RDA Reso 2004-008 - Laserfiche WebLink

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33433 Report Page 3 of 5 1040 Davis SU-eet DDA May 2004 documents following the approval of the DDA. Escrow fees will be shared with the buyer and taken out of the net proceeds in escrow. The City of San Leandro will also be repaid for its interest in 1016 and 1040 Davis, pursuant to the previously adopted agreement following close of escrow. The Agency's net proceeds will be the remaining balance following repayment of the appraised value of the City parcels. ESTIMATED VALUE OF THE INTEREST DETERMINED AT HIGHEST AND BEST USE The four properties are discussed as one unit ("Property"), containing approximately 20,000 square feet, throughout this report. The Property was appraised in August 2003 at a value of $396,000 for multifamily housing as the highest and best use for development permitted by the Zoning Code, in the opinion of the appraiser. The zoning on the Property varies by parcel. The fire station and driveway, two separate parcels, are zoned RM (multi-family residential), like the high-density apartment buildings directly east and north of the property. The two vacant unimproved parcels are zoned CN (Neighborhood Commercial), like much of the rest of the Davis Street frontage. Multifamily is allowed in CN with a conditional use permit, the cost of obtaining which was not considered in the appraised value. Multifamily is allowed in ROR (Residential-Office-Retail), the Plaza Redevelopment Plan's land use designation for the site. In many parts of Davis Street, including this Property, the Zoning Code, General Plan, and Redevelopment Plan land use are slightly misaligned, affecting the development potential of many properties by increasing the cast of development. Bringing the various plans into conformity with each other is a long-term project of the Community Development Department. ESTIMATED VALUE OF THE INTEREST DETERMINED BY USE REQUIRED BY SALE ~_~. Because of the awkward configuration of the Property, its small size, and its adjacency to a small residential street with one to two story single-family homes, multifamily residential is not a feasible development option. This was the interdepartmental staff consensus and was verified by the market - no multifamily developments were proposed as a result of the RFP conducted for the property in 2003. Most Suitable for Office Development Office uses are also consistent with ROR redevelopment plan designation, and a more appropriate use under the General Plan's recommendation of neighborhood-scaled commercial uses for the Property, and the design guidelines of the Urban Design Plan for the Davis Street Corridor (Urban Design Plan), adopted in 1991. However, because of proximity to single- family homes on Dabner Street, the development should not exceed two stories or 30 feet, which caps development potential. The site's value and re-use potential is also affected by its location