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File Number: 16-047 <br />In addition to the zoning code, which guides the potential uses, the City will have Design <br />Review authority over the project through the entitlement process and will therefore be able to <br />ensure that it meets community standards in terms of quality of design and construction and <br />compatibility with surrounding uses. <br />The TOD zoning has been designed to support high density and encourage alternative means <br />of transportation. Accordingly, parking minimums in the DA-1 zone are as follows: <br />·Residential: 1.5 spaces per unit (0.25 - 0.50 per unit may be unbundled) <br />·Retail and Office: 2 spaces per 1,000 square feet <br />This site also benefits from the presence of the Downtown Parking Garage immediately <br />across the street. The garage has excess capacity and was designed, in part, to take <br />pressure off the need for parking at nearby development sites. <br />The City is presently nearing the conclusion of a multi-year General Plan update process. <br />Although major changes are not expected for the zoning or General Plan designations, it is <br />possible that slightly higher residential densities will be permitted at this location. Sansome <br />Pacific is aware of this possibility and may consider minor changes to the plans for the project <br />if those modifications are ultimately adopted. <br />Marketing and Sale Process <br />In early 2015, both the City and CVS agreed to work with Larry Bell, a Vice President at Jones <br />Lang LaSalle to serve as the listing agent and broker for the properties and assist in <br />marketing them to potential developers. The goal of the process was to cast a wide net and <br />ensure that a large number of qualified developers were aware of this opportunity site. The <br />marketing materials included information of the zoning and allowed uses, which are consistent <br />with the City’s vision for the site. Potential buyers were also given the opportunity to request <br />information from either listing agent or City staff. In addition to fielding inquiries from potential <br />buyers, the listing agent reached out to over 40 Bay Area developers and City staff reached <br />out directly to approximately 30 others. <br />Although the site was not marketed with a formal asking price, the selling parties made clear <br />to interested buyers that the City would need to recoup the appraised value for the parking lot <br />and that CVS intended to recoup its full book value for their parcel. The City commissioned an <br />appraisal from a licensed real estate appraiser in November 2014, which determined the <br />market value for the parking lot is $1,280,000. Because the CVS parcel contains a usable <br />structure and is located on the corner of a busy intersection, it has a notably higher value. <br />Combined, the City and CVS needed an offer of at least $4,400,000 to facilitate a sale of the <br />two properties. <br />Developer Selection <br />After several months of marketing the site, the City and CVS called for offers on July 1, 2015. <br />Eight offers were received. After an initial review of the offers, four were eliminated from <br />consideration. Of those, two were not viable in terms of price, one consisted only of ground <br />Page 3 City of San Leandro Printed on 2/10/2016