Reso 2004-081 - Laserfiche WebLink

Home

33433 Report .Page 5 of 5 1040 Davis Street DDA May 2004 project include a Development Fee for Street Impact assessment of $2.55 per square foot for office with only minimal credit for the prior use, and a Utility Undergrounding Conversion fee of approximately $32,800 because the site is located in a utility undergrounding district. These conditions in addition to the costs of renovating the building with, what are at this point unknown seismic upgrade requirements, contribute to development costs estimated at over $1,736,000 (not including land) for a result of 9500 square feet of building space. ELIlVIINATING BLIGHT Davis Street is awell-traveled gateway into the City, with a freeway exit and entrance less than a half-mile from the Property. The Property, on ahighly-visible corner, currently consists of a vacant lot, buffered from the street by a dilapidated chain lulk/slat fence, and an abandoned building. Its prominent location and unattractive condition led to its designation as one of the focus "Key Sites" in the Urban Design Plan's development concepts section. This project will result in two attractive buildings, one new and one significantly renovated, fulfilling the development requirements for private projects suggested by the Urban Design Plan. The setbacks will be less than 10 feet from the public right of way, with landscaping in front, creating a strong street presence. The building facades contain many windows, giving an impression of light and activity on the street. The one way in, one way out proposed parking lot circulation will be an effective way of managing traffic around the development while minimizing interference with pedestrian traffic on Davis Street. T'he proposed development will add value to the project area and its immediate vicinity, improving the .appearance of this major entry route, and removing a major source of visual blight, a vacant lot, that has been in existence for more than 10 years. CONCLUSION The challenging conditions and development requirements lead to a reasonable discount of the property value of about 54% from the value as appraised for multifamily as considered the highest and best use. In summary, the difficulties of developing a feasible office complex, the desired use, on this parcel make the land price drop to approximately $9.10 per square foot of land. G:\DEP'I~O~ce of Business Development\Files RDA\Pla2a\1040 Davis -FS#1033433 report.doc