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REPORT ON PROPOSED PLAZA 2 REDEVELOPMENT PLAN AMENDMENT SUMMARY AND OVERVIEW SummaEy On August 18, 1997, the San Leandro City Council will consider an amendment to the Plaza 2 Redevelopment Plan to change the land use designation of the property at the northeast comer of San Leandro Boulevard and Davis Street (960 San Leandro Boulevard, also known as the "Corporation Yard site") from "Residential or Office" to "Retail Sales, Office Facilities, or Residential." This amendment is recommended because office development has not proved to be a viable use in the real estate market, and residential uses would be severely impacted by noise from the adjacent commercial streets and BART tracks. Retail sales can provide desired community services and reinforce the downtown commercial center. This report has been prepared pursuant to California Redevelopment Law which requires a Redevelopment Agency report to the legislative body (City Council) when an amendment to the Redevelopment Plan is proposed. The Redevelopment Agency report requirements for plan amendments mirror those elements needed for the adoption of a redevelopment plan. Many of the required sections are not relevant to the proposed plan amendment, and are noted as such. Proposed Plan Amendment The proposed Plan Amendment amends the Land Utilization Plan of the Plaza 2 Redevelopment Plan to change the land use designation of the property at the northeast comer of San Leandro Boulevard and Davis Street from "Residential or Office" to "Retail Sales, Office Facilities, or Residential." See attached Land Utilization Plan included as part of Exhibit A. Discussion The Land Utilization Plan of the Plaza 2 Redevelopment Plan designates the property at 960 San Leandro Boulevard for Residential or Office Use. It was envisioned that it would be desirable to locate employment and medium- to high -density residential uses close to the BART station. However, office development has have not proved to be a viable use in the current and mid-term real estate market, and residential uses would be severely impacted by the noise from the adjacent commercial streets and the BART tracks. Adding retail sales as an additional permitted use is recommended because it provides an opportunity to bring community services that do not exist, and because retail is the land use that gives the public maximum opportunity for enjoyment of the creek area. Also,