Once complete, the Block 2 office development in downtown Redwood City is estimated to deliver about $350,000 annually to the general fund and another $10,000 yearly to the parking fund.
The figures are based on the current estimated value of $150 million although the expected property tax revenue could drop if the project is eventually assessed at a lower amount. The city will also gain other revenues from business license, utility users’ and sales taxes but actual amounts are hard to pencil out without knowing yet what will occupy the space.
The area in question is also known as Block 2, which is bordered by Jefferson Avenue, Middlefield Road and the Caltrain tracks.
The current offering price of $17 million for the land from the city to developer Hunter-Storm might also change because soil samples taken of the site have tested positive from contaminates ranging from hydrocarbons to dry cleaning solvents. The development agreement up for consideration by the City Council Monday night calls for the city to leave $3 million in escrow for its share of the potential clean up and disposal costs.
On Monday, the City Council will also consider approving amendments to its downtown precise plan to accommodate the project and the necessary permits for the development which will include 302,000 square feet of office space and 5,075 square feet of restaurant space.
Earlier this month, the Planning Commission recommended the City Council approve three amendments to the city’s downtown precise plan which includes removing the rounded parcel that formerly created “Depot Circle” and squaring off the corner of Winslow and Hamilton streets to create more traditionally shaped parcels and a 6,000-square-foot “Depot Plaza.” The other changes are removing the Theatre Way extension and the some minor revisions to increase design flexibility.
The current project proposal calls for a ground floor of small office suites, lobbies and restaurant space. A 904-parking stall garage would include four above-ground levels with access from the intersection of Middlefield Road and Winslow Street. The rates cannot be more than 125 percent than that of the Jefferson Garage. As part of the development agreement, Hunter-Storm has agreed to provide 290 public spaces for nights and weekends and give the city $50,000 toward its smartphone parking application which tracks real-time availability for motorists.
Construction is anticipated to begin in September and Hunter-Storm has 36 months from the start to complete all the work. If the developer defaults on the agreement, Redwood City has the right to reacquire the land.
The Redwood City Council meets 7 p.m. Monday, June 22 at City Hall, 1017 Middlefield Road, Redwood City.