pages: CityCouncil/2010-06-01.pdf, 15
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CityCouncil | 2010-06-01 | 15 | AGENDA ITEMS (10-39 CIC) Public Hearing to Consider Adoption of Resolution Approving and Adopting the Five-Year Implementation Plan for the Business and Waterfront and West End Community Improvement Projects for Fiscal Year 2009 through 2010 and Fiscal Year 2013 through 2014. Continued to June 15, 2010. (10-270 CC/ARRA/10-40 CIC) Recommendation to: (1) Direct Planning Board to Provide Advisory Recommendation on SunCal Modified Optional Entitlement Application at June 21, 2010 Meeting, and (2) Set Public Hearing for Decision on SunCal Modified Optional Entitlement Application and/or Extension of the Exclusive Negotiation Agreement from Governing Bodies of Alameda by July 20, 2010. The Deputy City Manager - Development Services gave a brief presentation. Councilmember/Board Member/Commissioner Matarrese inquired whether milestone documents would be public upon submission, to which the Deputy City Manager - Development Services responded in the affirmative. Speakers: Jean Sweeney, Alameda; Jim Sweeney, Alameda; Jon Spangler, Alameda; William Smith, Alameda. Stan Brown, SunCal, gave a Power Point presentation; stated that he disagrees with large elements of the staff report; the major issue he would discuss is the assertion that SunCal has used overly aggressive or optimistic assumptions in developing its pro forma; if the recommendations of City staff and Economic & Planning Systems (EPS) are adopted, there would be substantial degradation to the project pro forma to the extent that the project may become financially infeasible; long range forecasting of project pro formas is difficult; assumption analysis needs to be based upon a clear understanding of industry business practices and a commitment to keep apples to apples comparisons; SunCal believes an apples to oranges comparison has gone on; the staff report identifies a number of differences between SunCal's estimates on various parameters and EPS's recommendations; EPS estimates $860,000 and SunCal estimates $1,042,000 for single family home sales in the year 2014, which is a 21% difference in value; the EPS study put historical sales prices in Alameda into two buckets: 1) single family and 2) all housing, including condominiums, townhouses, duplexes and single family homes; EPS came up with $582,000 for a 1600 square foot house contrasted with SunCal's $900,000 for a 2500 square foot house; house size has a material effect on the sale price of a home; EPS's real price growth of 2% raises the price to $630,000; then, EPS applied a 1.22 factor higher sales price for Alameda Point to come up with a projection of $769,000; a 3% annual inflation rate reaches a nominal real price of $862,000; the problem with the analysis is that EPS is confusing the buckets and comparing a 1600 square foot house to a 2500 square foot house; the value per square foot of the $860,000 1600 square foot home is $539 per square foot; Special Joint Meeting Alameda City Council, Alameda Reuse and Redevelopment Authority, and 4 Community Improvement Commission June 1, 2010 | CityCouncil/2010-06-01.pdf |