After rejecting tax hikes to narrow a long-term structural deficit, Foster City is commissioning a study on its real estate landscape and ways to revitalize its economic base.
The City Council approved a $125,000 contract with a consulting firm Kosmont Companies that will analyze current vacancy and leasing rates, assess employment and demographic trends and evaluate its inventory of residential, commercial and retail buildings. The team would also recommend ways to improve economic development throughout the city, such as retaining or attracting businesses or improving infrastructure.
The study is meant to provide the city “with a clear, data-driven understanding of current and emerging real estate and economic conditions in response to changing market dynamics, evolving demographic trends, and long-term development pressures,” a staff report read.
In light of a tough office market, President of Kosmont Companies Ken Hira said some cities are starting to consider redeveloping former commercial spaces.
“The office industry is facing some changes, facing a lot of vacancy, and that distress can be an opportunity for a city to look at that and say, ‘how can I replace office with residential?’” Hira said. “Because that’s the reality of what’s going on across our state …. quite frankly some retail is being replaced with residential.”
Boosting the city’s economic base has been an ongoing concern among city officials as, according to previous financial projections, the city is facing a long-term structural deficit. In September, the council rejected a few options for improving its fiscal position, such as a property transfer or commercial vacancy tax ballot measures. However, elected officials noted that, even though the city doesn’t plan to put more tax measures on the ballot, it still needs to ramp up consistent revenue.
While Foster City has been able to attract large and growing firms, like Zoox, Visa and Gilead, some leaders have said its unique geography also presents challenges, given it’s further away from a major public transit corridor, unlike most of its neighboring cities.
The City Council unanimously approved a contract with Kosmont. The study would take about eight months to complete, according to the presentation Feb. 2.
Keep the discussion civilized. Absolutely NO
personal attacks or insults directed toward writers, nor others who
make comments. Keep it clean. Please avoid obscene, vulgar, lewd,
racist or sexually-oriented language. Don't threaten. Threats of harming another
person will not be tolerated. Be truthful. Don't knowingly lie about anyone
or anything. Be proactive. Use the 'Report' link on
each comment to let us know of abusive posts. PLEASE TURN OFF YOUR CAPS LOCK. Anyone violating these rules will be issued a
warning. After the warning, comment privileges can be
revoked.
Please purchase a Premium Subscription to continue reading.
To continue, please log in, or sign up for a new account.
We offer one free story view per month. If you register for an account, you will get two additional story views. After those three total views, we ask that you support us with a subscription.
A subscription to our digital content is so much more than just access to our valuable content. It means you’re helping to support a local community institution that has, from its very start, supported the betterment of our society. Thank you very much!
(0) comments
Welcome to the discussion.
Log In
Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.