Title
Revisions to Approved Design for Block 8 at Alameda Point
Body
CITY OF ALAMEDA
Memorandum
To: Honorable President and Members of the Planning Board
From: Andrew Thomas, Assistant Community Development Director
Date: February 12, 2018
Re: Building Permit Revisions for Affordable Housing Project on Block 8 at Alameda Point
In 2017, the Planning Board approved the Design Review plans for “Block 8” at Alameda Point consistent with the Site A Development Plan approved in 2015. Block 8 includes 130 deed restricted affordable housing unit for seniors and families to be developed and managed by Eden Housing. Since the approvals for Site A in 2015 and the Design Review approvals for Block 8 in 2017, several issues have arisen.
Construction costs in the Bay Area have increased between 30 and 40% since 2015. Unlike prior economic booms, short supply of labor is the main driver of these cost increases and the small pool of union signatory general contractors and sub-contractors available in the Bay Area. Due to these cost problems, the development of Site A by Alameda Point Partners has been delayed. The construction delays have begun to put some of the affordable housing funding secured for Block 8 by Eden Housing at risk. Some of the secured funding for Block 8 requires commencement of construction by January 2019. To commence construction in 2019, Eden Housing must invest significant resources in building construction plans immediately.
The Tax Reform Bill that went into effect January 1, 2018 reduced the corporate tax rate to 21%. This reduction has had a dramatic impact on Low Income Housing Tax Credit pricing. The Low Income Housing Tax Credit is the main source of financing for affordable housing projects in California, and throughout much of the nation. As a result of the corporate tax rate cut, the tax credit is much less valuable to corporations, which reduces value of the credits to the project.
For these reasons, City staff and the City Council have been working with Eden to investigate strategies that would allow Eden Housing to proceed to construction before the rest of Site A.
As the result of the cost increases and tax changes, Eden Housing has requested that planning staff approve some changes to the design of the buildings approved by the Planning Board in 2017. Staff believes the changes are relatively minor, that the revisions are in substantial compliance with the Planning Boards original approvals, and do not warrant a public hearing to process a Design Review Amendment.
At this time staff, staff is providing an opportunity for the Planning Board to raise any objections with the staff determination. If the Planning Board disagrees with the determination, staff will not approve the changes and schedule a future public hearing to process a Design Review Amendment Application for the applicant.
Exhibit 1 shows the appearance of the building as approved by the Planning Board originally and how the appearance would change slightly with the proposed design changes described below.
Parking Garage Entrances: To allow Block 8 to proceed ahead of Site A, Block 8 designs must be revised to take advantage of the existing street access and utility connections along Orion Street. This requires flipping parking garage entrances from the east side of the building in the original design to the west side of the building, where access may be provided by Orion Street.
Building A (Family Affordable Housing) Details: To reduce cost to Building A the revisions include:
• Reducing the use of profiled metal panel materials and limiting the use of this accent material to adjacent to entry lobby.
• Removing the decorative metal screen at entry lobby.
• Removing Juliet balconies and French doors and replacing with typical windows.
• Removing the railing at the edge of podium courtyard on the interior elevation of the building.
Building B (Senior Affordable Housing) Details: To reduce cost to Building B, the revisions include:
• Removing a small one story “amenity structure” and replacing the structure with landscaped open space adjacent to the parklet and future B Street.
• Shortening the eyebrow awning at project corner.
• Removing decorative metal panel at entry lobby.
• Removing Juliet balconies in all locations and replaced the French doors to typical windows.
• Reduced storefront glazing height to 10 feet. Storefront ceiling heights will remain unchanged at 14 feet.
• Removed railing at the edge of podium courtyard.
Conclusion: Staff is prepared to approve the above changes as in substantial compliance with the Planning Board’s original approval. At this time staff is providing an opportunity for the Planning Board to raise any objections with the staff determination.
Exhibit 1: Design Changes