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MINUTES Page 7 City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-May 2, 2005 Councilmember Stephens commented that while there are positive aspects to the project, he understands the concerns that have been expressed. He agreed that the matter should be referred to the Business Development Committee for review. Councilmember Santos agreed with the comments made by Councilmember Stephens and noted that the Council did not have enough information to fully understand the pros and cons of this type ofproject. He suggested referring the matter to either the Planning Commission or the Board of Zoning Adjustments, whichever had the authority to hear the matter. Mayor Young concurred with Councilmember Nardine's observations regarding the General Plan. She invited the applicant to make comments. Gaye Quinn, representing 433 Estudillo LLC, addressed the City Council, apologizing for any confusion on the matter. She stated that the building tenants are currently under leases, and they have been notified in writing that their leases will be honored if they do not wish to purchase their condominiums. The plan for the building is to retain the existing use as a medical office building, and Ms. Quinn indicated that she did not believe the current zoning would allow the types of uses about which the Council had expressed concerns. Additionally, she noted that the building is approximately 80% occupied by medical and dental uses, and most of the interest expressed has also been for medical or dental uses. Ms. Quinn noted that the building was built in 1968 and has been under-maintained for a long time. She stated that their goal is to reposition the building in the marketplace, so that the occupying businesses have a stake in the community and can control their costs. Ms. Quinn noted that a tenant can purchase a unit and lease it to its corporation, for which it receives tax benefits. She pointed out that the conversion presents an unusual opportunity to the existing tenants, and most of the tenants have indicated that they are very interested in purchasing their units. Ms. Quinn stated that many of the tenants have not been pleased with the way the building has been maintained, and she indicated that the plans submitted to the City include about $1 million in improvements to the building. Mayor Young noted that there was both the issue of this project, which she suggested be referred to the Planning Commission for a recommendation, and the issue of a general policy regarding rental-to-ownership conversion of commercial buildings. Mr. Horn clarified that the Planning Commission does not have authority over the Zoning Code, but the matter could be referred to the Commission for comment and recommendation. Mayor Young expressed concern about referring the proj ect to the Business Development Committee, noting that it would delay the process for the applicant. Regarding Ms. Finberg's request to allow the business community the opportunity to address this matter, Councilmember Starosciak indicated that she felt the Business Development Committee would be the appropriate venue for the discussion.