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Staff Report 5.A 10/21/2013 - Attachment 11 - Part 2
ATTACHMENT G Proposed Development;at:35 Maria Js{eLee [Iislelee @comcast.net] 3ent:Tuesday,July 23, 2013,6:14 PM ro: councilman.aibertson @gmail corn;a eresa4petaluma@comcast.net, mayordavid glass @gmail.corn, mike4pet@aol.com., mthealy @sbcglobal.net; councilmemberkeamey @me.com; kathieencmilleroffice @gmaiLcom; Giudice,Alicia Dear City Council, I am writing to vehemently oppose the proposed apartment complex at 35 Maria Drive and the proposed.Ad dision Ranch expansion. The traffic will become ainightmareon Maria,especially at the intersections of McDowell and Maria and,Washington and Maria. Traffic at--;the intersection of McDowell.and Washington is at the point of congestion where people are already taking Maria drive to by-pass that intersection. When the two new shopping centers are completed on Washington St. and McDowell Blvd. at Rainier,the traffic at those intersections will be even worse and more cars will detour down Maria: To add to that traffic by adding,more apartments is irresponsible. The city has already allowed a new senior apartment bldg.`across from Lucchessi Park. To add more low income housing within a stone's,throw of the McDowell and Washington Street intersection and further impact the surrounding single family residential neighborhoods is not in the best interest of the city. Furthermore,the apartments;when it was Greenbrier, brought in more crime and gang activity to a residential neighborhood and made residents nervous about going out at night Adding more low income housing will only compound the problem. We do not want to see our neighborhood become a ghetto. We have already been generous about sharing our neighborhoods with seniors and low income residents. However, enough is enough. Lisle Lee 120 Eastside Circle Petaluma, C.A 94954 11-51 Giuiiice; Alicia. From: bonbarbpet@comcast.net Sentt. Tuesday,July 30,2013 10:25 AM To Giudice.Alicia;councdman.albertson @g mail.com;teresa4petaluma @comcastnet mayordavidglass @gmail.com; mike4pet @aol:com; mthealy @sbcglobal.net councilmemberkearney @me:com;kathleencmilleroffice @gmail.com Subject Fwd: Proposed Development located at 35 Maria,Drive We^are writing this in regards to the proposal to re-zone the two lots+,at 35 Maria Drive in order to allow a-high density apartment complex consisting of 144 units to be built on the property. WW have lived in our horns at 64 Maria Drive since 1970 and have witnessed many changes over the years. What was'a dead end street when we purchased our home hasbecamea major speed way with a stop sign at the entrance of our driveway: Maria Drive between East Washington St. and McDowell Blvd. is a major thorough fare now and the impact of this project traffic wise would be huge. In the interest of trying to protect and maintain our neighborhood we oppose this project as it is currently proposed. A smaller project with fewer units and more green ways, would be more acceptable. Also in relation -to this proposed complex there is currently a request`from Addison Ranch which is directly across the street from 35 Maria for an additional 100'units. We wish to maintain our single family home neighborhood and feel that the impact of this proposed zoning change would adversely effect our quality of life. Stanley and Barbara Dettner bonbarbpet(a?comcast.net 11-52 July 25 2013 Petaluma Planning Division Dear Sir/ Madam My name is Darold Graves and my wife and I have lived at 73 Eastside Circle in Petaluma for over 35 years.I want to state that we are against the,proposal. I understand there will be a Planning Commission meeting on Aug 13 when the Planning Division will consider recommending rezoning of two lots at 35 Maria Dr,to allow a•high density apartment complex to be built.The development proposed is a.three-story apartment complex with144 units. In a separate application,the Addison Ranch complex (formerly Greenbrier)is also requesting rezoning for the addition of 100-125 units,some of which will also be three-stories high:. II These proposed developments and there-zoning would have a negative effect on the quality of life and property values in this neighborhood:. Other high density apartment complexes in the city are located next to business districts and on streets that are designed for heavy traffic:Maria Drive and some of the surrounding streets are not designed for.heavy traffic.In some cases,homes which currently have privacy would be overlooked by two-story and three-story buildings and this fact alone will cause a decreased value of surrounding properties. Here are other reasons that this development will have a negative effect on our neighborhood: 1. Traffic.The city planning'division report estimates that the number of'daily trips out of 35 Maria Drive will be 958 with the new development,for an increase 61782 daily trips. If we assume half that will go in either direction;on Maria,the traffic in each direction will increase by 391 daily trips. If 125 additional'units,in Addison Ranch are added,then;traffic,will increase by at least about another 415 trips for a total of 806 new daily trips in either direction down Maria.This is in addition to the increased traffic with the new Safeway.When the new shopping center across Hwy 101 is filled,the traffic will"increase at the W ashington/McDowell intersection,making a trip through our neighborhood more likely as Eastside residents avoid that intersection.Traffic will increase for all the neighborhoods in the area and would'warrant increased traffic control such as speed limits, road'6umps,stop signs and additional;police patrols to reduce home burglaries. 2. Decline of less desirable housing.Currently there is a shortage of rental housing in Petaluma.As more housing is built to accommodate this need,these high density complexes,will become less desirable housing and a decline will begin.There will be,economic pressure on management to delay or reduce maintenance,to allow more residents per unit and to lower standards as to who is allowed to rent.We just experienced this cycle with the Greenbrier Apartments.increasing the density of housing in'the'area will only exacerbate the decline that we saw before,which essentially turned Greenbrier in to a low cost area,complete with drugs and gang activity. 3. Pollution. During the'time'of decline at Greenbrier,the creek trail between our,neighborhood and the apartments was used as a place to parts?,eat,defecate and have sex,based on witness accounts and the trash that was left in the creek'and on the trail.This declined when the apartments changed hands,,however,what will prevent this'from happening again? Darold &Ida Graves 73 Eastside Circle 11-53 =wd: Planning on. 35 Maria and Addison Ranch lines, Heather ;ent:Sunday,July 28, 2013 1:00 PM Giudice,Alicia Sent:from my iPhone Begin forwarded message: From: Chris Albertson<councilman.albertson @gmail.com> Date: July 27,2013, 5:30:33 PM PDT To: "Hines,Heather" <hhines @ci.petaluma.ca.us> Subject: Fwd: Planning on 35 Maria and Addison Ranch Hello Heather-- Just FYI I have received several of these letters about these two projects, all with the same sentimentThese concerns should be reflected in the DEIR if'one was done. — Chris Forwarded message --- From: Barbra Agazzi< azzi @comcast.net> Date: Sat,Jul 27, 2013 at 9:09 AM • Subject: Planning on 35 Mariaiand Addison Ranch To:jocelynyeh @yahoo.com,richard @lacehouselinen.com,kathleenmillero ce @gmail.com, jenpierrepetaluma@ yahoo.com,.johntenniswick @gmail.com, w olpert@ soni c.net, councilman.aibertson @gmail.com,teresa4petaluma @comcast.net, mavordav id glass @ gmail.com, mike/pet @aol.com, m thealy @sbcglobal.net, councilmemberkeamey @me:com,:kathleencmilleroffice@ gmail.com • To all Members of the Petaluma Planning Division and Petaluma City Council, It has been brought to my attention that the Planning division intends to recommend that two lots at 35 Maria be re-zoned to allow a high density apartment complex. I;have also been advised that the city will also be considering another building for what is now Addison Ranch, formerly known as Greenbriar. I can not express my objection to these projects strong enough. First, lets,talk about what we have already seen„happen to our neighborhood with Greenbrier. It was clear that the economy brought about many changes to the large Greenbrier complex and we watched as our park and path'4j 4 became:a.place not to play and ride bikes with out children, it became.a.place to keep our childrenaway from Drunken groups.of men hanging in the. pathways, furniture and trash and used condoms,stewn about and our children had to be warned to stay away. Drug deals clearly going down in our paric.and pathways. As the economy continues to improve ,, more people will once again buy houses and the apartment complexes will suffer economically again. Our neighborhood`will once,again become an area where it is not safe for our children ! Why would the council even consider doing such a thing? Now let's talk about traffic. The City has already ignored the vote for the cross connector at Ranier, allowed:a major shopping center to be built on East Washington and another one in progress on McDowell,,approaching the intersection of McDowell and Washington. THIS INTERSECTION CAN NOT AFFORD MORE TRAFFIC,I IT IS.A,NIGHTMARE TO:GET TO THE FREEWAY OR OVER THE FREEWAY AS IT STANDS ! You plan on building the soccer center, increasing the traffic even more and now these apartments '?! The polution brought,about will harm us even more Are our childrens asthma rates not high enough for`.our city council and planning division? The area that you are considering these plans are not.appropriate ! They are on side streets that CAN NOT afford the increase in people. They border private homes that will now have stories of residents looking down into their private homes. These buildings will ruin our residential neighborhood, driving "I out our stable long time„residents.and bringing in a much less desirable population, as renters, a TEMPORARY population,;"who will not have the interest in maintaining these neighborhoods. There are areas in Petaluma thatuare much more appropriate for these types of buildings. It is time.for the,City to prove itself to.the East side. Are we your dumping ground ? 'Getting every penny the City can will not help Petaluma in the long run. The,crime you are bringing to our neighborhood will reach out, effecting the entire city. Money is helpful but;not when its simply short term, causing long term crime and proverty. Petaluma can not afford the long term expense of the disasteryou will'.create if you approve these buildings. PLEASE consider ALL of your residents and vote;against these plans. Thank you, Barbra Agazzi 11-55 Red Teresa Barrett [teresa4petaluma @comcast.net] Sent:Saturday,July 27, 2013 2:21 PM To: Gabriela Torres[bgabrieia©attnet] Cc: Giudice, Alicia Ms.Torres, This project will be seen by the Planning Commission (not the City Council) on August 13th. Lam cc'ing the staff person in planning who will be working on this project who will make sure your letter and your concerns are forwarded to the planning commissioners in a timely fashion. Should you want to contact the commissioners directly,their contact information is available on the city's website under government, commissions,.planning commission. Thank you for your attention to this issue. Teresa Barrett Petaluma City Council Voice: 707:953:0646 E-mail: teresa4petaluma @comcast:net On Jul 27, 2013, at 11.31 AM, Gabriela Torres <b�abriels•net-wrote: To all Members of the Petaluma Planning Division and Petaluma City Council, It has been brought to my attention that the Planning division intends to recommend that two lots at 35 Maria be re-zoned to allow a high density apartment complex. I have also been advised that the city will also be considering another building for what is now Addison Ranch, formerly known • as Greenbriar: I can not express my objection to these projects strong enough. First, let's talk about what we have already seen happen to our neighborhood with Greenbriar. It was clear that the economy brought about many changes to the large Greenbriar complex and we watched as our park and pathways became a place not to play and ride bikes with out children, it became a place to keep our children away from. Drunken groups of men hanging in the pathways, furniture and trash and used condoms stews about and our children had to be warned to stay away. Drug deals clearly going down in our park and pathways. As the economy continues to improve , more people will once again buy houses and the,apartment complexes will suffer econcinli.dg f again. Our neighborhood will once again become an area where it is not safe for our children I Why would the council even consider doing such a thing? Now let's talk about traffic.. The City has already ignored the vote for the cross connector at.Ran_ier, allowed a major shopping center to be built on East Washington and another one in progress on McDowell, approaching the intersection of McDowell and Washington. THIS INTERSECTION CAN NOT AFFORD MORE TRAFFIC ! IT IS A NIGHTMARE TO GET TO.THE FREEWAY OR OVER THE FREEWAY AS IT STANDS I You plan on building the soccer center, increasing the traffic even more and now these apartments ?! The polution brought aboutwill harm us even more. Are our childrens asthma rates not high enough for our city council and planning division? The area that you are considering these plans are n.ot.appropriate. ! They are on side streets that CAN NOT afford the increase in people. They border private homes that will now have stories of residents looking down into their private homes. These buildings will ruin our residential neighborhood, driving out our stable long time residents and bringing in a much less desirable population, as renters;. a TEMPORARY population, who will not have the interest in maintaining these neighborhoods. . There are areas in Petaluma that are much more appropriate for these types of buildings. It is time for the City to prove itself to the.East side. Are we your dumping ground ? Getting every penny the City can will not help Petaluma in the long run. The crime you are bringing to our neighborhood will reach out, effecting the entire city. Money is helpful but not when it's simply short term, causing long term crime and proverty. Petaluma can not afford the long term expense of the disaster you will create if you approve these buildings. PLEASE consider ALL of your residents and vote against these plans. Thank`you, Jesus, Gabriela And William Torres 11-57 Giudice, Alicia From: Hines,Heather Sent Tuesday,July 30,2013 9:53 PM To: Giudice,Alicia. Subject: Fwd:Proposed Development at 35 Maria Drive i Here's a public comment re Maria Drivable Apartments Sent from my iPhone Begin forwarded message: From: Chris Albertson<councilman albertson(a >rmail•com> Date: July 30,2013, 9:39:41 PM PDT To: "Hines,Heather" <hhines@ci oetaluma.ca.us> Subject: Fwd: Proposed Development at 35 Maria Drive Again.... ----Forwarded message--------- From:Karen Shine<karenshine62no yahoo.com> Date: Tue,Jul 30, 2013 at4:56.PM. . Subject:Proposed Development at35-Mariarive To: "JOCenyg V --- .c cn <keel om>, "richdehouselinencom" nail.com" > "kathleencmilleroffi - • :�• <ricthleen�lacehouselinen.com , > '"enpierreoetalum nvahoo com" Qjtd,i�ic___�alemfF'irPnOTTlall.eOm1'> <ienpierreoetalum vao :com>,, ohntenniswiek(c�¢mazl.com" �� <`J,pinPrfnSomc.net>, ail:com>, "wolpert_ ��et �-- <iohntenni .alter em " an.albertson(a?umail•com>, "councilman.albertson• • �•. :oom <"o'''n"""'— "mike4oetnaol.com" . "teresa4oetalum ncomcast:net" <teresa4petalumancomm orda�ideass(nemail.com>; <mike4oetna aol.com>, "ma yordavid la M-?mail'.com my( cs oe l babe l bal.net <mthealV(�s�oelobal:net>, "councilmemberkeamey�me.com" <coimcillneame mne.com> - RE: Pro•osed Develo•ment at 35 MariaDrive and Addison Ranch Pro•osal Dear Petaluma Planning Commission and City Council Members:As a long time homeowner I have witnessed the extensive growth and ll eid g-n East Petaluma over the past 27 years. This growth has brought an influx.of traffic,.o, crime, graffiti and worse. The road planning, road repair and engineering ong aor ars oda ethe building,growth has proven to be ill-planned and highly g• more building traffic congestion Ceders virtually East side of Petaluma, asopen well as the Col College, mcre recoat shaven of been eeep shopping etc.the roads have not b properly structured,to allow for the allotted traffic these entities have invited. Our Public Services have been reduced,c ,schools have been closed, homele s and crime have hugely increased and we are not being accommodated with the Public Services necessary to monitor what element these newly-thought about low-income,three story complexes will bring. The area in which these complexes are being sought to be constructed, already lack sufficient parking areasand traffic inlet/outlets. With the ballpark across the street, developments such as these jeopardize the future of our active children and invite more opportunity for vehicular i- accidents. Furthermore,we are also facing incredible traffic congestion due et o th s(mouse completed Washington Plaza traffic and the soon to be built shopping Friedman Brother's,across the street from the hospital. The freeway overpass work that is currently taking place is about 20 years overdue'for the building that had previously taken place. Sadly, its completion will possibly suit the needs for the past growth, but will not be adequate then to fulfill the needs to accommodate just the traffic that will be introduced from these newer shopping centers. We certainly do not need:more housing to further congest our neighbor streets and certainly not any housing of the nature that is being tossed around. I am aware that the majority(if not all)the members of the Petaluma Planning Division, Petaluma Planning Commission and the Petaluma Ciciand inconvenience these Petaluma and therefore,will not be affected by any of the ugliness Offices es (P D)being housed d ondthe West Side of town and our skeleton crew of time of Public to the East(PPD)being ho that any to the Eastside of town in a;timely.'and,efficient manner severely lacking, I propose further low-income housing and large three story residential buildings be constructed on the west side of Petaluma:where there is more available land, better vaa road passage and l closer rankings all proximity to public transportation portals and public safety y for the show to have higher ratings in We Petaluma,which would old als the board th the possible of educating the offspring and equalizing the opportunities tenants of such housing. We clearly do not want,nor do we need, any more building of this type;in the already available East think kalbm t brie or reaquaili Petaluma at all. Let's living comfort to the workwith what is her th presently of living iand pef bringing bringing or quality few and creating a money pit for the ofdiving in hopes of bringing in more money for a very what presently have, getting down trodden Government. We should focus on cleaning up the crime,traffic and graffiti under control and let that work.for us for a while. Truly, Karen Shine 11-59 2 Giudice,.Aficia j From: K Spaletta ckspaletta09 @gmail.com> Sent Wednesday,July 31, 2013 9:49 AM • To: Giudice,Alicia;Jonckheer, Elizabeth;jocelynyeh @yahoo com; ahoo.com; richard @lacehouselinen.com; Kathleen Miller,jenpierrepetaluma @y mail.com; johntenniswick @gmail.com;wolpert @sonic.net coundlman.albertson @g teresa4petaluma @comcast.net'David Glass; Mike Harris; mthealy @sbcglobal.net; councilmemberkearney@ me.com Cc. Marian,;Spaletta;:Kathy;palette Subject: Re:Apts Attachments: mane drive developmentdoo( Please find the attached document which stipulates my concerns as a daughter of Marian Spaletta- Thank.you, On Tue,Jul 30,2013 at 6:53 PM,K Spaletta<ksoaletta09Ca1¢mail.com>wrote: ' 1 --Forwarded message— -- i From: Marian Spaletta<msoalettal(��nail'.com> Date: Tue;`Jul 30, 2013 at 630 PM i Subject: Apts To: K Spaletta<ksnaletta09n �'•COm> I am writing concerning the proposed three:story apartment complex that will replace the business offices at 35 Maria Drive and the enlargement of Addison Apartments also! We border'the apartments and have lived at 48 downhill!Dr! for V 1I Greenbrier apt NUMEROUS that tulle and it was run very well! TO THE POLICE DEPT.The FIGHTS, it went downhill!.WE'VE HAD S MAKE p en again!OU D HATE E and Oaffi THAT longer RULES! MATTRESSES AND GARA'BGETHROWN IN CREEK! WE WOULD HATE TO SEE TH HAPPEN ACROSS THE STREET TOO! No guaranty that won't hap Horrendous!Property that borders apartments will go down in value! No privacy for those homes any ,no parking! with three story apartments looking down on their yards! Parking for kids.playing sports park take all of this into consideration before malting a very serious decision that can effect the neighborhood! Thank'you,.Jim and Marian Spaletta Kathy Spaletta Realtor CA 0RE'01333142 Westgate Real Estate (7071 769 9590 Cell: 707-696-7850 ksnaletta09n¢TT ail.com 11-60 t Kathy Spaletta Realtor' CA 01333142 Westgate,Real Estate {307)769-9590 Cell: 707-696-7850 ksp aletta09(M,gmail.com 11-61 2 r • Kathy. Spaletta li Petaluma, CA 94954 July 30, 2013 Planning Division Petaluma Planning Commission Petaluma City Council RE: Proposed.Development at 35 Maria Drive, Petaluma To Whom It May Concern: am writing in regards to the'proposed development and the re-zoning at 35 Maria Drive. My mother'is;,elderly andlives'in this area I am writing for thewelfare and on behalf of her The following'are,the negative effects this development will have on not only my mom, but the people that live in this neighborhood. 1. Pollution: The Greenbrier-Apartments had mattresses and garbage thrown in the creek that she borders., 2. Safety:, There were numerous police calls, noise, loud music and gang activity in the Greenbrier Apartments. This not only=affects my mom's safety, as an elderly person that lives alone,but the family that comes to visit and the children that play Baseball down the street. 3. Traffic andParking: There will be an increase in traffic that will affect not only the safety in front.ofher house, but the noise=levels. People will start using;the front II of the streets in her area to park: Also, there is the Ball Park close by, which utilizes the parking on the streetfor their games. 4. Home Values: The value of my mom's home will decline because of the three items listed above. It will be viewecLas not being'in a desirable location for families or older people. We are asking that you not put more:apartments'in this area. We are that if you want to develop this area,-to please do so with Business Buildings that will maintain our safety, keep pollution at a minimum, traffic and parking at a reasonable amount and our HOME VALUES'tostay the same or increase. Thank you for your consideration. 1 I R ag e - I Gi=L. Alicia = From — Karen Shine <karenshine02 @yahoo.com? therefore,will not be affected;by any of the,ugliness and inconvenience these proposed developments would bring to East Petaluma:, With our skeleton crew of Public Safety'Officest(PPD) being housed on the West Side of town and the response time of getting officers to the East side of town in a timely and efficient manner severely lacking, I propose that any further low-income housing and large three story • residential buildings be constructed on the west,side of Petaluma where there is more available land, better road passage and closer proximity to;public transportation portals and public safety availability. The school rankings all show to have higher ratings in West Petaluma,which would also allow for the betterment of educating,the offspring and equalizing the opportunities across the board for the possible tenants of such housing. We dearly do not want,nor do we need,,any.more building of this'type in the already congested East Petaluma area or really, in Petaluma at all Let's work with what is presently available and think about bringing a quality of living,comfort,to the,area, rather than the down it o of livin in hope not We bringing in more money for a very few and creating a money p' focus on cleaning up what we presently have, getting the crime,traffic'and`graffiti under control and let that work for us for a while. Truly, Karen Shine I1� 11-64 2 - Giudice Alicia -- From: Kathleen Garvey <kathgarvey @comcastnet> Sent Wednesday,,July 31, 2013 11:41.PM jocelynyeh@ yahoo-com;?nchard@lacehouselinen.com; ahoo.com; To mad-corn; en ierrepetaluma @y kathleencmilleroffice @g J P — johntenniswick @gmail.corn,wolpert@sonie:net Giudice,Alicia;.councilman-albertson @gmail-corn;teresa4petaluma @comcast.net, mayordavidglass @g m Cc: ail-corn, mike4pet @aol,corn, mthealy @sbcgloba4-net councilmemberkearney,@ me-com; kathleencmdleroffice @gmail.com Subject Objections to 35 Mahe Proposal Dear Planning Commission Members, There is a:proposal for rezoning;lots and construction of a high density apartment complex at 35 Maria Drive, presently an office park.As a resident of 83 Maria Drive,Petaluma, l object to this proposal for a number of reasons,outlined below. 1) Increased Traffic.The city planning;division report estimates that the number of;daily trips out of 35 Maria Drive will be 958 with the new development,for an increase,of 782 daily trips. If we assume half that will go in either direction on Maria,the traffic in each direction will increase by 391 daily trips.This is in addition to the increased traffic we are already experiencing with the new Safeway and.with eastside residents avoiding the intersection at 101. Washington/McDowell is due to congestion n caused increased or the single ffamily home neighborhood p it runs through.In the In one;direction,there is a street sized appropriately other'direction,there is a primary school preschool and baseball fields. High traffic,through a single family neighborhood will degrade the quality,of life and property values.The street was not designed to handle large amounts of traffic—it was intended for a neighborhood- In the other direction, high traffic in a school, preschool and little league ballpark is dangerous. 2) Design,is not in alignment with the surroundings.This proposal involves building three story high buildings two story surrounded by asphalt in an area of single family homes and across the street from a medium have t ced high density development with wide ty apartments in center next to it is sing elawris_The g Petaluma,;but they have been located on wide high capacity streets,and often next to industrial parks and centers,not single family home neighborhoods. shopping 3) Decline of,less desirable housing.Currently there is a shortage rtage will become less in nsPeta Petaluma.Asg;ore c housing o is built to accommodate this need,these high density complexes come more desirable housing; is l a complexes that not located next tosthe kind of amenities that app downtown area and mass transportation.On the contrary,this development is right in back of a grocery store which open 24 hours a day. It receives deliveries,day and night.It runs a trash compactor at night. I know all this because I can hear this noise at my residence several blocks away. It would be significantly noisier if I lived next to it. As competition in the rental market increases,there will be economic pressure on management at this less desirable. location to,delay or reduce maintenance,to allow more residents per unit and to lower standards as to who is allowed to rent.We just experienced this cycle with the Greenbriar Apartments Increasing the density of housing in the area will only exacerbate the decline that we saw before,which essentially turned Greenbrier into a slum, complete with drugs and gang 11-65 1 • 4) Pollution. During the time of decline at Greenbrier,the creek trail between bur neighbornood and the apartments was used as a place to party„eat,defecate and have sex,,based witness accounts and the trash that was left in the creek and the trail. ou s t ime, residents otour l P to the cityr-with no result.The was cleaned out with the assistance of volunteers and aocal K wan sClub.Misuse of this area substantially decreased when the apartments changed hands and the population lined with natiPe plants maintained by the creek gency. currently being restored by the Sonoma Water Agency 5) Handicap access. Residents in this neighborhood who used motorized wheelchair carts must use driveway slopes to cross streets,making it necessary to ride along the side of the street in certain segments. Increased traffic makes this dangerous. Need for office space.The offices at35•Maria Drive were owned by the same parry who allowed the decline of the 6) capacity.This �I need an Greenbriar Apartments.They too,have been allowed to fall into disrepair and are not currently at full cap is.he only large office complex in'this,area.,It makes sense that these should remain offices,they simply owner that would restore and maintain the property. l understand that infilling is an approved policy for Petaluma and in principal,agree with it. However,development of I, any kind should be appropriate and take into consideration the health of neighboring areas and the capacity of the streets likely to be used by the increased population. People move to Petaluma to enjoy greater proximity to the country,to parks and our quaint downtown area.The east iII side of town is especially characterized by a relaxed open suburban environment. Please help us preserve what makes Petaluma a great place to live. Best Regards, Kathleen Garvey Resident 83 Maria Drive Petaluma,California cc:Alicia Giudice,Senior Planner,OW Council Members 11-66 2 Giudice, Alicia From:; Hines; Heather Sent:n ' Thursday,August 01,2013 8:41 AM Too. Giudice,Alicia Subject Fwd:35 Maria+Dr Public comment.Can you please follow up with Ms Sheean? Sent from my iPhone Begin forwarded message: From:Lisa Sheean<Icheean@ .cast.net> Date:August 1,2013,8:20:01 AM PDT To:<hhines @ci petaluma.ca.us> Subject:35 Maria Dr I have heard that the planning commission in Petaluma is considering a.plan to tear down the office ;I buildings at 35 Maria Drive and build another low income apartment complex. Is this true? If so,as a long time home owner in that neighborhood, I would like to protest strongly. When is this going to be considered and why aren't the homeowners involved? Lisa Sheean 236 Sutter St 11-67 Giudice, Alicia From: Giudice, Alicia Sent _ Monday, August 05,2013 9:28 AM To: Lisa Sheean Subject: Re: Maria Drive Hi Lisa, the normal noticing requirementis 300 feet and the city does extended.notice of 500 feet. The project is a market rate rental housing project. The applicant is not requesting affordable housing on this site. . The applicant held a community meeting earlier in the process. I will pass on your concerns in my written report to the planning commission and will also attached your email to the report. The planning commission hearing is scheduled for August 13 at 7 PM or soon after that. I will.also add your name to the mailing list'so that you are notified of future meeting dates. Thank you Alicia Giudice Sent from my iPhone On Aug 5, 2013, at 8:23 AM, "Lisa Sheean" <Isheean @comcast.net>wrote: Good morning, There wasn't a reply to my last-email. 'Where can concerned citizens go to have.their voices heard in this matter? Where are the meetings held? When will the planning commission decide? Thank you in advance for your reply, Lisa Sheean From: Lisa Sheean [mailto:Isheean©comcast.netj Sent: Thursday, August 1, 2013 2:38 PM • To: 'Giudice, Alicia' Cc: 'Hines, Heather' Subject: RE: Maria Drive Yes. Please add me to the list for future notices. Lisa Sheean 236 Sutter St Petaluma,CA 94954 Why only neighbors within 500 feet? That seems awfully limiting—how many homeowners actually got the notice? It doesn't seem fair that most of the neighbors who got the notice live in the low-ntl: apartments across the street. 1 Does the planning commission or the city council listen to homeowners outside of the 500 feet of the property line? I am very disturbed and frustrated by this. We already have a very large low-income:apartment complex in the neighborhood. In addition,the traffic on the east side is•already horrific for a town of-this size. Where can concerned citizens go to..have their voices heard in this matter? Lisa Sheean From: Giudice, Alicia fmailto•AGIUDICE@ci petaluma.ca.us] Sent: Thursday, August 1, 2013 2:05 PM To: Isheean@comcast.net Cc: Hines, Heather Subject: Maria Drive Dear Ms. Sheean. I am responding to your email regarding the Maria Drive Apartments. This project is a request to demolish the existing office buildings and construct a,144-unit apartment complex. The project is going to be heard by the Planning Commission on August 13, 2013. Once the Planning Commission makes a decision, it will be'sent to the City Council for a final decision. Notices were mailed to neighbors within 500 feet of the property line. If you are not on that list I will be sure to add your name to receive future notices. Please feel free to contact me if you would like some more information about this project. You can reach me at 707-396-3200,`or by email at agiudice @ci.petaluma.ca.us. You can also stop by City Hall to review the project files. I am normally in on Tuesday and Thursday mornings. Thank You Alicia Giudice Project Planner 707-396-3200 11-69 — � c WEST July 27, 2013 Richard & Mary Roybal 1525 McGregor Ave. Petaluma, CA 94954 Dear Richard & Mary, I received a copy of your email to Councilmember Miller our development located at 35 Maria Drive in Petaluma: In addition to introducing myself, I wanted to respond to your concerns and share some background on our organization:. My.cell Phone number is below and I am available to meet if you have questions:or concerns. For over 25 years,the Johnson portfolio of companies has developed;award-winning apartment, hotel,and commercial buildings,including,over 3,900 apartments.The development and operation of these properties has resulted in positive,impacts not only on their residents but also within the broader communities in which they serve:_Recent+awards include the NGBS Green Partner of Excellence, Sustainable Communities Champion, Delta's Best Suburban Apartment Community, and United Way's Circle of Excellence;Outstanding Leadership,and Volunteer Spirit awards. The Haven at Washington Square will be a Class A'apartmentcommunity; complementary tothe neighborhood,including what can be considered a significant area upgrade with tenants paying rent commensurate with the highest salary earners in;Petaluma. The environmentally-friendly craftsman design will feature 144 market-rate apartments includinga mix of one,two and three bedroom units. Residents will enjoy a short walk to public transportation,schools, parks,trails, and shopping, including the Washington Square'Shopping Center next door. In addition, bike racks will be provided for100%'ofthe units in an effort to reduce vehicular trips. Unit features will include granite counters,stainless,steel appliances, crown molding, central air,washes and dryers,open floor plans, and generous private open space. Community amenities will,include landscaped and shaded sitting areas, heated pool,and spa,cabana, enclosed parking,and a luxurious clubhouse and leasing office featuring state of the art fitness equipment, business center, and comfortable common area with large flat screen televisions and a fireplace. 11-70 505 Montgomery.Street,11i?Ftoor'•San Francisco,CA 94111 As part of the City's development review process of our new apartment community, environmental impacts were studied',carefully in accordance with California Environmental Quality Act guidelines. Among other environmental analysis,the study included analytical reports from both local traffic and acoustical engineering firms. The report concluded that the development will result hind'significant environmental impacts. In addition,while the present General Plan land use designation of the property allows for up to 176 apartment units on the site,our developmentis designed with 32 fewer units,will be less-intensive, contain fewer buildings, less residents, and fewer vehicles compared to the 176 unit-maximum allowed. Finally,90 feet from respectful property ty our llne'igapprosxim to y 100 feet from set the anbuildings 50 feet from the to 90 feet from the property ' ( PP neighboring property lines). We understand that the current apartments in the neighborhood have produced problems in the area.While we are,not affiliated with the other apartments,The Haven at Washington Square;will,playa key role in,the solution to the problems of the past. Our apartment community will have professional on-site property management, lighted walkways, and security patrol which are expected to benefit the neighborhood by removing conditions of blight, reducing crime and stabilizing'home prices. In addition to thes bene ts,The and is Washington Square will support local schools with increased property expected to bring approximately$7.3 million in annual economic benefits to Petaluma from the new residents. The cumulative effect of these benefits is expected.to.have'a positive impact on the community,its residents, local businesses, and neighboring home values. We understand your concerns, Richard and Mary,and appreciate your feedback. If you have additional questions,or wish to meet and discuss the development'in greater detail, please let me know. I can be reached by dell phone at(650)646-5155. Regards, a Marty-Brill Senior RealjEstate Manager JDA West,LLC 11 71 SOS Montgomery Strati,1116 Floor•San Francisco,CA 94111. n. WEST July 27, 2013 Nancy Drelich 1557 Creekside Drive Petaluma, CA 94954 Dear Nancy, I received a copy of your email to the City Council regardinglour development,located at 35 Maria Drive in Petaluma. In addition to introducing myself;I wanted to respond to your concerns and share some background on our organization. My.cell phone numberis.below and I am available to meet if you have questions or concerns. For over 25 years,the Johnson portfolio of companies'has'-developed award-winning apartment, hotel,and commercial buildings, including over 3,900 apartments.The development and operation of these properties has resulted in positive impacts not only on their residents but also within the broader communities in which they serve: Recent awards include the NGBS Green'P,artner of Excellence, Sustainable Communities Champion, Delta's Best Suburban Apartment Community, andAUnited Way's Circle of Excellence,Outstanding Leadership,and Volunteer Spirit awards. The Haven at Washington Square will be a Class A apartment community, complementary to the neighborhood including what be`considered a significant area upgrade•with tenants paying rent commensurate with the highest salary earners in Petaluma. The environmentally-friendly craftsman design will feature 144 market-rate apartments including_a'mix of one,two and three bedroom units. Residents will enjoy a short walk to public transportation,schools, parks,trails, and shopping, including the Washington Square Shopping Center nextdoor. In addition, bike racks will be provided for 100% of the units in an effort to reduce vehicular trips. Unit features will include granite counters, stainless:steel appliances, crown molding, central air,washers and dryers,open floor plans, and generous private open space. Community amenities will include landscaped and shaded sitting areas, heated pooland spa,cabana, enclosed parking, and.a luxurious clubhouse and leasing office featuring state of the,art fitness equipment,business center, and comfortable common area with large flat screen televisions and a fireplace. 11 72 505 Montgomery Street,tiie Floor•San Francisco,CA 94111 As part of the City's development review process of.our new apartment•community, environmental impacts were studied carefully in accordance,with California Environmental Quality Act guidelines. Among other-environmental analysis,the studyincluded analytical' reports from both local traffic and acoustical engineering firms. The report concluded that the development will result.in no significant environmental impacts. In addition,.while the present General Plan land use designation of theproperty allows for up to176'apartment units on the site, our development is designed with 32 fewer units,will be less-intensive,contain fewer buildings, less residents, and fewer vehicles.compared to the 176.unit maximum allowed. Finally,to be respectful of our neighbors along the creek,we have set the buildings back by 64 to 90 feet from the property line (approximately 100 feet from the creek and 150 feet from the neighboring property lines). We understand that the current apartments in the neighborhood haJe:produced problems in the area While we are not affiliated with the other apartments,The Haven at Washington Square will play a key role in the solution to the problems of.the'past. Our apartment community will have professional on-site property management,.lighted walkways, and security patrol which are expected to benefit the neighborhood by removing conditions of blight, reducing crime and stabilizing home prices. In addition to these benefits,The Haven at Washington Square will support local schools with increased property taxes and fees, and is expected to bring approximately$7.3-million in annual economic:benefits to Petaluma from the new residents. The cumulative effect of these benefits is expected tahave a positive impact on the community, its residents,local businesses, and neighboring home values. We understand your concerns, Nancy,and appreciate your feedback. If you have additional'questions,or wish to Meet and discuss the development in greater detail, please let me know. I can be reached by cell phone at(650) 646-5155. Regards, Marty Brill Senior Real Estate Manager JDA West, LLC 11-73 50$blon[gomery.Streel„I l°'Floor•.San Francisco,CA 94111 — r reA2 4- vz WEST July 27, 2013 Stanley& Barbara Dettner 64 Maria Drive Petaluma, CA 94954 Dear Stanley&Barbara, I received a copy of your email to Irene Borba regarding our development located at 35 Maria Drive in Petaluma. In addition to introducing myself, I wanted:to respond to your concerns and share some background on our organization. My cell phone number is below and I am available to meet if you,have questions or concerns. For over 25 years,the Johnson portfolio of companies has developed award-winning apartment, hotel, and commercial buildings,including over 1,900 apartments.The development and operation of these properties has resulted in positive impacts not only on their residents but also within the broader communities in which they serve: Recent awards include the NGBS Green Partner of Excellence,Sustainable Communities Champion, Delta's Best Suburban Apartment Community, and'United'Way's Circle of Excellence;Outstanding;Leadership, and Volunteer Spirit awards. The Haven at Washington:Square will be a Class A'apartinent community, complementary to the neighborhood,:including what can be considered a significant area upgrade with tenants paying rent commensurate with the highest salary earners in Petaluma. The environmentally-friendly craftsman design will feature 144 market-rate apartments including a mix of one,two and three bedroom units. Residents will enjoy a short walk to public transportation;schools, parks,trails, and shopping, including the Washington Square Shopping'. Center next door. In addition, bike racks will be provided for 100%of the units in an effort to reduce vehicular trips. Unit features will include granite counters, stainless steel appliances,crown molding, central air;washers and;dryers,open floor plans, and generous private open space. Community amenities will include landscaped and shaded sitting areas; heated pool and spa, cabana, enclosed:parking;and a luxurious clubhouse and leasing office featuring state of the art fitness equipment, business center, and comfortable common'area with large flat screen.televisions and a fireplace. 11-74 505 Montgomery Street, 11'"Floor•San Francisco,CA 94111 As part of the City's development review process of our new apartment community, environmental impacts were studied carefully in accordance with California Environmental Quality Act guidelines. Among other environmental analysis,the study included an in-depth analytical report from-a local traffic engineering firm. The report concluded that the development will result in no significant traffic:impacts. 'In addition,while:the present General Plan land use designation of the property allows for up to 176 apartment units on the site,our development is designed with 32 fewer units,will be less-intensive,contain fewer buildings,less residents, and fewer vehicles compared to the 176 unit maximum allowed. We expect The Haven at.Washington Square to have a positive economic impact on the community, its residents, local:businesses; and neighboring home values including bringing approximately$7.3 million in.annual economic benefits to Petaluma from the new residents. In addition to these benefits,we will have professional on-site property management, lighted walkways, and security patrol which benefit the neighborhood by removing conditions of blight, reducing crime and stabilizing home prices. We understand your concerns,Stanley and Barbara, and appreciate your feedback. If you have additional questions,or wish to meet and discuss the development in greater detail, please let me know. I can be reached by cell phone at(650) 646-5155. Regards, Marty Brill Senior Real Estate Manager JDA West, LLC 11-75 505'Montgomery Street,116 Floor•San Francisco,CA 94111 ki d er' ' .n-.�.a" "ray WEST August 1, 2013 Karen Shine 42 Eastside Circle Petaluma, CA 94954 Dear Karen, I received a,copy of your ernail.to.the Planning Commission and City Council regarding our development located at 35'Maria Drive in Petaluma. In addition to,introducing myself, I wanted to respond to your concerns and share some background omour organization. My cell phone number is below and I am available to meet if you have questions or concerns. For over 25 years;,the Johnson portfolio of companies has developed award-winning apartment, hotel,and commercial.buildings, including over 3,900 apartments.The development and operation of these properties has resulted in positive,impacts not,only on their residents but also within the broader communities in which they serve. Recent awards include the NGBS Green Partner of Excellence, Sustainable Communities Champion, Delta's Best Suburban Apartment Community; and United Ways Circle of Excellence; Outstanding^Leadership, and Volunteer Spirit awards. The Haven at Washington Square will be a Class Aapartment,community, complementary to the neighborhood;.including what can be considered a significant area upgrade with tenants paying rent.commensurate with the highest salary earners in Petaluma. The environmentally-friendly craftsman design will feature 144 market-rate apartments including a mix:of one,two and three bedroom,units.Reside is Washington o short t walk lk Shopping public transportation, schools, parks,trails,and shopping, including Center next door. In addition, bike racks will be.provided for 100%of the units in an effort to reduce vehicular trips. Unit features will include granite counters, stainless steel appliances, croWn molding, central air,washers and dryers, open floor plans, and generous private open space. Community amenities will include landscaped and shaded sitting;areas,.heated pool and spa, cabana, enclosed parking; and a luxurious clubhouse and leasing office featuring state of the art fitness equipment, business center, and comfortable common area with large flat screen televisions and a fireplace. As part of the City's development review process of our new apartment community, environmental impacts were studied carefully in accordance with California Environmental 1 1-76 Quality Act guidelines. Among other environmental analysis;the study included analytical reports from both local traffic and acoustical engineering firms. The report concluded that the development will result in no significant environmental impacts. In addition,while the present General Plan land use designation of the property allows for up to 176 apartment units on the site, our development is designed with 32 fewer units,will be less-intensive,contain fewer buildings, less residents, and fewer Vehicles compared to the 176 unit maximum allowed. Finally, to be respectful of our neighbors along the creek,we have set the buildings back by 64 to 90 feet from the property line(approximately 100 feet from the,,creek and 150 feet from the neighboring property lines). We understand that the current apartments in the neighborhood have produced. problems in the area:While we are not affiliated with the other apartments,The Haven at Washington"Square will playa key-role in the solution to the problems of the past. Our apartment community will have professional on-site property management, lighted walkways, and security patrol which are expected to benefit the neighborhood by removing conditions of blight, reducing crime and stabilizingthome prices. In addition to these'benefits,The Haven at Washington Square will support local schools with increased property taxes and fees, and is expected to bring approximately$7.3 million in annual economic benefitsto Petaluma from the new residents. The cumulative effect of these benefits is expected to have a positive impact on the community, its residents, local businesses, and neighboring horte values. We understand your concerns, Richard and Mary, and appreciate your feedback. If you have additional questions;;or wish to meet and discuss the development in greater detail, please let me know. I can be reached by cell phone at (650) 646-5155. Regards, Marty Brill Senior Real Estate Manager JDA West, LLC • 11-77 San Francisco,CA 94111 x,; _ rik WEST August 1,2013 Kathleen Garvey 83 Maria Drive Petaluma, CA 94954 Dear Kathleen, I received a copy of your correspondence to the Planning Commission regarding our development project located at 35 Maria Drive in Petaluma. In addition to sharing more about our plans for development, l wantedto take a moment-to introduce myself and respond to your concerns. My cell phone number is below and I am available to meet if you have questions or additional concerns you would like to discuss. Background For over 25 years,the Johnson portfolio of companies has developed award-winning apartment, hotel, and commercial buildings, including over 3,900 apartments.The development and operation of these properties has resulted in positive impacts not only on their residents but also within the broader communities in which they serve. Recent awards include the NGBS Green Partner of Excellence, Sustainable Communities Champion, Delta's Best Suburban Apartment Community, and United Way's Circle of Excellence, Outstanding Leadership, and Volunteer Spirit awards. Development Overview The''.Haven at-Washington Square will be a Class A apartment community, complementary to the neighborhood, including what can be considered a significant area upgrade with tenants paying rent commensurate with the highest salary earners in Petaluma. The environmentally-friendly:craftsman design will feature 144 market-rate apartments including a mix of one,two and three-bedroom units. Residents will enjoy a short walk to public transportation,schools, parks,trails,and shopping, including the Washington Square.Shopping Center next door. Unit features will.include granite counters,stainless steel appliances, crown molding,central air,washers and dryers,open floor plans, and`generous private open space. Community amenities will include landscaped and shaded sitting areas, heated pool and spa, cabana, enclosed parking, and a luxurious,clubhouse and leasing office featuring state of the art fitness equipment,business center,and comfortable common area with large flat screen televisions'and a fireplace. L1=78 505 Montgomery Street,Ill`Flour•San Francisco,CA 94111 — = Planning.Considerations To be.miridful of our neighbors along the creek,we have the buildings back such that the nearest building to any single-family'home property line is•greater than 150 feet. In addition,while the present General Plan land use designation of the property allows for up to 176 apartment units on the-site,our development is designed with 32 fewer units to,fitlin better with the context of the neighborhood: As-such, it will be less-intensive, contain fewer buildings, less residents, and approximately 60:fewer vehicles compared,to,the maximum allowed under the existing General Plan landiuse designation. In addition, the community will be pedestrian friendly and bicycle friendly which will reduce vehicular trips and residents will enjoy a short walk or bike ride to public transportation,schools, parks,trails,and shopping,including the Washington Square ShoppingCenternext door. . As part of the City's development review process,environmental impacts were studied carefully in accordance with CEO.Aguidelines. Among other environmental analysis,the study included an analytical report from a local traffic engineering firm, Whitlock &Weinberger Transportation, Inc: (June 2013). In addition to studying the:existing traffic conditions,the report also included cumulative'future conditions(which includes our project as well as everything in City Planning, including the Potential to-add 100 units at Addison,Ranch across the The traffic study concluded that with the addition of project-generated;traffic, all study intersections would continue to operate'acceptably under existing and future cumulative conditions and that the development will.result in'no'significantenvironmental impacts. As part of the development we are contributing fees for future traffic and,road;improvements. Existing Apartments We understan that-the.current apartments in the neighborhood have produced problems in the area Wfiiie we are not affiliated with the other apartments,The Haven at Washington':Square will play a:key role in the solution to the problemsof the past. Our apartment community will have professional on-site property;management, lighted walkways, and security patrol which are,expected to benefit the neighborhood by removing conditions of blight,reducing crime and stabilizing home prices. In additian'•to the benefits highlighted above, The Haven at Washington Square will support:.local schools with increased property taxes and fees,and is expected to bring approximately$7.3 million,in annual economic benefits to Petaluma.from$he new residents. The cumulative effect of these benefits is expected to haves positive:impact on the'community,its residents, local businesses, and neighboring home values: Office Space The current vacancy rate for office space in Petaluma, according to.Keegan &Coppin Real Estate Brokers, is,approximately 25°%0 as of the first quarter of 2013,compared to the apartment vacancy rate of approximately 98%. In addition,the subject property is struggling with vacancyof over 50%,and declining rents. There is a need for additional rental housing evidenced by the.high occupancy rates and rising rents,whereas the market for office space remains soft with over 800,000 square;feet currently vacant and available for lease, and rents staying flat and/or declining._ 11 -79 505 Montgomery Street,11th Floor"•San.Francisco,CA 94111 We understand your concerns, Kathleen, and appreciate the feedback you shared with the City. If you have additional(questions, or wish to meet and-discuss the development in greater detail, please just let me know. I can be reached by cell phone at(650) 646-5155. Regards, Marty Brill Senior Real Estate Manager JDA West, LLC 1-1=80 505 Montgomery Street,11i°Floor•San Francisco,CA 94111. yam, 7,1 ,��{.-II i 4 WEST July 30, 2013 Darryl Graves 73 Eastside Circle Petaluma, CA 94954 Dear Darryl, I received a copy of your letter to the Planning Division regarding our development located!at35 Maria Drive in Petaluma. In addition to introducingsmyself, I wanted to respond to your concerns and share some background on our organization. My cell phone number is below and I am available:to meet if you have questions or concerns. For over 25 years,the Johnson portfolio of real estate companies has developed award- winning apartment, hotel,and commercial buildings, including over 3,900 apartments.The development and operation of these properties has resulted in positive impacts not only on their residents but also within the;broader communities in which'they'serve. Recent awards include the NGBS Green Partner of Excellence, Sustainable.Communities Champion, Delta's Best Suburban Apartment Community, and United Way's Circle of Excellence; Outstanding Leadership, and Volunteer Spirit awards. . The Haven at Washington_Square will be.a Class A apartment community, complementary to the neighborhood, including what can be considered'a significant area upgrade with tenants paying rent commensurate with"the highest salary earners in Petaluma. The:environmentally-friendly craftsman design will feature 144,market-rate apartments including.a mix of one,two and three bedroom units'. Residents will enjoy a short walk to public transportation,schools, parks, trails, and;shopping; including the Washington Square Shopping Center next door. In addition, bike racks;.will be provided for 100%of the units in an effort to reduce vehicular trips. Unit features will include granite counters, stainless steel appliances,crown molding, central air,washers and dryers,open floor plans, and generous private open space. Community amenities will include landscaped and shaded sitting areas,,heated pool and spa,cabana, enclosed parking, and a luxurious clubhouse and leasing office featuring state of the art fitness equipment, business center, and comfortable common area with large flat screen televisions and a fireplace. As part of the City's,development review process of our new.apartment community, environmental impacts were studied carefully in accordance with California Environmental 11-81 '505 Montgomery Screel, 11i11 Floor•Sao Francisco,CA 94111 Quality Act guidelines. Among other environmental analysis,the study included analytical reports from both local traffic and acoustical engineering;firms. The report concluded that,the development will result-in no significant environmental impacts. In addition,while the present General Plan land use designation of the property allows for up to 176 apartment units on the site,our development,is designed with 32 fewer units,will be less-intensive,contain fewer buildings, less residents, and fewer vehicles compared to the 176 unit maximum allowed. Finally,to be respectful of our neighbors along the creek,we have set the buildings back by more than'150 feet from the neighboring,property lines. We understand that the current apartments in the neighborhood have produced problems in the area.While we are not affiliated with the other apartments,The Haven at • Washington Square will playa key role in thesolution to the problems of•the past. Our apartment community will have professional on-site property management, lighted walkways, and security patrol which are expected to;benefit the neighborhood by removing conditions of blight, reducing crime and stabilizing home prices. In addition to.these benefits,.TheHaven at Washington Square will support local schools with increased property taxes and fees, and is expected to bring approximately37.3 million in annual economic benefits to Petaluma from the new residents. The cumulative:effect of these benefits is expected to have a positive impact on the community, its residents, local businesses, and neighboring home values. We understand your concerns, Darryl, and if you wish to meet and discuss the development in greater depth;:please'just let me know. I can be reached on my cell phone at (650) 646-5155. Regards, Marty Brill Senior Real Estate Manager JDA West, LLC 11 82 50 Montgomery Street,II"Floor•San Francisco,CA 94111 47 i]I 9fy tixa• W E.� S August 1, 2013 Lisa Sheean 236 Sutter Street Petaluma, CA 94954 Dear Lisa, I received a copy of your to the Planning Department regarding our development project,The Haven at Washington',Square, located at 35 Maria Drive in,P,etaluma. In addition to sharing more about our plans for development, I wanted to take_a moment to introduce myself and respond to your concerns. My cell phone number is below and I am available to meet if you have questions or additional concerns you would like to discuss: For over 25 years,the Johnson portfolio of companies has developed award-winning luxury-apartment, hotel,and commercial buildings, including over 3,900 apartment units.The development and operation of these properties has resulted in positive impacts not only on their residents but also within the broader communities in which they serve. Recent awards include the NGBS Green Partner of Excellence,Sustainable Communities Champion, Delta's Best Suburban Apartment Community,and United Way's Circle of Excellence,,Outstanding Leadership,and Volunteer Spirit awards. Notices were mailed,and a;community meeting was held, in February 2013 in order to engage:neighbors in the planning and design process. The Haven at Washington Square will be a Class A, market-rate apartment community, complementary to the neighborhood,including what can be considered a significant area upgrade with tenants paying rent commensurate with the highest salary earners in Petaluma. The environmentally-friendly design will feature 144 apartments'including a mix of one,two and three bedroom units. Residents will enjoy a short walk to public transportation, schools, parks,trails, and shopping, including the Washington Square Shopping Center next door. Unit features will include granite counters, stainless steel appliances, crown molding, central air,washers and dryers,open floor plans,and generous private open space. Community amenities will include landscaped and shaded sitting areas, heated pool and spa, cabana, enclosed parking,and a luxurious;clubhouse and leasing office featuring state of the art fitness equipment, business center, and comfortable common area with large flat screen televisions and a fireplace. 11 83 SOS Montgomery Street,I I'�Floor•San Francisco,CA 94111 If you have additional questions about the development, or wish to meet and discuss our plans in greater detail, please just let me know. I can be reached by cell phone at(650) 646- 5155. Regards, Marty Brill Senior Real Estate Manager JDA West, LLC 11 84 SOS Montgomery Street,lift Floor•San Francisco,CA 94111 I IA E WEST August 1, 2013 Jim &Marian Spaletta 48 Maria Drive Petaluma, CA 94954 Dear Jim and Marian, I received a copy of your correspondence, and Kathy's correspondence,to the Planning Commission and City Council regarding our development project located at 35 Maria Drive in Petaluma. In addition to sharing more about our plans for development, I wanted to take a moment to introduce myself and respondto your concerns. My cell phone number is below and I am available to meet if you'have questions or additional concerns you would like to discuss. For.over 25 years,theJohnson portfolio of companies has developed award-winning apartment, hotel, and'commercial buildings, including over 3;900 apartments.The development and operation of these properties has resulted in positive impacts not only on their residents but also within the broader communities in which they serve. Recent-awards include the NGBS Green Partner of Excellence,Sustainable Communities Champion,Delta's Best Suburban Apartment Community, and United Way's Circle of Excellence,Outstanding Leadership,and Volunteer Spirit awards. The Haven at Washington Square will be a Class A apartment community, complementary to the neighborhood, including what canbe considered a significant area upgrade with tenants paying rent commensurate with the highest salary earners in Petaluma. The environmentally-friendly craftsman design will feature 144 market-rate apartments including a mix of one,two and three bedroom units. Residents will enjoy a short walk to public transportation,schools, parks,trails, and shopping, including the Washington,Square Shopping Center next door: Unit features will include granite counters,stainless steeliappliances, crown molding,central air,washers and dryers, open floor plans, and generous,private open space. Community amenities will include landscaped and shaded sitting areas, heated pool and spa, cabana,enclosed parking,and,'a luxurious clubhouse and leasing office featuring state of the art fitness_equipment, business center, and comfortable common area_with large flat screen televisions and &fireplace. To be mindful of our neighbors along the creek,we:have set the buildings back such that the nearest building to any single-family home property line is greater than 150 feet. In addition,while the present General Plan land use designation of the property allows for up to 176 apartment'units!on the site,our development is designed with 32 fewer units to fit in better 11-85 505 Montgomery Street,1 1'"Floor•San.Francisco,CA 94111 with the context of the neighborhood. Ass'uch, it will be less-intensive,contain fewer buildings, less 'residents, and_approximately 60 fewer vehicles compared to the maximum allowed under the existing General Plan land use designation. In addition,the community will be pedestrian friendly and bicycle friendly which will reduce vehicular trips and residents will enjoy a short walk or bike ride to public transportation, schools, parks,trails,and shopping, including the WashingtonSquare Shopping Center next door. We understand that the current apartments in the neighborhood have produced problems in the area.While we;are not affiliated with the other„apartments,The Haven at Washington Square will play a key role in the solution to the problems"of the'past.Our apartment community will have professional on-site property management,lighted walkways, and security patrol which are expected to benefit the neighborhood:by removing conditions of blight, reducing crime and stabilizing'home,prices. In addition to th'e benefits highlighted above, The Haven at Washington Square,will support local schools with increased property taxes and fees,and is expected to bring approximately$7.3 million in annual economic benefits to Petaluma from the new residents: The cumulative effect of these benefits is expected to have a positive impact on the community, its residents, local businesses, and,neighboring home values. As part of the City's development review process,environmental impacts were studied carefully in accordance with CEQA.guidelines. Among other environmental analysis,the study included an analytical report from alocal traffic engineering firm,Whitlock&.Weinberger Transportation, Inc(June 2013). In addition to studying the existing traffic conditions,the report also included cumulative future conditions (which includes our project as well as everything in City Planning, including the potential to add 100 units at Addison Ranch across the street).The traffic study concluded that.with the addition of project-generated traffic, all study intersections would continue to operate acceptably under existing and future cumulative conditions and that the development will result in no`significant environmental impacts. As part of the development we are.contributing,fees,for future traffic and road improvements. We understand your concerns,Jim and Marian, and appreciate your feedback. If you have additional questions, orwish to,meet and discuss the development in greater detail, please let me know. I can be reached.by cell phone at(650) 646-5155. Regards, Marty Brill Senior Real Estate Manager JDA West, LLC 11-86 505 Montgomery Street,111°Floor•San Frandsen,CA 94111 • �.w WEST August 1, 2013 Lisle Lee 120 Eastside:Circle Petaluma,CA 94954 Dear Lisle, I received a copy of your email to'the.City Council regarding our-development located at 35 Maria Drive in Petaluma. In additiontb introducing myself;twanted to respond to your concerns and share some background on our organization. My cell,phone number is below and I am available to meet if you.have questions or concerns. For over 25 years,the:Johnson portfolio of companies has developed award-winning apartment, hotel, and commercial buildings,including over 3,900'apartments.The development and operation of these properties has resulted in"positive impacts not only on their residents but also within the broader communities"in which they serve. Recent awards include the NGBS Green Partner of Excellence,Sustainable Communities Champion,Delta's Best Suburban Apartment Community, and United`Way's'Circle of Excellence, Outstanding Leadership, and Volunteer.Spirit awards. The Haven at Washington Square will be a Class A apartment community, complementary'to the neighborhood, including what can beiconsidered.a significant area upgrade,with tenants paying rent commensurate with the highest salary earners in Petaluma. The environmentally-friendly design Will feature 144 market-rate apartments including a mix of one,two and three bedroom units. Residents will enjoy a short walk to public transportation, schools,trails, parks,.and.shopping,including the Washington Square,Shopping,Center next door. In addition, bike racks will be provided for'100%bf.the;unitsinan effort to reduce automobile trips. Unit features will include granite counters;stainless steel'appliances„crown molding, central air,washers and dryers,open floor plans,and generous private openspace. Community amenities will include landscaped and Shaded sitting areas,'heated pool, cabana,enclosed parking, and a luxurious'clubhouse;and leasingoffice featuring state of the art fitness equipment and comfortable common area with large flat screen television and a fireplace. As part of the,City's development review process of our new apartment community, environmental impacts were studied carefully in accordance with California Environmental 11 -27 505.M1(onteomery Street,11th Floor'San Francisco,CA 94111 Quality Act guidelines. Among•otherenvironmental analysis,.the study included an analytical report from a local traffic engineering firm. The report concluded that the development will result in no significant environmental impacts totraffic. In addition,while the present General Plan land use designatiomof thedproperty'allows.forup to176 apartment units on the.site,our development is designed with 32 fewer units,will be less-intensive,contain fewer buildings,less residents, and fewer vehicles compared to the 176.unit maximum allowed. We understand that:the current apartments in the neighborhood have produced problems in the area.While we are not affiliated with the other apartments;The Haven at Washington Square will play.a,key'role in the.solution to the problems of the past.Our apartment community will have professional on-site property management, lighted walkways, and security patrol which are expected tobenefit the neighborhood by removing conditions of blight, reducing crime and stabilizing home prices. In addition tto these benefits,The Haven at Washington Square will suPport local,schools with increased property taxes and fees, and is expected to bring approximately.$7:3 million in annual economic benefits to Petaluma from the new residents. The cumulative effect of these benefits is expected to have a positive impact on the community, its residents,'local,businesses, and neighboring homewalues. I understand your concerns, Lisle,and appreciate your feedback. If you have additional questions, or wish to meet and,discuss the development in greater detail,,please let me know. I can be reached by cell phone at (650)646-5155. Regards, Marty Brill Senior Real Estate Manager JDA West, LLC •• O SOS Montgomery Street,11°'Floor•San Frineisco,HA 94111 ATTACHMENT H THE CONCORD GROUP Memorandum Project,: 13120-00. To: All Giudice,City of Petaluma CC: Marty Brill,IDA West,LLC From: The Concord Group Date: July 2013 Re: Apartment Market..Summary i inRelationtoaProposedMulti-Family Apartment Community in Petaluma,California Dear Ms.Giudice, In May 2013 JDA We LLC("-JDA W est")engaged The Concord Group("TCG")to conduct a Strategic Market Opportunity Analysis for a proposed apartment development site in Petaluma,California("the Site"). As e City of part of this analysis,TCG surveyed and physirilly:inspected ten exis>�gg apartment properties in apse see the table Petaluma to determine age,unit count,occupancy°rate,average size, below for a detailed comparison: Arerane Building Type Year Built/ Occ. Unit Pro a Man% er (ti of floors) .Remodeled Baits Rate Size Pro ct ,.s 'l°`sF¢G '1 ^e. k'S,..iI 'r AMA v'3 -Basin StreetProperus bbd-rise 2003. 43 100% 792 Ad isonRanch St Landing Group Low-rae(2) 1972/Ongomg 224 20%` 705 Addison Ranch Sag Proper ei e>o✓� "p 2000 100 99% 810 Sack Property! Low-St(2) Capri Creek Square BasnSteatPropmies Mid-rise(3) 2007 56 100% 826 Aneaee Square Low-rise(3) 2907 147 96% 1,011 Azure Bee SResid . • 2007 9D 100/ 965 Bask Stmt Prop--eel bErd-rse(4) Park i ertral ffiems Low fee(3) 2002 240 99% 1,116 PCB Fequo�Fgs' 1984 492 97% 969 FPI Low-rise(2) OakCreek-doeeCrek J,Cyril Johnson Low-ise.(2). 1914 76 100% 582 Hay oodA Pet Pmat ly Mamged Low-rise(2) 1972 172 99°' 968 Haywood Affil - 10 Properties Total/WM Avg: 1989 1,640 98% 936 I Total Apts.Available: 31 1 *-Addison Ranch currently undergoing significant interior and exterior renovations,occupancy rate excluded from weighted averages. The,surveyed properties are of a variety of sizes,ranging from as small as 43 units to as large as 492 units. Most apartments in these properties have_average unit sizes of between 800 and 900 square feet,with a weighted average of936-square feet across the"entire 1,640 unit set,Occupancy rates also vary,with almost all properties between96%and 100%.occupied:Exclusive of one property currently undergoing substantial renovations,the entire set is occupied at 98%on a weighted average basis. Given that a healthy occupancy rate in the Sonoma County is generally above 92%,currently higher occupancies could be suggestive of an undersupplied market a ndmay be a precursonto future rent increases lithe"city as.inventory tightens amid low supply ,TCG believes the opportunity to develop apartments:in Petaluma to be strong.'With the total employment picture of the core Bay Area at or above pre-recession levels,and with rising rents in markets to the.south,Petaluma is competitively positioned to appeal to a wide range of target renters. Data,f or-this study was collected via phone interviews with prop rt managers was completed site islerEvtheand properties themselves.The survey was done in early May 1 .please s do not hesitatecomall. Tim'Cornwell.If you have;any questions, With offices in Newport Beach,San Francisco and New York,The Concord Group is among the nation's premier providers of real estate advisory services to leading U.S. and international developers,homebuilders, financial institutions, and public-sector agencies:Core services include market aoppo�sity analfsr,land use programming,rind project feasibility.TCG has completed.market opportunity advisory 45,000 multi-family units over the past three years. • s -- .Page:1 July 20 2 JDAW LLC , inn nn M _ ATTACHMENT I Memorandum To: Alicia Giudice, City of Petaluma Cc: Marty Brill,JDA West From: Matt Kowta, M.C.P., Principal Date: July 25, 2013 Re: Maria.Drive:5ite,Evaluation Purpose BAE prepared this memo,on behalf of JDA West, LLC. The',purpose of-this,memo is to evaluate the suitability of the site at 35-55 Maria Drive(hereafter, Maria,Drive site) as a potential location for ground floor retail'space, officeispace, and live-work units Inca,mixed use configuration with multifamily residential apartment units. This information is intended to help JDA West and the City of Petaluma in determining the appropriate configuration of uses for redevelopment of the site., Recommended Uses for Maria Drive Site • The most suitable use for the Maria Drive site is multifamily residential development. The existence of an elementary'school,existing multifamilyhousing, and ample existing retail and services within close proximity reinforce the use of this site for housing. • The City of Petaluma zoning currently allows,for high density residential (up to 30 dwelling units per acre)andcommercial space in,a mixed-use project. e The site is not suitable'for mixed-use with retail,office, or artist live-work units. o As explained-furtherin this.report„as a relatively quiet residential street, Maria Drive cannot provide.the visibility and accessibility for shoppers that would be critical to the success of a ground floorretail establishment atthislocation. o Due to the lack of residential density in the surrounding area there is not a sufficient number of residents in the immediate area to support ground floor retail. o There is more than ample existing.retail square footage and planned retail square footage„including 720,000 square feet planned or under construction, within a short distance to serve the residents of the proposed Maria Drive Apartments and other nearby residential areas. 'Sacramento Los Angeles. Washington DC New York.Ciiy 1285 Francisco tye 5405 Wilshire Blvd. 1436 U Street NW 121 West. Street Seco'::"d Floor Street 803 2"'Street Suite 291 Suite 403 Suite 705 Second Floor Suite A Emeryvdlz, CA 94608 Davis,CA 95616 Los Angeles, CA 90036 WasMngton,;pC 20009 New%(a �'�]V 01 510.547.9380 530/50.2195 213.471.2666 202.588.8945 212.( 3 -'�85J www.baei.con • o The retail components'of"other existing mixed.use developments in Petaluma, which locations that are superior to the Maria Drive site for retail,have vacancy rates ranging from 14 to 29 percent, significantly.higher than the overall Petaluma retail vacancy rate, indicating relatively weak demand for this product type. The Old Elm Village commercial space on Payran Street,isan example of ground floor commercial space placed on a secondary street that has not lived up-to expectations. o Finally,the Maria Drive site lacks other nearby'synergistic uses that could help to draw visitors who would patronize the ground floor retail space. o If ground'floorlretail space:is included at this site;-itwill most likely struggle to attract tenants,:and any tenants who move into the space would most likely struggle to attract sufficient patronage to remain in business on an ongoing basis. • For similar reasons as those cited above for ground floor-retail,the site is not suitable for ground floor office users: Nor would the site besuitable for upper:floor office uses, since the location-would be isolated from other office developments and from other related businesses and-support services. o Petaluma has an excessive quantity of vacant officesquare footage at this time (approximately 823,000 square feet vacant 25%vacancy rate as of Q1 2013). Historic office-vacancy data from the previous,eight years'indicates that this excessive vacancy has existed since before the start of the recession. o Other approved.`or,proposed office developments could;potentially'add about three-fourths of a million square feet of additional office space;;however, market conditions are such that the owner of an undeveloped office project that has had entitlements for over 10 years Will likely try to reposition the project for different use. o An inferior location such as the Maria Drive site.would have to compete on cost per square foot in order to attract office tenants and,given the relatively low rents,forofficespace in Petaluma,this would likely beta money-losing propositionlforthe development if the developer could attractany tenants. • As an artists' live-work location, a pdrnary;drawback of the Maria Drive site is;that the costs of,new construction would not allow rents that would be affordable to most artists., In addition,the Maria Drive site would not be as attractive for a live-work location asthe downtown area which provides an ambiance that is more consistent with the live-work style of living. Even in the downtown setting(e.g., Waterfront :Apartments),the majority of live-work units are not being utilized for their intended purpose. If live-work units are:incorporated into the Maria.Drive project,,most if not all would'likely revert to more typical residential use,rather"than being used by artists as true live-work space. 11-91 2 -- - - • The City of Petaluma and JDA West can realrze-most.ofthe benefits,of mixed-use development at the Maria Drive site by designing the project so that it-helps to create a mixed-use neighborhood,where residents of the apartment units can easily.walk to the — shopping and services that are offered around the corner in the Washington Square shopping center. This can be accomplished by designing the pedestrian circulation at the Maria Drive site',so that there are convenient routes for residents of the proposed apartment project to be able to walk to the WashingtonSquare shopping center. Analysis of Potential Uses atthe&Maria.Drive Site The remainder of the memo describes the project site and its surroundings in more detail, presents site suitability criteria:used by developers in evaluating potential uses that could be incorporated into a given development,and then draws on those criteria, along with local • market information,to assess the,potential for retail, office, and live-work units to be successfully developed at the Maria Drive site. Site Location and Description. The,project is located on the east side'of,Petaluma, at 35-55 Maria Drive, between the intersections of Maria Drive and Greenbrier Circle and Maria Drive and Park Lane. Figure 1_shows the Site location within the Petaluma::community. The project site`.currently includes several office buildings, which show signs of obsolescence and deferred maintenance. Tenants include primarily professional services,;including medical and dental, as well as personal services establishments such as nail salons. At present, approximately one-half of the complex's office suites are vacant. Figure,1: Maria Drive Site Location �.. ' •; f' ig,A •. Maria Drive Site h S C ty of Cade O t .p w. ••:'�.: c�+ ow of RohneR Paris , ,*iz%• .. .E PetsngnyYe cDP xi ,w_ - •-°_2'„ City or Petaluma a.-.`:. =Limited Access Highway • '�+'_ 9PCr •. � day . Maier Road *-sue ui tor e at ar• .s a '. ap 46. itt ,S,'c ib .. , 9 NM u+d'+. fi yy .. £OG a s od cquy.ap 60' ex Ar 1 __ -- °`[__JFMe. 0 0.5 S 2 3 11-92 3 The project site is,tothe:northeastof;the:back side of the Washington Square shopping center, which is anchored by a Safeway supermarket and also includes:many other neighborhood serving retail and service tenants, including a number of food service tenants, banks,;a gas station,and other retail and.personal services. Access to the Washington Square center is via E. Washington Street,S. McDowell:Blvd.,or Maria Drive. The,Maria Drive access to the shopping center is located justtgthe'.southwestof the project site. Other development near the project site includes the Addison Ranch Apartments, directly across.Maria Drive from the project site a school,`and single-family residential neighborhoods. The Addison.Ranch Apartments are a collection of small multifamily buildings which are scattered on a large site South of the project site and occupying the entire block bounded byMaria Drive, Park Lane, McGregor Avenue, and S. McDowell Blvd. is the McDowell Elementary,School. To the north of a drainage corridor that runs along the project site's northern edge/is a single-family residential neighborhood. Site Suitability Criteria. Increating plans for a new real estate development project, in addition considering land usespermitted:by local,zoning regulations, a project developer must also consider the how the project site matches up with the types of site suitability criteria typically associated with the range of potential land uses. In the case of the Maria Drive site, it is zoned for mixed-use development, which means that in addition to multifamily housing development up to 30 dwelling units per acre,the site could also include retail and office space and live-work housing units.,, Because JDA West is already proposing to develop multifamily rental apartments(25,dwelling units per acre) at this siterand has already conducted its assessment of the sites.suitability for this use,the focus below is on the retail, office, and live-work land use options. Ground Floor Retail. Successful retail:sites are characterized;by accessibility;visibility, and synergy with other compatible uses. Accessibility means that it is easy for the greatest possible number of shoppers to travel to the site from the,surrounding area. This typically means that the site must be,located on a busy thoroughfare,that provides convenient vehicular access, or that thesite is located within a busy shopping district which functions as a destination for large'numbers ofshoppers because'of a critical mass of establishments that attract visitors on a regular basis,such as in a downtown area or a shopping mall. Visibility means that the site can be easilyseen by prospective shoppers and passers:by,who may not be intending to shop at that time but who would develop an awareness of the establishment for future shopping-trips. For:retailers, synergy with other uses is very important whether it is other complimentary retail uses,or proximity to different uses, such,as offices, residences, or other developments that attract large numbers of people,such as entertainment venues or public institutions, whose patrons may also find it convenient to visit the retailer while visiting the area Without synergies with other uses, a retailer must be capable of functioning alone as a destination;which/is typically only possible for a very large store, or a store that is extremely specialized with a dedicated following. Most of Petalurna's retail space is located along major commercial thoroughfares, such as McDowell Blvd.,,Washington St:;and Petaluma,Blvd.,or in the downtown area This includes local examples of mixed usesprojects, including the vertical mixed use Theater Square project and,the Water.Street Apartments projects, located in the.downtown area, and the"horizontal mixed use" Azure project, located near the intersection of Casa Grande-and Lakeville Highway. The two downtown projects have ground floor retail and the Azure'project has retail space 4 11-93 fronting on Lakeville Highway with residential development set-behind the retail. The retail component of Azure is also known as Lakeville Square Shopping Center. • According to Basin Street Properties'web site,the Theater Square project has 37,490 square feet of ground floor retail space, and there is 6,532 square feet of retail space available for lease,for a retail vacancy rate of about 17 percent. At the Water Street Apartments project, the Keegan &Coppin listing flyer indicates that a 727 square foot ground?floor retail space is available for lease. This represents a 14 percent ground floor retail vacancy rate in this project. According to the Keegan:&Coppin listing flyer for the Azure retail space,there is a total of 12,224 square feet of built retail space at this location,and 3,513 square feet is vacant,for a 29 percent vacancy rate. This information indicates that these three mixed-use projects are significantly under-performing the overall Petaluma retail market at present, in terms of occupancy. In addition,there are plan's to construct another 13,600 square feet of retail space at the Azure:site. __ Mixed-Use Office Soace. Office•space can sometimes be integrated,into mixed-use developments, either as a ground'floor use or as an upper floor use Ground floor office users within mixed-use developments.tend to be establishments whose clientele come to their place of business to meet with them. Examples of such users include realty offices, insurance _ agents,financial services firms,;and:certain types of business'services•firms, such as accountants. For these types!ottenants,site location criteria are similar to the accessibility, visibility, and synergy requireh ents'of'retailer tenants. Upper floor office space, because it'is typically less visible and not as conveniently accessible, tends to attract business and professional services establishments that do not rely on walk-in clientele,but instead work with clientele who are drawn to them for specialized services,such as legal,accounting,or engineering. Such professionals often'nee efo int ra located finer act with professionals in the same fields or allied fields and thus typically p business districts where there are a,diverse range of compatible businesses as well as support services,such as post office, copy shop, as well as daytime retail and services to meet employee's needs. These types of businesses typically find that their location,needs are well met in downtown or business park settings. A different type of:synergy:between uses is the large amount of medical•office space that is located near the'Petaluma Valley Hospital along the central part of McDowell Blvd. Because of the specialized services they,provide, professional office tenants typically have employees who live within a larger"commute shed" area that may involve significant drive times to the work place. As-a result, office tenants often prefer to,be.situated in locations where they are easily accessible.to freeways and'main:thoroughfares, where they not only enjoy community-wide or even regional visibility. Thus,outside of the downtown area, most of Petaluma's office space is located in a number of different nodes that center on major roadways and'.intersections,such as the S. McDowell Blvd:and Lakeville Highway area-at the south end of the city,or the N. McDowell Blvd. and Redwood Highway area at the north end of the City. Live=WorkSpace. Live-work space is building space that,is configured in a way that allows the occupant to both use the space as their primary residence and use it as arplace of business. Artists were early pioneers of this type of development,converting old industrial lofts into live- work units which were suitable for their'dual needs of inexpensive living space and • 11-94 5 inexpensive space for art work and possibly display and sale oftheir creations. While early ""°— examples'of live-work space involved adaptive'reuse of old buildings,.as the live-workloff came into vogue-as an urban lifestyle, some developers also built and configured new buildings as,live-work.spaces. However;as live-workspace became more widely,available in certain urban areas, many live-workspaces were used strictly!as living units,for.residents who were attracted to them because of their architectural,style but'had work places elsewhere. These lifestyle" residents of live-work;spaces often had greater financial;resources;and could outcompete artists for available live-workspaces. Other projects were developed in the style of live-work lofts, but designed and marketed as residential projects. 'Downtown Petaluma's Celsius 44 development at1n and G Streets is an example of the latter,while the Theater Square area is'a new construction project that includes four live-work Units among other standard residential units." • In BAE's experience, developments that have a true artist live'-work function typically need to offer relatively inexpensive costs to their occupants. This can rarely be accomplished with new construction unless there is significant subsidy involved. Otherwise,live-work developers need to identify old buildings that can-beacquired and adaptively reused relatively low cost Typically, such buildings exist in older industrial areas,where property values are relatively low. In addition,the architect Thomas Dolan in his,web blog(live-work.corn)observes that.when a person lives and works in the same space, often alone, it can be socially isolating and, therefore, it is important for live-work;developments to be placed in locations where the occupants can have readyaccess to opportunities for spontaneous interactions with others in the public realm. This type of thinking argues for live-work developments to be sited inia location more like Petaluma's'downtown area, as opposed to a quieter residential area like the Maria`Drive site. Evaluation of Potential Uses for Maria Drive Site The following discussions evaluate the Maria Drive Site in relation tothe various suitability criteria presented`alove. Evaluation of-Potential for Ground'Floor Retail Space. The Maria Drive site has weak potential as a location to offer ground-floor retail space as part of a mixed=use development-for a number of site-specific reasons as well as reasons relating to the overall Petaluma retail market. First,.Maria Drive is a relatively'quiet residential street;which does not carry large volumes of traffic. Because it is not a thoroughfare, it primarily serves as a route for residents of surrounding neighborhood to access busier and faster moving streets such as McDowell;Blvd,, and Washington Avenue: Thus, people who live or work in.otheer parts.of Petaluma outside of the immediate area'have little reason to travel on.Maria.Drive:.This means that the accessibility and visibility of retail establishments that could be located in ground floor retail space at the Maria Drive site would be poor. In the examples of mixed-use development previously discussed (Theater Square,Water-Street Apartments,,and Azure), the retail space fronts on major commercial corridors;and/or is within a pedestrian-district, but still exhibits comparatively high vacancy rates relative to:the overall Petaluma retail real estate market. The Maria Drive site does not offer'goodvisibility or accessibility. While some commercial establishmentsican be successful if they arelnot,located on a major thoroughfare with good visibility, such businesses must rely on their convenience to a large concentration of people'indhe:immediate'vicinity. This situatiomwill not be possible at the 6 11-95 _ _ _ r. _ - Maria Drive site because of,the low overall population density in the neighborhood on the surrounding the site. As,discussed previously,the Addison Ranch Apartments property other side of:Maria Drive is lower-density, and the surrounding residential neighborhoods are primarily low-density single-family detached uses. In addition,the block:immediately to,the south of the site is occupied by an elementary school,which would not likely be a significant generator,of patrons for ground floor retail at this.location and,will have=many hours per day when it is devoid of activity,during after-school hours,weekends, and+during school break periods. A major consideration for any retailer who would consider a ground floor retail space at the Maria.Drive:site would be the location-of competing retailers and the competitive attributes of the Maria Drive site vis-a-vis other retail;locations. While a retailenin a location such as the Maria Drive site might have the to capture demand-from-nearby residents.if there were no other viable shopping options nearby,this,clearly would not.be the case at the Maria Drive site It is highly likely that any retailer considering the Maria:Drive site would realize that with the Washington Square property just around the block,there would be,significant competition in the immediatevicinityfrom Washington Square retailers who enjoy greater visibility and accessibility relative to most of the rest of the Petaluma population,:a d'anoals to ands. benefit,significantly from the synergy with other retailers, including:larger located in that shopping center. In-addition, with the even larger Petaluma Plaza shopping center located just one.block;further away, it will be clear that this particular part of Petaluma is already well served with retail and services. A well-informed,competent retailer would be extremely hesitant to try.to operate;in a location such as Maria Drive, and,JDA West is correct in its hesitance to incorporate ground floor retail into the Maria',Drive:project. The ground floor commercial space in the Old Elm Village development on Payran Street, off of Petaluma Boulevard;provides a cautionary example of,rnixed use commercial at i placed on-a secondarystreet Old'Elm Village is a mixed-use:proi c residential units above ground floor commercial space',that fronts on Payran Street, about one block to the east of Petaluma,Boulevard. This:project was constructed in 2001: A representative of Burbank 'Housing,the project's developer, indicated that the commercial component has been a disappointment and based on this.experience,the organization requested to omitground floor commercial space-from a subsequent project application in:Petaluma. Currently, the ground floor commercial space is occupied'by non-retail uses, including the Petaluma Police Department;substation anda non-profit child development center operated by the Community 'Child`,Care'CounciI of Sonoma County. According to a project representative,the space currently occupied bythe'Police Department has turned over two orthree times since completion. Finally, althoughretail vacancy rates in Petaluma are relatively low at present(51 percent in Q1,2013, according to Keegan &Coppin),'the Petaluma'market is,abouttoiexperience'an unprecedented increase in retail supply'in the coming years,,including:over 720,000 square feet of new commercial space in two projects, according.to.the City of Petaluma=s Major Development Project List from March 2013. The first of that la g projects to and on line will be the East Washington.Place shopp g Streets, about half a mile away,from the Maria Drive site. This project includes 378,000 square feet of commercial space, and`is anchored a Target store,-and hick's Sporting Goods store, with a range of spaces for,smaller tenants. The second,large new retail project is the Deer Creek Village project,which will be located at North McDowell.Blvd. and Lynch Creek 11-96 Way, approximately one mile away. This project,with 346;000 square feet of space; anchored the Friedman's;home improvement store, and will include other food service, retail, and services. As illustrated in Figure 2,this amounts to a 45%a increase;in Petaluma shopping center space. These figures do not include other smaller retail developments including small strip retail projects. Thernajor planned retail centers,are both within close proximity to the Maria Drive site. This means that within the nextseveral years,the Maria Drive site will be served by four major shopping centers, all with'superior visibility and access,and+all within the industry standard 1 to 1.5 mile driving distance for convenience retail and services. Given this competitive environment, it would be unwise,to.try to develop retail space in an inferior location such as Maria Drive. See Figure 3. Figure 2: Growth in Petaluma:Shopping Center Space Growth in Petaluma Shopping Center Space 2,500,000 , 2,000,0 r r;y,, z 1,500,000 _ v ' 4 1,000,0 ° P r4 *� ..zae' ?d4.r z ' 47 ,k4 .500,000 C. $x .,";5 Existing Shopping Currently Planned Total of Existingland Center Space Shopping Center - Planned Shopping Projects • Center Space Sources: Keegan&Coppin Co.,Inc:,2013 City:of.Petaluma,2013;BAE,2013: 8 11-97 Figure 3: Maria Drive Site and.Existing and Proposed Shopping Centers 1sµ , 7 ,r i y r s -z QE ez tca_ ,4f`::-..- � dear \Place 3 rrx t � +fr -u { , " -" 'S .-t a, 4" o f �C y �? i6 F % ti V �. re �*tr�a �' -3 a Y .� !''..n.as . two' . ° �°' : S4a0 � lShnPpsrg ° 1^4:4.1:ei .. 4 ^ P ,11::: e .. -t£ `xF' 4,1*. - l.i j y ; - : F r a h g ° ' ` s fzeb l r� t v ,,3} c r t ,g ° "..14 3 4 T ; fn e1 n R 3 ..j>, ^x w y I'S:-x wlz 1 } TS Y 1 rw4 s "te" s 0 .0.25 05 Maps Sources:Googie Earth,2013;BAE 2013. Evaluation of Potential for Mixed-Use Office Space. The Maria Drive site does not offer a suitable location for typical;ground floor office tenants,such,ds real•estate offices or insurance agents who have site location criteria°similar to those`of retailers. As explained above,the site has serious shortcomingsin,terms of site visibility and access,given that Maria Drive is a relatively quiet residential street. Fors the types of professional office tenants who would consider locating in upper floor office space,the site does.not offer,a location where there are p u synergies similar businesses or businesses in,related, or with office support bus nesses,which i other found in business parks or central business district type'locations. The Marie'Drive location`is essentially a residential location'which would not be appealingto most office tenants. As indicated previously,'the current development at the site;has struggled to maintain occupancy,.with:approximately 50 percent of the available office suites vacant. Although one can,point to the current poor condition of the buildings;and,landscaping at the site as a factor in the high vacancy rate,the fact is that,if the demand for the office space at this location was stronger,the property.owner would have:had more ability and more motivation to invest in upkeep of the property. According to the owner, many of the office units have been vacant for quite,some time,dating as far back as 2006/2007), and the owner has been agreeing to rent reductions and other concessions in order to retain the existing tenants. According to JDA West,the current owner has found that the location is;not appealing to most office tenants due to the surrounding residential uses,the lack of concentration of other office space,and an abundance of preferable choices for locations elsewhere within 11-98 9 - - --- Petaluma. BAE;concurs with;all."of.the;owner's observations, based;onour own reconnaissance of the local office market conditions. While a site like Maria Drive might be able to:overcome its shortcomings due to-strong demand and limited supply in a tight market,there is such a large quantity of vacant office space in Petaluma that prospective tenants do not have to resort to choosing inferior locations in order to obtain space. According to the Keegan and Coppin commercial real estate brokerage,the office vacancy rate in Petaluma was approximately 25 percent,as of first quarter of 2013. This"wasislightly worse than the office vacancy rate for the Sonoma County office market as a whole. In comparison, a healthy commercial,real estate vacancy rate is often considered to be approximately 10 percent. Thus,office market conditions at both the local and regional level indicate'that there is significant excess supply relative to demand. It would be tempting taattribute Petaluma%current high officevacancy rate to the effects of the recession; however, historic.Petaluma office market vacancy trend information documented in the 2012-2013 City of Petaluma Economic Report,prepared by the Sonoma County Economic Development Board, based on data from Keegan and Coppin, documents that Petaluma's office vacancy y ratewasaetween 25 and-30 percent as far back as 2005, with a peak of 41.5 percent in early 2010. See Figure 4 on next page. According to Keegan+and Coppin,.there was about 823,000 square feet of vacant office space in Petaluma as of first quarter 2013 and full service office rental rates were averaging$1.58 per square foot. This information confirms that while there has been a:recovery since the most severe effects of theirecession,the Petaluma office market still far from being on solid footing given the existing vacant supply and relatively low rental"rates:which would make it difficult to defray costs of new office construction. In an environment such as this, building additional office space in an inferiorllocationsuch as Maria Drive would almost certainly result in excessive vacancies,.low'lease rates, and financial losses for the developer. Potentially adding to the excess inventory of office space,-City staff have indicated that there are at least two office projects`within the City of Petaluma that have been fully entitled to construct substantial amounts'of additional office space. These include a project by RNM Properties on a?20.4-acre site on CaderLane in'south Petaluma that is„fully entitled for 354;000 square feet of office space,;as well remaining approved off ice'development in the Redwood Technology Center in north Petaluma, which totals;90;000 square feet. BAE located, a press release;;that,indicates the Cader„Lane office site has been entitled over 10 years: Some of•the,approved commercial space in the Deer Creek Plaza and East Washington'Place shopping centers could:be;built as office!space. In addition to,these fully approved office projects, RNM Properties has an additional 13.6-acre office site on South McDowell Blvd.that is not fully entitled, but which could potentially accommodate;240,000 square feet of office space. The City of Petaluma's,major'project list anadditional 60,000 square feet of office space that isproposed'in the Riverfront2010 project, at the southwest corner of Hopper Street and Highway 101. Together,the approved but not yet built office space represents over 450,000 square feet of+additional supply,while the other projects that are not fully entitled would bring the total to closer to 750,000 square feet. According to City staff'and an RNM Properties representative,that company's office development opportunities have languished under recent market conditions and due to the lack of opportunity,the developer will likely try to re-position the properties for light industrial/flex type uses. 11-99 10 Evaluation of potential"for Live Work Space. There is relatively little in the way of existing live- work space in Petaluma; however, one example of a development offering live work'space:that BAE-was able to identify was the'Waterfront Apartments, in the downtown near the Theater District, which includes fourylive-work units. Of those four units,the residential leasing manager reported that most are being rented as three-bedroom,apartments rather than as true live-work units. As mentioned previously,the Celsius 44 project,also in,downtown;:is styled as a loft project however;the residential units are designed ant marketed:as upscale residential units, not,live-work units.. One proposed project,the=•Riverfront 2010 project, which is shown on the City's March 20131MajorDevelopment Projects,List as "under review"for a location at the southwest corner.of Hopper Street and Highway 101,would include four live- work-units out of a total of 273 total planned residential units. Figure 4:Petaluma Commercial Vacancy Trends Petaluma Commercial Property Vacancy Rate'r 2005 201242 Petall -= li:C=ValIn dusfnal` Ce 50 4 _ _ 3 T f0 pos = 06 '01- OB '09 10 ii 12, source: Keegan&Coppin,as reported in 2012-2013ICity of Petaluma: Locai Economic Report,by,Sonoma County Economic,Development Board,2013. Although the examples of;live-work projects are.limited,they all a common trait in-that they are locatedwithinrPetaluma's central area, near the waterfront,and in a more diverse and urban area-than the,Maria Drive site. This is.consistent•the tendency of live-work`projects to be in locations that are more active and "edgier"than a site like Maria Drive: According'-to the leasing agent who provided information e li asing dt i the iie units in the Waterfront Apartments,the type po le who h ihor unit want be in the downtown area;.because that where.all of the.action is. Gontrastingthe downtown area with the setting of the Maria Drive which is primarily residential in nature, it is not likely that MariaDrive would have thesame appeal for residents interested in live-work units. Nevertheless, if the marketing experience of'the downtown live-work units is an indicator, if live-work units were incorporated into a new construction project like the Maria Drive project, it is likely that very few units might actually be used as live-work,units and their primary use would be as apartments. 11-100 11 About BAE BAE Urban Economics is an'award-winning urban economics and public-benefit real estate development'consulting practice. Since 1986,we have served more than 1,900 clients including public agencies,non-profit organizations, and private developers.throughout the US. All of our work is led by seasoned experts, who are responsible for project direction and internal quality control. BAE's"experience ranges from statewide policy studies,to strategic plans,to,development projects. Our services include feasibility studies strategic planning, revitalization, public- private transactions, public financing,:fiscal and economic impacts analyses, and development advisory services. We have extehsivework experience in:. • Economic Development • Sustainable.Development,end;TOD • Affordable and Workforce Housing • Public-Private Transactions; • Parks and Community`Facilities • Impacts Analysis • Financing and Operations BAE's passion aboutthe"triple bottom Line" of sustainable economics,environment, and equity makes us unique among urban economists. We believe;that there are practical solutions to,urban issues which,will achieve this triple bottom line, and that consideration of environmental impacts and social benefits is as important ea financial returns. Our company.has practiced this same philosophy since our inception in 1986, with intentional investments in our staff and-workplaces to foster creativity;and a commitment to excellence. We have_pioneered the use;of,°survey research to target rgo urban ba hol estate advisory services to innovative GIS tools for smart growth planning, provided of the largest revitalization and sustainable development efforts in the.US. We have also worked on more than 50 TOD strategies and plans, as well as award-winnin ring ng our regionab.plans. BAE is a certified'Green:Business in,Alameda County, CA, sustainability focus to our own business practices'. BAE is also"certified as a WBE or DBE by numerous public:agencies. The BAE difference.shows'-we,have earned more awards forexcellen ce than any other firm in our field, our core staff has averaged,;more than 15 years eachiwith the company, and our clients have retained us repeatedly over our 25 year history. BAE'has 20 staff'members in five offices including San Francisco,Sacramento, Los Angeles, New York City, and Washington DC. For more information,see www bael.comt. • 11-102 13 Matt Kowta, MCP; Principal Matt Kowta manages BAE's Sacramento area office, and has worked in the field for over 22 years. He specializes+in real estate market and feasibility analysis, public finance,fiscal impact, affordable housing, redevelopment, and strategic economic development. Throughout, his career; Matt has pioneered innovative techniques in economic analysis to meet the challenges of contemporary,urban,development. Matt has provided strategicreal estate advisory services to a wide range of clients, including developers,financial institutions''>and public agencies,for projects ranging from feasibility studies for single,buildings, mixed use and transit-oriented development and large master planned projects, including military base reuse efforts, and specific plans: While Matt is based in the Sacramento Region, he brings perspective to local projects from ongoing experience managing projects in locations'throughout the Bay Area, Northern California,the Central Valley,the Reno/Tahoe area;,Oregon,Washington State,Arizona,'and Colorado. His experience spans the full continuum of the development process,from long range planning and pre-development through redevelopment and revitalization. He`provides expert witness and litigation support servicesto public agency and private sector clients. Matt recently provided technical assistance to local communitieston best practices for economic and fiscal sustainability„through;a national contract with'the:US Environmental Protection Agency. He has,lectured at U.C. Berkeley, and has been,a featured speaker for U.C. Davis,the California,Downtown;Association,the California Local Agency Formation Commission Conference;and the Urban Land Institute Real Estate School. He is,a member of numerous professional organizations in planning, economic development and real estate. He is past president of the Board of Directors'of the,Davis Downtown Business.Association. Matt earned a B.A.'in Geography from U.C:L.A. and a Masters in City and Regional Planning from U.C. Berkeley. 11-103 14 ATTACHMENT J -rams EF, ECondfntt Forensics&Analytics Macia:Drive Apartments Report and Economic Impacts JULY 26, 2013 This brief report is a peeireview'of Bay Area Economics Urban Economics (BAE Urban) report on the-property?at 35-55 Maria Drive in Petaluma, CA. The report is dated July 25, 2013. The focus of this;report is the uitabilityof the Maria Drive site for 100-percent residential versus mixed use. The site is 5,85 acres, where the density is 25 units per acre and the number ofunits;to be built is approximately 144 units. This peer review focuses on the keypoints;made by BAE Urban=and their conclusions. BAE Urban makes thecase that the best use is multifamily residential. BAE Urban suggests other uses-would,not'be suitable for this space Their contention rests on two•major points: other uses would not fit that area:ofPetaluma and the current market for other comrnerEial uses in Petaluma makes it unsuitable inlerms of the market for commercial space;otherwise. The study considers ground,`floor retail, office space specific'to mixed use,iand live-work space the studyconcludes'that all these are poor options vis a-vis multifamily residential. BAE Urbari s evaluations are thorough and prov de a solid basis fora recommendation to change the zoning to 100%residential. This is especiallytrue for the case against adding retail and office space to Petaluma, where the cases.are made specific to this market. • BAE Urtian.riiakes e solid case that the market for new refaii.. going toabecdme weaker because.Petaluma will, over 720,000 feet of new retailispace come on-line withina,mile of the Maria Drive site. Due to:the location, mix'of retailers in these spaces,parking,:and.other'intangibles, building new retail within a mile frdm affic projects would be a poor economic idea. Further,the-lack,of visibility g Maria Drive makes'ita poor location for any amount of retail or mixed-use space. For mixed=use office; both weak demand for officespace regionally and the locational aspects of the Maria Drive site suggest very little reason for office space at this site. 'There has been very little office space built in Petaluma since 2006 for a reason: demand is weak and projected to remain so. Technological advances have changed the way-residents use officespace, and it is unlikely there would be consistent demand for new office space at the'Maria Drive site. As evidence„the demand for the existing'office:space attheiMaria`Drive site is weak.,The BAE report;highlights that current vacancy isat'50% (compared to overall market:vacancy of 25%at 10 2013), the landlord has been continually'lowering rents in:order to keep the existingtenants, and there has been little to no.reinvestment in thei,propertyidue to the lack of office d ipnd in this location.The argument againstlive-workspace by:BAE Urban is also solid. - , .-� 71•drtintaretbfitbie it"fE5°.ioT57 eerMfureigie.rOti-"""`_.• 2 ____ P.fi?`.Bok"Y5Uti�1`Pe£a1Sma;-CA$J�97��"707`.31`8'03L8�, key is the attraction to=multiple spaces specifically for,that:use, and RAE Urban's analysis is classic in that the want for artistic space to be near foot traffic to showcase art or in urbanized part of a city is correct. The description'of what has happened on Payran Street at the Old':Elm Village provides an example of why"mixed-use office is'unlikely to Work at the 35-55 Marin Drive location in Petaluma. Considering the Economic Impacts. One of the argumentsiagainsf_ residential development, even if the market conditions warrant such use of'space, is'thatthe economic impacts area one-time shot for the local municipality. This project economic impacts from,its,construction phase and when the units. are',occupied; the occupancy impacts;are ongoing and affect both the local community and"the entire city of Petaluma. The construction would' begin in 2014 and be done in 2015;the occupancy impacts Would,begin in 2016. New residents have ongoing economic impacts on'where they live. Such a development has benefits"forboth',�the city overall and the community in which it occupied. The communitygains new residents that are:paying market-rate rents and providing income to local'businesses. The new units also reduce conditions of blight or obsolescence in property, this supports the community's.;wealth s m tems"of stabilizing home pice and local infrastructure quality The new property also increases the property taxes being paid; which supports local schools,the famines thatoccupy these unitsvrill also support local schools, as'!paying market rate rent implies the occupants are likely making more than:the median household income' i „..;.:There are additional,,positive ongoing effects for the City of Petaluma overall. It is a misconceptionthat the only impacts are.construction impacts The construction impacti for this project generate over$34 million in business revenues,where $Z4 million of'that is construction costs There would be over$5 million paid in fees r ostensibcy government re'venue. The;impacts of these new residents on local Petaluma businesses; where occupancy is expected to;be very close (if not equal)to 100 percent consistently, can;be;summarized in Table 1: 11-105 ..�..-�.. "°"'"`°F'f—a-6"X"9545'4}`"PeYawrwa`,'.C3m49.774.-7,r si'8".o3'S8 a-ar9n e'EwforenrayE6r P:4v emhroFen'trcuiir. Table.1: Summary oflndustries.lmpactecl by New/Occupants at 3S=55:Maria Drive Description Employment Business Incone Bars and Restaurants 5.4 $342,700 Wholesale trade businesses. 2.2 346,600 Medical and Dental Offices 2.1 266,900 Grocery Stores 1.7 119,600 Realiestateagencies 1.6 315,200 Child Care/Household;Services 13 14,500 Nursing:and residential care facilities 1.2 80;600 Auto PartsRetail 1.2 122,000 Investment Banking 1,2 106,500 Banks and Credit Unions, 1.1 163,200 All Others 21.2. 3,222;200 Totals 40R $5,100,000 The assumptions to determine these ongoing impacts from new Petaluma residents are as follows . there would be 144 new households!n Petaluma, e :..The median,household income as of 2011 was $76,185 per year o Assume 95 percent occupancy of the apartment space, o Assume an average tax rate of 30 percent an the residents and o Assume a 5 percent savings rate i e Petaluma would receive an economic infusion of approximately $7 3 million '. annually from these new residents, where sothga.thatinEdineWbuldieakaway to.other areas Given'the,leakages;:these occupied units translate into.the support ofover 40 jobs,in:Petaluma,over$5.1 million in new business revenues, and approximately $401,000 in new local,and;state tax revenues annually. The,sales tax portion,for example, of that increase is approximately$128,400 of the.$401,000. This annual increase in-spending;takes place with local health services, professional and personal services, as well as retail.,A;wide breadth'of businesses in Petaluma would be supported by these new households'on an ongoing basis. Summary basic economic and real estate analysis.concerningthe 35-55:Maria Drive property by BAE'Urban:is sound and highlights',the major issues bares sons for for that proposed.change to 100 percent;residential. EFA,supp mixed-use or other commercial uses wouldnot be suitable for-this,site/location,and that multifamily is'the most:appropriate use given'the location and compatible user 1-106 surrounding.the;site. The options considered by'BAE, in,terrris of commerc alspaceL .-nrAz,„a-cnzaP'Pataili,?ia3`R9'497517D773l'nT4-57 m @eferrfere sier'cbm" t�*'S.'w:e2'onfio're.fi3iE�:.Eor?I�'°">."'°"'°°�',••_ options; include office;;retail and live-workspaces in a'mixed'use setting. Givenahe location/visibility of the Maria Drive site, combined with Petaluma's commercial real estate market, especially recent changes in the retail market and weak demand for office in any setting,the best use option is.residential. Residential occupancy shouldnotbe an issue. On the commercial'real estate side, there are no indicators.that office space would be occupied, as well as live-work spaces in this location. This property provides conveniencet;ancf an increase in surrounding.home values for the Maria Drive community; there;are also ongoing economic and social benefits to•the City of Petaluma in terms of an infusion of new spending that will further%•utilizeinew'retail options within the City and provide local tax revenues. In short,the BAE.Urbanrreport provides the fundamental reasons to allow for 100 percent residential in this location. Economic Forensics and Analytics, Inc. Profile Robert Eyler is a principal at Economic Forensics and Analytics (EFA) in Petaluma, CA. Dr. Eyler is often called up;by the media for his expertise on global economic issues, is a forensic economist and acts;as an expert twitness in trade and damages litigation; and specializes in econorniciimpact analyses for both private firms and public entities. Robert earned a Ph:D from the University of California,,Davis'in"199Kr.Fle`earned a B.A. in Economics at CSU, Chico in 1992. Robert istheauthoroftwo books and several academic articles concerning economic sanctions;the economics of the wine industry, and monetary'economicsi Dr:Eyler has been a wsitmg ktifirSi-5b'tlibiliT.the University of Bologna and Stanford Un`wersity J3 Economic Forensics and Analytics, Inc. (EFA) is an independent research and consulting firm located in Sonoma County, California:,EFAiii:OVide'S,eXPertWitheSSrAi services,for clients;in need of°support for financial or economic arguments m litigation and/orin `depth analysis of the opponent's arguments, experts,;and testimony. EFA can provide clients with retailleakage and fiscal impact reports(for economic development support EFA has produced several.of these reports for"corporate and governmental clients. Please see,mote atwww.econforensics.com. 11-107 -n^' - 'P't7'BdR°954Ed1°PeFa1G"rc7a°,`Or3R'9777-7t7T.3913'.'G3,4'8rezdminCmecc°nio"ren si[s-toYn'■`wN�n'. conrorensiZ'Ffe&n - • r r = rri r m ,0, to c 2 0 0 .Z.. v v, to 'L1 0 C. A, r DO 0 S T 1 O O 7 ‹ '7 C W OD: OV c °. �., E y ;O O (D Q G 2 D oc m a 3' fD .S m '^ 6 :ET ,- m rD in ^- re :o rm: o n �a) 0 n. �2 S C 01 ^r. 3 _y rD 'r 6 '. S 0 re 7 n rD cu °. N ti. __. -° rD d re n rD W: co 0. n) O. o- • C N S c H n in -. r, r c•■ Cr O Oa 7 W. 7 7 7' a N 'n T 7 6 {p �- fz = N d fN •G f1' 'O r-O° co'O 3 ° r7. K r < ' aD < n '2 O O d ry (D. to 7. O .• c . _o n. < -p DI ti r, .,+ 7; 7 Cr. 7 in a- 6' r, 0' 2 0 r N O 00 m rrDD Os O./ < O �� < ry' O' ,�.. o, 0 7 d Lit < tit o d N .r o a. n 7: ° n ° o 3 3 0 °_ a o x n o 0 D n as co 3 7 m D o a- 7 v a), r 3- — to N n - i. rD '< r D- 'n 0fflfl N 3 °Oa d N fD ° :v,S N _ "O 7 d O N' ro .-■ 7 IL' air �n N (i o 'vii rD' 3 0. N n - ,v ° in s n H <. 00 (. d 7 rD co p r< 00 :O CO y. ry SIl /� O 0 co 7 M a — 7 CI N M. N N �,N O d Q O_ cu 0 cu 5. cril =• C ° �' v 3 d — °7° m G _ fD CD NJ 7 ft rD 7 n 3. ID. :a 0 - (x.�. a, a �, o a co , (, D e-F m ° any 3 a c 7 -2 r0D o o Le, Cr Wi et 7 c — y n c P. R. nO '+ r°i 3 m an 0-o_. o ? N d 3 Q D ry H n. d rr 0 r tt r ' rr• 7 D n a Q N 0 v, O N a �^ O ° 0 rD 0 ° aD S N -+ O Cl) O Oq O y ... u .gin. C D D u, 3 O n S N S o p w cu d FD- 0 '+ -p. d 0 7 -< on o_ .co ' ' 7 r+ o' c a D o co U - D C IA 0 C w 6 ,+ °' D. K r 0 o z. La. a. o r 11-108 ATTACHMENT M Subject: Maria Drive Rent Roll From: Marty Brill (mbrill @jdawest.net) To: aficia @mplanninggroup.com; Date:: Tuesday,June 25, 2013.2:38 PM Good afternoon,Ali. Following up on your request,please see the attached rent-roll for theMaria'Drive property. • A e cases will see far 50%% of 2006/7).unis a currently vacant and many have been vacant for quite some time (in As you will see 50% of the units are currently ership has struggled to;absorb;the vacancies and has been agreeing to rent reductions and other concessions in order to keep,theexisting tenants in occupancy. The 'feedback is that the location is;notappealmg to most office tenants due to,the surrounding residential uses, the lack of concentration of other,office space,and an abundance of preferable choices for locations elsewhere within the City. In addition,prospective tenants describe:the space as undesirable due to its age, obsolescence and lack of amenities., These:ate allreasons why the existing ownership is selling the property. Taking a step back and looking at Petaluma's overall office market conditions,the:demand for commercial office is weak and has been weak for many years. According totkeegan&Coppin'(commercial real estate brokerage),the office vacancy rate in,the-market is currently between 25-30% and has been in the same range dating all the''wayback to 2005 This highwacancy rate indicates thatthereis significant excess supply relative to demand: An office.market is considered to be healthy when the market-wide vacancy rate is 10% or less. As such,speculative development cannot be justified and°similarly obsolete properties are unlikely to receive reinvestment,thusrstaymg m.a:similar condition,if not deteriorating fijrther.Finally,even if there were to be reinvestment and/or redevelopment of the Maria Drive site bringing the improvements up.to Class A,'it would be unlikely;to lease-up atiany rental rate given the over-supply of existing Class.A space in piefei-able,lbeationspwithin the City. One last thought,in addition to the attached rent roll information,I have requested,absorption:and rent trend information from,the property manager at the Maria Drive site,but wanted to send,you what,I have received thus far, out for thetenants•and landlord,we retitle-Saha.you pleasekeep,the lease information confidential,however,„you may feeLfree to Ilse the summary-level information. As always, please"feel free to contact men you:have any•questions. Thanks, Marty 11-109 Marty Brill Senior Real Estate Manager JDA West,LLC Multi-Family Real Estate Developers. 505 Montgomery Street,11th Floor I.SancFrancisco,.CA 94111 4400 Bohannon Drive,Suite 280 I Menlo;Park,CA 94025 (m)415'515-5121 I(f)415-906-24121(e)mbrill@idawest.net www.idawest.net 11-110 Page l of Subj: Maria Drive Date: 6/24/2013 2:26:35:13 M. Pacific Daylight Time From: mbrllk jdawest:net To: $fomaitvfohaol.cam Hi Marty, The City has asked us to provide them with recent vacancy rates and turnover statistics at the Maria Drive property. me with some information to share with the 'Please let know if you or the property manager can provide_ City. 'Thanks, Marty Brill Senior Real Estate Manager !DA West,LLC Multi-Family Real Estate Developers 505 Montgomery Street,11th Floor I San Francisco,CA 94111 4400 Bohannon Drive,Suite 280 I Menlo,Park,CA 94025 (m)415_515-5121 I O 415-906-2412 ke)tmbrill @idawest.net www.idawest.net Monday, June 24, 2013 AOL: SEmory 11-111. GLA ASSUOATIBN PAGE 02/03 b5/20./2®13 •14:52 415-491-1669 I 35.55 MARIA DRIVE TENANT RENT ROLL 06124113 Comm Date 304 Rcnt Security Deposit Unit Name. 03/11/00 a. 811 WATT6NBERG.CHARLIF. $DA0 $0.00 M2 VACANT 08/31/12 813 PETAWMA FAMILY RENTAL 02/01/12 VIM. c "``y . 814 WEEKS,DR,ROBERT 06/15/85. $0.09. $0,00 Q9/30/10 ■ / 815 VACANT $aa9 820 ENt`yRPRiSE PROPERTIES,IlJC 12/01/OD $0.00 06/01!10 821 MARIN MORTGAGE'BANKERS, j , - - rk..� 823 YAPINGYUAN 05/01/12 3: crSIREP 12115/06 $0.64 $0.00 82A. VACANT $0.00 50.00 1120/08 832 VACANT $000 $0.00 06/30/12 633 VACANT 837 STJOHNS ANGLICAN CHURCH 07/01/09 a 1;s 08/31/12 . $0.00 02/01/98 838 HAIR GARDEN $0.00 839 VACANT 10/01111 $9.00 50.00 MO VACANT 841 IIARMCIN.TON1 05/01/99 se lag 342 CHICCA,NIN6TT6 F. 02/15/12 07/31/05 844 TAIJgCIt;RANDAI. $0.00 04/0.1/09 $0.00 845 VACANT 01/31/13 se.90 $o.oD 846 VACANT' $0.00 847 VACANT 05/01/08 $1.00' 848 BRENDA GOLDEN STiTCH 04/06/92 850 VACANT 03/31112 $0,00 $4;00 851 GILBERTMFT,1EANETTE. 04/01/09 WM02- . a 12/15/12 $0.00 $0.00 852 VACANT $a.oa .04/01/08 $0,06 853 VACANT $O;DO 6 854 VACANT 02/01/12 $0.00 05/011t1 $0.08 $0:00 856 VACANT ' 857 SOMA HEALTH ASSOC,INC 07/01/05 One 860 VACANT Sb,OD 01/01/07 $0.00 - 861 REINS,MARY&MICHAEL $62 VACANT 05/31/11 $0.00 $9,D0 11-112 e5l24i2013 14:52 415-491.-1669 (�'L.A (iSSO TION PACE 03!03 2 3545 MARIA DRIVE TENANT RENT ROLL 06/24113 C.om+n.DM Base Rent SvurityDeposit Unit Wpm s69 CUMR4ING'S+13:4N0 00!13184 VMS MON $64 MD73GIl31,141CHB.L[.E 04/01/94 ORM 34 TOTAL. digOrh • • 11-113 pry, qq ,gip-@ �1 y{� t f"®��$9 l� 4, �T.. £ T5^n �., ` �S I�°i 4 3P� ��B f fi.® 4 #y b �° ^�� r- ®.JAe«u Pa.'eYWaE+3a�. 4 `' i ��An ATTACHMENT N Business Advisors who work hands-on with clients to address challenges, seize.opportunities, and grow their' bottom line through expert no-cost counseling and top-notch low cost seminars. You can now take advantage of business coaching, planning, financing and technology services through the Sonoma,County Small Business Development:,Center by calling or'emailing Mary Cervantes at MCervantesPnapavallev:edu-or(707).595-0060. Adult Education Can Supportlocal Business Needs The Sonoma County Office Education offers classes for adults that can support your employees. Classes cover topics such as Basic Construction (OSHA 10, Hand & Power Tools, Fork & Boom Lifts), Basic Electronics, and Computer Programs including Final Cut Pro X, Microsoft Office Excel and Word. There is also a course on must have business skills. ifany of your employees need this type of training,you can find out more at the,SCOE Website. City Sales Taxes, Vacancies`Improving Sales Taxes were up in the 3`d quarter of 2012 by 6.6% over the same quarter in 2011. Transportation and Construction businesses showed the most improvement at 8.8% and 7.9% improvement over the same quarter in 2011. Food products showed the slowest growth at 4:1% over 2011. The California NewCar Dealers Association,reports that sales of new vehicles are up 26% for the first nine months of, 2012. The Catifornia,Department of Finance reports that Civilian Employment in August of 2012 is up 1.3% overlast-year. They also report that the best job growth continues ''to be in Computer related' industries and Scientific R&D. Unemployment in California dropped to 9.8% in November of 2012 from 11.3% the previous year. Commercial property is also :showing signs of stabilizing with vacancies' down in all three categories, Office, Industrial and Retail from the previous year Office vacancies are hovering around 25% from a high of over 40% in 2010. Industrial vacancy rates are currently at 9.9%, down from 16.1% a year ago. Retail vacancies continue to be low at 5.9%, a small change from 4.7% last year. Overall, economicindicators'are improving, which will help stabilize the City's finances. As a result, the Cityccan;begin to plan for future needs instead'.of reacting to losses, which has been the case for a number of years. Sales Tax Leakage The table on the next page shows how well Petaluma is capturing sales locally. Any column below 100% means that consumer spending that should be occurring in Petaluma is leaking outside of Petaluma. Anything above 100% means that Petaluma is capturing more than its share locally. Petaluma Economic Development st.r`s _ F w� 11P 134 ,ese