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DATE: February 2, 2026
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Sofia Mangalam, Community Development Director
DEPARTMENT: Community Development
SUBJECT: AGREEMENT WITH KOSMONT COMPANIES IN AN AMOUNT
NOT TO EXCEED $125,000 TO CONDUCT A REAL ESTATE
ECONOMIC MARKET ANALYSIS
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution authorizing: (1) the Mayor to execute an agreement with Kosmont Companies (Kosmont) in an amount not to exceed $125,000 to conduct a Real Estate Economic Market Analysis for the City; (2) approve a project contingency in the amount of $15,000 with authority given to the City Manager to execute agreement amendments up to the contingency amount, if necessary; and find the request exempt from the CEQA pursuant to section 15061(b)(3).
EXECUTIVE SUMMARY
On September 22, 2025, staff issued a Request for Proposals (RFP) from qualified consultants to conduct an independent professional Real Estate Economic Market Analysis. The objective of the analysis is to assess market trends and cycles, demographic trends, supply and demand dynamics, economic indicators, evaluate future needs, and provide strong baseline data that will be used to inform actionable strategies to guide sustainable growth and economic development.
The proposals were due by October 20, 2025. Eight (8) firms submitted proposals in response to the RFP. After initial review of the proposals, five (5) firms were invited for interviews. After conducting interviews, Kosmont stood out as the firm most capable of leading a successful process to conduct Real Estate Economic Market Analysis.
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BACKGROUND
Foster City is a "Planned Community," constructed and implemented on the basis of an organized program of development that was conceived over 30 years ago.
In 2013, the City undertook Commercial Market Analysis to assess retail/commercial strengths and weaknesses and develop a coordinated plan to improve retail/commercial citywide, with a specific focus on neighborhood shopping centers, including Pilgrim Triton, Charter Square, Beach Park Plaza, Metro Center, and Edgewater Shopping Center. Since 2013, Foster City has seen the completion of the Pilgrim-Triton Master Plan, Foster Square, Gilead Sciences Campus Expansion, Lincoln Center Life Sciences campus, a new Elementary school at Charter Square, and many other changes.
Currently, Foster City’s commercial and industrial lands are nearly built out. There is no traditional downtown or historic "main street," instead, retail activity is spread across five (5) retail shopping centers. Additional retail/commercial spaces are located within newer commercial and/or mixed-use developments, including the Chess Retail Center, Foster Square, Pilgrim Triton, and Parkside Towers.
The City initiated an RFP to conduct a Real Estate Economic Market Analysis 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.
The scope of work in the RFP included five (5) main components:
1. Citywide Real Estate Economic Market Assessment
Conduct a comprehensive real estate economic market analysis to identify current economic landscape, market trends and cycles including market leakage, demographic profile, supply and demand dynamics across commercial, office, retail, life science, and mixed-use sectors, and business climate indicators.
Develop a baseline inventory of existing properties in these sectors within Foster City.
Evaluate key market indicators such as vacancy rates, lease rates, and tenant mix.
Analyze market leakage to identify opportunities to retain and recapture spending within Foster City.
Identify and evaluate geographic constraints within the regional context that may impact local economic development.
Identify unmet demand, oversupply, and emerging trends across sectors. Identify opportunities for growth and investment.
Benchmark Foster City’s market performance against comparable cities.
2. Population and Psychographic Analysis
Prepare a comprehensive population and psychographic analysis, including a study of demographic profile and trends, evaluating consumer values, 2 1
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interests, lifestyle, etc., to understand consumer needs and behavior. The analysis should evaluate Foster City’s trade area, with a focus on market demand and supply and other constraints for commercial and retail uses, such as, but not limited to, grocery stores and restaurants.
3. Identify Future Economic Development Needs
Project future economic development needs in various market sectors through 2035 based on market analysis, population growth, employment trends, demographics, and other pertinent data specific to Foster City. Recommend opportunities for redevelopment or repurposing of properties to meet unmet demand in other asset classes, where appropriate. Recommend strategies to minimize commercial/retail vacancy rates, stimulate economic growth, retain/strengthen existing businesses, and attract new businesses.
Assess and recommend areas for infrastructure enhancement and investments to promote long-term sustainable economic development of the City.
4. City Council Engagement and Review Process
Identify a structured process for City Council participation, including one-on- one meetings with Council members to understand priorities and vision; three to four updates at City Council meetings to incorporate feedback through the process; and a final review and acceptance of the completed report.
5. Stakeholder and Community Engagement
Conduct structured outreach with key stakeholders, including:
Property owners, brokers, and developers
Major employers and business groups
Community organizations and residents
Document and integrate stakeholder input into final recommendations.
ANALYSIS
On September 22, 2025, staff issued an RFP requesting proposals from qualified consultants to conduct an independent professional Real Estate Economic Market Analysis with a due date of October 20, 2025. The RFP was advertised in the following ways, soliciting responses:
1. Sent to consulting firms via email
2. Posted on City’s RFP webpage
The RFP noted submitting questions by October 6, 2025, and by that date, staff received questions from five (5) consultants. The responses to the questions were then posted on the City website.
Subsequently, staff received proposals from eight (8) consulting firms, including: BAE Urban Economics, Inc. (“BAE”), HdL Companies (HdL), ECOnorthwest (ECO), HR&A 2 1
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Advisors, Inc. (“HR&A”), Calculus Commercial, Economic Growth Strategies (EGS), Kosmont Companies, and Precision Consulting Firm, LLC (Precision).
Staff conducted an initial evaluation of the proposals, including reviewing qualifications, relevant experience, project approach, ability to meet the City’s needs, and cost. Based on this evaluation, five (5) firms were invited to participate in interviews, including BAE, HdL, ECO, Kosmont and HR&A. The interview panel consisted of City Manager Stefan Chatwin, Assistant City Manager Marlene Subhashini, and Community Development Director Sofia Mangalam. After thorough deliberation, Kosmont was identified as the top- ranked firm.
Kosmont demonstrated strong technical expertise, a clear and practical project approach, and experience with similar projects for public agencies (in California). They recently worked with or are actively engaged in economic analysis projects for various municipal clients throughout the San Francisco Bay Area and Northern California cities, including waterfront/coastal communities statewide, such as Capitola, Daly City, Folsom, Laguna Beach, Malibu, Pacifica, Redondo Beach, San Rafael, Santa Barbara, Santa Cruz, Sausalito, and Union City. Kosmont will provide a comprehensive market analysis that assesses current real estate, economic, and demographic conditions; identifies challenges and opportunities across property sectors; and provides the City with clear, actionable strategies to support sustainable economic growth. Additionally, one of the references included in the RFP response spoke highly of Kosmont’s ability to deliver a comprehensive Real Estate Market Economic Analysis.
Upon selecting the consultant, staff had a follow-up discussion with Kosmont and requested that Kosmont provide an updated proposal, including a revised timeline, updated cost estimates for in-person community, focus group, and City Council meetings, and a final report identifying the action plan and next steps. The revised proposal from Kosmont estimates that the study could be completed in approximately eight (8) months for a total cost not to exceed $125,000 (Attachment #3).
Staff is recommending that the City Council authorize the execution of the agreement with Kosmont in an amount not to exceed $125,000. Additionally, a project contingency in the amount of $15,000 is recommended to pay for additional services to mitigate unforeseen tasks or for additional services that may be required.
CEQA
The approval of the agreement is exempt per CEQA Guideline Section 15061(b)(3), Common Sense Exemption (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.
FISCAL IMPACT
The total cost of the agreement is not to exceed $125,000. Sufficient funds are available in Fund Account 001-0110-413-42-51 (City/District Manager – Administration Expenses for ‘Land Use Analysis/Economic Development Study’) to support this expenditure, and 2 1
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no appropriation is required. Additionally, a project contingency in the amount of $15,000 is recommended to pay for additional services to mitigate unforeseen tasks or for additional services that may be required. The proposed resolution would authorize the City Manager to execute task agreement amendments, as needed, up to the contingency amount.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Agreement
Attachment 3 – Kosmont Updated Proposal
Attachment 4 – Kosmont Original Proposal