Item 27 - Appeal Application Nos. 2020-03 and 2020-04 - Central Pointe Mixed-Use Development

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SPR No. 2020-04 October 26, 2020 Page 7 identify any impacts from developing a residential community near a major freeway. The HRA concluded that a less than significant impact to project residents would occur due to the project's proximity to a major freeway (Exhibits 11 and 12). The Central Pointe development is within the range of development analyzed as part of the MEMU Overlay zone EIR and SEIR. The Mitigation Monitoring and Reporting Program of the MEMU EIR and SEIR applies to the project and will mitigate impacts below the level of significance, Economic Development The applicant's retained the services of two economic consultants, The Concord Group and RSG, to prepare a market and fiscal impact analysis for the project (Exhibit 13). To validate the findings of the analysis, the City retained AECOM to peer review the applicants study (Exhibit 14). The MEMU does not identify an amount of commercial space required for projects, only that development be mixed -use. Further, one of the objectives of the MEMU is to "facilitate project designs that encourage adequate amounts of retail or commercial space to service residents and/or employees within the development and the larger Metro East Overlay Zone area." The project proposes 15,130 square feet of commercial space. The applicant's study noted that the proposed 15,130 square feet would be sufficient to serve the project and MEMU area. The City's peer review estimates that the project could support between 10,000 and 21,000 square feet of commercial space; therefore, the proposed 15,130 square feet is within this range. Additionally, the proportion of commercial space to the overall size of the development is similar to the proportions approved for nearby mixed -use projects. The project proposes 2.6 percent of the total building square footage as commercial space. The three mixed -use projects within a half -mile of the project site either under construction or in the pipeline (The Madison, AMG First Point, and Elan) provide a similar proportion of commercial spaces at 1.4 to 3.5 percent of the total building square footage, while the Nineteen01 project provided a lower ratio. Unlike projects such as The Bowery, where no commercial space exists in the immediate area, this site is approximately Y2 mile from Seventeenth Street, a main commercial corridor. This corridor contains a mixture of commercial uses, such as restaurants, dry cleaners, service stations and supermarkets. Additionally, a retail center located south of the site on East Fourth Street, although partially vacant, also provides retail opportunities in the MEMU zone. AECOM estimates the following fiscal outcome over a 25-year forecast period; • Approximately $24.6 million in revenue to the City's General Fund (construction period revenues, recurring property tax revenue, utility user tax, residential sales tax and business tax) • Approximately $14.3 million in expenditures from the City General Fund (public services) • The net new General Fund revenue is projected to be approximately $10.3 million from the development of the project.