
is
putting
weight
on
one
side
that
is
costing
the
project,
but
you're
getting
benefit,
and
the
community
is
getting
benefit
out
of
that
in
a
perfect
world,
the
city
gets
all
of
the
benefit.
They
would
want
all
of
the
little
weights
go
on
one
side
and
it
still
stays
in
balance
and
projects
can
go
forward.
AC
The
policies
in
a
way
that
provides
some
consistency,
provides
some
predictability
and,
at
certain
times,
you're
going
to
get
a
lot
of
development
and
other
times
you're
not,
and
you
may
be
able
to
pull
some
levers
quickly,
but
many
of
them
take
a
long
time
to
pull
it's
setting
the
stage
for
what
you
want.
That's
most
critical.
AB
And
I
want
to
add
one
other
thing:
what
happens
when
the
residual
land
value
drops
too
low?
That
means
the
land
is
not
used
for
housing.
They'll,
keep
it
as
a
parking
lot,
a
car
wash
whatever
other
purpose
that
has
a
higher
value
than
one
million
dollars,
and
that's
also,
if
you
start
losing
opportunity
sites
for
housing,
then
there's
less
housing,
production.
AD
Just
stay
as
a
car
wash
thank
you
foreign,
so,
basically,
to
summarize
this
is,
if
you
run
these
sensitivity
cases
individually
right,
you
still
have
a
deal,
but
if
you
combine
them,
then
you
don't
have
a
deal.
But
if
you
pull
another
policy
lever
like
reducing
parking,
then
you
get
a
deal
again
right.
AD
So
what
we're
going
to
do?
Oh,
is
there
any
more
you
wanted
to
add
to
this?
No
okay!
So
what
we're
going
to
do
now
is
go
into
chapter
three
about
what
can
policy
do
so?
What
are
these
policy
levers
that
we're
all
going
to
talk
about
and
there's
three
policy
levers
that
we're
going
to
speak
about
sure.
AC
You
know-
and
it's
easier
said
than
done
of
course-
and
then
the
third
we're
going
to
talk
about
increasing
certainty
and
most
often
that
certainty
of
process,
but
certainly
certainly
if
policy
over
a
longer
time,
you
know,
makes
development
happen.
More
often,
we
used
to
say
in
our
in
our
office
that
a
perfect
City
to
us
is
a
city
where
you
could
walk
into
City
Hall
with
a
proposal
with
an
idea
and
a
staff
planner
that
you
speak
to
the
community
development
director.
AC
The
mayor
and
a
planning,
commissioner,
would
all
give
you
the
same
answer
as
to
what
they
would
like
to
see
on
a
particular
piece
of
land.
That's
almost
never
the
case,
but
that
would
be
Perfection.
The
bottom
message,
though,
is
don't
let
Perfection
be
the
enemy
of
the
good
right.
We
are
in
a
housing
crisis,
as
mayor
licardo
said
so
many
cities
that
we
are
dealing
with.
AD
Very
much
for
for
parking
requirements
more
flexible
and
lowering
them.
We
understand
that
you've
alleviated
them
on
affordable
housing.
We'd
like
you
to
consider
you
know,
being
flexible
in
your
parking
requirements,
particularly
as
it
relates
to
ground
floor
retail
and
in
transit-friendly
places
for
multi-family
housing.
AB
AC
This
is
probably
what
nobody
wants
to
jump
on,
but
you
know
Park
fees,
Park
requirements
again.
If
you
boil
it
down
to
a
cost,
it
can
be
looked
at
that
way.
It
is
certainly
one
of
the
greatest
public
benefits
that
comes
with
new
development
projects,
and
we
have
seen
cities
change
policies,
sometimes
just
in
the
short
term,
to
Spur
development
when
that
was
their
desired
result.
AD
Processing
fees
are
not
a
big
part
of
the
equation,
however.
They
are
when
Developers
have
the
most
expensive
money.
The
most
expensive
money
is
most
probably
land,
but
the
second
most
expensive
money
is
pre-development
and
processing
money,
because
that
money
has
to
come
out
of
developer
Equity
out
of
their
investment
or
out
of
their
investor
Equity,
because
you
don't
get
construction
financing
when
you're
trying
to
process
the
development,
you
have
to
wait.
Construction
financing
comes
in
last,
so
it
is
important,
even
though
it
may
be
a
small
cost
to
think
about
it.
AB
I
think,
for
the
same
reasons
that
Libby
stated:
lower
utility
connection
fees,
pay
a
lot
of
different
fees
and
also
inspection
fees,
Etc
and
I
I.
Think
the
next
one
I
like
to
also
touch
upon
because
I've
been
thinking
about
it.
A
lot
there's
two
things
for
affordability,
there's
the
number
of
units
that
are
affordable
and
the
average
median
income
of
those
affordable
units.
So
there
might
be
a
way
where
you
balance
it
too.
You
can
play
with
those
two.
AB
You
can
have
more
on-site
affordable,
but
increase
the
affordability
to
be
more
Workforce
middle
income
or
if
you
want
to
Target
more
of
the
lower
income,
then
lower
the
number
of
units.
It's
again,
as
Drew
said,
we
don't
want
to
be
callous
about
a
very
sensitive
subject,
such
as
affordable
housing,
but
it
is
ultimately
a
a
number
on
a
spreadsheet
that
you
have
these
two
levers
to
work
with.
AD
But
also
the
empress
infect
your
investment
I
hear
about
this,
a
lot
which
is
both
for
affordable
housing
as
well
as
market
rate
housing,
whereas
and
I
understand
as
a
city,
you
need
that
infrastructure,
so
you
need
the
water
in
the
sewer
delivered
properly.
But
what
can
happen?
Is
there
can
be
these
surprise?
Investments,
like
the
public
works
department,
didn't
necessarily
let
the
developer
know.
There
isn't
necessarily
a
path
forward
where
a
group
of
property
owners
together
may
make
this
investment.
So
the
first
in
to
do
that.
AD
AC
You
know,
cities
or
agencies
could
return
some
of
that
money
to
either
a
project
itself
or
the
area
of
town
that
it
wanted.
It's
a
little
bit
more
difficult
these
days,
but
there
are
some
creative
ways
to
do
it,
and
certainly
you
know
larger
State
policy
that
may
allow
that
to
happen
again
in
the
future.
AB
Associated
with
lowering
so
lowering
construction
costs,
that's
just
pretty
much
as
hard
as
trying
to
Abate
real
estate
tax.
Everyone
keeps
thinking
about.
You
know
alternative
modular
off-site
it's.
We
could
spend
a
whole
day
talking
about
that,
but
a
couple
of
thoughts
along
with
really
state
tax
debate,
maybe
something
more
Within
Reach.
A
sales
tax
abatement
developers
were
charged
by
the
construction
industry,
fair
amount
of
sales
tax
on
all
the
all
the
materials
and
services.
AB
So
maybe
we
can
Abate
the
sales
tax
on
new
housing,
construction
and
I
guess
a
more
radical
idea
is.
Maybe
the
city
can
help
lend
its
negotiation
powers
to
each
housing
developer
on
an
individual
basis
to
try
to
negotiate
maybe
materials
or
services
on
a
bulk,
almost
like
a
Health
Care
system
for
housing.
AC
And
again,
none
of
these
are
easy,
but
considering
the
cost
of
sustainability
and
reach
goals.
You
know
we
have
seen
some
cities
Institute
policies
that
are
very,
very
well
intentioned
with
respect
to
the
environment
and
sustainability.
But
you
know
one
one
example
is
a
city
that
wants
all
electric.
AC
You
know
buildings
in
the
future,
as
well
as
electric
vehicle
charging
and
by
the
way
PG
e
said.
Oh,
if
every
house
was
electric
and
everybody
had
an
electric
vehicle,
we
don't
have
a
grid
that
could
support
all
of
that,
and
so
it's
those
types
of
coordinations
and
and
maybe
putting
policies
in
over
time
or
again,
considering
the
the
cost
benefit
analysis
when
you're
in
a
crisis
as
to
which
is
which
is
more
critical,
having
any
housing
at
all
or
you
know,
having
all
the
sustainability
goals
reached.
AC
AD
AB
Pointed
out
earlier
developers
only
or
investors
will
invest
when
they
know.
There's
a
Target
return,
the
higher
the
transfer
transfer
tax,
because
these
investors
are
looking
to
invest
and
exit.
In
five
years,
the
higher
the
transfer
tax,
the
more
the
higher
the
hurdle
to
hit
that
Target
return.
So
maybe
reducing
or
relaxing
transfer
taxes
on
housing
projects.
AC
And
don't
worry,
we're
really
getting
to
the
fun
ones
now
limiting
the
effect
of
rent
control,
so
I
know
this
has
been
a
big
Topic
in
San
Jose
there's,
you
know
no
shortage
of
economists
who,
who
argue
you
know
on
both
sides
of
the
rent
control
debate.
All
I
can
say
with
certainty.
Is
that
from
the
standpoint
of
investment
dollars,
it
can
be
perceived
as
a
risk,
and
it's
just
worth
knowing
that
as
you
make
those
policy
decisions.
AC
Foreign,
this
one
is
near
and
dear
to
my
heart,
streamlining
the
approval
process
and,
as
Libby
mentioned
earlier,
the
riskiest
dollars
that
are
spent
in
development
are
up
front
when
nobody
has
any
idea
what
the
finish
line
is
going
to
look
like,
and
there
are
examples
we'll
get
to
Redwood
City
in
a
moment.
You
know
it
was
a
downtown
that
blossomed
in
the
last
15
10
years,
but
what
allowed
it
to
Blossom
was
a
foundation
in
their
planning
and
policy
that
was
set
20
years
prior
to
this,
the
downtown
really
blossoming.
AC
And
so,
when
we
talk
about
certainty
and
processing,
it
can
be
the
city
front,
running
sequa.
It
can
be
the
city
front
running
what
types
of
uses
you
would
like
to
see
so
that
again,
in
that
perfect
world,
where
a
proposal
comes
into
City,
Hall
and
everybody,
you
know
from
the
mayor
on
down
knows
exactly
what
the
answer
is
to
say.
This
is
what
we
want
on
that
site.
This
is
what
we're
willing
to
support,
and
this
is
why.
AD
This
one
is
I,
know
a
tricky
one
as
well,
and
it's
only
going
to
work
in
certain
locations,
possibly
converting
Office
to
housing.
I
think
as
important,
alongside
of
it,
is
like
the
retail
or
shopping
center
to
housing
conversion,
and
also
one
that's
not
up
there,
which
is
church
property
to
housing
or
a
part
of
church
property
to
housing.
Looking
at
alternative
uses,
as
Eric
was
just
saying
that
aren't
housing.
Now,
how
can
we
convert
them
to
housing?
AD
It's
often
it's
complex
for
staff,
it's
complex
for
you
as
decision
makers,
it's
often
complex
for
the
Neighbors,
because
they're
used
to
the
existing
use
being
something
different,
so
it
takes
a
lot
of
education,
but
we
think
it's
really
important
to
think
about
these
alternative
locations
for
housing
and
you
and
you've
pioneered
looking
at
it.
You
know
being
able
to
put
affordable
housing
in
industrial
areas,
for
example,.
AB
It
you
know,
I'm,
coming
real,
quick,
I.
Think
a
lot
of
people
thought
you
know
with
the
downtowns
being
empty
and
offices
being
empty,
the
silver
below
will
be
converting
underutilized,
Class,
B
and
C
Office
Buildings
into
housing
everyone's
looking
at
it
it's
much
harder
than
it
looks.
We
are
working
with
other
groups.
Uli
is
to
try
to
figure
out
different
archetypes
that
actually
fit.
Unfortunately,
there
needs
to
be
some
pain
and
blood
on
the
streets,
with
Office
Buildings
dropping
to
below
300
bucks.
AC
AE
You
are
familiar
with
our
organization
in
addition
to
the
2500
residents
of
San
Jose,
that
we
are
proud
to
say
our
mid
penners
Mid
Penn
residents.
We
have
another
311
homes
in
the
pipeline.
The
picture
to
the
right
there
is
the
Emmanuel
sobrato
permanent
Supportive
Housing
Community.
That
is
one
of
the
case.
AE
And
I'm
going
to
jump
right
into
it,
so
that
we
can
have
plenty
of
time
for
questions
in
the
Silicon
Valley,
the
more
that
you
are
looking
to
reduce
rents
and
subsidize
at
the
lower
at
the
lower
affordability
levels.
The
further
we
are
away
from
the
market.
So
we
have
the
three
bars
here:
an
extremely
low
income
family
is.
AE
This
is
made
worse
by
income
inequality
year
over
year,
you're
seeing
10
percent
jumps
in
with
the
area
median
income
is,
and
wages
aren't
keeping
up
with
that
I.
Don't
very
few
professions
are
getting
10
year-over-year
increase
when
it
comes
time
for
their
performance
review,
so
people
are,
if
you're
feeling
as
though
many
families
are
not
keeping
up
it's
because
they
aren't,
they
aren't
keeping
up
with
the
the
progression
and
the
rate
that
this
is
happening
at.
AE
The
market
doesn't
produce
it
because
it
simply
doesn't
pencil.
You
very
simply
said
the
if,
if,
if
I
want
to
go
and
purchase
a
single-family
home,
the
bank
is
going
to
look
at
my
Revenue,
my
pay
stubs
and
the
the
analogous
piece
to
that
in
multi-family.
Development
is
they're
going
to
look
at
the
income
that
your
residents
are
putting
together.
AE
We
that
difference
between
what
our
residents
can
afford,
the
the
mortgage
that
we
can
afford
to
support
through
their
income
and
what
we
really
need
in
order
to
to
build
the
housing,
because,
as
your
reports
suggest,
affordable
housing
is
not
in
some
cases
is
a
little
bit
more
expensive.
Sometimes
the
market
rate.
We
don't
get
a
haircut
on
the
cost
to
build
the
build.
The
new
units-
that's
what's
known
as
The
Gap,
and
it's
where
many
different
public
sources
come
in
to
try
to
fill
that
Gap
foreign.
AE
The
federal
government
has
the
primary
tool
for
encouraging
affordable
development
is
through
the
low-income
housing
tax
credit
program
and
there's
two
programs
that
Drive
slightly
different
results.
But
the
overall
kind
of
Rhythm
of
the
programs
is
the
same
where
we
are
looking
at
the
amount
and
trying
to
maximize
that
amount
of
federal
Equity
that
we
can
bring
in
to
our
localities
and
then
using
local
dollars
in
that.
AE
So
the
in
a
nine
percent
program
you're
usually
also
required
to
do
deeper
affordability
and
because
the
federal
sources
are
able
to
cover
more.
In
some
cases
you
may
be
able
to
have
fewer
local
sources,
and
local
here
would
usually
mean
between
between
the
city,
potentially
some
version
of
free
land
or
reduced
subsidized
land.
AE
We
have
a
our
Emanuel
Silverado
project
again,
is
on
a
church,
site
and
you'll
see
it
has
the
lowest
land
cost
per
unit
of
the
example
studied,
so
maybe
between
either
land
or
city,
there's,
certainly
a
measure
a
dollars
from
the
county
and
also
your
housing
authority.
Those
are
the
types
of
sources
that
we're
looking
to
layer
in
to
figure
out
this
Gap.
AE
The
not
so
simple
version
is
that
over
the
years
it's
become
increasingly,
you
know
instead
of
having
a
one
Gap,
Source
or
two
Gap
sources.
Sometimes
it's
four
or
five
when
at
times
we
we
must
go
to
the
state
together
to
find
an
additional
program
to
further
subsidize.
Those
in
turn
are
usually
driven
by
single
policy
objectives
of
the
state,
so
there
is
a,
for
instance,
there's
an
infill
infrastructure
program,
and
so
that
is
going
to
benefit
anything.
That's
built
kind
of
within
the
urban
core
of
most
cities.
AE
There's
a
multi-family
housing
program
and
that
particular
program
benefits
is
looking
for
deep
affordability.
So
at
each
stage,
where
we're
needing
to
go
and
find
another
source,
there's
probably
some
other
obligations.
Shall
we
say
that
some
very
specific
obligation,
whether
it's
carbon
reduction,
deep
affordability
and
infill
site
Transit
oriented
development,
a
program
for
veterans
I-
could
go
on,
but
every
single
one
of
these
layers,
although
it
may
add
it,
may
take
down
the
Gap.
It's
probably
not
a
one-for-one
gap
take
down
there
because
it's
probably
adding
something.
At
the
same
time.
AE
To
get
to
the
timeline
on
the
project
here,
you
know:
I've
been
with
midpen
for
15
years,
and
the
first
13
years
of
that
I
was
in
our
real
estate
development
team.
So
it
was
living
and
breathing
the
entitlement
process
of
Silicon
Valley,
mostly
San
Mateo,
Santa,
Clara
County,
and
that
timeline
in
between
there
developing
the
project
concept
and
then
trying
to
really
move
that
into
entitlements.
That
used
to
be
the
area
where
we
were
the
most
stuck,
and
it
was
the
most
difficult
to
really
assess
risk
and
that
that
was
a
period
of
time.
AE
You
know
where
we
could,
where
entitlements
could
stretch
for
years,
sometimes
especially
if
you
were
looking
to,
if
you
needed
a
general
plan,
Amendment
and
really
needed
to
change
the
zoning
now
I
would
say
the
flavor
of
affordable
housing.
That's
really
taken
off
and
changed
since
2020
is
the
the
the
green
box
here,
the
funding
assembly.
AE
AE
I
want
to
give
a
quick
shout
out
to
the
city
staff,
but
also
to
you
mayor
for
your
advocacy
at
the
state
level.
Last
year,
at
a
critical
time
at
a
critical
hearing,
there
was
a
effective
media
strategy
so
as
to
call
attention
to
the
fact
that
not
a
single
four
percent
tax
credit
project
that
was
competing
for
bonds
from
any
of
the
big
three
cities
of
Northern
California,
San,
Francisco,
Oakland
or
San
Jose,
was
in
competitive
range
for
funding.
AE
You
know
so
that
brought
about
kind
of
a
bigger
picture
policy
question
you
know
what's
wrong
with
the
scoring.
If
these
big
cities
can't
get
something
through,
and
so
that's
a
con,
because
bonds
are
competitive
now
and
before
2020,
they
were
not.
So
when
you
got
you
got
your
project
together,
you
went
and
got
your
buns
now
you
got
your
project
together
and
you
have
to
go,
compete
and
I
wish.
You
could
I
wish.
I
could
say
it
was.
It
was
easy
for
us,
but
in
many
cases
we're
competing
against
our
peers.
AE
So
mid
pen
is
competing
against
Eden.
The
city
in
some
cases
could
be
competing
against
their
own
projects
so
that
funding
assembly
continued
need
for
State
advocacy
and
their
resources
to
to
build
out
what
you
are
experiencing
in
a
different
part
of
your
city,
which
is
planning
for
your
Regional
Housing
needs
allocation
where
the
numbers
at
this
point
for
very
low
low
and
well
they
don't
they
don't
check
extremely
low,
but
I
I
try
to
I
try
to
to
follow
that
so
you're
at
the
lower
levels
of
affordability.
AE
AE
So
all
that
just
means
that
all
of
the
good
work
that
your
staff
has
continued
to
do
and
and
the
embrace
the
city's
posture
of
embracing
many
of
these
State
financing
tools.
The
streamlining
tools
is,
is
helpful
to
us
I'm,
going
to
just
bring
up
a
quick
example
from
a
city
just
a
little
bit
north
of
you
in
San
Mateo,
city-owned
property
to
adjacent
sites.
In
their
downtown-
and
the
Elegance
of
this
example
is
that
with
two
policy
changes
they
were
able
to
drop
75
000
a
door.
AE
So
ab1763
was
a
unlimited
density
bonus
for
sites
that
were
near
a
pretty
good
Transit
in
this
case.
In
any
case,
you
can
add
up
to
three
stories
and
the
city
of
San
Mateo
said:
oh
I,
know
you're
halfway
through
entitlements,
but
can
you
go
back
and
look
at
this
and
see
what
you
can
do
so
they
wanted
to
maximize
what
is
a
precious
resource
for
them,
which
is
their
land?
AE
AE
Do
we
need
to
add
the
parking
with
that
they
waive
the
parking
on
those
new
units
and
so
with
adding
the
two
stories
and
not
requiring
the
parking
there.
We
are
actually
right
across
the
street
from
a
city-owned
garage.
So
there's
a
little
bit
of
a
there's.
Some
there's
other
parking.
That's
that
is
around
they
were.
We
were
able
to
lower
the
price
per
unit
by
almost
75
000
a
door,
so
big
moves
can
be
made
in
this
arena
with
a
couple
with
a
couple:
great
decisions
and
that's
a
theme
throughout.
AE
AE
So
we
discussed
the
addition
of
61
units
that
drives
efficiency,
streamline
financing
and
the
continued
pressure
on
the
state
public
policy
advocacy
at
the
state
level
is
needed
so
that
we
have
enough
resources
that
the
city
can,
and
it's
obvious,
that
the
city
can
compete
for
the
resources
at
a
level.
That
is,
at
least
you
know
not
giving
up
the
Northern
California
City.
AE
Somehow,
a
disadvantage
fees
is
always
relevant,
enduring
relevance
of
either
deferring
fees
until
later
on
in
the
process
or
waving
them
all
together,
I
will
mention
that
Sunnyvale
for
a
decade
has
had
a
policy
of
not
requiring
Park
fees
for
100,
affordable
housing
and
that
often
takes
down
the
cost
by
five
or
six
percent
of
the
total
development
cost,
which
is
huge
but
impact
fee.
Deferrals
are
also
very
useful.
So
when
we
go
out
and
start
our
construction
typically
at
this
point,
we
are
needing
to
use
a
construction
loan.
AE
The
interest
on
that
you've
heard
that
interest
has
gone
up.
So
it's
it's
more
expensive
money
than
we
used
to
have,
and
we
are.
We
are
buying
down
taking
down
those
fees,
usually
when
we
are
obtaining
our
building
permit.
So
we
we're
we're
taking
down
those
fees,
then,
and
that's
two
years
of
a
construction
loan
where
it's
Crea,
where
there's
interest
every
month
that
we're
paying
on
those
fees.
AE
So
if
we
can
defer
that
by
two
years
and
instead
make
it
a
condition
of
us
obtaining
occupancy
or
our
our
CFO,
it's
a
it's
a
substantial
amount,
usually
hundreds
of
thousands
of
dollars
on
these
projects.
So
it's
worth
considering
and
we
would
appreciate
the
consideration
there
and
then
on
the
public
sector,
flexibility
we.
We
could
continue
to
and
I'm
curious
to
hear
where
you
may
have
questions
on
this,
but
our
the
internal
Champions
and
the
innovations
that
the
public
sector
is
coming
to
us
with.
AE
X
B
B
Thank
you
and,
while
folks
are
thinking
of
their
questions,
look
going
online
here
to
see
who's
I'll,
throw
out
mine
since
folks
are
not
leaping
to
the
virtual
feet
yet
I
Eric
I
appreciate
your
first
of
all.
Thank
you
all
for
the
presentation
really
appreciate
it
and
thank
you
for
your
long-standing
relationship
and
Drew's
case
here.
Services
and
your
investment,
our
city
and
and
all
that
that
you
guys
are
doing
to
try
to
help
cities
figure
this
out.
Eric.
B
You
mentioned
that
the
conversion
of
Class,
B
and
C
buildings
I
know
that
the
office
conversions
are
on
everyone's
mind,
I,
know
and
ourselves
as
well
and
work
on
something
now
with
councilmember
pross
try
to
figure
out.
How
can
we
do
this
in
downtown
as
I
recall,
Gensler
did
a
study
I
think
in
Calgary
kind
of
concluded,
hey
those
older
50s
and
60s
Office
Buildings,
with
the
smaller
floor
plates
tend
to
be
more
ideal
because
sunlight
is.
B
Is
it
a
premium,
particularly
with
larger
floor
plates
I
appreciate
their
really
large
Capital
costs
involved
here
around
plumbing
and
utilities
to
make
those
retrofits,
but
as
we're
thinking
about
trying
to
ready
ourselves
for
a
potential
what
we
hope
might
be
some
Builders
or
investors.
That
would
be
interested
in
doing
this,
because
I
think
we
all
see
we're
gonna
we're
gonna
have
lots
of
vacant
office
for
a
while,
for
perhaps
a
very
long
time.
I
think
it's
25
million
square
feet
now
are
vacant
in
San
Francisco,
if
not
mistaken.
B
It's
creeping
down
here
and
frankly,
I'd
love
to
get
some
of
this
older
office
off
the
inventory.
So
that
way
we
can
focus
everybody
on
the
high-end
office
that
is
being
built
now
and
and
get
that
filled
up
so
I
guess
the
big
question
is
you
said
it's
going
to
take
office
costs
getting
down
to
about
300
a
square
foot.
We're
a
ways
away
from
that
today:
I'm
guessing
it
won't
take
long
for
high
interest
rates
and
a
lot
of
vacancy
to
push
some
of
those
prices
down.
B
B
What
are
the
non-obvious
things
we
should
be
looking
at
as
a
city
to
sort
of
facilitate
that
and
I
I
put
it
to
Eric
as
he
mentioned
it,
but
anybody
wants
to
jump
in
and
and
are
there
are
there
experts
out
there?
We
should
be
talking
to
because
I
know
what's
happening
outside
the
Bay
Area
we're
seeing
it
in
cities
like
Kansas,
City
I
was
just
talking
to
the
mayor,
I
think
Cincinnati
said
they
were
doing
it
like
crazy
out
there.
Clearly,
other
cities
are
doing
with
lower
construction
costs.
AB
There
I'm
glad
you
asked
you
all
eyes
on
it:
good
we're
on
it
right
now.
We're
working
with
Gensler
I
was
just
talking
to
Raymond
from
Toronto
they're
they've
devised
this
app.
They
call
it
an
app
it's
a
prototyping
app
to
you
put
different
office
prototypes
in
and
outspits
whether
or
not
this
is
appropriate
for
a
conversion
or
not.
What
are
the
costs?
AB
I
guess.
A
couple
of
observations,
I,
think
being
on
the
west
coast
with
our
land
was
a
blessing
me
on
a
curse.
The
blessing
was
we
had
all
this
land,
so
we
created
different
Financial
districts,
residential
districts,
unlike
the
East
Coast,
which
didn't
have
the
benefit,
but
now
we're
seeing
the
curse
part
of
it.
We
don't
have
housing
next
to
financial
districts
and
have
the
integration,
but
we
realize
we
want
that
because
it's
it's
we
want
to
work
live
play
City.
AB
What
can
the
city
be
doing
so
part
of
the
study
and
we
hope
to
have
it
by
q1
next
year?
And
maybe
we
come
back
Rosalind
and
talk
about
our
findings
with
Gensler
and
spur
we're
working
with
spur
against
there.
Together,
it's
going
to
be
we're
going
to
require
City
Partnerships,
whether
it's
relaxation
on
you
know,
accessibility,
relaxation
on
seismic
relaxation
on
other
types
of
requirements
and
fees
and
affordability.
All
of
the
many
of
the
items
that
were
teased
out
here
as
things
that
suppress
development,
maybe
for
downtown
office
to
resident
conversions.
AB
AB
AC
Know-
and
some
things
I
would
add-
we
touched
on
in
the
presentation.
The
fee
structure
associated
with
the
conversion
could
be
addressed
ahead
of
time.
You
know
parking
is
certainly
one
that
no
nobody
likes
to
hear
it,
but
oftentimes
when
developers
are
looking
at
a
piece
of
land,
they
start
with
the
parking
count
and
then
figure
out
how
many
cars
can
I
park.
AC
Therefore,
how
much
can
I
build
on
top
of
that
parking
and
if
you
have
an
existing
office
building,
one
of
the
advantages
you'll
have
is
that,
although
there's
a
height
limit
because
of
the
airport
flight
path,
if
you're
taking
over
a
superstructure
that
exists,
if
it
has
the
right
characteristics
of
seismic
Etc,
you,
you
couldn't
even
begin
to
rebuild
that
superstructure
for
300
a
square
foot
right.
That's
what
those
buildings
are
going
to
trade
for
and
I
think
they
may
and
they
will
so.
There
could
definitely
be
some
opportunity
there.
AC
It's
really
studying
what
is
your
building
stock?
How
are
you
going
to
address
the
things
like
parking?
That's,
maybe
the
low
hanging
fruit,
things
like
school
fees.
You
maybe
can't
address,
because
you
don't
directly
control
that
right,
but
so
the
things
that
you
directly
control
are
the
areas
I'd
focus
on
and.
AD
AD
It's
really
interesting,
but
it
didn't
have
much
parking
because
historically
in
Downtown
Dallas
there
were
tons
of
surface
parking
lots,
so
the
Office
Buildings
themselves
didn't
have
much
parking,
so
the
city
of
Dallas
is
allowing
valet
parking
and
very
very
small
amount
of
parking
within
the
actual
building
for
the
residents
there,
they're
they're
actually
finding-
and
this
is
a
good
and
a
bad.
So
I'll
just
point
it
out
that
a
number
of
the
residents
of
this
particular
building
are
not
full-time
residents,
so
they
don't
necessarily
need
full-time
parking.
AF
B
Right
makes
sense,
and
particularly
given
the
fact
you
have
offsetting
daytime
versus
nighttime
uses.
You'd
think
there'd
be
a
lot
of
opportunity
for
shared
going
to
parking
I
and
if
I
recall
correctly,
we've
now
approved
the
elimination
of
parking
minimums
for
is
it
all
housing,
I
believe
as
yeah
I'm,
just
looking
at
staff
about
where
we're
at
here
in
the
city.
B
B
The
ordinance
is
coming
good,
I
wasn't
sure
where
we
were,
we
hadn't
yet
blessed
the
ordinance,
but
at
least
we
all
said
go
forward
and
do
it
okay,
so
that's
certainly
positive,
but
what
I
keep
hearing
over
and
over
is
you
know
we
have
lots
of
wonderful
developers.
I
can
think
of
one
who's
got
two
different
projects
entitled
with
zero
parking
and
they
are
not
getting
financing
and
is
there
any
kind
of
regional,
convening
or
conversation
that
could
happen
with
you
know,
I,
don't
know
if
this
I
mean
there's
I
know.
B
B
AB
Think
we
take
those
risks.
I
know
that's,
but
maybe
I
I
know
that
that's
a
non-starter
because
you
can't
have
a
contingent
liability
because
impact
your
bonding
capacity
and
you
have
to
fund
Road
schools
and
much
more
equally
important
things,
but
I
do
think
it's
not
worth
completely
dismissing
out
right.
Maybe
there
are
ways
and
layers
of
creating
some
type
of
Surety.
AB
You
know
in
case
of
massive
default
or
massive,
some
type
of
outside
thing
that
maybe
you're
a
controller
or
financial
experts
can
find
a
way
to
layer
in
that
doesn't
impact
your
bonding
capacity,
but
will
provide
some
Surety
to
the
financing
agencies
because,
as
Drew's
graph
showed
opportunistic,
which
is
development,
what
we
all
want
is
the
highest
level
of
risk.
Any
way
we
can
Notch
down
that
risk,
maybe
with
some
type
of
city
or
government
assistance
allows
that
money
to
be
cheaper.
If
that
money
is
cheaper,
then
we
can
get
housing
built.
AD
You
know
I'm
the
person
calstrs
are
some
of
the
largest
investors
in
real
estate.
As
we
all
know,
we
also
have
some
of
the
largest
banks
and
lending
institutions
here
in
the
state.
So
it
may
be
worth
your
idea
of
a
convening
of
really
putting
this
in
a
sustainability
lens
because
they're
all
working
on
you
know
basically
three
E's
or
to
a
bottom
line.
Whatever
you
want
to
reference
it
and
to
really
just
say
look,
this
is
part
of
our
sustainability
Mission
as
a
state.
B
AD
AB
I
was
gonna,
add
one
last
thing,
I
mean
again
what
Libby
rays
and
I
I
know
this
might
be
a
third
rail.
You
know
we're
developers
we're
here
to
ensure
that
money
gets
to
deploy
to
build
housing
who
owns
It,
ultimately
doesn't
matter
to
us.
If
the
ultimate
owner
is
a
public
entity,
the
jpa
model,
which
they
created
to
have
a
public
entity
owned
existing
value
at
land.
They
didn't
pay
property
tax,
whether
or
not
that
was
abused
or
not.
We
can
debate.
But
how
do
we
turn
that
into
production
same
concept?
AB
If
a
pension
fund
or
another
entity
wants
to
own
new
housing
production,
it
eliminates
fifty
percent
of
your
operating
costs,
all
of
a
sudden
cost
of
housing
and
the
revenue
generated
goes
up
and
then
we
don't
have
to
go
through
the
whole
state
legislature
and
change
the
charter
to
increase
the
exemption
levels
of
welfare
tax.
So
that's
something
of
great
convening.
How
do
we
produce
market
rate
housing
that
can
be
owned
publicly
but
developed
privately
so
that
we
don't
pay
property
tax
I,
think
that
is
a
game
changer.
AC
Well
and
I
would
add
to
since,
since
the
topic
has
been
opened,
I
know
that
the
what
we
call
the
jpa
model
was
studied
by
the
city
and
and
city
of
San
Jose
said
no.
Thank
you
and
many
other
cities
did
as
well
the
the
model,
because
so
many
cities
have
grown
skeptical
of
it
is
being
re-studied
re-imagined,
so
that
it
is
something
that
is
much
more
sustainable
going
forward
and
the
city
being
part
of
that
discussion
may
be
worthwhile.
AC
B
B
You
know
I
hope
that
we
are
embracing
that
here
in
San
Jose
that
the
cost
of
indecision,
the
time
we
take
to
get
to
a
decision
is
a
thing
that
is
absolutely
the
biggest
burden.
So
hopefully
we
will
embrace
the
ability
to
decide
quickly
all
right.
Let's,
let's
move
on
I,
don't
see
any
hands
except
councilmember,
Pros.
P
Yeah,
thank
you
very
much,
mayor
and
I
wanted
to
say
thanks
to
the
Uli
as
well,
for
the
presentation.
Just
a
couple
questions.
What
is
your
assumed
time
for
the
return
on
investment,
you're
you're,
utilizing
that
right
throughout
the
presentation,
and
then
your
your
evaluation
calculation
on
hey.
There
has
to
be
a
certain
return
on
investment.
What
what
is
the
length
of
time
that
you've
assumed
in
there
for
that
return
on
investment.
AC
P
P
That
appears,
though,
they're
willing
to
take
a
loss,
essentially
right
in
in
the
in
the
short
term,
on
breaking
ground
on
on
a
number
of
projects,
then,
and
because
the
fact
that
they
have
numerous
projects,
I
think
they're
right,
they're,
looking
at
playing
the
long
game,
and
so
that's
why
I
was
just
kind
of
curious
on
you
know
what
that
timeline
might
look
like
I!
Think
it's
it's
Unique!
P
Maybe
you
can
confirm
that
when
you
have
such
a
big
developer,
that
actually
is
looking
at
multiple
developments
versus
just
a
one-off
project
that
they're,
you
know.
They're
they're,
investing
in
a
longer
term
return
on
investment,
rather
than
just
looking
at
one
project
happen
to
hear
the
thoughts
on
on
how
that
that
plays
into
it
sort
of
the
big
developer.
AC
Public
REITs
are
able
to
look
at
a
much
longer
term
strategy
and
then,
of
course,
there
are
some
private
investors,
not
always
necessarily
housing
related.
But
the
sobrato
organization
is
obviously
a
bright
shining
example
of
somebody
who
you
know
is
typically
a
long-term
investor,
but
not
every
developer
does
that
some
and
I
would
say
the
the
impact
of
structured,
Finance
or
more
institutional
dollars
in
real
estate.
Again
we'll
look
at
five,
seven
and
ten
years
time,
Horizons
in
their
underwriting.
P
Thank
you.
The
other
curiosity
that
I
have
is
you
demonstrated
the
examples
of
of
this
residual
land
value,
and
what
I'm
curious
about
is
the
the
scenarios
where
either
you
have
somebody,
that's
that's
owned
land
for
decades,
literally
right,
maybe
passed
down
through
family
or
whatever
it
may
be,
and
so
that
the
religious
residual
land
value
for
them
at
this
point
right
is,
is
maybe
not
not
a
factor,
but
yet
they
still
right
aren't
developing.
So
it's
it's.
Obviously
the
other
factors
are
costing
too
much.
P
Similarly,
I
think
we
have
a
lot
of
entitlements
and
that
that
are
not
breaking
ground
is
that
you
know
the
residual
land
value.
At
that
point
of
understanding,
it
doesn't
make
a
difference,
because
the
other
factors
are
what
are
just
making
a
project
infeasible
to
break
around.
Is
that
that's
an
easy
assumption
or
the
right
assumption.
AC
It
can
be
a
a
number
of
things,
as
Eric
alluded
to
during
the
presentation.
There
may
be
an
existing
use.
That's
not
particularly
glamorous
whether
it's
a
surface
parking
lot,
whether
it's
you
know
a
retail
establishment,
that's
long
in
the
tooth,
if
that
existing
use
generates
a
decent
amount
of
income
relative
to
the
value
of
the
land
or
the
or
you
know
relative
to
what
could
be
done
there,
it
may
be
a
better
alternative
to
leave
it,
as
is
so,
even
though
the
land
residual.
P
AC
And-
and
there
are
examples
of
folks
who
own
car
washes
and
they
say
if
I
were
going
to
build
a
new
building,
I
would
have
to
invest
tens
of
millions
of
dollars
or
more
I
would
have.
To
put
my
you
know,
the
family
wealth
that's
been
created
over
Generations
at
stake,
because
development
is
such
a
risky
proposition
and
so
be
easier
decision.
Sometimes
in
those
scenarios,
is
to
keep
operating
a
car
wash.
P
That
that
makes
sense,
but
we
also
we
have
a
number
of
just
vacant
properties
that
also
have
been
you
know,
either
long
entitled
or
long
held
by
the
same
property
owner
and
and
have
yet
to
see
any
movement
on
development
and
again
some
with
entitlements
of
of
you
know
so
anyways
it
just
that,
that's
kind
of
always.
You
know
my
understanding
has
got
to
be
right.
P
AC
AD
Unfortunately,
one
of
the
aftermaths
of
Prop
13
is
that
there
are
a
number
of
retail
properties.
Often
commercial
properties
that
have
been
owned
for
a
very
long
period
of
time
have
a
very
low
tax
base,
and
so
the
cost
of
carrying
those
properties
is
quite
low,
and
that
often
is
tied
with
those
properties
that
remain
vacant
a
long
time
and
don't
get
redeveloped.
That's
that's
one
case
another
case
that
I'm
very
familiar
with
from
some
of
the
work
that
I
do
is
properties
have
been
owned
by
a
family
for
a
long
time.
AD
They
go
into
a
trust
situation
or
they're
owned
by
a
number
of
family
members,
where
it's
just
complicated
to
unwind
it
and
sell
it,
because,
and
also
the
tax
implications
are
hard.
So
you
have
to
make
the
deal.
The
deal
has
to
command
a
lot
more
Revenue
than
you
would
think
it
might
have
to
command
just
based
on
on
the
fact
that
there's
it's
not
generating
any
Revenue,
it
actually
has
to
buy
out
family
interests
or
it
has
to
pay
for
taxes
or
both
together.
P
You
know
owned
for
for
many
many
years
and
decades,
and
so
that
that
likely
is
a
a
factor,
another
reason
to
to
update
Prop
13,
but
that
you,
you
mentioned
a
number
of
things
that
I
think
from
the
local
to
the
the
state
and
even
Federal
level.
That
could
help
policy
wise
and
appreciate
that
you
know
coloring
the
conversation
here,
because
I
do
think
you
know
we've.
You
know,
we've
taken
up
a
number
of
those
topics.
P
H
M
H
H
H
Can
you
kind
of
help
me
understand
the
process
of
how
whatever
model
or
tools
that
you're
going
to
provide
us
or
or
make
recommendations?
How
we
can
you
know
land
on
whatever
that
that
model
or
framework
is
because
right
now,
the
only
thing
we
have
to
work
with?
Is
the
developers
don't
build
or
they
don't
move
these
projects
forward?
So
that's
our
only
indication
of
we're
not
at
the
right
place.
AB
The
result,
the
residual
land
value
analysis,
is
a
good
one.
We
want
to
know
that
it's
not
going
to
be
a
car
wash,
we
want
to
know
the
cost
of
housing.
Development
is
not
so
heavy,
so
so
impactful
that
the
land
stays
a
car
wash.
So
that's
one
way
of
measuring
at
this
price,
this
price
of
land
it'll
transact
to
become
housing
above
a
car
wash
or
parking
lot.
That
was
the
cost
of
building
the
housing
can't
be
more
than
than
this.
You
know
it's
Libby's
graphic,
and
maybe
you
can
explain
it
more
eloquently.
AC
I
I
would
just
add
that
you
know
the
the
reality
is
in
the
next
6
12
18
months.
There
may
be
very
little
that
that
can
spur
activity
immediately,
because
the
capital
markets
are
are
have
a
a
very
Grim
Outlook
with
respect
to
you
know,
new
development,
investment
relative
to
the
cost
and-
and
that
is
going
to
change.
But
to
your
point
you
know,
I
I
would
caution
you
on
overreacting
in
the
next
six
to
12
months
and
then
all
of
a
sudden.
AC
AD
AD
Don't
make
it
so
onerous
that
you'll
never
get
that
developer
to
come
back
in
the
door
again
and
we
don't
often
think
of
it
that
way,
but
they're
your
customers,
just
like
the
public
is
your
customers.
I
know
the
public
doesn't
see
it
that
way.
I
know
I
mean
I
came
from
a
place
where
I
thought
developers
were.
You
know
we're
evildoers,
you
know
and
raping
the
landscape,
whatever
it
was.
AD
But
if
you
really
think
about
it,
they
are
the
ones
that
are
going
to
make
our
world
a
better
place
literally,
if
we
allow
them
to
do
it
and
we
allow
them
to
do
a
good
job
and
we
want
good
development
to
be
be
moving
forward.
So
I
think
it's
really
that
partnership
idea
just
building
on
what
Eric
said
I
mean
we
at
you
and
I
are
here
to
be
your
partners.
We
have
great
members,
we
are
dedicated
as
an
organization
to
to
making
communities
Thrive
and
trying
to
have
good
development
move
forward.
AD
AE
And
I'm
not
sure
if
this
distinction
needs
to
be
made,
but
the
affordable
housing
component
is
doesn't
go,
doesn't
have
quite
these
steep
sort
of
Market
vacillations.
We
are
pretty
steady,
customer
there's
all
manner
of
contractors
general
contractors
in
this
region
that
kind
of
like
us.
For
that
reason,
because
we
there
are
some
years
where
I'm
literally
was
the
only
person
pulling
a
building
permit
for
the
whole
city,
and
so
we
we're
pretty
consistent
on
that
front
and
so
I
guess
what
I
would
say
in
terms
of
what
tools
could
we
offer?
AE
You
know
looking
at
some
of
the
state
streamlining
tools
and
seeing
how
this
city
has
used
them.
Sb
35
is
still
a
relatively
new
innovation.
You
have
done
a
few
of
these
deals.
There
are
little
areas
to
procedurally
smooth
that
out
because
it
has
to
move
all
the
way
through
the
city,
so
once
it's
entitled
and
you're
you're
through
the
planning
and
that
process,
it
needs
to
kind
of
continue
to
flow
in
through
the
building
depart
department
and
all
the
plan
checking,
processing
and
permit.
So
there's
a
lot
of
places,
I
think
with
that.
H
You
know.
Obviously
you
get
you
can't
time
the
market.
But
if
we
go
look
at
history,
you
know
we
go
through
Market
cycles
and
there's
a
good
chance
that
you'll
complete
your
project
somewhat
somewhere
around
the
time
of
the
market,
improving
or
being
an
upcycle.
So
can
somebody
explain
to
me
why
the
capital
markets
don't
take
advantage
of
that?
You.
AC
15
the
hard
cost
had
gone
up
15
in
that
one
year,
and
so
it
it
takes
a
lot
of
intestinal
fortitude
to
go
forward
when
nobody's
going
forward-
and
you
know
some
of
it
is
regulation.
The
banks
are
regulated.
They
part
of
the
reason
the
banking
industry
right
now
is
worried
is
that
they
see
potential
defaults
coming
and
it
may
be
a
default
in
the
office
sector.
AC
But
when
the
federal
government
stress
tests,
the
bank
and
the
bank
needs
to
reserve
more
cash
for
those
potentially
troubled
projects,
it
hamstrings
their
ability
to
fund
a
new,
great
housing
development
in
San
Jose.
Even
if
a
new,
great
housing
development
in
San
Jose
is
a
good
Financial
proposition.
So
it's
it's
interconnectivity,
it's
regulation,
it's
you
know
it
can
be
a
lot
of
things,
but
it
it
is
the
most
difficult
time
to
convince
people
to
go
forward
and
we,
like
you,
believe
that
more
people
should
be
going
forward
at
these
times.
Okay,.
H
Y
X
I,
just
I
just
wanted
to
weigh
in
a
little
bit
of
thank
you
for
the
master
class
on
development
and
the
cost
of
development.
It
was
really
helpful.
We
have
a
lot
of
potential
construction
going
on,
we
think
and
to
understand
what
the
triggers
are
that
are
standing
in
the
way
from
a
developer
actually
pulling
the
trigger
and
getting
the
financing
they
need
and
all
the
other
costs
is
really
helpful.
X
So,
but
you
also
mentioned
that
maybe
temporary
incentives
are
the
way
to
go
to
me
that
they
don't
go
together.
A
temporary
incentive
doesn't
provide
certainty,
doesn't
provide
consistency
or
predictability.
It
does
for
a
short
term,
but
if
we
lock
it
into
that
particular
development,
it
does.
But
if
we
don't
lock
it
in
to
that
particular
development,
there
is
no
uncertainty.
So
how
do
we
eliminate
from
our
side?
We
can't
address
the
Capital
Market.
We
can't
lower
interest
rates.
X
We
cannot
decrease
the
cost
of
land,
that's
going
to
happen
over
market
conditions,
we
cannot
affect
the
employment
Market
or
the
cost
of
materials,
but
but
policies
are
things
we
can
change
and
you've
provided
us
a
lot
of
of
ideas.
But
how
do
we
add
certainty?
How
do
we
create
predictability
and
certainty
for
our
developers.
AC
So,
first
of
all,
you're
not
wrong
that
consistency
and
short-term
changes
are
incongruent,
but
maybe
let
me
think
about
it.
This
way,
most
often
the
consistency
that
we
think
about
is
in
land
use
and
planning,
and
the
idea
of
there
is
a
downtown.
There
is
an
area
of
town
next
to
a
park
or
next
to
Transit,
where
the
city
would
like
to
see
certain
types
of
uses
and
consistency
in
that
type
of
long-term
planning.
Maybe
is
the
best
place
to
to
apply
the
consistency
aspect.
AC
The
short
term
levers,
maybe
when
you
want
that
long-term
plan
to
come
into
play
faster
than
it's
coming
and
so
you're
going
to
make
a
change
that
affects
the
financial
feasibility
to
try
to
be
a
catalyst
and
make
more
projects
go
forward.
That
may,
in
fact,
be
consistent
with
that
long-term
plan.
Does
that
answer
your.
X
Question
yes,
such
as
reducing
parking,
minimums
and
and
other
requirements
that
we
may
be
implementing
for
really
good
reasons
or
haven't
implemented
yet,
but
need
to
implement
in
in
a
much
bigger
way.
Of
course,
reducing
parking
minimums
decreases
the
cost
for
the
developer,
but
it's
also
good
for
the
environment
because
it
decreases
the
incentive
of
having
your
vehicles
out
and
living
in
a
vehicle
Society
driven
by
the
automobile.
So
there's
lots
of
reasons
that
removing
parking
minimums
well
I
I.
This
is
really
interesting.
I
know,
there's
other
things
coming
forward
to
us.
X
That
will
address
specific
fees,
but
is
there
what's
the
one
recommendation
that
you
have
for
us?
Are
you
going
to
make
it
later
to
of
how
we're
going
to
solve
this
problem,
how
we're
going
to
create
predictability
with
our
developers?
This
is
why
you're
here
and
you
pulled
in
you're
pulling
in
the
big
bucks.
AB
I
I
would
think,
maybe
you
should
break
it
up
in
the
tooth
two
parts.
Let's
look
at
Future
entitlements,
creating
certainty.
How
do
we
create
a
precise
plan
for
the
city
how
to
ensure
long-term
predictability?
So
we
have
repeat:
customers
of
developers
coming
to
downtown
San
Jose
and
let's
look
at
our
current
problem.
The
sites
that
are
already
entitled
that
are
stuck
as
I
think.
Vice
mayor
Jones
pointed
out
mayor
licardo
point
out:
there
are
multiple
stuck
projects.
AB
Those
are
what
can
benefit
what
Drew's
talking
about
the
short
term,
the
short
term
incentives
to
get
stuck
projects
built-
and
you
know
again,
these
are
the
things
that
no
one
wants
to
talk
about:
reducing
affordability
requirements,
reducing
parking
requirements,
reducing
retail,
maybe
eliminating
sales
tax
for
materials.
That
City
would
collect
things
like
that.
These
would
be
short-term
and
then
the
long
term
would
be
creating
predictability
for
future
planning
entitlement
in.
AE
Church
parking,
lots
and
another
kind
of
beloved
place
to
look
is
a
quasi-public
land
if
it's
a
school
district
own
land
or
your
other
public
partners
that
may
be
trying
to
house
their
employees
or
their
Workforce.
These
are
great
places
to
look.
Schools
already
do
not
pay
taxes
at
the
same
rate,
so
this
jpa
model
that
was
kind
of
discussed
a
few
times
woven
into
the
conversation
already
applies,
and
they
they
know
how
much
they
pay
their
employers,
which
is
one
of
the
major
things
that
we're
all
trying
to
always
guess.
AE
You
know
who,
who
are
we
building
for
so
I,
think
that
there
are
opportunities
to
look
at
where
you
have
land
within
the
city
and
I
know
that
staff
is
kind
of
in
the
midst
of
of
one
of
the
best
tools,
and
it
can
be
hard
to
recommit
to
looking
at
that,
because
it
seems
so
academic
or
far
away,
but
over
and
over
and
over
again.
We
have
sites
that,
when
the
market
conditions
are
right,
they
build
out
and
that
the,
if
using
the
particular
tool
to
remove
a
few
of
the
key
constraints.
AE
B
B
The
last
question
I
just
wanted
to
throw
in
since
retail's
men
mentioned
a
couple
times
and
at
the
something
I've
been
clinging
to
for
a
long
time
like
Charlton
Heston,
do
a
gun
or
something
so
I.
I
I
appreciate
this
as
a
burden
for
affordable
Builders
and
for
market
rate
Builders
having
these
these
retail
spaces
and,
of
course
nobody
wants
it
to
be
vacant
and
I'm.
Just
wondering.
B
Is
there
new
thinking
emerging
about
how
we
can
fill
these
spaces
with
active
uses
that
aren't
necessarily
I
mean?
Frankly,
housing
isn't
really
active.
It's
not
you're,
especially
if
you're
in
an
urban
area
where
people
have
safety
concerns
you're,
never
going
to
lease
out
that
space.
That's
right
well,
depending
obviously,
in
a
lot
of
circumstances.
This
can
be
very
challenging
right.
AB
AC
AC
The
sidewalk
is
deep
enough
and
the
pop-up
businesses
were
literally
think
of
something
a
lot
better
looking,
but
a
kiosk
in
a
mall
where
it
folded
up
against
the
garage
yeah
and
when
it
pulled
out
it
allowed
a
business
to
exist
for
the
day,
and
it
was
only
taking
up
four
to
six
feet
off
the
edge
of
the
garage,
and
there
was
still
plenty
of
sidewalk
left
for
people
to
walk
past.
But
if
that
business
is
viable,
it'll
be
there
all
day
and
it'll
be
active.
If
that
business
is
not
viable.
AC
When
you
fold
it
down,
it's
arguably
more
attractive
than
the
side
of
the
garage,
so
it
we
always
ask.
What
are
you
really
after?
Are
you
after
the
retail
tax
revenue?
Are
you,
after
the
use,
that's
in
a
traditional
space,
or
are
you
after
this,
the
activation
of
the
street
scene
and
and
depending
on
what
the
real
goal
is?
There
are
different
ways
to
accomplish
it
right
and
that
quasi-retail
space,
or
that
flexible
retail
space,
especially
today
with
technology
and
what
pop-ups
can
do
and
how
quickly
businesses
can
move
around
yeah.
That's
a
very
script.
AC
AD
B
AD
But
I,
but
I
would
I
would
say
there
is
a
move
to
do
more,
live
work,
and
you
know
within
that
structure
which
does
have
some
activity.
Another
idea,
that's
been
been
popping
up.
More
is
popos
privately
owned
public
open
space
that
does
activate
during
the
day,
but
does
it
will
close
at
night
but
most
probably
depending
on
the
requirements,
but
it
does
provide
an
Urban
Oasis
for
people
that
I
think
is
really
important
and
I.
Think
in
your
downtown,
you
don't
maybe
could
use
some
more
of
those.
Those
really
great.
AD
AB
B
AE
B
AG
B
AH
Mayor
council,
thank
you
very
much.
Nancy
Klein
office
of
Economic
Development,
cultural
Affairs,
just
a
big
thank
you
from
us
too,
to
the
panel
very
experienced,
very
knowledgeable
and
very
excited
that
a
lot
of
the
conversations
that
the
panel
is
speaking
about,
whether
it
be
pqp
or
driving
that
processes
that
allow
affordable,
first
or
only
uncertain
properties.
Many
or
most
of
the
things
that
the
panel
mentioned,
the
city
at
the
mayor
and
council's
leadership
are
already
engaged
in,
as
we
turn
to
the
staff
presentation.
AH
There
are
pieces
that
we
do
have
control
over,
and
some
of
that
is
even
difficult
like
hiring
and
keeping
employees
to
make
things
go
faster.
So
there
are
also
additional
staff
identified
effects
or
projects
that
we
believe
could
have
significant
impact.
That,
practically,
though,
will
will
impact
in
the
mid
to
longer
term,
aside
from
some
of
the
incentive
things
that
we're
already
speaking
about
so
so
with
that
Jared
and
Rachel
will
have
more
to
share
about
the
report
that
was
completed.
K
Thanks
Nancy,
so
just
to
start
with
some
background
in
April
of
2018,
the
city
council
held
a
study
session,
received
the
first
cost
of
development
report.
The
first
report
came
as
staff
was
developing.
The
housing
crisis
work
plan
that
would
later
be
approved
in
June
of
2018
and
the
housing
crisis.
Work
plan
included
an
ongoing
work
item
to
update
the
cost
of
residential
development
on
a
regular
basis.
K
The
results
of
the
first
report
suggested
new
residential
development
was
challenged
in
most
areas
of
the
city.
However,
new
residential
development
in
West
San
Jose
was
found
to
be
feasible
and
development
in
downtown
and
North.
San
Jose
yielded
positive
returns,
but
those
returns
were
marginal
and
potentially
insufficient
to
attract
investment
in
2019.
An
updated
report
was
presented
to
the
city
council.
This
report
found
similar
results
as
to
the
previous
suggesting
that
development
remained
feasible
with
West
San
Jose
and
development
in
downtown
in
North,
San
Jose
remain
marginal.
K
The
most
significant
barrier
at
that
time
identified
was
the
cost
of
construction.
The
2019
report
also
included
it
included
an
analysis
of
affordable
housing.
For
the
first
time,
the
report
looked
at
the
average
cost
of
construction
for
affordable
units
in
San
Jose
compared
to
other
cities.
Utilizing
data
submitted
to
the
state
by
projects
receiving
tax
credit
financing
entering
2020
staff
intended
to
update
the
report
in
conjunction
with
its
continued
work
on
the
housing
crisis
work
plan.
K
K
So,
as
first
panel,
we
talked
about
quite
a
bit
and
the
continued
updates
are
important
to
the
to
the
city
and
as
a
tool
to
help
us
continue
to
understand
the
barriers
to
new
housing
construction.
The
updates
provide
a
deeper
understanding
of
the
factors
both
outside
and
within
the
city's
control
that
impact
the
feasibility
of
residential
development.
K
Factors
within
the
city's
control
include
impact
fees,
construction,
taxes
and
the
permitting
approval
process
for
projects
factors
outside
the
city's
control
relate
to
the
economic
conditions,
such
as
the
cost
of
construction
interest
rates,
among
others,
understanding.
All
of
these
factors
can
help
inform
our
policy
decisions
relating
to
housing,
production.
K
As
was
the
case
in
the
previous
iterations,
the
report
is
based
on
conceptual
prototypes.
These
are
not
actual
developments
but
reflect
typical
characteristics
of
recent
multi-family
development
in
the
city.
The
data
and
assumptions
for
specific
projects
are
not
available
to
the
city.
Developers
generally
treat
this
information
as
proprietary
and
do
not
share
it
with
the
city
or
with
the
public.
K
The
report
looks
at
market
rate
rental
and
for
sale
for
sale,
multi-family
in
three
different
prototypes,
a
five-story
low-rise,
building
a
seven-story
mid-rise
building
and
a
22-story
high-rise.
It
is
important
to
distinguish
between
these
types
as
each
requires
a
different
type
of
construction
that
affects
costs.
K
These
prototypes
are
then
analyzed
in
several
different
areas
of
the
city
to
test
for
feasibility,
foreign.
The
results
of
the
report
are
shown
as
residual
land
values.
As
a
reminder
from
the
panel's
presentation,
residual
land
value
refers
to
the
amount
of
value
remaining
to
purchase
land
once
all
other
costs
have
been
accounted
for
at
a
complete
Construction.
K
K
Fortunately,
the
results
of
our
updated
analysis
show
all
residual
values
as
negative
in
the
prototypes
tested.
These
values
are
shown
on
a
per
unit
basis.
These
values
mean
that
no
prototype
was
shown
to
be
feasible.
The
negative
values
indicate
that,
even
if
land
were
available
at
no
cost,
the
development
would
still
not
be
feasible.
K
The
results
show
an
extremely
challenging
Market
in
the
current
conditions
for
multi-family
housing
in
San
Jose.
The
report's
findings
are
validated
through
the
recent
experience
of
the
city
shown
in
our
building
permit
data.
This
chart
shows
recent
multi-family
development
with
over
50
units.
Since
2020.,
there
were
two
developments
that
started
early
in
2020
and
then
through
the
pandemic,
only
one
project
per
year
has
started
Construction.
K
The
second
chart
here
provides
more
contacts.
Looking
back
to
2015
at
the
number
of
units
per
calendar
year
in
projects
over
50
units,
you
can
see
the
downward
Trend
starting
to
some
extent
in
2019,
related
likely
related
to
construction
costs
and
then
the
substantial
drop
in
2020
through
today,
foreign.
K
The
cost
of
construction
remains
a
significant
barrier.
This
chart
shows
the
cost
per
unit
for
the
mid-rise
prototype
in
West,
San
Jose
in
2018
and
2019.
The
results
suggested
that
this
this
prototype
was
feasible.
However,
the
significant
increases
in
cost
have
made
it
infeasible.
Today
an
index
provided
to
the
City
by
our
consultant
that
tracks
construction
costs
in
the
Bay
Area
has
shown
a
17
percent
increase
since
the
start
of
the
pandemic
through
the
second
quarter
of
2022..
K
Additionally,
since
that
time,
interest
rates
have
continued
to
add
further
challenges
to
the
cost
of
new
construction
rent
growth.
Another
the
other
side
of
the
equation
is
important
as
well.
Rents
dropped
at
the
start
of
the
pandemic
and
did
not
fully
recover
in
San
Jose
until
spring
of
2022
renko,
since
the
pandemic
has
started,
is
estimated
at
five
percent,
which
is
not
sufficient
to
mass
match
the
increases
in
the
cost
of
construction
over
that
time
in
San
Jose.
K
K
These
numbers
are
marginal
compared
to
the
overall
cost
of
the
unit,
but
they
still
add
costs
and
contribute
to
infeasibility
reduction
of
these
taxes
and
fees
to
zero
dollars
in
the
current
environment
would
not
fundamentally
change
the
outcome
of
the
analysis.
However,
staff
believes
it
is
important
to
understand
the
cost
implications
of
all
policy
decisions
in
the
near
term
and
that
no
new
costs
be
added
to
Construction.
AG
Good
afternoon,
mayor
and
Council
again,
this
is
Rachel
vanderveen
deputy
director
of
the
housing
department.
The
second
study
completed
by
Century
Urban,
is
the
affordable
housing
development
cost
study
as
the
cost
of
construction
Rises
for
all
residential
development.
Affordable
housing
is
impacted
along
the
way,
actual
cost
for
affordable
housing
development
are
all
are
available
due
to
public
documents
posted
by
the
state
for
any
tax
credit
Awards.
So
in
this
case
our
consultant
pulled
actual
information
from
15
San
Jose
developments
representing
over
1700
units
and
compared
this
to
27,
affordable
developments
throughout
the
state
of
California.
AG
Review
of
this
information
demonstrated
the
average
per
unit
cost
of
affordable
housing
in
San.
Jose
is
six
hundred
and
fifteen
thousand
dollars
the
average
height
for
these
developments
was
seven
stories.
This
is
15
percent
higher
than
developments
across
the
state.
When
you
break
the
data
down
further
and
evaluate
the
cost
for
special
needs,
housing,
the
average
actually
grows
to
700
000
per
unit.
This
is
due
for
this
is
due
to
the
need
for
services
space,
but
then
within
the
development
and
also
larger
units.
AG
The
prior
study,
completed
by
Kaiser
Marson
in
2019,
reported
the
average
cost
for
special
needs
units
was
523
000.,
but
in
that
time
period
the
majority
of
units
evaluated
were
Studios.
Since
that
time
the
city
has
incentivized
housing
for
families
with
multiple
bedrooms,
and
this
trend
continues
to
push
the
price
per
unit
up.
AG
Also,
I
would
like
to
point
out
that
when
we
met
with
developers
in
person
to
review
the
results
of
our
study
now
they
stated
that
these
numbers
are
really
looking
backwards
as
they
look
forward
they're,
seeing
that
costs
are
nearing
nine
hundred
thousand
dollars
per
unit
in
San
Jose,
so
I
just
want
to
state
that
again,
these
costs
are
just
growing
almost
daily
next
slide.
Please.
AG
AG
AG
AG
AG
AG
Also
impact
fees
in
San,
Jose
actually
averaged
12
000
per
unit
versus
7
800
in
other
communities,
and
finally,
San
Jose
has
higher
financing
costs
as
projects
become
more
complex.
The
cost
of
Finance
also
increase
so
as
a
part
of
the
housing
crisis
work
plan,
discussion,
which
is
coming
up
in
just
two
weeks.
The
city
is
planning
on
bringing
forward
a
recommendation
to
increase
the
per
unit
subsidy,
which
has
been
stably
125
000
per
unit
for
over
four
years.
Now.
AG
AG
Considering
all
of
the
factors
that
we
have
talked
about
today,
it
is
just
clear:
we
need
to
seriously
consider
strategies
to
reduce
cost
it
will.
It
will
take
multiple
actions
all
at
the
same
time,
in
order
to
achieve
this
goal,
and
we
want
to
engage
this
Challenge
and
work
with
you
together
to
find
ways
to
manage
this
problem,
and
now
I'd
like
to
turn
it
back
to
Jared.
K
K
There
are
also
other
future
policy
actions
planned
in
2023,
including
consideration
of
a
construction
tax
reduction
for
affordable
housing,
as
was
discussed
with
the
council
earlier
in
2022..
This
is
important
now,
given
the
analysis
that
we
just
discussed
in
the
report
that
showed
San
Jose
with
higher
per
unit
fees
for
affordable
housing
units
than
in
other
jurisdictions.
K
Overall,
the
report
shows
the
new
housing
construction,
especially
in
the
near
term,
is
significantly
challenged
due
to
factors
outside
the
city's
control.
In
the
longer
term,
staff
has
included
two
significant
strategies
in
the
proposed
updated
housing
element
to
help
speed
up
the
approval
of
new
housing.
This
includes
creation
of
a
city
ministerial
approval,
ordinance
that
would
allow
housing
projects
meeting
specific
criteria
to
be
approved
without
a
hearing
through
a
ministerial
process
projects.
Utilizing
this
process
would
not
be
subject
to
SQL
review,
as
ministerial
approvals
are
not
defined
as
projects
in
sqa
statute
Additionally.
K
The
other
strategy
is
to
conduct
program
level,
SQL
analysis
for
Approved
Urban
Village
plans.
This
would
help
shorten
the
approval
process
by
reducing
the
amount
of
environmental
analysis
required
for
individual
projects.
This
approach
has
been
a
successful
component
of
the
city's
downtown
strategy.
K
B
AI
AI
Okay,
because
the
only
time
that
I
have
heard
people
lie
as
much
as
I
heard
today
is
when
a
lawyer
is
talking
or
when
a
politician
is
talking,
and
this
city
just
happens
to
have
both
in
their
mayor.
So
that
means
we're
lie
to
you.
A
lot
I
mean
a
lot.
Okay
market
rate
housing
needs
to
be
capped
at
50
percent.
Why?
Because
all
that
has
been
happening
is
market
rate.
Housing
goals
have
been
met
constantly
year
after
year,
15
75
to
115
percent
get
a
lot
of
your
life
bottom.
AI
That's
number
one
number
two
is
what
this
is:
is
a
tool
by
developers
to
try
to
normalize
giving
them
tax
breaks.
We
only
gave
you
dudes
9
million,
and
then
we
gave
you
four
million
I,
don't
want
no
more
tax
breaks.
I
did
hear
an
argument,
though,
about
repealing
prop
13.
that
I
did
here.
I
heard
that
loud
and
clear,
okay,
but
developers
are
the
problem.
Why?
AI
Because
developing
is
what
created
San,
Jose,
Manifest
Destiny
was
about
land
takeovers
and
covering
and
exporting
this
land,
and
this
land
has
not
been
healed
from
that
start,
Point.
Okay,
you
can
throw
a
rock
anywhere
in
the
city
and
make
money
with
the
land,
but
the
land
has
never
been.
The
land
has
never
been
healed
from
the
decapitations
of
Native
Americans,
and
that
is
the
foundation
Aaron.
O
Hi,
my
name
is
Aaron
echos
I'm,
the
regional
policy
manager
at
California,
yinby,
really
glad
that
San
Jose
is
looking
at
this
issue.
I
think
the
report
that's
been
presented
today
represents
kind
of
a
disaster
for
San
Jose.
If
new
housing
is
not
feasible
anywhere
in
the
city,
that's
a
huge
crisis
and
I
think
it
needs
a
commensurate
policy
response.
O
A
couple
things
I
noticed
that
are
interesting.
I
have
questions
about
one
really
glad
that
the
city
is
looking
at
streamlining
the
approval
process
and
using
ministerial
approval
as
a
way
to
address
this
issue.
I
do
think
that
indicates
the
need
to
move
the
timeline
for
that
up.
I
think
in
the
housing
elements
currently
proposed
to
not
happen
until
2026
or
2027
and
page
numbers
report.
We
need
it
sooner.
O
I'm
also
curious
about
moderate
density
development
in
the
city.
So
there
was
a
report
that
the
city
commissioned
a
year
or
two
ago
that
indicated
from
opticose
indicated
at
six
to
eight
plexes,
are
financially
feasible
in
much
of
San
Jose
and
would
potentially
produce
housing,
affordable
to
middle-income
households.
O
So
I'm
curious
if
staff
and
Consultants
think
that
report
is
still
accurate
and
if
so,
does
that
indicate
possible
policy
response
to
help
enable
housing
in
more
of
San
Jose
and
then
I
think
I
I
also
just
sort
of
curious
about
the
idea
that
some
of
the
higher
costs
we
saw
here
were
about
Bay,
Area,
specific
factors
and
the
affordable
housing
report.
Given
the
fact
that
most
of
the
comparison
cities
were
also
in
the
Bay
Area.
Generally,
though,
I
think
this
is
a
huge
problem.
O
U
Thank
you,
honorable
mayor
and
council
members.
My
name
is
Gene
Dresden.
This
financial
analysis
provides
guidance
towards
a
system
of
many
solutions
and
reaffirms
that
fee
Cuts
alone
don't
work.
Complex
Solutions
are
needed,
including
using
new
legislation
and
the
pro-housing
designation
elements
that
bring
Federal
and
State
dollars.
U
However,
the
council
must
Focus
staff
on
completing
the
housing
element
as
its
greatest
priority,
so
that
state
and
federal
financing
does
not
end
and
the
fewest
number
of
Builders
remedy
projects
are
submitted.
The
city
must
look
at
downtown
Beyond
fee
Cuts
gensler's
research
shows
that
the
city
must
provide
the
Staffing
needed
to
help
public
life.
Businesses
rebuild
and
fully
fund
The,
Reef
invigoration
of
the
downtown
public
places
and
parks
that
are
needed
to
attract
the
knowledge
workers
to
retain
and
stay
and
pay
full
market
rate
that
attracts
Equity
investors.
U
Importantly,
Park
fees
have
not
increased
since
2017
and
inflation
impacts
have
reduced
their
value
by
more
than
35
percent.
A
silent
discount
initiatives
such
as
converting
NCC
sites
to
mixed
use
should
be
considered,
but
all
should
be
prioritized
through
the
lens
of
number
of
units
built
and
the
lack
of
planning
staff
available.
To
do
the
work.
C
AJ
Hello
good
afternoon,
mayor
and
Council
I'm
Brian
pores,
with
UA
Local
393,
representing
thousands
of
San
Jose
plumbers,
pipefitters
steam,
Fitters
hvr,
hvacar
service
technicians
and
our
families
today,
I'm
here
to
impress
the
importance
of
skilled
and
trade
labor
labor
being
part
of
this
conversation
and
our
future
in
San
Jose
in
2018
working
Partnerships
produced
a
study
that
documented
the
cost
to
our
community
due
to
the
low
road
development
model
that
dominates
private
private
development,
particularly
in
residential
construction.
It
should
outrage
every
member
of
this
Council
that
little
has
changed.
AJ
Since
then,
the
report
told
you
that
over
half
54,
specifically
of
blue
collar
construction
workers
employed
in
the
Santa
Clara
County
earn
less
than
40
000
per
year
with
few
or
no
benefits
non-union.
Contractors
also
are
the
key
players
when
it
comes
to
wage
theft,
misclassification
and
unsafe
work
conditions.
More
importantly,
it
depletes
the
economic
development
during
and
after
the
project,
workers
who
are
brought
in
from
outside
will
not
buy
local,
do
not
reside
local
and
all
the
while
push
out
our
local
skilled
and
trained
workers.
AJ
The
report
also
noted
that
Latino
and
African-American
construction
workers
are
paid.
38
percent
less
than
white
workers
on
average,
therefore,
to
ensure
our
future
is
being
built
in
a
responsible
manner
that
pay
Fair
wages
with
Fair
conditions.
I
ask
that
your
staff
provide
alternatives
to
fee
waivers
that
include
employing
our
local
skilled
and
trained
Workforce.
Thank
you
very
much
for
your
time
and
consideration.
AF
Hello
good
afternoon,
mayor
council,
members
Louise
our
Han
with
working
Partnerships,
and
my
comments
today
will
focus
on
the
consultant
study
that
was
commissioned
and
on
the
downtown
high-rise
subsidy.
That's
planned
to
come
back
in
two
weeks
so
that
subsidy
for
downtown
high-rise
developers
was
first
pitched
as
a
temporary
stimulus
to
help
jump
start
Downtown
Development
during
the
Great
Recession
that
was
around
2009..
AF
Since
then,
it's
been
extended
over
and
over
and
over
for
13
years,
and
every
time
it's
been
promised.
This
is
just
temporary.
This
is
because
of
market
conditions,
and
every
time
it's
promised
we'll
find
another
way
to
make
up
for
the
affordable
housing
and
so
far,
every
time
that
promise
has
been
broken
at
this
point
well,
over
a
hundred
million
in
subsidies
has
been
granted
through
this
program.
AF
Maybe
much
more
I've
never
seen
the
city
provide
a
cumulative
total,
but
we
keep
trying
the
same
approach
over
and
over
again
putting
more
and
more
into
these
subsidies
and
it's
not
working.
It's
not
working
to
produce
housing,
that's
affordable
for
our
neighborhoods,
we're
woefully
behind
our
affordable
housing
goals.
It's
not
working
to
produce
good
jobs.
Four
years
after
Council
voted
in
2018
to
attach
Workforce
standards
to
subsidies,
nothing's
been
done
and
from
the
consultant
report
we
just
saw
every
type
of
development,
including
those
subsidized
high-rises,
is
now
infeasible.
AF
So
it
doesn't
look
like
it's
working
to
Spur
development
either.
So
if
we've
been
doing
this
over
and
over
again
for
13
years-
and
this
is
where
it's
gotten
us-
isn't
it
time
to
step
back
and
try
something
new,
but
this
consultant
study.
If
you
read
the
paragraph
on
page
three
legislative
background,
it
was
prepared
with
the
specific
purpose
so
providing
findings
to
support
a
continued
fee
in
tax
reduction.
So
the
study
didn't
look
at
other
Solutions.
The
panel
was
very
refreshing
and
I'd
urge
the
city
to
consider.
C
W
Good
afternoon,
everyone
mayor
city,
council,
hi
I'm,
edundos,
Garcia
I'm,
with
UA
Local
393,
representing
thousands
of
San
Jose
plumbers,
pipefitters
steam,
Fitters
and
HVAC
art
technicians
and
their
families.
Today,
I'm
here
to
impress
the
importance
of
skilled
and
trained
labor
being
a
part
of
this
conversation
and
our
future
here
in
San
Jose.
W
The
important
in
front
of
you
today
accepts
racial
disparities
by
accepting,
as
a
matter
of
fact,
that
developers
will
build
into
their
proformas
a
bidding
process
that
results
in
the
use
of
low
road
contract
actors
that
that
in
our
area,
have
already
been
proven
to
exploit
out
of
town
workers.
Let's
be
clear:
residential
investors
seeking
a
15
to
20
return,
exploiting
San
Jose's
constructions.
Workforce
has
become
an
acceptable
method
for
them
to
compete
for
that
capital.
This
is
a
matter
of
choice
for
the
developers,
not
because
the
cost
of
construction
here
demands
it.
W
W
Your
status,
your
staff,
should
Supply
alternative
strategies
to
encouraging
the
rapid
construction
of
residential
projects
they're
out
there.
Additionally,
we
believe
reduction,
We,
Believe,
reductions
of
fees
and
taxes
should
trigger
a
prevailing
wage
requirement.
You
should
have
your
legal
counsel,
make
a
determination
on
this
concern.
Thank
you
very
much.
C
AK
So
I
just
want
to
emphasize
the
fact
that
the
city
has
completed
two
prior
cost
of
development
reports,
one
in
2018,
the
other
in
2019
and
both
of
those
reports
pretty
much
came
to
the
same
conclusion
prior
to
the
pandemic.
In
addition,
housing
production
has
in
San.
Jose
has
been
extremely
anemic.
The
city
is
under
producing
housing
even
before
the
pandemic.
AK
AK
Well,
how
are
you
going
to
get
to
that
Rena
requirement
of
8
300
units
per
year
when
in
San
Jose
before
the
pandemic,
the
city
was
only
generating
2
800
units
per
year
average,
so
there
needs
to
be
major
course,
correction
and
needle
moving
revisions
to
City
policy
if
we're
going
to
have
enough
housing.
Thank
you.
C
Z
Hello,
can
you
hear
me
yes,
good
afternoon,
mayor
and
Council?
My
name
is
Wesker
Castro,
director
of
Housing
and
transportation,
Justice
I
work
in
Partnerships
USA
I
would
like
to
take
this
opportunity
to
both
reaffirm
the
comments
provided
by
my
colleague,
Louise
our
Han
and
add
further
valuable
pieces
pieces
to
this
discussion
as
we
look
to
combat
the
numerous
impacts
to
go
to
stem
from
this
housing
crisis.
Z
As
we
look
to
propose
some
solutions
to
address
obstacles
to
constructions,
there
must
also
be
a
form
of
accountability
in
place
that
San
Jose
is
continuing
to
meet
their
housing
goals
of
all
income
levels
in
Balance.
Production
of
housing,
at
the
sake
of
deeper
levels
of
affordability,
will
only
result
in
further
income
inequality
and
further
heightened
the
risk
of
displacement
that
is
taking
place
throughout
the
city.
In
addition,
the
Uli
presentation
made
mention
of
modifying
forms
of
tenant
protections
for
the
sake
of
new
development.
Z
Through
this
comprehensive
study
and
presentation,
there
may
be
more
questions
and
answers
as
to
how
we
both
address
hurdles
towards
production
and
ensure
that
we
are
doing
so
in
an
equitable
manager
in
an
equitable
manner.
Excuse
me
for
the
betterment
of
all
residents
in
San
Jose.
We
look
forward
for
the
opportunity
to
further
discuss
and
concentrate
solutions
to
ensure
that
we
are
genuinely
addressing
this
issue
while
taking
all
impacts
to
consideration.
Thank
you
very
much.
C
D
Yes,
thank
you
very
much.
First
of
all,
as
as
Pam
Foley
said,
this
was
a
master
class
and
I
I
want
to
thank
Rosalind,
Huey
and
Nancy
Klein
and
the
Uli
team
for
really
doing
a
great
job
in
a
comprehensive
time.
A
couple
of
things
that
I
just
want
to
have
this
take
into
consideration
the
recent
experience
in
Florida
hurricane
Ian.
We
saw
a
Devastation
of
a
number
of
homes
here
in
California,
not
far
from
us.
D
These
are
these
are
types
of
problems
that
we're
going
to
face
in
the
future,
from
flooding
from
fire,
earthquake
and
other
events,
so
I'd
like
to
take
a
page
from
the
Babcock
Ranch
experiment
in
Fort
Myers,
and
see
how
we
can
also
focus
on
sustainable
development
of
housing
as
well
and
not
forget
that
element
and
thank
you
for
a
great
report.
I
look
forward
to
the
15th.
Thank
you.
B
AL
Kind
of
makes
me
wonder
if
we're
being
too
limited
in
our
thinking
in
the
other
part
of
the
analysis
about
what
the
actions
we
should
take
are
I
appreciate
that
this
does
sound
like
an
urgent
problem
that
we
should
deal
with.
On
the
other
hand,
I'm
I'm
a
bit
loathe
to
make
urgent
decisions
for
the
long
term
when
we're
in
a
in
the
what
looks
like
a
very
poor
economic
situation.
That
could
be
very
short
term.
AL
We
don't
really
know,
obviously,
but
you
know,
I've
been
taught
not
to
make
investment
in
other
decisions.
Write
it
right
at
a
moment
of
highest
interest
rates,
low
Market,
all
the
things
that
are
just
right
now:
kind
of
a
perfect
storm,
so
I
just
want
to
kind
of
ask
questions
about
whether
we
might
want
to
put
the
brakes
on
it
a
little
bit
to
understand
what
the
trends
are
and
what's
going
to
happen.
And
what
really
are
the
levers
that
are
going
to
be
most
impactful?
AL
AL
K
A
lot
of
the
decisions
we
were
mentioning
were
really
longer
term.
The
downtown
high-rise
program
piece
is
obviously
the
the
more
near
term,
but
it
is
a
little
bit
urgent
right
now,
because
the
the
program,
the
the
projects,
have
to
complete
construction
by
June
of
2025,
and
so
really
the
window
is,
is
really
closed
for
that
they
really
need
to
start
now
or
very
soon,
to
kind
of
meet
that
timeline.
AL
Okay,
I
appreciate
that
I
mean
I,
see
that
there's
a
short-term
piece
to
your
recommendation,
at
least
based
on
what
I've
seen
as
a
preview,
but
there's
also
some
some
longer
term
pieces
to
the
recommendation
as
well
that
I'm
a
little
more
uncomfortable
with
at
this
point.
So
I
just
want
to
kind
of
throw
that
out
there
now
and-
and
we
have
some
time
to
think
about
it
between
now
and
and
the
15th.
AL
AL
K
Yeah
so
part
of
the
thinking,
this
goes
back
to
kind
of
the
panel's
discussion
about
certainty.
You
know
and
the
near
term
versus
the
long
term,
and
so
just
you
know
so
in
the
near
term,
providing
that
certainty
to
those
developments
that
might
move
forward
and
then,
in
the
long
term
signaling
to
the
market
where
we
might
be
headed
in
terms
of
their
requirements.
Moving
forward.
C
K
So
messaging
that
now
and
having
that
in
place
is
important.
So
as
there
as
we're
emerging
from
you
know
the
economic
conditions
now
you
know
they
can
make
plans
to
accommodate
the
requirements
or
fees
that
were
we're
asking
for,
so
that
that's
sort
of
the
thinking
in
in
where
we're
going.
We
can
talk
more
about
it
at
the
the
council
meeting
and.
AL
After
the
presentation
we
heard
here,
I'm
a
little
uncomfortable
given
there
were.
We
heard
how
complex
this
is.
How
many
levers
there
are,
how
many
things
I'm
not
completely
convinced
that
we've
done
the
analysis
that
tells
us
that
this
is
the
right
thing
to
do
at
the
right
time.
I
guess
I'm
just
put
that
out.
There.
AH
Council,
member
and
mayor
council,
I
I
just
wanted
to
to
pop
in
I
from
staff's
point
of
view.
Obviously
we're
we're
Jennifer's
and
the
council's
pleasure
right
now.
There
may
be
a
few
projects
or
a
limited
number
of
projects
that
would
go
and
if
we
in
effect
make
it
yet
more
costly,
they
really
won't
be
able
to
go
so
to
your
point
about
with
everything
going
on.
Why
do
it
now?
Because,
in
conversations
that
we
have
with
key
Developers,
they
are
going
to
try
to
go
and
Drew
mentioned
that
there
are
outliers.
AH
AL
Okay,
I
appreciate
that
one
of
the
things
that
I've
been
wondering
about
since
I
saw
the
preview
and
this
presentation
today
is
and
I
think
I
asked
this
question,
but
we
didn't
really
have
the
details.
Is
it
possible
to
do
a
height
sensitivity
analysis
to
understand
you
know
what
you
know.
We
have
22
stories,
but
what
is
the
analysis?
Look
like
as
we
change
that
number
I
know
that
we
haven't
done
that
analysis,
but
is
there
a
way
to
do
that
analysis.
AC
Y
B
AC
Once
you
get
higher
than
that
you're
into
type
3
Wood
Construction,
which
has
a
greater
cost
per
square
foot,
but
you
can
get
greater
density,
so
there's
a
trade-off
there
and
we
did
a
project
in
downtown.
We
call
the
Pierce,
which
appears
to
be
eight
stories,
but
it's
you
know
two
of
concrete
five
of
wood
and
the
very
very
top
level
have
Loft
mezzanine
spaces.
So
there's
not
an
elevator
stop
at
that
highest
level.
That's
the
extreme
that
you
can
do
with
Wood
Construction,
so
seven
stories
nominally
eight.
AC
AL
Right,
yeah
and
I
understand
that
I
guess
I'm
also
thinking
about
within
the
type
one.
What's
the
sensitivity
analysis
I
mean
if
it
were
24
or
25
20,
you
know,
in
other
words,
I
know
we
have
height
limitations
in
certain
parts
of
our
city.
Obviously
we're
dealing
with
that.
We
have
places
where
we
don't
maybe
don't
have
the
same
height
limitations
and,
of
course,
I'm
always
interested
in
North
San
Jose.
But
what
what
can
we
get
some
information
about?
AL
AB
AB
K
Y
AL
AL
Right,
I
guess
I'm
yeah
I
mean
I
feel.
Obviously
it
gets
more
expensive.
The
more
you
build,
but
it
also
the
denser
the
more
payoff.
So
they
get
so
presumably
there's
a
curve
of
height
to
cut
to
pay
back,
not
necessarily
the
cost
cost
will
go
up
but
height
to
the
residual
or
whatever.
The
you
know.
Measure
we
want
to
use
is.
AM
Sorry
I
I
just
to
follow
up
on
Jake's
comment.
Yeah.
There
is
a
point
where
the
costs
do
start
flattening
out
in
terms
of
the
height.
We
would
have
to
run
some
analysis
to
determine
where
that
is
so
that,
with
the
additional
residential
you
do
start
seeing
an
increase
in
value
or
or
less
negative
residual
value,
because
your
costs
are
starting
flat
out,
but
we'd
have
to
run
some
announcements
to
determine
at
what
height
that
would
occur.
Okay,.
AL
Thank
you
just
sort
of
back
to
the
main
point
and
then
I'll
wrap
it
up
I'm.
You
know
given
that
nothing's
given
this
is
saying
that
really
nothing's
feasible
right
now
and
we're
gonna
have
to
make
some
adjustments.
We
think
some
things
might
happen.
I'm
also
concerned
about
saying:
well
we're
going
to
do
this.
AL
We're
gonna
we're
gonna
push
through
some
some
or
extend
what
we
have
going
on
in
downtown
to
make
down
some
downtown
projects
feasible
without
thinking
about
what
how
we're
going
to
make
sure
that
the
projects
that
we
have
in
the
pipeline
in
other
parts
of
the
city
are
going
to
happen
as
well.
I
just
want
to
throw
that
out.
There
I'm,
not
sure
we
have
an
answer
at
this
moment,
but
you
know:
we've
approved
some
projects
in
other
parts
of
the
city.
Are
they
going
to
get
built?
I
don't
know.
AL
We've
also
certainly
want
to
get
moving
soon,
hopefully
on
North,
San,
Jose
and
I
want
to
make
sure
that
we
are
thoughtful
about
what
levers
we're
going
to
use.
I
know
parking.
Is
one
I
really
look?
You
know
look
forward
to
that
conversation,
but,
as
I
saw
I
just
I
guess
it's
back
to
when
I
saw
the
presentation.
My
my
takeaway
was.
This
is
very
complicated
and
we
have
a
lot
of
levers
and
we
should
really
understand
what
levers
are
going
to
have.
The
most
impact
and
I
also
want
us
to
be
consider.
AL
AL
This
is
partly
a
staffing
issue,
but
there's
procedural
things
as
well
that
that
that
approvals
and
planning
is
really
important,
as
well
timelines
to
make
sure
that
we're
getting
things
done
as
efficiently
as
possible
through
whatever
means
we
have
to
try
to
Empower
developers,
who
are
some
of
the
repeat-
Developers,
for
example,
who
keep
coming
back,
but
we're
still,
but
we,
but
our
process
makes
it
very
onerous.
So
I
think
we
ought
to
be.
AL
B
B
B
B
Maybe
they
don't
pay
taxes
like
a
if
it's
a
if
it's
Calpers
or
somebody
and
those
are
just
very
unique
circumstances,
and
that's
just
not
where
most
of
the
market
is
in
terms
of
financing
and
so
I
I
think
the
reality
is
all
we
can
hope
to
do
is
maybe
get
one
or
two
out
of
the
ground
we're
talking
about
downtown.
If
that
I
think
it's
probably
going
to
be
a
long
time
before
we
see
another,
it's
already
been
since
2017,
since
we've
seen
a
groundbreaking
in
downtown.
B
So
that's
half
a
decade
in
the
middle
of
what
was
perhaps
the
grace
economic
Boon.
This
Valley
has
ever
seen
in
the
heart
of
this
Valley
we've
seen
zero
high
rises
break
ground
in
a
half
decade,
while
other
cities,
Seattle
La
all
throughout
the
country,
have
seen
many
dozens
I
think
we
counted
68
cranes
in
the
air
in
Seattle
at
one
time.
By
the
time
we
had
I
think
one
or
two.
So
it's
not
as
though
it's
a
close
question
here,
it's
a
we
are.
B
We
don't
need
to
measure
the
distance
to
the
wall
to
know
we
need
to
jump
toward
it.
We've
got
to
do
some
jumping
because
we're
just
a
long
way
off
and
I.
Think
we've
seen
the
Housing
Development
over
the
last
three
or
four
years
and
the
numbers
are
really
even
before
the
pandemic.
2019
the
housing
costs
were
clearly
killing
us
and
I
know
that
there
are
members
of
our
Building
Trades
who
Advocate
strongly
as
they
as
they
often
do,
and
they
yes,
they
should
absolutely
be
at
the
table
in
these
conversations.
B
But
the
suggestion
was,
for
example,
that
you
know
if
we're
going
to
reduce
costs
and
we
ought
to
have
things
like
local
hire.
So
let
me
ask
Drew,
you
developed
both
affordable
and
market
rate
housing.
I
know
you
use
labor
and
non-union
I'm.
Sorry,
Union,
non-union
labor
tell
us
what
local
hire
is
going
to
do
to
cause.
AC
AC
Local
hire
is
is
even
a
separate
policy
that
it
just
tends
to
decrease
the
pool
of
contractors
that
you
can
go
to
and
so
anytime
you're
decreasing.
That
pool
you're
decreasing
the
competition
and
it
allows
those
that
qualify
within
that
pool
to
you
know
with
left
with
less
competition
to
to
bid
less
aggressively.
AC
So
what
happens
to
your
cost?
The
costs
go
up.
Okay
and
I
can
point
to
an
experience
in
a
San,
Mateo,
County
city.
Where
a
direct
policy
question.
We
were
buying
land
from
a
successor
agency,
post,
Redevelopment,
effectively
the
city
council
and
the
successor
agency,
with
the
same
group
of
people
as
often
happens,
and
we
are
currently
building
a
100
percent
Union
project
and
we're
very
proud
to
do
it.
We're
building
it
with
pension
fund
money
from
the
unions.
AC
But
that's
not
what
drove
that
decision
and
and
in
the
final
Council
hearing
when
the
land
price
was
being
determined.
There
was
an
open
transparency
that
said,
we
could
pay
much
more
for
the
land
with
an
open
shop
construction
or
we
can
pay
less
for
the
land
with
Union
construction
and
the
carpenters
union
and
the
the
MEP
unions
were
in
the
room
with
us.
They
were
supporting
us
and
they
spoke
for
our
project.
AC
But
right
before
the
vote,
the
mayor
of
that
town
made
a
very
clear
point
to
say
to
the
union
Representatives.
We
are
making
a
policy
decision
to
support
you
and
we
are
taking
less
money
for
the
land
so
that
you
can
make
the
wages
that
you're
making
and
that
you
can
support
the
causes.
You
support
right
and
it's
a
choice
and
like
every
policy
Choice
we've
talked
about
today,
there
are
costs
and
benefits
and.
B
That's
a
good
thing
for
a
city
to
do
many
cases
when
the
city
owns
a
land,
but
I
think
we
know.
Private
development
in
our
city
doesn't
happen
on
city-owned
land,
I
think
the
only
city
on
land
we
use
to
build
housing
for
the
most
is
basically
affordable,
housing
that
that
is
100,
affordable
that
we're
using
so
in
a
world
where
you
don't
have
a
city
willing
to
reduce
the
price
of
land.
How
does
that
affect
the
viability
of
construction?
Well,.
AC
Y
AB
AB
It's
not
the
labor
rates
themselves
that
we
pay
the
union
laborers,
it's
because
they're,
a
smaller
pool
of
contractors,
so
what
they
mark
up
what
the
subcontractor
companies
are
actually
making
versus
what
we're
paying
the
laborers?
That's
where
it
becomes
less
competitive.
We
could
control
the
markup
in
the
market.
I
think
it'd
be
less
impactful
if
we're
always
using
unit
labor.
AB
B
You
you
know,
I've
heard
similar
comments
from
others
who
are
required
to
use
prevailing
wage,
that
there
is
a
difference,
whether
they're
constrained
in
that
way,
or
not,
that
even
if
everybody's
getting
paid
prevailing
wage,
the
issue
isn't
what
the
laborers
are
getting
paid
or
the
Carpenters.
That's
this
diminished
pool
of
subcontractors
and
what
kind
of
rates
they're
getting
yeah
this.
AE
Is
an
area
where
Regional
advocacy
I
think
can
really
help
the
city.
So
this
you
know
labor
was
probably
until
this
past
year.
The
number
one
reason
why
very
few
housing
laws
went
through
at
the
state
level.
They
effectively
stopped
all
the
conversations
there
and
we
had
a
few
that
went
through
this
year.
AE
Sb6
and
ab
2011,
so
we'll
see
how
those
play
out,
but
I
really
hope
to
see
the
state
legislature
support
labor
and
try
to
find
some
ways
so
that
we
can
really
get
at
the
heart
of
this
issue,
which
is
that
there
are
not
necessarily
enough
workers
in
the
right
places
for
some
of
these
policies
to
really
make
sense.
We
work
in
11
counties
and
the
situation
is
drastically
different
in
Sonoma
and
sand
in
Santa
Cruz
than
it
is
I'm
here.
AL
Last
question
I
didn't
want
to
come
back
yeah
just
follow
up
I,
remember
the
question
I
was
going
to
ask,
but
also
something
else
was
triggered
by
the
mayor's
comment
about
Seattle
versus
San
Jose.
So
let
me
just
understand:
I
mean
there's
obviously
differences
and
are
all
the
differences
now
between
building
in
places
like
Seattle
versus
San,
Jose
instruction
costs,
land
costs.
Those
are
the
two
big
differences,
so
oh
okay,
SQL
costs,
so
we
ought
to
do
some
advocacy
to
try
to
fix
that
problem
as
well.
AL
I
mean
there's
other
solutions
to
this,
obviously
not
immediate,
but
there's
solutions
to
this,
so
the
question
I
was
going
to
ask
was
we
were
talking
about
I
know.
This
goes
against
that
whole
comment
about
certainty
a
little
bit,
but
we're
talking
about
develop
projects
that
may
happen
if
we
were
to
give
some
some
of
this
cost
reduction
in
some
way.
AL
You
know,
given
this
menu
of
things,
we
can
do
I
I,
wonder
whether
it
makes
sense
to
work
with
developers
to
say
what
are
the
things
on
this
menu
of
things
that
will
make
this
project
affordable
for
you
and
work
on
a
case-by-case
basis
during
this
particularly
challenging
time,
as
opposed
to
creating
long.
You
know
any
kind
of
blanket
policy
that
we
have
to
then
make
projects
fit
under.
Is
it
is
this
something
that
is
possible
so
that
we
could
say
hey?
AH
AL
Okay,
I
appreciate
that
I'm,
just
you
know,
I
think
being
creative
and
Nimble
is
going
to
be
important
during
this
time
and
so
I
just
want
to
throw
that
also
bring
that
up
as
a
possibility,
because
I'm
again
I'm
hesitant
to
make
decisions.
That
might
not
be
the
right
ones
in
two
years,
but
I'm
completely
aware
of
our
desire
to
get
projects
built
and
want
to
make
sure
we
find
the
best
way
to
do
that.
K
All
right,
I
just
wanted
to
add
to
the
importance
of
having
this
report
regularly
kind
of
gives
you
the
check-in
and
ability
to
know
what
the
conditions
are
to
kind
of
make.
Those
decisions
regularly
right
so
that
you're
not
necessarily
always
making
these
long-term
things.
Not
having
kind
of
a
third
party
check
on
what
the
realities
are
right.
AE
It
just
speaks
to
staff
time
and
that
many
of
the
on
the
affordable
side,
these
innovations
that
we've
come
up
with
it
would
just
help
other
projects
move
more
quickly,
so
that
you
don't
end
up
having
to
have
really
complicated
development
agreements
about.
However,
your
structure,
these
agreements
they
take
time,
they
take
an
attorney.
AE
AL
AL
B
With
your
time
and
lending
your
expertise
to
us
all,
right,
I
think
we
have
exhausted
all
the
questions,
so
we
will
now
recess.
I'm
told
that
there's
no
open
forum
for
this
portion
because
the
study
session
we
will
go
over
to
the
rest
of
the
council
agenda
shortly
so
for
fans
at
home.
That
means
we'll
be
resuming
at
six
o'clock
as
scheduled
on
the
agenda,
and
everyone
have
a
nice
break.