Housing imbalance a concern over Foster City redevelopment

The council was open to the proposed redevelopment, but its primary concern with the proposal was if it would increase the jobs versus housing imbalance in the city. Allowing the development of office buildings instead of housing could increase the city’s current housing imbalance. From 2010 to 2015, 72,800 jobs were created in San Mateo County, but just 3,844 new homes were built, according to the city. Foster City has no residential land available to grow to balance additional job growth and officials are concerned about its increased housing cycle numbers through the Regional Housing Needs Allocation, or RHNA. Over the past two years, the city said it had received inquiries about turning the property into a hotel, housing and other office uses.

“How do we address the job housing imbalance moving forward? An impact fee is one way, but are there other tools we should be using to address that issue?” Councilman Sam Hindi said.

Hindi liked the office project over a restaurant because of the current downward trends in the restaurant industry. He believes there is a swing of moving away from large fine dining restaurants because of the financing and clientele needed to support it, citing other restaurants closing before and during COVID-19. The pandemic is likely to continue struggles in the restaurant industry.

“I really don’t want to see a vacant restaurant. It has been on the market for an extended period of time. If there was an opportunity for this site to have a restaurant operation, I think it would have had it by now,” said Hindi.

Vice Mayor Richa Awasthi was more optimistic about a potential restaurant returning under the right circumstances. She is also concerned job growth in Foster City could lead to larger RHNA numbers and increase housing problems in a city with little room to grow.

“If we are adding jobs and not providing for housing, we are creating a problem of affordability that we are dealing with. We are making that problem worse, and I would be extremely concerned about that,” Awasthi said.

Councilman Patrick Sullivan was interested in the project but is worried about future issues of traffic, housing and what more development will mean for the city. The City Council would receive $4.9 million in fees for the development to help with affordable housing projects, although it would be inadequate for new residential development, according to the city.

“I appreciate his proposal, but I think we have to look close for Foster City. How are we going to mitigate the traffic? What are we going to do about housing? It’s not just about paying in-lieu fees for housing because that’s not solving the housing problem, is it? I think we need to look a little deeper,” Sullivan said.

Other potential issues with the project include maintaining a variety of land uses, losing a restaurant site, traffic impacts and the availability of adequate portable water to the site. The current zoning designation only allows for a restaurant at the property, and the City Council would have to change it at a future date to allow the project to continue.

Mayor Sanjay Gehani asked for more analysis about the jobs versus housing imbalance and how more jobs and company office buildings could increase the city’s housing numbers under RHNA. To be transparent, Gehani said he spoke with the applicant to gather additional information but did not indicate to them his decision. In August of 2019, Gehani violated the Brown Act, California’s open meeting law, while on the council after holding “serial meetings” with three members of the City Council one at a time to discuss his intention to buy and redevelop the proposed site at 388 Vintage Park Drive into a preschool, according to a letter from the San Mateo County district attorney. The letter found the subject matter would qualify as City Council business.

Over 10 years, the revenue through taxes and revenue for the life sciences building would total around $4.9 million, while restaurant revenue would be $764,000 over the same 10 years, according to a city report.

The project would have to meet Vintage Park Design Guidelines and require a letter of approval from the Vintage Park Community Association before use permit approval. The city would conduct an environmental analysis to meet the California Environmental Quality Act requirements. Vehicle access to the site would be provided through two existing curb cuts on Chess Drive and Vintage Park Drive.

The applicants now have the opportunity to review City Council comments and move forward to a Planning Commission Study Session.

curtis@smdailyjournal.com

(650) 344-5200 ext. 102

Note to readers: This story has been changed. The story incorrectly noted the city would get $4.2 million in restaurant revenue from taxes over 10 years. It would be $764,000. Also, a $4.9 commercial linkage fee to the city is $4.9 million in total fees.