Euclid Improvements Application – September 2019
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Community Impact Report and Fiscal Impact Analysis
37 5. Community Impact Report and Fiscal Impact Analysis
The Westside Area Plan Policy 5.5 requests information from applicants who propose to increase density.
The requested information includes a community impact report that details how the proposal will satisfy the prerequisites for increases in intensity or change in use in Policy 5.3 as well as a fiscal impact analysis.
Economic and Planning Systems, Inc. (EPS) was engaged to perform a Fiscal and Economic Impact Analysis, which can be found on page 43.
Community Impact Report – Satisfying the Community Requirements in Westside Area Plan Policy 5.3 The below Community Impact Report explains how the Euclid Improvements will satisfy the prerequisites in Westside Area Plan Policy 5.3.
Prevents Displacement of Existing Residents
For more than three years, we have worked closely with our tenants, neighbors, community groups, city staff, and local officials to get to know the neighborhood and the community. The knowledge gained from our experiences and interactions, together with the Westside Area Plan, led us to develop a total of five “Core Principles,” around which the Euclid Improvements are being designed. The top core principle, first and foremost, is No Displacement.
We are firmly committed to preventing displacement and have developed a comprehensive strategy for ensuring that all existing tenants will always be able to stay at Woodland Park and can return to newly constructed replacement units at their same rent-stabilized rents. Prevention of displacement is so important that we did not want to wait until final entitlements to propose a plan and make commitments to our tenants and the community. Rather, it was and is our first priority.
To that end, we developed and began a robust community engagement process to understand our tenants’ needs and hopes. Through that process, we learned a lot about what our affected tenants need in order to remain in the neighborhood and return to a newly constructed apartment in the Euclid Improvements. We have designed a relocation process that reflects what we learned from the community and prevents displacement of existing residents.
Woodland Park Communities has developed, in collaboration with tenants and the community, unilateral “Relocation Commitments” that we promise to fulfill during the relocation process. We have met with the affected tenants, the broader community, and local organizations to develop, discuss, and revise the Relocation Commitments. We have also made presentations to, answered questions from, and received feedback from the City of East Palo Alto’s Planning Commission, Rent Stabilization Board, and City Council.
Woodland Park Communities anticipates that these Relocation Commitments will serve as the “term sheet” from which a more detailed “Relocation Plan” will be drafted in the future, and approved by the City Council pursuant to the Westside Area Plan Policy 5.10.
The Relocation Commitments are included in their entirety in the Tenant Protection and Community Housing Preservation Plan, in Section 4 above. In general, affected tenants will be moved to an available Euclid Improvements Application – September 2019
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Community Impact Report and Fiscal Impact Analysis
38 replacement apartment of their choosing within the Westside neighborhood during construction. After construction, affected tenants will have the right of return into a newly constructed apartment in the Euclid Improvements. Throughout, they will pay the same rent they otherwise would if nothing happened. More specifically, the commitments ensure the following:
1. Rent level: Affected tenants will pay the same rent they otherwise would if nothing happened – there will be no rent increases (except as normally determined by the Rent Board). Each tenant will get an apartment with the same number of bedrooms. Each tenant’s original security deposit amount will remain the same and be transferred to the new apartment. Everyone currently pays for utilities and will continue to pay for utilities. In the event that a tenant’s utility bill increased substantially due to a change in utility metering, Woodland Park Communities would work with the tenant to reduce the tenant’s overall monthly costs to a similar level they would have been if nothing happened.
2. Moving: Woodland Park will pay for and arrange tenants’ moves between Woodland Park apartments. The services of a licensed mover will be provided at no cost to tenants. The licensed mover will be insured and will use its own boxes to pack and move all of the tenants’ belongings.
We will provide dumpsters in which to discard any furniture or other belongings that affected tenants no longer need. Tenants will need to transfer any utilities that are in their names and change their addresses as necessary.
3. Communications: We will continue to hold meetings and invite affected tenants. We will continue to communicate information by hand-delivering notifications to each apartment. If possible, we may also communicate with tenants via mail, text message, phone and/or email. Affected tenants will need to provide us with up-to-date contact information if they wish to receive text messages, phone messages, or emails.
4. Collaboration: We will continue to work with affected tenants and community stakeholders to make the relocation process as smooth and convenient as possible, and to achieve our goal of no displacement. We will seek input and approval from City Council about our relocation plans.
These are our promises to the affected tenants and the community. We will prevent displacement by providing replacement housing in the neighborhood, giving a first right of return to newly constructed units, and keeping affected tenants’ housing costs stable. We intend that all affected tenants will stay in the neighborhood and the community without displacement.
Looking ahead, we anticipate that a detailed Relocation Plan will go to City Council for approval along with the proposal for the Euclid Improvements later in the process. Our Relocation Commitments will be the foundation of that plan; they are our promises and guarantees that reinforce our commitment to No Displacement. There is additional information about the Relocation Commitments and relocation in general in the Tenant Protection and Community Housing Preservation Plan above.
Provides for some income-restricted affordable housing
Woodland Park provides for some affordable housing in a number of ways. First, Woodland Park Communities pays and will continue to pay Measure O taxes, which were adopted by the voters of East Palo Alto for the purpose of increasing affordable housing. Woodland Park Communities pays the largest share of Measure O taxes in the City. This currently comes to about $450,000 each year, increasing over Euclid Improvements Application – September 2019
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Community Impact Report and Fiscal Impact Analysis
39 time, in perpetuity. The Measure O payments will eventually increase to account for the new Euclid Improvements. The Fiscal and Economic Impact Analysis indicates that when the Euclid Improvements are subject to the Measure O tax, they will pay an additional $350,000 per year. This steady income stream allows the City to build new income-restricted affordable housing and otherwise meet its affordable housing goals.
Second, Woodland Park Communities is proposing deed-restricted rent-controlled housing to preserve housing affordability and stability. Despite California state law which says that new buildings cannot have rent control, we will voluntarily deed-restrict 26% of the total units, replacing all existing rent-controlled units one-for-one, to continue to sustain the Rent Stabilization Program, ensure housing stability for future tenants, and lock-in the below-market rents of our existing tenants.
Rent control meets important and otherwise unmet affordable housing needs in the City of East Palo Alto.
It is the only form of housing affordability that favors long-term residents with deeper affordability than newcomers. Any tenant who has lived in a unit for more than a year pays below market rent. And unlike income-restricted affordable housing, there are no qualifications based on income, wealth, immigration status, or household composition. Rather, rent control provides a flexible, cost-effective, scalable form of affordable housing that has been particularly valuable and enduring in East Palo Alto for decades. Rent control provides a valuable source of workforce housing.
Woodland Park’s rent-controlled housing will be privately funded; Woodland Park Communities will not seek tax credits or any other type of public funding for this affordable housing. The City will be receiving affordable housing without using any of its resources or other governmental resources from the state or federal government to create this new housing. Using this rent control-focused approach, the Euclid Improvements will not compete for tax credits with other income-restricted affordable housing projects proposed in East Palo Alto, such as the Light Tree Apartments or 965 Weeks Street. Woodland Park Communities’ privately funded approach saves the public resources for other affordable housing projects to leverage.
Preserves “Right of Return” for Existing Residents
Woodland Park Communities preserves the right of return for affected residents. We have committed to the right of return in the Relocation Commitments, which are explained in greater detail in the Tenant Protection and Community Housing Preservation Plan.
The Relocation Commitments promise that tenants in the Euclid Improvement Area as of December 2018, when the Euclid Improvements were announced, who have continued their tenancy in a replacement apartment without interruption, have a right of return into the Euclid Improvement Area after the Euclid Improvements are constructed.
We anticipate that all of the affected tenants will be eligible for a right of return. We commit to work with tenants who have not met one or more of the requirements of their tenancies or their right of return to give such tenants an opportunity to fix any issue(s) so they can meet the requirements and exercise their right of return.
No affected tenant will be required to exercise their right of return. Affected tenants will have the choice to permanently stay in their replacement apartment if they want.
Euclid Improvements Application – September 2019
nodisplacement.com
Community Impact Report and Fiscal Impact Analysis
40 For tenants who choose to exercise their right of return, Woodland Park Communities will offer a newlyconstructed apartment with the same number of bedrooms. The new apartments will be in brand-new condition and they will be offered on a first-come, first-served basis within the Euclid Improvement Area.
Although Woodland Park can guarantee an apartment with the same number of bedrooms, we cannot guarantee the availability of any particular apartment or location. Each affected tenant will have the same number of parking spaces associated with the right of return apartment as they have currently have under their existing lease.
Maintains the City’s Rent Stabilization Program
The Euclid Improvements will help maintain and sustain the City’s Rent Stabilization Program. Woodland Park Communities is the largest single source of funds of the Rent Stabilization Program, paying nearly $400,000 per year in annual registration fees. Woodland Park Communities complies with the Rent Stabilization Ordinance and works collaboratively with the Rent Stabilization in the operation and management of the 1,800+ existing rent-controlled units on Woodland Park property.
Woodland Park Communities respects that the City’s Rent Stabilization Program has been a defining attribute of the City since its incorporation more than thirty-five years ago. Going forward, Woodland Park Communities’ proposal ensures the ongoing viability of the Rent Stabilization Program. The Rent Stabilization Program is currently funded by annual registration fees paid on a per-unit basis for each rentstabilized unit in the City. These funds sustain a staffing level of two full-time employees to meet the programming and operational needs of the Rent Stabilization Program.
Woodland Park Communities’ proposal to replace every rent-controlled unit on a one-for-one basis will ensure the ongoing viability of the Rent Stabilization Program. The number of rent-stabilized units will remain the same, meaning that the Rent Stabilization Program’s jurisdiction and funding level will remain the same. By maintaining the scope of the program and its funding source, the Euclid Improvements proposal will protect the program from either attrition among rent-controlled units or erosion of funding.
The Rent Stabilization Program should be able to maintain its existing level of staffing and its existing level of administrative and programming work.
Includes New Parks and Open Spaces or Contributes to the Provision of New Parks and Open Space if It is a Single Project
The Euclid Improvements include a new park and new open spaces. We are proposing approximately one acre of new public open space, including a neighborhood park at the corner of Euclid Avenue and O’Connor Street. This new neighborhood park will be the first permanent park on the Westside of East Palo Alto and will be designed for flexible uses, so that it can host a wide variety of activities including kids play, adult fitness, and social space for parties.
The park will be oriented to connect with a large community space in the adjacent building that will facilitate access to both the park and the building. Beyond the community space, we are proposing flexible and appropriately sized spaces for neighborhood-serving retail activities. We anticipate that these would include locally focused options like a convenience store, café, clinic, or pharmacy.
Woodland Park Communities is also proposing flexible public spaces along the street frontage of Euclid, between O’Connor and East O’Keefe. These public use spaces can be used for different activities at different times. For example, they might be used for parking during high parking demand hours or they may be Euclid Improvements Application – September 2019
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Community Impact Report and Fiscal Impact Analysis
41 closed to parking during community events, creating more open space and places for the community to gather.
Together, the new permanent park at the corner and the community space, retail space, and flexible public spaces will form new gathering spaces for tenants, neighbors, and the community. We believe that these connected public spaces will allow people to strengthen community relationships, spend more time together and outdoors, and strengthen the feeling of “place” on the Westside.
There will also be other open spaces in the Euclid Improvements, including a pet area, pedestrian plazas, bike parking, walkways, lobbies, and green street frontages. Finally, there will be some private open space such as balconies.
Improves Streets and Infrastructure or Contributes to the Provision of New Streets and Infrastructure if it is a Single Project
Based on what we have learned from the community and the Westside Area Plan, a core principle guiding the design of the Euclid Improvements is “Better Parking and Mobility.” Woodland Park Communities often hears about tenants’ desire for better parking and more options for getting around. The Euclid Improvements will include better parking and mobility options, as well as improved options for walking, biking, and transit wherever possible. These improvements include upgrades of the streets and the infrastructure.
We have heard that tenants and neighbors often find traffic and parking challenging, and alternative transit options tend to be limited and often not convenient. In response, we are proposing a number of street and infrastructure improvements. On the streets, we will not only improve the physical street infrastructure on the pavement and sidewalks, but we will add pedestrian and bike safety features. We propose significantly more and safer street parking, with fewer cut-outs for driveways and new angled parking. Woodland Park Communities also proposes drop-off zones at building entries.
The Euclid Improvements also include better transportation infrastructure. Woodland Park Communities has already improved the school bus stop at the corner of Euclid and O’Connor to make it safer for children and more pleasant for caregivers. Woodland Park Communities now proposes a new sheltered bus stop and bike parking, also at the corner of Euclid and O’Connor. We are working with SamTrans and other local transit providers to discuss expanded or improved routes to better serve the neighborhood.
Woodland Park Communities is also proposing to improve parking infrastructure. We are seeking parking agreements with local property owners that have surplus parking. We are increasing off-street parking with a central garage that will increase the parking ratio from its current level. We also propose to work with the City to increase on-street parking through better, safer use of the existing on-street space.
Finally, Woodland Park Communities will work with the City to perform a full traffic study as part of an Environmental Impact Report. We will then implement a Transportation Demand Management (TDM) Plan with a variety of transportation options.
Euclid Improvements Application – September 2019
nodisplacement.com
Community Impact Report and Fiscal Impact Analysis
42 Improves the Fiscal Health of the City
The Euclid Improvements will improve the fiscal health of the City. Woodland Park Communities is including a Fiscal and Economic Impact Analysis conducted by Economic and Planning Systems, Inc. as part of the application package. This analysis shows that the Euclid Improvements will have a net positive fiscal and economic impact on the City, thereby improving the fiscal health of the City.
According to the analysis, the Euclid Improvements will result in a net fiscal benefit to the City’s general fund of about $1.04 million per year, increasing to about $1.33 million per year in the future. Over a 20- year time horizon, the Euclid Improvements are expected to generate a cumulative net positive fiscal impact of about $23 million. Moreover, the one-time development impact fees paid by Woodland Park could total about $15 million for City capital improvement programs. Finally, construction of the project will directly support roughly 1,500 job years in the local economy, creating direct and indirect local investment of over $460 million. The property operations will support new jobs and generate local economic demand creating $6.7 million in net new spending per year.
More information and analysis can be found in the Fiscal and Economic Impact Analysis.
Beautifies the Area
The Euclid Improvements will improve the appearance of the neighborhood, while preserving its character.
The existing neighborhood houses a vibrant community of people who live in housing that is between 50 and more than 100 years old. Many of these structures are at the end of their useful lives. They were built inexpensively to old standards. Each parcel was developed at a different time, under different zoning rules, by different developers who had different visions. Many if not all of the properties were developed before the City was incorporated, so the City did not have the opportunity to influence the design or development envelopes of the properties. The buildings and surrounding land were not always cared for by previous owners.
The Euclid Improvements are being designed to the highest architectural and landscape standards with special attention to the public realm. Woodland Park Communities has selected an award-winning design team that has experience in East Palo Alto, including David Baker Architects, which is working on 965 Weeks Street, and Hood Design Landscape Architects, which designed Cooley Landing. The design will improve the quality and aesthetic appeal of the site with high quality architecture, materials, and pedestrianoriented facades, while remaining rooted in the existing community character.
There will be an active and vibrant streetscape that ties the Euclid Improvements to its surrounding and welcomes the neighbors into the site. The new park and exterior open spaces are being designed by landscape architects to not only integrate into the existing neighborhood context, but to also engage and be reflective of the existing local community. The buildings are designed to be beautiful, safe, fit into the local context, and comfortable for the tenants, visitors, and neighbors. The project plans and renderings in the application materials illustrate the high level to which beautiful spaces and views have been considered as a core part of the design. The beautiful buildings will fit within the neighborhood context.
We believe that with these design features, the Euclid Improvements will beautify the area, benefitting the entire community. And with our tenant protection efforts, we’re working to make sure that in particular, the existing tenants will be able to stay and enjoy this becoming an even nicer place to live.