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SECTION IV <br />OVERVIEW OF COMMUNITY <br />t(I BENEFITS TO THE CITY <br />www.FinanceDTA.com <br />2. The Project will offer 350,000 SF of commercial development, a downsizing from the <br />existing 465,000 SF of Income -Producing Property (" IPP"). CoStar identified in May <br />2023 that annual office rents within the 2-Mile Zone are $30.70 per SF with a vacancy <br />of almost 21%. During our site inspection, we noticed that there are existing tenants <br />that include typical office uses, such as tax preparation. On the other hand, CoStar's <br />retail data indicates that annual retail rental rates are $37.53 per SF with a vacancy of <br />1.9%. The reduction of retail space and its replacement by residential square footage <br />should maintain similar gross revenues (CoStar estimates annual residential rents of <br />about $40.00 per SF per year will increase the overall value of the property). It should <br />also be noted that office uses generally do not generate sales tax. <br />3. The proposed retail will replace the existing "obsolete" retail (see discussion above). <br />4. Based upon the proposed design standards, the structures and Specific Plan are <br />designed to attract professionals of all ages. These tenants should be attracted to <br />the combined residential and retail programs encouraging an active lifestyle. <br />5. The community design standards are intended to create a self-contained village that <br />integrates with the adjacent South Coast Plaza and Arts District. <br />6. The Developer is planning to pay Affordable In -Lieu Housing Fees that are currently <br />$15.00 per SF. If the average residential units is 900 SF, the estimated Housing <br />In -Lieu Fee will exceed $50,600,000. <br />Related Bristol at 3600 South Bristol Street <br />Community Benefits Analysis Report <br />Exhibit 10 <br />September 27, 2023 <br />0 <br />