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MINUTES Page 6 City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-May 2, 2005 Community Development Director Hanson Horn noted that commercial conversions are not subject to local zoning regulations as are residential conversions. Additionally, since there are no proposed changes to the use or proposed major building modifications, the project did not require a review by the Planning Commission or Board of Zoning Adjustments. Mr. Horn indicated that the applicant is engaged in active discussions with the current tenants to arrange for purchase of their units if they are interested in doing so, and many of the tenants are interested in taking advantage of the currently low interest rates. Public Comments on Item 8.D.: Heidi Finberg, San Leandro Chamber of Commerce, addressed the City Council, stating that while the Chamber does not oppose the project, some business owners located in the 433 Estudillo building have expressed concern about having to relocate their businesses if they do not want to purchase their units. Ms. Finberg suggested that, since this project sets a precedent for the business community, the Council consider referring the matter to the Business Development Committee and allowing the business community the opportunity to address the subject. End of Public Comments Vice Mayor Badger indicated that he requested that the item be removed from the Consent Calendar since it was the first project of its kind, and he felt the Council needed to examine it from a broader standpoint. He asked about the length of the existing leases. Councilmember Grant noted that she had been prepared to remove this item from the Consent Calendar as well. She asked if there were Planning or Zoning restrictions on the use of the offices and whether there should be the same types of reviews and restrictions on commercial conversions as there are on residential conversions. She suggested that perhaps the matter should have been discussed by a Council committee. Councilmember Grant commented that this proj ect may signal a trend, and the Council should be prepared if similar projects come forward in the future. She expressed concern regarding the long-term impact of such projects and whether there may be a movement away from rental office space. Councilmember Nardine asked how business use within this project will be regulated, noting that normally uses must be consistent with the General Plan. She agreed that it would have been a good idea for the Business Development Committee to review the matter. She expressed concern regarding whether the building exterior will be addressed. Councilmember Starosciak noted that she has over forty questions regarding the proj ect. A motion was made by Councilmember Starosciak to refer the matter to the Business Development Committee. The motion died for lack of a second.