Jun 29, 2008

Mirabella developer to ask city to approve denser project

Grassroots group expresses concern about development's size

By Mark Abramson / Daily News Staff Writer

The slumping economy and housing market apparently have led the developer of an 11-acre parcel with retirement residences in Foster City to ask for an increase in the number of units so that it pencils out financially.

The San Mateo-based Sares Regis Group of Northern California has asked to hike the number of continuing care retirement units in the proposed Mirabella San Francisco Bay/Parkview Plaza complex from 331 to 420 and the number of affordable units from 65 to 70. The city council is scheduled to vote on the new proposal at its July 7 meeting, after hearing input from the public. The site is next to City Hall and the Peninsula Jewish Community Center. Another four-acre section of the parcel could be the future site of a high school.

"If they don't approve it, then I guess you might say we are back to the drawing board," said Sares Regis Vice President John Igoe. "Because as it is currently structured, it would be difficult to finance."

The softening housing market and increased costs to finance such projects are some of the major reasons why the number of units needs to be increased for the project to be feasible, Igoe said.

"They looked at a lot of options to make the project continue to be financially feasible," said Assistant City Manager Kristi Chappelle.

The options, however, did not include reducing the retail space and public square on the property because the developer is aware the city likes those features, she said.

Foster City officials examined the proposal during closed session at two city council meetings and by hiring San Francisco-based Economic Research Associates to determine whether the request by Sares Regis and the owner and operator of the facility, Pacific Retirement Services Inc., was reasonable.

"Their analysis was that it was not some smoke and mirrors to get a denser project (approved)," Chappelle said.

Not everyone, however, is pleased with the project and the idea of increasing its density.

"We got an 800-pound gorilla," said Linda Haskin, a founding member of the grassroots group Foster City Friends. Haskin's group has been vocal about other development projects in the city, too.

"We were promised a downtown city center because that is public land. It belongs to the residents," Haskin said. "Now the property will be covered with private residences with people from outside the city."

Haskin said she is concerned about the project's impact on parking and traffic. And she blasted the idea of having its open space surrounded by buildings, which the developer said would be up to 14 stories tall. Haskin also said she is not convinced by the city's argument that it needs to build up to increase revenues.

Igoe contends that there will be a parking garage in the development and the environmental impact report will point out the potential impacts and ways to mitigate them.

Mayor Pam Frisella said the city has done its research on the project and such a facility is needed in the city.

"(Friends of Foster City and other opponents) think we are getting taken advantage of and bamboozled. ... do they think we are stupid and we haven't done our homework?" she said. "We have done our homework."

Frisella said she is open to meeting with Haskin's group.



E-mail Mark Abramson at mabramson@dailynewsgroup.com.