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August 2024

D EM O LI TI O N FI N D I N G S

C ATEG O RY I I H I STO RI C PR O PERTI ES

CALIFORNIA C OLLEGE O F THE ARTS DEVELOPMENT P ROJECT
5212 B ROADWAY, OAKLAND, AL AM EDA COUNTY, C ALIFORNIA
S
ubmitted to:

Marc Babsin
Arts Campus Holdings, LLC
235 Montgomery Street, 27th Floor
San Francisco, California 94104
Prepared by:

Michael Hibma, M.A.

Associate/Architectural Historian
LSA
157 Park Place
Pt. Richmond, California 94801
510.236.6810
Project No. 20241615

ATTACHMENT D
August 2024
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D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA
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EXECUTIVE SUMMARY1
At the request of Arts Campus Holdings, LLC, LSA prepared this demolition analysis to address City of Oakland (City) requirements for the demolition of Category II Historic Properties. The project analysis is part of the permitting process for the preservation of one building, relocation of one building, and demolition of 10 buildings in the approximately four-acre campus at 5212 Broadway (APNs 014-124-300-101 and 014-124-600-200) in the Rockridge Neighborhood (project site).

A Historic Resource Evaluation prepared in 2019 by San Francisco-based architectural and consulting firm Page & Turnbull (2019 HRE) “identified twelve buildings on CCA Oakland campus (CCA Campus) are historic resources.” Of the twelve identified, six appeared individually eligible for inclusion in the California Register of Historical Resources (California Register): Macky Hall, an associated Carriage House, Martinez Hall, Founders Hall, Noni Eccles Treadwell Ceramic Arts Center, and the Barclay Simpson Sculpture Studio. The 2019 HRE further found the four-acre campus, comprised of twelve buildings and six associated landscape features, as a California Register-eligible historic district.

The project would demolish ten existing campus buildings, and selected structures and landscape features within the CCA API while retaining two existing Oakland Landmark buildings (Macky Hall and the Carriage House), the Broadway Wall and Stairs and Carriage Entrance along with selected landscape features. The project would build two buildings ranging in height from 45 to 90 feet.

Building 1 would be a mixed-use building located at the northwest corner of Broadway and Clifton Street and contain 229 residential units with approx. 6,630 square-feet of ground floor commercial space, 237 parking spaces, and 242 bicycle spaces. Building 2 would span the project site’s eastern boundary and contain 219 units, no parking spaces and 230 bicycle spaces. The project would preserve and renovate Macky Hall and the Carriage House, Macky Lawn, the Broadway Wall, consisting of entry staircase and carriage entrance gate off Broadway built in 1905, a view corridor to the west from Macky Hall, and various art pieces as well as contain over 98,000 square-feet of publicly-accessible landscaped open space, and maintain the ground floor of the Carriage House as a space available for community events and interpretive exhibits on CCA’s history.

The replacement project would demolish ten buildings in the API, thereby removing approximately 83% of the API’s total built environment. Macky Hall, the Carriage House, Macky Lawn, the Broadway Wall, Broadway Gate and Broadway Stairs, and various landscape features would remain and would reflect the contributing elements as identified by OCHS in or about 1986. The new construction would follow adopted Design Guidelines to reflect the level of detail and craft consistent with the extant campus and the principles of the Art & Crafts movement that informed design elements of several campus buildings.

The author of this memorandum, Michael Hibma, has an M.A. in History from California State University, Sacramento; and a Certificate in Land Use and Environmental Planning from University of California, Davis Extension. He meets the Secretary of the Interior’s Professional Qualifications Standards for Architectural History and History (36 CFR Part 61) and has over 17 years of experience in cultural resources management and architectural history. 1 This document was prepared with technical assistance with detailed construction and financing information provided by Arts Campus Holdings, LLC.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................. I INTRODUCTION .......................................................................................................... 1 Document Organization ................................................................................................................ 2 PROJECT LOCATION AND DESCRIPTION ....................................................................... 4 Project Location ............................................................................................................................. 4 Project Description ........................................................................................................................ 4 Oakland Cultural Heritage Survey – Identified Resources in the Project Site .................................... 5 LEGISLATIVE AND REGULATORY CONTEXT ................................................................... 8 National Historic Preservation Act (NHPA) ................................................................................... 8 Section 106 ......................................................................................................................................... 8 California Health and Safety Code Section 7050.5 ...................................................................... 10 California Public Resources Code Section 5097.98 ..................................................................... 10 City of Oakland Historic Preservation Element ........................................................................... 11 EXISTING CONDITIONS .............................................................................................. 13 Site Description ........................................................................................................................... 13 Site Development ........................................................................................................................ 13 Early Estate Era, circa 1879-1921. .................................................................................................... 13 Early California Collage of Arts and Crafts (CCAC) Era (1922-1944) ................................................. 13 Post-War CCAC Growth Era (1945-1964) ......................................................................................... 14 CCAC /CCA Campus Era (1965-present) ........................................................................................... 14 Field Survey ................................................................................................................................. 14 DEMOLITION FINDINGS............................................................................................. 16 Category II – Finding 1 ................................................................................................................. 16 Facilities Building .............................................................................................................................. 16 B Building .......................................................................................................................................... 28 Irwin Student Center & A-2 Café ...................................................................................................... 31 Founders Hall .................................................................................................................................... 36 Martinez Hall .................................................................................................................................... 39 Martinez Hall Annex ......................................................................................................................... 43 Noni Eccles Treadwell Ceramic Arts Center ..................................................................................... 47 Raleigh and Claire Shaklee Building .................................................................................................. 51 Oliver and Ralls Building ................................................................................................................... 55 Barclay Simpson Sculpture Studio .................................................................................................... 59 Category II - Finding 4 – (All Buildings) ........................................................................................ 64 Category II - Finding 5 – (All Buildings) ........................................................................................ 72 Category II - Finding 6 – (All Buildings) ........................................................................................ 85 REFERENCES CITED .................................................................................................... 89

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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APPENDICES
A: CALIFORNIA COLLEGE OF THE ARTS, OAKLAND CAMPUS EXISTING BUILDINGS PRELIMINARY REHABILITATION. TBD CONSULTANTS. APRIL 17, 2020
B: REHABILITATION COST ESTIMATE, BUILD GROUP, INC. APRIL 15, 2020 C: TBD BID INDEX
D: 5212 BROADWAY DESIGN GUIDELINES. FEBRUARY 2023
E FINAL DEVELOPMENT PLAN SUBMITTAL. FEBRUARY 17, 2023
F: CCA/5212 BROADWAY - SUMMARY OF PROJECT ECONOMICS FOR PRESERVATION AND REUSE OF EXISTING BUILDINGS: PROJECT COST, REVENUES AND RETURN-ON-COST BY BUILDING.

PROVIDED BY PROJECT APPLICANT TO LSA, AUGUST 29, 2024

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

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O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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FIGURES AND TABLES

FIGURES
Figure 1: California College of the Arts Campus ................................................................................... 15

TABLES
Table A: Project Site Built Environment ................................................................................................. 5 Table B: OCHS Significance Ratings ...................................................................................................... 11

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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At the request of Arts Campus Holdings, LLC, LSA prepared this demolition analysis to address City of Oakland (City) requirements for the demolition of Category II Historic Properties. The project analysis is part of the permitting process for the preservation of one building, relocation of one building, and demolition of 10 buildings in the approximately four-acre campus at 5212 Broadway (Assessor Parcel Number 014-124-300-101) in the Rockridge Neighborhood (project site).

A Historic Resource Evaluation prepared in 2019 by San Francisco-based architectural and consulting firm Page & Turnbull (2019 HRE) “identified twelve buildings on CCA Oakland campus (CCA Campus) are historic resources.”
2 Of the twelve identified, six appeared individually eligible for inclusion in the California Register of Historical Resources (California Register): Macky Hall, an associated Carriage House, Martinez Hall, Founders Hall, Noni Eccles Treadwell Ceramic Arts Center, and the Barclay Simpson Sculpture Studio. The 2019 HRE further found the four-acre campus, comprised of twelve buildings and six associated landscape features, as a California Register-eligible historic district.

According to the 2019 HRE, the project area was first identified as an Area of Primary Importance (API) by an OCHS survey team during a city-wide windshield survey in or about 1986. The OCHS survey team bounded the API to include the entire campus property. The OCHS map assigned the name “CCAC API” to the resource. The contributing elements identified by OCHS included Macky Hall/Treadwell Mansion, the Carriage House, three giant sequoia (Sequoiadendron giganteum) trees and a sloping lawn area leading to the Broadway Wall and Stairs. The Facilities Building (built ca. 1922-24) and the B Building (built 1926) were also identified but found to be of minor importance (Page & Turnbull 2019:8). No other buildings, structures, or objects in the project area were identified as contributory.

In the years following OCHS’ survey, additional buildings, structures, and objects within the project area reached sufficient age to warrant evaluation for eligibility for inclusion in a national, state, or local register of historical resources.
3 In 2019, Page & Turnbull evaluated the CCA Campus in the project area and identified additional elements that had reached sufficient age to warrant consideration as contributing elements to the API.

Page & Turnbull’s HRE concluded the following.

This evaluation finds that six buildings on the CCA campus qualify as individual historic resources for the purposes of CEQA. These include Macky Hall and the Carriage House, which were already listed on the National Register of Historic [P]laces and as City of Oakland Historic

2 Historic Resource Evaluation – California College of the Arts (5212 Broadway), Oakland, California. November 19, 2019. Project No.: 18322. On file at Page & Turnbull, San Francisco, California. Page 5. 3 While fifty years is the general age threshold for eligibility for inclusion in the National Register of Historic Places, the California Register of Historical Resources does not specify a specific year threshold rule, but rather that “sufficient time has passed to understand its historical importance” (California Code of Regulations §4852(d)(2)).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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The campus as a whole, including the twelve extant buildings and associated landscape features, was found to be a California Register and National Register -eligible historic district with a period of significance of 1922 – 1992. It is also eligible to retain its existing status as a City of Oakland Area of Primary Importance (API), as it is of National Register quality with a large proportion of contributing resources. The campus is significant for association with the development of CCA in Oakland and the institution’s commitment to developing its Oakland campus in a way that not only accommodated art education and practice, but physically embodied principles of design in the spaces occupied by its students and faculty. The campus as a whole, inclusive of each of the twelve contributing buildings and contributing landscape features, is a historical resource for the purposes of CEQA.

In conclusion, all twelve buildings, and the campus as a whole, are historical resources for the purposes of CEQA (Page & Turnbull 2019:180).

Accordingly, the project site is an historical resource for the purposes of California Environmental Quality Act (CEQA).

The replacement project would demolish ten buildings in the project site, removing a gross total of 90,000 square feet of building area. Four of the buildings to be demolished are individually eligible for the California Register and are contributing elements to the CCA API. Two buildings, Macky Hall and the associated Carriage House would be retained, albeit with the Carriage House relocated southwest and behind Macky Hall, which would remain in its current location and orientation. The project would also retain an approximately 13,600 expanse of open area west of and downslope of Macky Hall, the entire length of the Broadway Wall (a full-length concrete retaining wall facing Broadway that includes a set of stairs and a carriage entrance gate), as well as other landscape features and incorporate them into the design of a new mixed-use development containing 448 residential units, 14,390 square feet of commercial space along Broadway, and 237 parking spaces (see Appendix E).

Michael Hibma, M.A., completed the analysis. Mr. Hibma is an architectural historian at LSA’s Point Richmond office and has over 17 years of experience in cultural resources management. He holds an M.A. in History from California State University, Sacramento and meets the Secretary of the Interior’s Professional Qualifications Standards in Architectural History and History (Title 36 Code of Federal Regulations Part 61).

DOCUMENT ORGANIZATION
This document begins with a description of the replacement project and location, followed by a description of the cultural resources in the project site and their status per Oakland Cultural Heritage Survey (OCHS) criteria. The next section contains an assessment to the requirements of Findings Required for the Demolition of Historic Properties – Category II Historic Properties. For the Facilities Building, the B Building, the Irwin Student Center, the A-2 Café, Founders Hall, Martinez Hall, the Noni Eccles Treadwell Ceramic Arts Center, the Raleigh and Claire Shaklee Building, the

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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Note: to prevent unnecessary redundancy in the analysis and reduce document length, the analysis under demolition findings for Findings, 4, 5, and 6 are presented once and the discussion ranges to specific buildings, as appropriate. The two original buildings, Macky Hall and the associated Carriage House will be retained by the project. The Carriage House will be relocated (third relocation in its history) to a location southwest of Macky Hall. This analysis does not include these two buildings.

There are no non-contributing buildings in the CCA API.

The analysis would draw in part from previously prepared economic viability assessments of the project site’s-built environment. This demolition analysis does not include the Broadway Wall, the Macky Lawn west of and downslope of Macky Hall, or the CCA API as a whole as these are not “buildings” as defined in the National Register Bulletin 15 4 nor are APIs distinctly called out for
analysis in the City’s guidance for preparing Demolition Findings for Category II Historic Properties.

The following documentation supports this analysis and is referenced throughout:
• Appendix A: California College of the Arts, Oakland Campus Existing Buildings Preliminary Rehabilitation. TBD Consultants. April 17, 2020.
• Appendix B: Rehabilitation Cost Estimate, Build Group, Inc. April 15, 2020. • Appendix C: TBD Bid Index
• Appendix D: 5212 Broadway Design Guidelines dated February 2023 • Appendix E: Final Development Plan Submittal dated February 17, 2023. • Appendix F: CCA/5212 Broadway - Summary of Project Economics for Preservation and Reuse of Existing Buildings: Project Cost, Revenues and Return-on-Cost by Building. Provided by Project Applicant to LSA, August 29, 2024.

The following documentation supports this analysis and is available upon request:
• California College of the Arts Oakland Campus, 5212 Broadway. Historic Resource Evaluation.

Page & Turnbull, San Francisco, California. November 19, 2019. • CCA Existing Buildings Preliminary Rehabilitation Pricing Package, LMS Architects, March 13, 2020.

4 National Register Bulletin 15: How to Apply the National Register Criteria for Evaluation. National Park Service, 1997:4-5. Source: https://www.nps.gov/nr/publications/bulletins/pdfs/nrb15.pdf

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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PROJECT LOCATION
The project site is at 5212 Broadway (also addressed as 5200 Broadway) in the Rockridge neighborhood of the City of Oakland, Alameda County, California. The project site contains a developed four-acre rectangular parcel (Assessor Parcel Number: 014-1243-001-01), bordered on the east by a three-story, 72-unit apartment building constructed in 1964 on a two-acre parcel at 225 Clifton Street (APN 014-1242-007), on the north by Clifton Steet, on the west by Broadway, and on the south by an unnamed, two-lane asphalt paved road that connects Broadway/Coronado Avenue intersection with the Rockridge Shopping Center, a multi-unit commercial development and parking lots constructed circa 2016 on a 15.5-acre parcel at 5050 Broadway (APN 014-1242-006).

The site rests at the foot of a long gradual rise that originally connected with the Oakland Hills to the east. Quarry activities by the former Oakland Paving Company to the south and east during the early-20
th century created a knoll-type projecting outcrop as viewed from offsite areas to the south, east, and to a degree, the west; thereby enhancing the site’s upslope qualities and its associated built environment.

The project site is within an area currently zoned as Institutional Land Use and associated with the California College of the Arts (CCA), an applied fine arts education and training institution founded in Berkeley in 1907. The four-acre campus contains ten buildings built during four phases of development spanning seventy years (1922-1992). Two original buildings, Macky Hall and the associated Carriage House were repurposed from the site’s earlier use as a private estate. The buildings represent various styles, are one-to-three-stories tall, and generally arranged north/south orientation and clustered along the eastern half of the parcel. The built environment is interspersed with landscaped features areas such as Macky Lawn, a shelterbelt of Eucalyptus trees, the Bell Tower, the Celebration Pole, and various seating and informal gathering areas. Over the last 10 years, CCA consolidated its academic programs and completed relocation to San Francisco in 2022.

PROJECT DESCRIPTION
The project would demolish ten existing campus buildings, and selected structures and landscape features within the CCA API while retaining two existing Oakland Landmark buildings (Macky Hall and the Carriage House), the Broadway Wall and Stairs and Carriage Entrance as well as selected landscape features. The project would build two buildings ranging in height from 45 to 90 feet.

Building 1 would be a mixed-use building located at the northwest corner of Broadway and Clifton Street and contain 229 residential units with approx. 6,630 square-feet of ground floor commercial space, 237 parking spaces, and 242 bicycle spaces. Building 2 would span the project site’s eastern boundary and contain 219 units, no parking spaces and 230 bicycle spaces.

The project would preserve and renovate Macky Hall and the Carriage House, Macky Lawn, the Broadway Wall, consisting of entry staircase and carriage entrance gate off Broadway built in 1905, a view corridor to the west from Macky Hall, and various art pieces as well as contain over 98,000 square-feet of publicly-accessible landscaped open space, and maintain the ground floor of the Carriage House as a space available for community events and interpretive exhibits on the history of the property and the CCA campus.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 5 Oakland Cultural Heritage Survey – Identified Resources in the Project Site The project site’s-built environment, date(s) of construction, OCHS resource ratings, and CCA API contributor status are listed in Table A, below.

Table A: Project Site Built Environment
Resource Name Date(s) of
Construction
OCHS Rating (1986) /
Page & Turnbull Rating
(2019)
Comments
CCA Campus
(Project Site) 1922-1992 API
Historical Resource for purposes of
California Environmental Quality Act
(CEQA)
Macky Hall 1879-1881 A1+
Listed in Oakland Register and California
Register; individually eligible to the
National Register and a contributor to
API. Historical Resource for purposes of
CEQA.

Carriage House 1879-1881 B1+
Listed in Oakland Register and California
Register; individually eligible to the
National Register and a contributor to
API. Historical Resource for purposes of
CEQA.

Facilities Building 1922-1924 D1+ / B1+ Contributor to API. Historical Resource for purposes of CEQA.

B Building 1926 D1+ / B1+ Contributor to API. Historical Resource for purposes of CEQA.

Irwin Student Center;
A-2 Café 1959; 1974 F1- / C1+ Contributor to API. Historical Resource for purposes of CEQA.

Founders Hall 1968 F1- / B1+ Contributor to API. Historical Resource for purposes of CEQA.

Martinez Hall 1968 F1- / C1+ Contributor to API. Historical Resource for purposes of CEQA.

Martinez Hall Annex 1970 None / C1+ Contributor to API. Historical Resource for purposes of CEQA.

Noni Eccles Treadwell
Ceramic Arts Center 1973 None / A1+ Contributor to API. Historical Resource for purposes of CEQA.

Raleigh and Claire
Shaklee Building 1979 F1- / C1+ Contributor to API. Historical Resource for purposes of CEQA.

Oliver & Ralls Building 1989 None / C1+ Contributor to API. Historical Resource for purposes of CEQA.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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Construction
OCHS Rating (1986) /
Page & Turnbull Rating
(2019)
Comments
Barclay Simpson
Sculpture Studio 1992 None / A1+ Contributor to API. Historical Resource for purposes of CEQA.

Sources: OCHS, Oakland; Historic Resource Evaluation - California College of the Arts (5212 Broadway), Oakland, Alameda County, California (Paige & Turnbull 2019).

The project site contains an API that is described below. As described above, the API designation was initially assigned by the OCHS as a result of a citywide “windshield survey” conducted in or about 1986. The API as construed by OCHS consisted of four buildings that were then age eligible.

The Treadwell API was bounded to include the entire campus, however only Macky Hall/Treadwell Mansion, the Carriage House, three giant sequoia (Sequoiadendron giganteum) trees and a sloping lawn area leading to the Broadway Wall and Stairs. In addition, the Facilities Building (built ca. 1922- 24) and the B Building (built 1926) were identified as contributory to this initial API (Page & Turnbull 2019). No other buildings, structures, or objects in the project area were identified as contributory.

Please see Page & Turnbull 2019 HRE (available upon request) for a full presentation and discussion of built environment historical resources within the project site.

California College of the Arts (CCA) API
The CCA API boundary is coterminous with the project site. Per the Page & Turnbull HRE, the CCA API, “The CCA campus, comprising the entirety of the parcel associated with the property, is currently considered an API by the City of Oakland. As discussed in the previous California Register of Historical Resources (California Register) evaluation section, the property appears to be eligible for California Register listing as a historic district with a period of significance of 1922-1992. The campus, including twelve contributing buildings and multiple landscape features, is significant at the state and local level for its contribution to arts education and practice, constructed between the 1920s and 1990s under evolving visions of the institution’s artistic and educational direction.” The buildings within the API vary in size, age (1920s-1990s), and design. The design of the buildings within the API comprises an assortment of architectural styles and aesthetic popular during the late- 19 th and the 20th centuries, ranging from Queen Anne/Stick-Eastlake, Mission Revival, Third Bay Tradition, Brutalism, to New or Minimalist Modernism. A typical design element within the API is multiple-story construction; varied massing and footprints; roofs; and vehicle or loading doors.

Exteriors are varied in their materiality, wood, brick, stucco, cinder block masonry, or raw or unfinished concrete.

Page & Turnbull listed the following character-defining features 5 of the CCA API:
• Mass, scale, size (including one- to three-story massing), proportions, design, and footprint of twelve contributing buildings: Macky Hall, Carriage House, Facilities Building, B Building, Irwin Student Center, Martinez Hall, Founders Hall, Martinez Hall Annex, Noni Eccles Treadwell

5 Page & Turnbull, 2019: page 179.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

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O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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• Six contributing landscape features: Macky Lawn, Stairs with Ceramic Pots, Faun Sculpture, Infinite Faith sculpture, Bell Tower, and Celebration Pole. • Spatial relationships between contributing buildings. • Siting of contributing buildings within sloped topography of the site, including clustering of buildings on the eastern side of the site.
• Meandering, informal network of circulation routes through campus, with primarily pedestrian access.
• Vehicular ingress and egress routes limited to the northwest portion of the property, at the Broadway gate and Clifton Avenue driveways.
• Orientation of purpose-built contributing buildings inward toward center of campus (away from public streets).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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This section describes the principal federal, state, and City regulations, laws, and codes that apply to the project.

NATIONAL HISTORIC PRESERVATION ACT (NHPA)
The NHPA establishes the role and responsibilities of the federal government in historic preservation. Toward this end, the NHPA directs agencies to (1) identify and manage historic properties under their control; (2) undertake actions that would advance the Act’s provisions and avoid actions contrary to its purposes; (3) consult with others while carrying out historic preservation activities; and (4) consider the effects of their actions on historic properties.

Section 106
Section 106 of the NHPA requires federal agencies to (1) consider the effects of their undertakings on historic properties; and (2) afford the Advisory Council on Historic Preservation a reasonable opportunity to comment. The regulations that implement Section 106 and outline the historic preservation review process are found at 36 CFR Part 800.

Some degree of review under Section 106 must be conducted for all federal, federally assisted, federally licensed, or federally funded projects. If a project is subject to federal jurisdiction and the project is an undertaking as defined at 36 CFR 800.16(y) with the potential to cause effects on historic properties (36 CFR 800.3(a)), Section 106 of the NHPA must be addressed to take into account the effect of the undertaking on any district, site, building, structure, or object included in or eligible for inclusion in the National Register of Historic Places (National Register) (i.e., historic properties).

National Register of Historic Places (National Register) The National Register, authorized by Section 101 of the NHPA, created the nation’s official list of cultural resources worthy of preservation. Property types listed in the National Register consist of districts, sites, buildings, structures, and objects significant in American history, architecture, archaeology, engineering, and culture. Properties listed in or eligible for listing in the National Register are considered in planning and environmental review, and effects to such properties are primarily addressed under Section 106.

The criteria for determining a resource’s National Register eligibility are defined at 36 CFR 60.4 and are as follows:
. . . the quality of significance in American history, architecture, archaeology, engineering, and culture is present in districts, sites, buildings, structures, and objects that possess integrity of location, design, setting, materials, workmanship, feeling, and association, and A) That are associated with events that have made a significant contribution to the broad patterns of our history; or

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Under criteria A, B, and C, the National Register places an emphasis on a resource appearing as it did during its period of significance to convey historical significance; under Criterion D, properties convey significance through the information they contain.

National Register Bulletin 15: How to Apply the National Register Criteria for Evaluation states that in order for a property to qualify for National Register listing it must meet at least one of the evaluative criteria by (1) being associated with an important historic context, and (2) retaining the integrity of those features necessary to convey its significance (National Park Service 1997). The historic context of a resource would define the theme(s), geographical limits, and period of significance by which to evaluate a resource’s significance (National Park Service 1997:7).

Cultural properties must be 50 years of age or more to be eligible for National Register listing.

According to the National Park Service (1997:2), “properties that have achieved significance within the past 50 years shall not be considered eligible” unless such properties are “of exceptional importance.”
Historic Integrity
In addition to meeting one or more of the significance criteria, a cultural resource must retain its historic integrity to be considered eligible for National Register listing. Historic integrity is defined as the ability of a resource to convey its significance. The evaluation of integrity must be grounded in an understanding of a resource’s physical features and its environment, and how these relate to its significance. “The retention of specific aspects of integrity is paramount for a property to convey its significance” (National Park Service 1997:44). There are seven aspects of integrity to consider when evaluating a cultural resource: location, design, setting, materials, workmanship, feeling, and association (National Park Service 1997:44-45).
• Location is the place where the historic property was constructed or the place where the historic event occurred. The actual location of a historic property, complemented by its setting, is particularly important in recapturing the sense of historic events and persons. • Design is the combination of elements that create the form, plan, space, structure, and style of a property. Design includes such elements as organization of space, proportion, scale, technology, ornamentation, and materials.
• Setting is the physical environment of a historic property. Setting refers to the character of the place in which the property played its historical role. Physical features that constitute the setting of a historic property can be either natural or manmade, including topographic features,

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• Materials are the physical elements that were combined or deposited during a particular period of time and in a particular pattern or configuration to form a historic property. • Workmanship is the physical evidence of the crafts of a particular culture or people during any given period in history or prehistory. It is the evidence of the artisan's labor and skill in constructing or altering a building, structure, object, or site. • Feeling is a property’s expression of the aesthetic or historic sense of a particular period of time.

It results from the presence of physical features that, taken together, convey the property's historic character.
• Association is the direct link between an important historic event or person and a historic property.

For archaeological resources, the term “integrity” is used to describe the level of preservation or quality of information contained within a district, site, or excavated assemblage. Integrity is relative to the specific significance which the resource conveys. Although it is possible to correlate the seven aspects of integrity with standard archaeological site characteristics, those aspects are often unclear for evaluating the ability of an archaeological resource to convey significance under Criterion D.

Under Criterion D, the integrity of archaeological resources is judged according to the ability of the site to yield scientific and cultural information that can be used to address important research questions (Little et al. 2000:35-42).

Eligibility
Resources that are significant within an important historic context, meet the age guidelines, and possess integrity would generally be considered eligible for National Register listing.

CALIFORNIA HEALTH AND SAFETY CODE SECTION 7050.5
Section 7050.5 of the California Health and Safety Code (HSC) states that in the event of discovery or recognition of any human remains in any location other than a dedicated cemetery, there shall be no further excavation or disturbance of the site or any nearby area reasonably suspected to overlie adjacent remains until the coroner of the county in which the remains are discovered has determined whether or not the remains are subject to the coroner’s authority. If the human remains are of Native American origin, the coroner must notify the Native American Heritage Commission within 24 hours of this identification.

CALIFORNIA PUBLIC RESOURCES CODE SECTION 5097.98
Section 5097.98 of the California Public Resources Code states that the Native American Heritage Commission (NAHC), upon notification of the discovery of Native American human remains pursuant to HSC §7050.5, shall immediately notify those persons (i.e., the Most Likely Descendent or “MLD”) it believes to be descended from the deceased. With permission of the landowner or a designated

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CITY OF OAKLAND HISTORIC PRESERVATION ELEMENT
The Historic Preservation Element (HPE) of the Oakland General Plan presents goals, policies, and objectives that guide historic preservation efforts in Oakland. HPE policies define the criteria for legal significance that must be met by a resource before it is listed in Oakland’s local register of historical resources. Based on a city-wide preliminary architectural inventory by the OCHS, pre-1945 properties have been assigned a significance rating of A, B, C, D, E, or F and assigned a number (1, 2, or 3) which indicates a building’s district status. The ranking system, described below in Table B, indicates a property’s historical status, and identifies those properties warranting special consideration in the planning process. The individual property rating of a building is based on the following criteria:
• Visual Quality/Design: Evaluation of exterior design, interior design, materials and construction, style or type, supporting elements, feelings of association, and importance of designer. • History/Association: Association of person or organization, the importance of any event, association with patterns, and the age of the building. • Context: Continuity and familiarity of the building within the district. • Integrity and Reversibility: Evaluation of the building’s condition, its exterior and interior alterations, and any structural removals.

Table B: OCHS Significance Ratings
Rating Level Description
A: Properties of Highest Importance
This designation applies to properties considered clearly eligible for individual National Register listing and City Landmark designation. Such properties consist of outstanding examples of an important style, type, or convention, or intimately associated with a person, organization, event, or historical pattern of extreme importance at the local level or of major importance at the state or national level.

B: Properties of Major Importance
These are properties of major historical or architectural value but not sufficiently important to be rated “A”. Most are considered individually eligible for the National Register, but some may be marginal candidates. All are considered eligible for City Landmark designation and consist of especially fine examples of an important type, style, or convention, or intimately associates with a person, organization, event, or historical pattern of major

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Rating Level Description
importance at the local level or of moderate importance at the state or national level.

C: Properties of Secondary Importance
These are properties that have sufficient visual/architectural or historical value to warrant recognition but do not appear individually eligible for the National Register. Some may be eligible as City Landmarks and are superior or visually important examples of a particular type, style, or convention, and include most pre-1906 properties.

D: Properties of Minor Importance
These are properties which are not individually distinctive but are typical or representative examples of an important type, style, convention, or historical pattern. The great majority of pre-1946 properties are in this category.

E, F, or *: Properties of No Particular
Interest Properties that are less than 45 years old or modernized.

District Status Description
1 A property in an Area of Primary Importance (API) or National Register -quality district. An API is a historically or visually cohesive area or property group identified by the OCHS which usually contains a high proportion of individual properties with ratings of “C” or higher.
2 A property in an Area of Secondary Importance (ASI) or a district of local significance. An ASI is like an API except that an ASI does not appear eligible for the National Register.
3 A property not within a historic district.

Note: Properties with ratings of “C” or higher or are contributors to or potential contributors to an API or ASI are considered Potential Designated Historic Properties (PDHPs) that may warrant consideration for preservation by the City. The OCHS has assigned some properties a contingency rating, indicated by a lower -case letter. A contingency rating is a potential rating under some condition, such as “if restored” or “when older” or “with more information.”

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The following section describes the current conditions within the proposed project site at 5212 Broadway.6

SITE DESCRIPTION
The CCA campus is located on a rectangular parcel of approximately four acres, bounded on the west by Broadway, on the north by Clifton Street, on the east by multi-unit residential housing, and on the south by the Rockridge Shopping Center. The site is at the terminus of a long gradual rise along both College Avenue and Broadway, and topography to the north and east rises higher to the steep terrain of the Oakland Hills. The site’s western border with Broadway is marked by a concrete retaining wall (“Broadway Wall”), which includes a double stair and a vehicular entry. The site’s northern border includes two vehicular entry points from Clifton Street.

SITE DEVELOPMENT
The twelve extant campus buildings and associated landscape features are associated with four broad periods of site development spanning over 110 years. These periods and their associated buildings and landscape features are listed below and followed by a figure depicting the built environment elements associated with these eras as well as their general spatial arrangement within the project site.

Early Estate Era, circa 1879-1921.
○ Mackey Hall (C. 1879-1891)
○ Carriage House (c.1879-1891)
○ Broadway wall (c.1905)
○ Carnegie bricks (n.d., Treadwell era)
○ Eucalyptus row (n.d.)
Early California Collage of Arts and Crafts (CCAC) Era (1922-1944) ○ Facilities building (c. 1922-1924)
○ B Building (1926)
○ Faun sculpture (1926)
○ Sundial (n.d.)
○ Concrete water fountain (n.d.)
○ Stairs with ceramic pots (n.d.)

6 This section is from the California College of the Arts, Oakland Campus, 5212 Broadway – Historic Resource Evaluation, prepared November 19, 2019 (2019 HRE).

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Post-War CCAC Growth Era (1945-1964)
○ Irwin Student Center (1959)
○ Infinite Faith sculpture (1959)
CCAC /CCA Campus Era (1965-present)
○ Martinez Hall (1968)
○ Founders Hall (1968)
○ Martinez Hall Annex (1970)
○ Noni Eccles Treadwell Ceramic Arts Center (1973)
○ A-2 Café (1974)
○ Shaklee Building (1979)
○ Oliver & Ralls Building (1989)
○ Barclay Simpson Sculpture Studio (1992)
○ Bell Tower (c. 1959-70)
○ Celebration Pole (1982)

FIELD SURVEY
LSA Architectural Historian Michael Hibma conducted a pedestrian field survey of the project site and vicinity on September 1, 2022. The purpose of the field survey was to identify the extant built environment and remnant landscape features within the on the CCA Campus and identify notable aspects of its setting. The exterior of these buildings and structures were photographed as was the setting of the surrounding area. The field survey was documented in field notes and digital photographs.

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7 Source: Page & Turnbull, 2019 HRE, page 17.

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This section presents an analysis of the Facilities Building, the B Building, the Irwin Student Center, the A-2 Café, Founders Hall, Martinez Hall, Martinez Hall Annex, the Noni Eccles Treadwell Ceramic Arts Center, the Raleigh and Claire Shaklee Building, the Oliver & Ralls Building and Barclay Simpson Sculpture Studio in the project site utilizing the Demolition Findings for Category II Historic Properties.
8 Category II findings apply to the replacement project because the project site is located within the CCA API.

For each of these buildings, this analysis will contain analysis to address Finding 1 plus Findings 4, 5, and 6. Please note that Findings 4, 5, and 6 are discussed one time as their responses apply to the qualities of the replacement project. Below is a list of Category II findings that are applicable to the buildings for this analysis. Finding 2 would not apply as the project site is not a declared public nuisance or is a threat to public health or safety.

CATEGORY II – FINDING 1
The existing property has no reasonable use or cannot generate a reasonable economic return and that the development replacing it will provide such use or generate such return.

Finding 1 applies to each contributing property. For this analysis, the ten buildings proposed for demolition are contributing elements to the CCA API. Note: to prevent unnecessary redundancy in the analysis and document length, the demolition findings criteria are presented once and the discussion ranges to specific buildings, as appropriate.

Facilities Building
The following addresses the five submittal requirements for Finding 1 as applied to the Facilities Building.

1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA

8 According to official guidance, Category II includes “properties in an S- 7 or S-20 zone or an Area of Primary Importance. Any building, including those that do not contribute to the historic quality of the district, fall into this category” [emphasis added].

Source: https://cao-94612.s3.amazonaws.com/documents/oak055114.pdf

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The Facilities Building is the oldest building purpose built as part of what would become the CCA campus. It was originally designed as a woodworking shop and adapted to contain CCA’s grounds and facilities maintenance office and shop spaces. Accordingly, it does not directly generate a reasonable economic return. As currently configured, the Facilities Building provides support to maintain the operation of the other campus buildings and is not designed or intended to generate a return. The Facilities Building is the smallest building in massing with a gross square footage at 1,402. Current costs to rehabilitate it for other uses is estimated at $836,183 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs. Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate the Facilities Building is $1,645,448.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other miscellaneous expenses. The building’s mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

Given the cost for rehabilitation and the current use of the Facilities Building to support operation and maintenance of other educational facilities, the current use would not generate a reasonable economic return as explained below in section b. b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

The Facilities Building was constructed in 1922 and covers 1,402 gross square feet.

Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co-zoned CN-1 and RM-3.

These classifications are defined below
9:

9 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

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O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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10 RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”11
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse. The building was constructed to provide educational uses as shop and class spaces. No other use appears to have occurred in this building.

A comparable analysis
12 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to the Facilities Building, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design, and configuration of this building, we would assume rents at the low end of this range at $35.20 per square foot. The Facilities Building has a rentable area of 1,145 square feet after deducting the area for exterior walls and other non-rentable area. Gross rental income is therefore estimated at approximately $40,304 per year. Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $27,176.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $27,176. Dividing that amount by the estimated development cost of $1.65 million results in a return of 1.7%, which is well below the 7% to 8% threshold for a reasonable economic return. In order to achieve a 7.5% return at the assumed market rents, the Facilities Building would require a subsidy of approximately $1.3 million.

10 Ibid.
11 Ibid.
12 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

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The configuration of the Facilities Building is also not suitable for residential use. It is too small to be subdivided into multiple residential units and the conversion cost of the building for a single residential unit would be more than the cost for office conversion. As a result, the monthly rent necessary to support a reasonable economic return on the rehabilitation and conversion cost would be in excess of $12,000 per month.

For these reasons, appropriate and reasonable alternate uses of the Facilities Building as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of the Facilities Building for commercial office, retail or residential use cannot support a reasonable economic return. d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential as a National Register-quality historic district. The extant buildings are considered as functionally related as a historic district, which is defined in official National Park Service (NPS) guidance as a resource that “possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development” (NPS 1997:5). Two buildings in the API that were found individually eligible for the National Register as well as designated Oakland City Landmarks, i.e., the Treadwell Mansion/Macky Hall and the Carriage House will remain and be rehabilitated as part of the proposed project.

As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, collectively, particularly those which are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their context would render the proposed project non-viable and prevent construction of housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits would prove insufficient in providing a reasonable economic return for the rehabilitation and reuse of these buildings.

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In order to be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible, or it may qualify if it is a contributing building to a nationally registered historic district. According to the 2019 HRE, the Facilities Building is not individually eligible for the California Register, however for the purpose of this analysis, it is assumed the building is also not individually eligible for the National Register. If the entire API is eligible and were to be designated an historic district on the National Register, then the Facilities Building, as a contributing element to the nationally registered historic district, may be an element of a potential rehabilitation project eligible for the 20% Rehabilitation Tax Credit program, provided that the majority of the API’s extant built environment were also retained. If several or most of the API’s extant built environment were demolished, the Facilities Building alone would likely not qualify for the historic tax credit and would also be unfeasible to a tax credit investor on its own.

If the Facilities Building qualified for the historic tax credit, the net benefit of the subsidy would be approximately $246,817 (15% of $1,645,448), which would increase the return on development cost from 1.7% referenced above without historic tax credits to 1.9% with historic tax credits, which is still below the threshold for a reasonable economic return.

Mills Act
13 Oakland properties eligible for the Mills Act must be found National Register eligible. This analysis assumes the entire API is a National Register-quality historical resource and, accordingly is a historical resource for the purposes of CEQA. According to Alameda County Assessor’s online portal, the current (as of July 1, 2024) total net tax value for the four-acre project site is $13,921,523. The current property tax assessment is $176,981. As of this writing, San Francisco-based California College of the Arts (CCA) owns the property and the applicant has determined that of the 100,647 gross square feet of all twelve existing buildings, approximately 93% or 93,010 net square feet would be available as rentable space. The Applicant has an option to purchase the property should the replacement project be approved.

The City of Oakland’s online Mills Act Calculator provides an estimate of potential property taxes due under a Mills Act contract and the potential property tax reduction for eligible 13 Note: the Mills Act discussion in this section applies to all 10 buildings proposed for demolition. This analysis was prepared with technical assistance with detailed construction and financing calculations provided by Arts Campus Holdings, LLC.

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O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 21 properties based on the current or estimated valuation.14 To establish the property tax due under the Mills Act, the valuation of the property is determined by capitalizing the net income from the property (dividing the net income by the capitalization rate). The capitalization rate is determined by a formula specified in the Mills Act for both residential and commercial properties.

This analysis assumes all ten existing buildings are used for commercial use as commercial office use generates the highest net income. Assuming an average rent of $36.82/net rentable square foot, the valuation for the 10 existing buildings to be demolished with a total net area of 93,010 square feet is $27,910,000. This valuation results in an annual property tax of $382,033 or $4.11 per net square foot (see Appendix F). For the purposes of this analysis, we have assumed the Applicant will be successful in obtaining a Mills Act agreement for the project area, and the reduced property tax savings is used in the analysis in Finding 1 b. above.

Should the Applicant not secure a Mills Act contract for the approximately 4-acre project area, then the estimated property tax would be $10.95 per net square foot based on an assumed valuation equal to the hard construction cost for rehabilitation (inclusion of the value of the underlying land or building would further increase the valuation and property tax). As a result, the potential savings from the Mills Act compared to the full property tax based on construction cost is $6.84 per net square foot or $636,188 per year. If the Applicant were required to pay this full property tax, the financial feasibility of rehabilitation would be further impacted, requiring an additional $6.84/net square foot in rent to achieve the same economic returns.

Appendix F provides a summary of the project cost, revenues and return on project costs with and without the historic tax credit. It is assumed that the existing buildings would all qualify for the Mills Act property tax reduction. Economic returns and feasibility would be further impacted if the buildings do not qualify for the Mills Act and amount of reduced property taxes assumed in this analysis.

Façade and Tenant Improvement Program (FIP/TIP). Oakland’s FIP/TIP applies to approved exterior and interior renovations for commercial and mixed-use properties. These grants apply citywide “with a priority focus on priority underinvested commercial corridors areas.” 15 Rehabilitation of historic façades, new awnings and canopies, new paint, doors and storefront systems, new signage are listed as eligible Façade Improvements. Eligible improvements include: “paint, signage, landscaping exterior lighting, security systems, awnings/canopies; windows, doors, and safety grilles; restoration of historical façade features, and compliance with the Americans with Disability Act (ADA) and interior tenant improvements.” 16 The
program is a matching grant program and approved “projects of up to $25,000 are fully reimbursable, with no match requirement; any project costs over $25,000 will be reimbursed

14 City of Oakland, Planning and Building Department. Mills Act. Electronic document, https://www.oaklandca.gov/topics/mills-act, accessed various. 15 Oakland City Council, Resolution 89239 C.M.S. Adopted June 7, 2022. Electronic document, https://www.oaklandca.gov/topics/facade-and-tenant-improvement-program. Accessed various. 16 Ibid.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 22 at 50 percent” and the grants can be phased and not as a lump sum after when construction is complete.17 The maximum combined FIP/TIP grant is $75,000. While the buildings in the API that do not appear individually eligible could be able to apply for this program, the funds would not be sufficient to reduce the estimated project by an amount needed to achieve a reasonable economic return, even when take in conjunction with the potential Federal Historic Tax Credit or Mills Act referenced above.

Transferable Development Rights (TDRs).
18 The CCA site is zoned for institutional use. As a result, there are no excess development rights t
hat can be transferred to another parcel and therefore the TDR program cannot be used as a method to generate economic funds for the project.

2. Building Soundness. The applicant shall submit a report from a licensed engineer or architect with extensive experience in rehabilitation as to the structural soundness of the property and its suitability for rehabilitation. The soundness report shall be based on the requirements contained in the Soundness Report Requirements

19. For the purposes of this analysis, both the Oakland Planning & Building Department (Planning Department) and the Applicant assume the buildings in the API are structurally sound and no analysis is needed. Accordingly, no separate report as described above was prepared by a licensed engineer or architect.

3. For the purposes of this analysis, both the Oakland Planning & Building Department (Planning Department) and the Applicant assume the buildings in the API are structurally sound and no analysis is needed. Accordingly, no separate report as described above was prepared by a licensed engineer or architect. Building Maintenance History. The applicant shall submit a building maintenance history. The report shall also answer the following questions:
a. What is the cost to repair any code violations?
For the purposes of this analysis, the Planning Department and the applicant assume the buildings in the API are structurally sound and a maintenance history for each building was not submitted.
b. Is the building free of a history of serious, continuing code violations? See previous response above.

17 Ibid.
18 Note: the Transferrable Development Rights discussion in this section applies to all 10 buildings proposed for demolition. This analysis was prepared with technical assistance and with detailed construction and financing calculations provided by Arts Campus Holdings, LLC. 19 Soundness Report Requirements. Electronic document,
http://www2.oaklandnet.com/oakca1/groups/ceda/documents/agenda/oak055114.pdf , accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 23 c. Has the building been properly maintained and stabilized? See previous response to item 4.a above.

4. Existing Building Appraised Value. All appraisals obtained within the previous two years by the owner or applicant in connection with the purchase, financing, or ownership of the property.
a. Any listing of the property for sale or rent price asked, and offers received, if any, within the previous two years.

Other than the provisional arrangement between CCA and the Applicant, no known listings were identified. As of this writing CCA remains the property owner. The Applicant has an option to purchase the property upon approval of a viable replacement project. b. Existing Building/Property Appraisal (current within the last six months):

The Applicant provided LSA with an appraisal of the project site in its current or “as-is” condition and configuration. The appraisal was prepared on August 16, 2024, by JLL Valuation & Advisory Services, LLC., a Chicago-based risk and advisory firm. 20 The JLL appraisal found the
current value of the four-acre project site in as is condition, is essentially zero.

The subject [property] has two buildings on the National Registry of Historic Places [sic] with the potential for the whole campus to be landmarked as historic. As discussed with the client, it is assumed that the existing improvements cannot be demolished or expanded. Based on discussion with the client and a review of documents prepared by various engineering and construction firms consulting on the project, the existing buildings cannot be occupied. Per the documentation, the subject's improvements would require extensive renovation before it could be used again as an educational facility or adapted to another use. In accordance with the budget provided by the client, to renovate and cure all deferred maintenance would gre atly exceed the value as renovated implying a negative value. The implication of a negative value suggests that a property owner would either indefinitely hold the property; abandon the property; dispose of the property; or donate for no funds exchanged. Therefore, the Market Value As Is of the subject is estimated to be zero dollars (JLL 2024a:i). i. Estimated market value of the property in its current condition under best practices management.

The Applicant has notified LSA that the Planning Department has agreed that no appraisal is necessary to address this item.

20 Per JLL, the appraisal for 5212 Broadway conforms “with the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and applicable state appraisal regulations .” The Applicant submitted a complete copy of this appraisal to the Planning Department.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 24 ii. After repair of construction deficiencies as defined in the Soundness Report Requirements.21
The Applicant has notified LSA that the Planning Department has agreed that no appraisal is necessary to address this item.
iii. After repair of construction deficiencies and maintenance as defined in the Soundness Report Requirements.
22 The Applicant has notified LSA that the Planning Department has agreed that no appraisal is necessary to address this item.
iv. After any changes recommended by the Historic Preservation Staff/LPAB.

The Applicant has notified LSA that the Planning Department has agreed that no appraisal is necessary to address this item.
v. After completion of the proposed demolition or removal.

The Applicant has notified LSA that the Planning Department has agreed that no appraisal is necessary to address this item.
vi. After completion of the replacement proposal.

The Applicant provided LSA with an appraisal of the project site following completion of the proposed project construction. The appraisal was also prepared August 16, 2024, by JLL Valuation & Advisory Services, LLC. According to the JLL appraisal, the estimated value of the four-acre CCA campus with the proposed project in place and fully occupied (on or about 12/1/2032) would be approximately $350,000,000 (JLL 2024b:3). 23 The highest and best use, as described in the proposed use appraisal would be:
“[d]evelopment of the site for mixed use - as proposed is the only use that meets the four tests [i.e., legally permissible, physically possible, financially feasible, and maximally productive] of highest and best use. Therefore, it is concluded to be the highest and best use of the property as if vacant.” With regard to the proposed project, the appraisal noted, “Based on our analysis, there does not appear to be any alternative use that could reasonably be expected to provide a higher present value than the proposed use. For these reasons, mixed

21 Soundness Report Requirements. Electronic document,
http://www2.oaklandnet.com/oakca1/groups/ceda/documents/agenda/oak055114.pdf , accessed various.
22 Soundness Report Requirements. Electronic document,
http://www2.oaklandnet.com/oakca1/groups/ceda/documents/agenda/oak055114.pdf , accessed various.
23 Note: The Applicant submitted a complete copy of this appraisal to the Planning Department.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 25 use - as proposed use, is concluded to be maximally productive and the highest and best use of the property as improved” (JLL 2024b:58-59).

5. Public Benefits. A public benefits analysis report shall be prepared and take into consideration the educational, cultural, social, equity, and economic benefits of the historic building and the proposed building. Some issues that shall be considered include, but are not limited to:
a. The benefits to the City’s tourism industry.

The existing buildings are located within the CCA API, a National Register-qualifying historic district. However, the API is an institutional college campus property type and does not serve as a tourist attraction. It may have stimulated local attractions by hosting concerts, art shows, and other performances while operating as a college campus, but those activities stopped after CCA’s relocated to San Francisco. However, the replacement project has the potential to stimulate development and tourism by programming of the street frontages, mixed-use areas, the ground floor of the Carriage House, and the publicly accessible open spaces with views of Downtown Oakland, the San Franciso-Oakland Bay Bridge, the San Francisco Bay, the Golden Gate, and beyond.
b. The benefits to owners of other commercial and residential property owners and renters in the area.

The proposed project is located within the neighborhood of Rockridge. The proposed project would revitalize the currently vacant four-acre site and the surrounding neighborhood, which is served by BART, by adding 448 residential units, 237 parking spaces, and 14,390 square feet of commercial space. These results would increase area activity and vibrancy, provide capacity to help address a severe and long-running shortage in housing, support retail businesses along College Avenue, increase jobs and grow the local economy though increased population and foot traffic, provide additional recreation and open space area and improve existing resources for use and enjoyment by residents and the wider public. The nearby (approx. ¾ mile) Rockridge BART Station would link the project site with the wider region thereby providing more opportunities for residents to live closer to their jobs and achieve a better life/work balance.
c. The services provided to the community, including social services.

As stated above, according to Alameda County Assessor, the current (i.e., July 1, 2024) total net tax value for the four-acre project site is $13,921,523 and currently generates $176,981 of property tax revenue. The replacement project would significantly increase this amount by 18- fold as well as increasing transfer taxes from the sale of property and business taxes created by office, retail, and residential uses included in the replacement project; revenues that the majority of would go to the City’s General Fund.
d. Housing and jobs opportunities.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 26 The existing API has no residential units. The replacement project would create 448 residential units. The replacement project has the potential to add hundreds of jobs to Oakland’s economy though short-term construction jobs and long-term non-construction jobs in property management and by attracting businesses to the new spaces within the new buildings and stimulate further occupancy of any nearby vacant commercial spaces along Broadway and College Avenue.
e. Civic, community, and neighborhood identity.

The existing API no longer contains an arts college and its relocation to San Francisco has diminished the neighborhood’s vibrancy and energy that a college campus can bring to an area. The existing API generates little to no foot traffic. What remains is likely limited maintenance staff or security personnel. As time goes by, the vacant campus will provide an increasingly attractive nuisance within the neighborhood as the vacant buildings could be squatted in, tagged with graffiti, or vandalized with the attendant increase in trash and litter, resulting in an overall deterioration of the four-acre campus. This could result in more fencing and intrusive security lighting, creating an impression that the API is an unwelcome and uninviting place for pedestrians and reduce foot traffic along this stretch of Broadway and near College Avenue.

The replacement project would bring new residents, employers, and businesses into the area restoring vibrancy and energy to make for a lively and welcoming amenity to the Rockridge neighborhood and this part of Oakland.
f. Cultural heritage and the image of the City and local neighborhood.

The replacement project would demolish ten buildings in the four-acre API. Only Treadwell Mansion/Macky Hall and the associated Carriage House, the Broadway Wall and Stairs as well as various landscape features would remain, thereby recreating the API’s contributing elements as first constructed and identified by OCHS in or about 1986. These elements would be rehabilitated according to the Secretary’s Standards for the Treatment of Historic Properties and serve as a bridge from the earlier Treadwell Estate era (circa 1879-1921), through their evolution as elements of the CCA campus’ built environment, and a central feature of the replacement project. The Treadwell Mansion/Macky Hall would be used as commercial space.

The Carriage House, which has been moved twice in its history, would be moved from its current location, and sited southwest of the Treadwell Mansion/Macky Hall. In its proposed location, the third in its history, the Carriage House will return to its historical orientation and remain secondary, subservient, and east of and behind the Treadwell Mansion/Macky Hall. To further draw attention to Macky Hall’s prominence, the Carriage House will rest at a slightly lower elevation than Macky Hall and the topography would partially obscure views of the Carriage House from Macky Lawn and Macky Hall. The Carriage House would be repurposed as a community amenity with the ground floor containing exhibition and interpretation space containing a permanent exhibit of the CCA’s history. A wrap around deck will be open to the

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 27 public and afford views of Downtown Oakland, the San Francisco-Oakland Bay Bridge, and of San Francisco Bay, the Golden Gate, and beyond.

The Applicant appears willing to incorporate existing elements of the CCA’s outdoor art pieces such as the Bell Tower, Carnegie brick pavers, the Faun Sculpture, and Infinite Faith art piece.

The replacement project would also retain the full-length of the Broadway Wall and Stairs and Carriage Entrance Gate to maintain the site’s historical appearance along Broadway. A proposed additional entrance, to the left of the Broadway Stairs would provide ADA accessibility to the publicly accessible open space. The replacement project would retain the site’s existing west-sloping topography which features a large grassy area, which covers approximately 13,600 square feet
24 that would be preserved as an open commons area.
g. Educational opportunities and cultural benefits regarding architectural and local history.

As stated above, the replacement project would retain Macky Hall and the associated Carriage House which, as described above contain a permanent art exhibit as well as interpretive space to illustrate the site’s association with the CCA.

The replacement project would re-use the two Sequoia stumps located west of and downslope of Macky Hall. These stumps are part of the Landmark designation adopted in 1975 and generally frame the view west from Macky Hall. The two stumps are remains of two mature Sequoia trees removed for poor health in 2019-2020. Reuse of the two stumps is encouraged by but not limited to materials for furnishings or landscape features to reference their history on site through educational signage or interpretive markings.

According to the approved Design Guidelines (dated February 2023; see Appendix D), the replacement project could include the following various arts and educational features. • New Art. New artwork is encouraged to be integrated along pathways in the publicly accessible open space similar to how art is displayed in the CCA Period campus. • Arts and Educational Programming. Arts and educational programming within the open space are encouraged, in keeping with the teaching, making, and learning activities of the CCA Period.
• Educational Signage. Signage highlighting the site’s CCA Period history and significance shall be included throughout the landscape. Locations for signage may include but are not limited to locations where historic buildings stand or stood (such as, Macky Hall, Carriage House, Founders Hall, Noni Eccles Treadwell Ceramic Arts Studio, Martinez Hall, and Barclay Simpson Sculpture Studio).

24 Per Google Earth, a maximum length of 170 feet 170 (Macky Hall to the top of the Broadway Stairs) and an approximate uniform width of 80 feet.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 28 The 2019 HRE prepared by Page and Turnbull (available upon request) would provide a suitable source for the historical and architectural contexts of the project site to inform interpretive signage or displays.

B Building
The following addresses the five submittal requirements for Finding 1 as applied to the B Building.

1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA will use the costs provided by TBD Consultants as an independent cost estimator. TBD subsequently completed an analysis of construction cost escalation since 2020 that indicates that construction costs have increased by approximately 30% through June of 2024 (see Appendix C).

The B Building is the second oldest (built 1926) purpose-built building as part of what would become the CCA campus. It was originally designed by Fredrick Meyer and constructed by the students themselves for use as metal shop and craft classroom space. Accordingly, it does not directly generate a reasonable economic return. As currently configured, the B Building provides classroom space and is not designed or intended to generate a return. The B Building is among the smaller-massed buildings on the CCA campus with a gross square footage of 4,933. Current costs to rehabilitate it for other uses is estimated at $2,149,180 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs.

Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate the B Building is $4,380,366.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other miscellaneous expenses. The building’s mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 29 Given the cost for rehabilitation and the current use of the B Building for educational uses, the current use would not generate a reasonable economic return as explained below in section b. b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

The B Building was constructed in 1926 and covers 4,933 gross square feet. Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co-zoned CN-1 and RM-3. These classifications are defined below
25:

CN-1: Neighborhood Commercial - 1 Zone. “The intent of the CN-1 Zone is to maintain and enhance vibrant commercial districts with a wide range of retail establishments serving both short and long term needs in attractive settings oriented to pedestrian comparison shopping.”
26 RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”27
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse. The building was constructed to provide educational uses. No other use appears to have occurred in this building.

A comparable analysis
28 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to the B Building, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design, and configuration of this building, we would assume rents at the low end of this range at $36.80 per square foot. The B Building has a rentable area of 4,626 square feet after deducting the area for exterior walls and other non- rentable area. Gross rental income is therefore estimated at approximately $170,237 per year.

25 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various. 26 Ibid.
27 Ibid.
28 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 30 Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $105,165.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $105,165.

Dividing that amount by the estimated development cost of $4.38 million results in a return of

2.4%, which is well below the 7% to 8% threshold for a reasonable economic return. To achieve a 7.5% return at the assumed market rents, the B Building would require a subsidy of approximately $3 million.

Alternatively, a rental rate of $88.86 per square foot would be required to achieve a reasonable 7.5% economic return on $3 million in total rehabilitation/development cost. A rental rate more than twice the rent that the current market will bear for rehabilitated commercial space, shows that the costs of renovating the property cannot be supported in the market through commercial rental income for a building of this quality in this location.

The configuration of the B Building is also not suitable for residential use. It is too small to be subdivided into multiple residential units and the conversion cost of the building for a single residential unit would be more than the cost for office conversion. As a result, the monthly rent necessary to support a reasonable economic return on the rehabilitation and conversion cost would be more than $34,250 per month.

For these reasons, appropriate and reasonable alternate uses of the B Building as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of the B Building for commercial office, retail or residential use cannot support a reasonable economic return. d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential National Register eligibility as a historic district. The extant buildings are considered as functionally related as a historic district, which is defined in official National Park Service (NPS)

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 31 guidance as a resource that “possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development” (NPS 1997:5). Two buildings in the API that were found individually eligible for the National Register as well as designated Oakland City Landmarks, i.e., the Treadwell Mansion/Macky Hall and the Carriage House will remain and be rehabilitated as part of the proposed project.

As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, collectively, particularly those which are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their context would render the proposed project non-viable and prevent construction of housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits would prove insufficient in providing a reasonable economic return for the rehabilitation and reuse of these buildings.

Applicable federal credits to the project site may result in income tax savings for a tax credit investor of up to 20% of qualifying costs through the use of the Federal Rehabilitation Tax Credits. The net benefit or subsidy available through the 20% Rehabilitation Tax Credit is approximately 15% of qualifying rehabilitation costs after related transaction costs, a minimum preferred return to the tax credit investor (typically 2% of the tax credit equity per year) and the buyout of the tax credit investor after 5 years of operation (typically 5% of the tax credit equity investment).

In order to be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible, or it may qualify if it is a contributing building to a nationally registered historic district. According to the 2019 HRE, the B Building is not individually eligible for the California Register, however for the purpose of this analysis, it is assumed the building is also not individually eligible for the National Register. If the entire API is eligible and were to be designated an historic district on the National Register, then the B Building, as a contributing element to the nationally registered historic district, may be an element of a potential rehabilitation project eligible for the 20% Rehabilitation Tax Credit program, provided that the majority of the API’s extant built environment were also retained. If several or most of the API’s extant built environment were demolished, the B Building alone would likely not qualify for the historic tax credit and would also be unfeasible to a tax credit investor on its own.

If the B Building qualified for the historic tax credit, the net benefit of the subsidy would be approximately $657,055 (15% of $4,380,366), which would increase the return on development cost from 2.4% referenced above without historic tax credits to 2.8% with historic tax credits, which is still below the threshold for a reasonable economic return.

Irwin Student Center & A-2 Café
The following addresses the five submittal requirements for Finding 1 as applied to the Irwin Student Center (built 1959) and A-2 Café (addition built 1974).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 32 1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA will use the costs provided by TBD Consultants as an independent cost estimator. TBD subsequently completed an analysis of construction cost escalation since 2020 that indicates that construction costs have increased by approximately 30% through June of 2024 (see Appendix C).

The Irwin Student Center and A-2 Café building were built in 1959 and 1974, respectively.

Irwin Student center was the campus’ first dormitory for 78 students and the A-2 Café was added in 1974 as an on-campus café. The Irwin Student Center was the only on-campus dormitory until Clifton Hall was constructed in 2002. However, Irwin Center “never housed more that its original maximum of 78 students, about 15 percent of the student population [in 1959] and less in following years” (2019 HRE:53).

Accordingly, the Irwin Student Center and A-2 Café do not directly generate a reasonable economic return. As currently configured, the Irwin Student Center and A-2 Café building provides dormitory residential and light commercial space and is not designed or intended to generate a return. The Irwin Student Center and A-2 Café building is among the mid-sized buildings on the CCA campus with a gross square footage of 7,716. Current costs to rehabilitate it for other uses is estimated at $3,511,510 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs. Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate the Irwin Student Center and A-2 Café building is $6,915,518.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other miscellaneous expenses. The mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 33 Given the cost for rehabilitation and the current use of the Irwin Student Center and A-2 Café building to provide temporary on-campus dormitory commercial space, the current use would not generate a reasonable economic return as explained below in section b. b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

The Irwin Student Center and A-2 Café building was constructed in two parts, the Irwin Student Center was constructed in 1959 and the A-2 Café was an addition constructed in 1974. Together they cover 7,716 gross square feet. Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co-zoned CN-1 and RM-3. These classifications are defined below 29:

CN-1: Neighborhood Commercial - 1 Zone. “The intent of the CN-1 Zone is to maintain and enhance vibrant commercial districts with a wide range of retail establishments serving both short and long term needs in attractive settings oriented to pedestrian comparison shopping.”
30 RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”31
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse. The building was originally constructed in 1959 to provide space for temporary on-campus housing. The café was constructed 15 years later. No other use appears to have occurred in this building.

A comparable analysis
32 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to the Irwin Student Center and A-2 Café building, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design, and

29 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various. 30 Ibid.
31 Ibid.
32 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 34 configuration of this building, we would assume rents at the low end of this range at $36.80 per square foot. The Irwin Student Center and A-2 Café building has a rentable area of 6,559 square feet after deducting the area for exterior walls and other non-rentable area. Gross rental income is therefore estimated at approximately $241,356 per year. Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $148,730.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $148,730.

Dividing that amount by the estimated development cost of $7 million results in a return of

2.2%, which is well below the 7% to 8% threshold for a reasonable economic return. To achieve a 7.5% return at the assumed market rents, the building would require a subsidy of approximately $4.9 million.

Alternatively, a rental rate of $97.69 per square foot would be required to achieve a reasonable 7.5% economic return on $7 million in total rehabilitation/development cost. A rental rate nearly three times the rent that the current market will bear for rehabilitated commercial space, shows that the costs of renovating the property cannot be supported in the market through commercial rental income for a building of this quality in this location.

The configuration of the Irwin Student Center and A-2 Café building is also not suitable for residential use. It is too small to be subdivided into multiple residential units and the conversion cost of the building for a single residential unit would be more than the cost for office conversion. As a result, the monthly rent necessary to support a reasonable economic return on the rehabilitation and conversion cost would be more than $53,400 per month.

For these reasons, appropriate and reasonable alternate uses of the Irwin Student Center and A-2 Café building as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of the Irwin Student Center and A-2 Café building for commercial office, retail or residential use cannot support a reasonable economic return.
d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 35 Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential National Register eligibility as a historic district. The extant buildings are considered as functionally related as a historic district, which is defined in official National Park Service (NPS) guidance as a resource that “possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development” (NPS 1997:5). Two buildings in the API that were found individually eligible for the National Register as well as designated Oakland City Landmarks, i.e., the Treadwell Mansion/Macky Hall and the Carriage House will remain and be rehabilitated as part of the proposed project.

As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, collectively, particularly those which are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their context would render the proposed project non-viable and prevent construction of housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits would prove insufficient in providing a reasonable economic return for the rehabilitation and reuse of these buildings.

Applicable federal credits to the project site may result in income tax savings for a tax credit investor of up to 20% of qualifying costs through the use of the Federal Rehabilitation Tax Credits. The net benefit or subsidy available through the 20% Rehabilitation Tax Credit is approximately 15% of qualifying rehabilitation costs after related transaction costs, a minimum preferred return to the tax credit investor (typically 2% of the tax credit equity per year) and the buyout of the tax credit investor after 5 years of operation (typically 5% of the tax credit equity investment).

In order to be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible, or it may qualify if it is a contributing building to a nationally registered historic district. According to the 2019 HRE, the Irwin Student Center and A-2 Café building is not individually eligible for the California Register, however for the purpose of this analysis, it is assumed the building is also not individually eligible for the National Register. If the entire API is eligible and were to be designated an historic district on the National Register, then the Irwin Student Center and A-2 Café building, as a contributing element to the nationally registered historic district, may be an element of a potential rehabilitation project eligible for the 20% Rehabilitation Tax Credit program, provided that the majority of the API’s extant built environment were also retained. If several or most of the API’s extant built environment were demolished, the Irwin Student Center and A-2 Café building alone would likely not qualify for the historic tax credit and would also be unfeasible to a tax credit investor on its own.

If the Irwin Student Center and A-2 Café building qualified for the historic tax credit, the net benefit of the subsidy would be approximately $1,037,327 (15% of $6,915,518), which would increase the return on development cost from 2.2% referenced above without historic tax

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 36 credits to 2.5% with historic tax credits, which is still below the threshold for a reasonable economic return.

Founders Hall
The following addresses the five submittal requirements for Finding 1 as applied to the Founders Hall building.

1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA will use the costs provided by TBD Consultants as an independent cost estimator. TBD subsequently completed an analysis of construction cost escalation since 2020 that indicates that construction costs have increased by approximately 30% through June of 2024 (see Appendix C).

Vernon DeMars and Donald Reay designed Founders Hall in 1968 to serve as the school’s library, auditorium, along with studio and classroom spaces. The building is of non-ductile concrete construction which would require significant structural improvements for reuse. The building is constructed on multiple levels which do not comply with current accessibility requirements.

As currently configured, Founders Hall has specialized spaces with a two-story space for the library and a sloped floor auditorium that are not readily adaptable for alternative office or residential uses and are not designed or intended to generate a return. The studio and classroom spaces may be more readily convertible for office use but comprise about 30% of the building’s total 26,012 gross square footage. Current costs to rehabilitate it for other uses is estimated at $11,797,408 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs. Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate Founders Hall is $23,627,587.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 37 miscellaneous expenses. The building’s mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

Given the cost for rehabilitation and the current use of Founders Hall for specialized educational uses, the current use would not generate a reasonable economic return. b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

Founders Hall was constructed in 1968 and covers 26,012 square feet. Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co-zoned CN-1 and RM-3. These classifications are defined below
33:

CN-1: Neighborhood Commercial - 1 Zone. “The intent of the CN-1 Zone is to maintain and enhance vibrant commercial districts with a wide range of retail establishments serving both short- and long-term needs in attractive settings oriented to pedestrian comparison shopping.”34
RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”35
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse.

A comparable analysis
36 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to the Facilities Building, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design and configuration of this building,

33 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various. 34 Ibid.
35 Ibid.
36 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 38 we would assume rents at the low end of this range at $33.60 per square foot. Founders Hall has a rentable area of 24,103 square feet after deducting the area for exterior walls and other non-rentable area. Gross rental income is therefore estimate at approximately $809,861 per year. Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $469,127.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $469,127.

Dividing that amount by an estimated development cost of $23.63 million results in a return of

2.0%, which is well below the 7% to 8% threshold for a reasonable economic return. In order to achieve a 7.5% return at the assumed market rents, Founders Hall would require a subsidy of approximately $17.4 million.

Alternatively, a rental rate of $91.98 per square foot would be required to achieve a reasonable 7.5% economic return on $23.63 million in total rehabilitation/development cost.

A rental rate nearly three times the rent that the current market will bear for rehabilitated commercial space, shows that the costs of renovating the property cannot be supported in the market through commercial rental income for a building of this quality in this location.

The configuration of Founders Hall with its specialized spaces is also not suitable for residential use.

For these reasons, appropriate and reasonable alternate uses of Founders Hall as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of Founders Hall for commercial office, retail or residential use cannot support a reasonable economic return. d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential National Register eligibility as a historic district. The extant buildings are likely to be considered as functionally related by the State Historic Preservation Office (SHPO) and the

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 39 National Park Service. As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, particularly those buildings that are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their context would preclude the development of the proposed housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits is not sufficient to provide a reasonable economic return for the rehabilitation and reuse of these buildings.

Applicable federal credits to the project site may result in income tax savings for a tax credit investor of up to 20% of qualifying costs using the Federal Rehabilitation Tax Credits. The net benefit or subsidy available through the 20% Rehabilitation Tax Credit is approximately 15% of qualifying rehabilitation costs after related transaction costs, a minimum preferred return to the tax credit investor (typically 2% of the tax credit equity per year) and the buyout of the tax credit investor after 5 years of operation (typically 5% of the tax credit equity investment).

To be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible individually or as a contributing building to a nationally registered historic district, or both.

According to the 2019 HRER, Founders Hall appears individually eligible for the California Register. For the purposes of this analysis, it is assumed Founders Hall is also individually eligible for inclusion in the National Register. If the entire API is eligible and were to be designated an historic district on the National Register, then Founders Hall, as a contributing element to the nationally registered historic district, may be eligible for inclusion in the National Register and a rehabilitation project could use the 20% Rehabilitation Tax Credit program, provided that the majority of the remaining contributing buildings in the API are also retained and also pursue the historic tax credit. If many of the remaining contributing buildings are demolished, Founders Hall would likely not qualify for the historic tax credit.

If Founders Hall qualified for the historic tax credit, the net benefit of the subsidy would be approximately $3.5 million (15% of $23.63 million), which would increase the return on development cost from 2.0% referenced above without historic tax credits to 2.3% with historic tax credits, which is still below the threshold for a reasonable economic return.

Martinez Hall
The following addresses the five submittal requirements for Finding 1 as applied to Martinez Hall (built 1968).

1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 40 This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA will use the costs provided by TBD Consultants as an independent cost estimator. TBD subsequently completed an analysis of construction cost escalation since 2020 that indicates that construction costs have increased by approximately 30% through June of 2024 (see Appendix C).

Vernon DeMars and Donald Reay designed Martinez Hall in 1968 as an example of Third Bay Tradition. The building contained the school’s painting and printmaking studios. Accordingly, it does not directly generate a reasonable economic return. As currently configured, Martinez Hall is not designed or intended to generate a return. Martinez Hall is among the mid-sized buildings on the CCA campus with a gross square footage of 8,513. Current costs to rehabilitate it for other uses is estimated at $4,334,361 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs. Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate Martinez Hall is $8,409,520.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other miscellaneous expenses. The mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

Given the cost for rehabilitation and the current use of Martinez Hall for educational uses, the current use would not generate a reasonable economic return as explained below in section b. b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

Martinez Hall was constructed in 1968 and covers 8,513 gross square feet. Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co-zoned CN-1 and RM-3. These classifications are defined below
37:

37 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 41 CN-1: Neighborhood Commercial - 1 Zone. “The intent of the CN-1 Zone is to maintain and enhance vibrant commercial districts with a wide range of retail establishments serving both short and long term needs in attractive settings oriented to pedestrian comparison shopping.”
38 RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”39
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse. The building was constructed to provide educational uses and studio space. No other use appears to have occurred in this building.

A comparable analysis
40 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to Martinez Hall, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design, and configuration of this building, we would assume rents at the low end of this range at $40.00 per square foot. Martinez Hall has a rentable area of 8,408 square feet after deducting the area for exterior walls and other non- rentable area. Gross rental income is therefore estimated at approximately $336,320 per year.

Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $205,467.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $205,467.

Dividing that amount by the estimated development cost of $8.4 million results in a return of

2.4%, which is well below the 7% to 8% threshold for a reasonable economic return. To

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various. 38 Ibid.
39 Ibid.
40 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 42 achieve a 7.5% return at the assumed market rents, Martinez Hall would require a subsidy of approximately $5.7 million.

Alternatively, a rental rate of $94.50 per square foot would be required to achieve a reasonable 7.5% economic return on $8.4 million in total rehabilitation/development cost. A rental rate over two-and-one-half times the rent that the current market will bear for rehabilitated commercial space, shows that the costs of renovating the property cannot be supported in the market through commercial rental income for a building of this quality in this location.

The configuration of Martinez Hall is also not suitable for residential use. It is too small to be subdivided into multiple residential units and the conversion cost of the building for a single residential unit would be more than the cost for office conversion. As a result, the monthly rent necessary to support a reasonable economic return on the rehabilitation and conversion cost would be more than $66,200 per month.

For these reasons, appropriate and reasonable alternate uses of Martinez Hall as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of Martinez Hall for commercial office, retail or residential use cannot support a reasonable economic return. d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential National Register eligibility as a historic district. The extant buildings are considered as functionally related as a historic district, which is defined in official National Park Service (NPS) guidance as a resource that “possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development” (NPS 1997:5). Two buildings in the API that were found individually eligible for the National Register as well as designated Oakland City Landmarks, i.e., the Treadwell Mansion/Macky Hall and the Carriage House will remain and be rehabilitated as part of the proposed project.

As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, collectively, particularly those which are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 43 context would render the proposed project non-viable and prevent construction of housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits would prove insufficient in providing a reasonable economic return for the rehabilitation and reuse of these buildings.

Applicable federal credits to the project site may result in income tax savings for a tax credit investor of up to 20% of qualifying costs through the use of the Federal Rehabilitation Tax Credits. The net benefit or subsidy available through the 20% Rehabilitation Tax Credit is approximately 15% of qualifying rehabilitation costs after related transaction costs, a minimum preferred return to the tax credit investor (typically 2% of the tax credit equity per year) and the buyout of the tax credit investor after 5 years of operation (typically 5% of the tax credit equity investment).

In order to be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible, or it may qualify if it is a contributing building to a nationally registered historic district. According to the 2019 HRE, Martinez Hall is individually eligible for the California Register. For the purposes of this analysis, it is assumed Martinez Hall appears individually eligible for inclusion in the National Register. If the entire API is eligible and were to be designated an historic district on the National Register, then Martinez Hall, as a contributing element to the nationally registered historic district, may be an element of a potential rehabilitation project eligible for the 20% Rehabilitation Tax Credit program, provided that the majority of the API’s extant built environment were also retained. If several or most of the API’s extant built environment were demolished, Martinez Hall alone would likely not qualify for the historic tax credit and would also be unfeasible to a tax credit investor on its own.

If Martinez Hall qualified for the historic tax credit, the net benefit of the subsidy would be approximately $1,261,428 (15% of $8,409,520), which would increase the return on development cost from 2.4% referenced above without historic tax credits to 2.8% with historic tax credits, which is still below the threshold for a reasonable economic return.

Martinez Hall Annex
The following addresses the five submittal requirements for Finding 1 as applied to the Martinez Hall Annex (built 1970).

1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 44 will use the costs provided by TBD Consultants as an independent cost estimator. TBD subsequently completed an analysis of construction cost escalation since 2020 that indicates that construction costs have increased by approximately 30% through June of 2024 (see Appendix C).

The Martinez Hall Annex was constructed in 1970. The design professional(s) responsible designing the building was unidentified. The building contained classrooms and studios space for the school’s photography department. The two-story, metal siding-clad building possesses some characteristics of the Third Bay Tradition. Accordingly, it does not directly generate a reasonable economic return. As currently configured, the Martinez Hall Annex is not designed or intended to generate a return. Martinez Hall Annex is among the smaller-sized buildings on the CCA campus with a gross square footage of 5,262. Current costs to rehabilitate it for other uses is estimated at $1,448,026 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs. Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate Martinez Hall Annex is $3,457,883.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other miscellaneous expenses. The mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

Given the cost for rehabilitation and the current use of Martinez Hall Annex for educational uses, the current use would not generate a reasonable economic return as explained below in section b.
b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

Martinez Hall Annex was constructed in 1970 and covers 5,262 gross square feet. Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co-zoned CN-1 and RM-3. These classifications are defined below
41:

41 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 45 CN-1: Neighborhood Commercial - 1 Zone. “The intent of the CN-1 Zone is to maintain and enhance vibrant commercial districts with a wide range of retail establishments serving both short and long term needs in attractive settings oriented to pedestrian comparison shopping.”
42 RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”43
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse. The building was constructed to provide educational uses and studio space. No other use appears to have occurred in this building.

A comparable analysis
44 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to Martinez Hall, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design, and configuration of this building, we would assume rents at the low end of this range at $36.80 per square foot. Martinez Hall Annex has a rentable area of 5,196 square feet after deducting the area for exterior walls and other non-rentable area. Gross rental income is therefore estimated at approximately $191,213 per year. Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $124,633.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $124,633.

Dividing that amount by the estimated development cost of $7.6 million results in a return of

3.6%, which is well below the 7% to 8% threshold for a reasonable economic return. To achieve a 7.5% return at the assumed market rents, Martinez Hall Annex would require a subsidy of approximately $1.8 million.

42 Ibid.
43 Ibid.
44 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 46 Alternatively, a rental rate of $64.38 per square foot would be required to achieve a reasonable 7.5% economic return on $3.5 million in total rehabilitation/development cost. A rental rate nearly two times the rent that the current market will bear for rehabilitated commercial space, shows that the costs of renovating the property cannot be supported in the market through commercial rental income for a building of this quality in this location.

The configuration of Martinez Hall Annex is also not suitable for residential use. It is too small to be subdivided into multiple residential units and the conversion cost of the building for a single residential unit would be more than the cost for office conversion. As a result, the monthly rent necessary to support a reasonable economic return on the rehabilitation and conversion cost would be more than $27,800 per month.

For these reasons, appropriate and reasonable alternate uses of Martinez Hall Annex as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of Martinez Hall Annex for commercial office, retail or residential use cannot support a reasonable economic return. d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential National Register eligibility as a historic district. The extant buildings are considered as functionally related as a historic district, which is defined in official National Park Service (NPS) guidance as a resource that “possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development” (NPS 1997:5). Two buildings in the API that were found individually eligible for the National Register as well as designated Oakland City Landmarks, i.e., the Treadwell Mansion/Macky Hall and the Carriage House will remain and be rehabilitated as part of the proposed project.

As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, collectively, particularly those which are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their context would render the proposed project non-viable and prevent construction of housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits would prove insufficient in providing a reasonable economic return for the rehabilitation and reuse of these buildings.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 47 Applicable federal credits to the project site may result in income tax savings for a tax credit investor of up to 20% of qualifying costs through the use of the Federal Rehabilitation Tax Credits. The net benefit or subsidy available through the 20% Rehabilitation Tax Credit is approximately 15% of qualifying rehabilitation costs after related transaction costs, a minimum preferred return to the tax credit investor (typically 2% of the tax credit equity per year) and the buyout of the tax credit investor after 5 years of operation (typically 5% of the tax credit equity investment).

In order to be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible, or it may qualify if it is a contributing building to a nationally registered historic district. According to the 2019 HRE, the Martinez Hall Annex appears individually eligible for the California Register. If the entire API is eligible and were to be designated an historic district on the National Register, then the Martinez Hall Annex, as a contributing element to the nationally registered historic district, may be an element of a potential rehabilitation project eligible for the 20% Rehabilitation Tax Credit program, provided that the majority of the API’s extant built environment were also retained. If several or most of the API’s extant built environment were demolished, the Martinez Hall Annex alone would likely not qualify for the historic tax credit and would also be unfeasible to a tax credit investor on its own.

If the Martinez Hall Annex qualified for the historic tax credit, the net benefit of the subsidy would be approximately $518,682 (15% of $3,457,883), which would increase the return on development cost from 3.6% referenced above without historic tax credits to 4.2% with historic tax credits, which is still below the threshold for a reasonable economic return.

Noni Eccles Treadwell Ceramic Arts Center
The following addresses the five submittal requirements for Finding 1 as applied to the Noni Eccles Treadwell Ceramic Arts Center (built 1973).

1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA will use the costs provided by TBD Consultants as an independent cost estimator. TBD subsequently completed an analysis of construction cost escalation since 2020 that indicates that construction costs have increased by approximately 30% through June of 2024 (see Appendix C).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 48 Worley K Wong and Ronald G. Brocchini designed the Noni Eccles Treadwell Ceramic Arts Center in 1973 as an example of Third Bay Tradition. The two-story building contained the school’s ceramics studios. Accordingly, it does not directly generate a reasonable economic return. As currently configured, the Noni Eccles Treadwell Ceramic Arts Center is not designed or intended to generate a return. This building is among the larger-sized buildings on the CCA campus with a gross square footage of 11,606. Current costs to rehabilitate it for other uses is estimated at $4,736,772 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs. Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate the Noni Eccles Treadwell Ceramic Arts Center is $9,275,497.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other miscellaneous expenses. The mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

Given the cost for rehabilitation and the current use of the Noni Eccles Treadwell Ceramic Arts Center for educational uses, the current use would not generate a reasonable economic return as explained below in section b.
b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

The Noni Eccles Treadwell Ceramic Arts Center was constructed in 1973 and covers 11,606 gross square feet. Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co- zoned CN-1 and RM-3. These classifications are defined below 45:

CN-1: Neighborhood Commercial - 1 Zone. “The intent of the CN-1 Zone is to maintain and enhance vibrant commercial districts with a wide range of retail establishments serving both short and long term needs in attractive settings oriented to pedestrian comparison shopping.”
46 45 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various. 46 Ibid.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 49 RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”47
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse. The building was constructed to provide educational uses and studio space. No other use appears to have occurred in this building.

A comparable analysis
48 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to the Noni Eccles Treadwell Ceramic Arts Center, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design, and configuration of this building, we would assume rents at the low end of this range at $40.00 per square foot. This building has a rentable area of 10,889 square feet after deducting the area for exterior walls and other non-rentable area. Gross rental income is therefore estimated at approximately $435,960 per year. Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $282,661.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $282,661.

Dividing that amount by the estimated development cost of $9.3 million results in a return of 3%, which is well below the 7% to 8% threshold for a reasonable economic return. To achieve a 7.5% return at the assumed market rents, the Noni Eccles Treadwell Ceramic Arts Center building would require a subsidy of approximately $5.5 million.

Alternatively, a rental rate of $80.65 per square foot would be required to achieve a reasonable 7.5% economic return on $9.3 million in total rehabilitation/development cost. A rental rate more than twice the rent that the current market will bear for rehabilitated commercial space, shows that the costs of renovating the property cannot be supported in the market through commercial rental income for a building of this quality in this location.

47 Ibid.
48 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 50 The configuration of the Noni Eccles Treadwell Ceramic Arts Center is also not suitable for residential use. It is designed to contain ceramic arts spaces and kilns for firing pieces and unsuitable for efficient conversion into multiple residential units and the conversion cost of the building for residential use would be more than the cost for office conversion. As a result, the monthly rent necessary to support a reasonable economic return on the rehabilitation and conversion cost would be more than $73,250 per month.

For these reasons, appropriate and reasonable alternate uses of the Noni Eccles Treadwell Ceramic Arts Center as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of the Noni Eccles Treadwell Ceramic Arts Center for commercial office, retail or residential use cannot support a reasonable economic return.
d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential National Register eligibility as a historic district. The extant buildings are considered as functionally related as a historic district, which is defined in official National Park Service (NPS) guidance as a resource that “possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development” (NPS 1997:5). Two buildings in the API that were found individually eligible for the National Register as well as designated Oakland City Landmarks, i.e., the Treadwell Mansion/Macky Hall and the Carriage House will remain and be rehabilitated as part of the proposed project.

As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, collectively, particularly those which are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their context would render the proposed project non-viable and prevent construction of housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits would prove insufficient in providing a reasonable economic return for the rehabilitation and reuse of these buildings.

Applicable federal credits to the project site may result in income tax savings for a tax credit investor of up to 20% of qualifying costs through the use of the Federal Rehabilitation Tax Credits. The net benefit or subsidy available through the 20% Rehabilitation Tax Credit is

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 51 approximately 15% of qualifying rehabilitation costs after related transaction costs, a minimum preferred return to the tax credit investor (typically 2% of the tax credit equity per year) and the buyout of the tax credit investor after 5 years of operation (typically 5% of the tax credit equity investment).

In order to be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible, or it may qualify if it is a contributing building to a nationally registered historic district. According to the 2019 HRE, the Noni Eccles Treadwell Ceramic Arts Center appears individually eligible for the California Register. For the purposes of this analysis, it is assumed the building is also individually eligible for inclusion in the National Register. If the entire API is eligible and were to be designated an historic district on the National Register, then the Noni Eccles Treadwell Ceramic Arts Center, as a contributing element to the nationally registered historic district, may be an element of a potential rehabilitation project eligible for the 20% Rehabilitation Tax Credit program, provided that the majority of the API’s extant built environment were also retained. If several or most of the API’s extant built environment were demolished, the Noni Eccles Treadwell Ceramic Arts Center building alone would likely not qualify for the historic tax credit and would also be unfeasible to a tax credit investor on its own.

If the Noni Eccles Treadwell Ceramic Arts Center qualified for the historic tax credit, the net benefit of the subsidy would be approximately $1,391,325 (15% of $9,275,497), which would increase the return on development cost from 3.0% referenced above without historic tax credits to 3.5% with historic tax credits, which is still below the threshold for a reasonable economic return.

Raleigh and Claire Shaklee Building
The following addresses the five submittal requirements for Finding 1 as applied to the Raleigh and Claire Shaklee Building (built 1979).

1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA will use the costs provided by TBD Consultants as an independent cost estimator. TBD subsequently completed an analysis of construction cost escalation since 2020 that indicates that construction costs have increased by approximately 30% through June of 2024 (see Appendix C).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 52 Worley K Wong and Ronald G. Brocchini designed the Raleigh and Claire Shaklee Building in 1979 as an example of Third Bay Tradition. The two-story building contained the school’s sculpture, glass, and metal arts studios. Accordingly, it does not directly generate a reasonable economic return. As currently configured, the Raleigh and Claire Shaklee Building is not designed or intended to generate a return. With a gross square footage of 14,263, the Raleigh and Claire Shaklee Building is the largest building examined in this demolition findings. Current costs to rehabilitate it for other uses is estimated at $7,276,548 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs. Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate the Raleigh and Claire Shaklee Building is $13,963,947.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other miscellaneous expenses. The mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

Given the cost for rehabilitation and the current use of the Raleigh and Claire Shaklee Building for educational uses, the current use would not generate a reasonable economic return as explained below in section b.
b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

The Raleigh and Claire Shaklee Building was constructed in 1979 and covers 14,263 gross square feet. Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co- zoned CN-1 and RM-3. These classifications are defined below 49:

CN-1: Neighborhood Commercial - 1 Zone. “The intent of the CN-1 Zone is to maintain and enhance vibrant commercial districts with a wide range of retail establishments serving both

49 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 53 short and long term needs in attractive settings oriented to pedestrian comparison shopping.”50
RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”51
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse. The building was constructed to provide educational uses and studio space for multiple art mediums. No other use appears to have occurred in this building.

A comparable analysis
52 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to the Raleigh and Claire Shaklee Building, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design, and configuration of this building, we would assume rents at the low end of this range at $36.80 per square foot. This building has a rentable area of 12,837 square feet after deducting the area for exterior walls and other non-rentable area. Gross rental income is therefore estimated at approximately $472,391 per year. Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $281,278.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $281,278.

Dividing that amount by the estimated development cost of $14 million results in a return of 2%, which is well below the 7% to 8% threshold for a reasonable economic return. To achieve a 7.5% return at the assumed market rents, Raleigh and Claire Shaklee Building would require a subsidy of approximately $10.2 million.

Alternatively, a rental rate of $101.32 per square foot would be required to achieve a reasonable 7.5% economic return on $14 million in total rehabilitation/development cost. A rental rate that nearly triples the rent that the current market will bear for rehabilitated

50 Ibid.
51 Ibid.
52 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 54 commercial space, shows that the costs of renovating the property cannot be supported in the market through commercial rental income for a building of this quality in this location.

The configuration of the Raleigh and Claire Shaklee Building is also not suitable for residential use. It is unsuitable to be subdivided into multiple residential units and the conversion cost of the building for residential uses would be more than the cost for office conversion. As a result, the monthly rent necessary to support a reasonable economic return on the rehabilitation and conversion cost would be more than $108,375 per month.

For these reasons, appropriate and reasonable alternate uses of the Raleigh and Claire Shaklee Building as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of the Raleigh and Claire Shaklee Building for commercial office, retail or residential use cannot support a reasonable economic return.
d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential National Register eligibility as a historic district. The extant buildings are considered as functionally related as a historic district, which is defined in official National Park Service (NPS) guidance as a resource that “possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development” (NPS 1997:5). Two buildings in the API that were found individually eligible for the National Register as well as designated Oakland City Landmarks, i.e., the Treadwell Mansion/Macky Hall and the Carriage House will remain and be rehabilitated as part of the proposed project.

As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, collectively, particularly those which are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their context would render the proposed project non-viable and prevent construction of housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits would prove insufficient in providing a reasonable economic return for the rehabilitation and reuse of these buildings.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 55 Applicable federal credits to the project site may result in income tax savings for a tax credit investor of up to 20% of qualifying costs through the use of the Federal Rehabilitation Tax Credits. The net benefit or subsidy available through the 20% Rehabilitation Tax Credit is approximately 15% of qualifying rehabilitation costs after related transaction costs, a minimum preferred return to the tax credit investor (typically 2% of the tax credit equity per year) and the buyout of the tax credit investor after 5 years of operation (typically 5% of the tax credit equity investment).

In order to be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible, or it may qualify if it is a contributing building to a nationally registered historic district. According to the 2019 HRE, the Raleigh and Claire Shaklee Building is not individually eligible for the California Register, however for the purpose of this analysis, it is assumed the building is also not individually eligible for the National Register. If the entire API is eligible and were to be designated an historic district on the National Register, then the Raleigh and Claire Shaklee Building, as a contributing element to the nationally registered historic district, may be an element of a potential rehabilitation project eligible for the 20% Rehabilitation Tax Credit program, provided that the majority of the API’s extant built environment were also retained. If several or most of the API’s extant built environment were demolished, the Raleigh and Claire Shaklee Building alone would likely not qualify for the historic tax credit and would also be unfeasible to a tax credit investor on its own.

If the Raleigh and Claire Shaklee Building qualified for the historic tax credit, the net benefit of the subsidy would be approximately $2,094,592 (15% of $13,963,947), which would increase the return on development cost from 2.0% referenced above without historic tax credits to

2.4% with historic tax credits, which is still below the threshold for a reasonable economic return.

Oliver and Ralls Building
The following addresses the five submittal requirements for Finding 1 as applied to the Oliver and Rawls Building (built 1989).

1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA will use the costs provided by TBD Consultants as an independent cost estimator. TBD subsequently completed an analysis of construction cost escalation since 2020 that indicates

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 56 that construction costs have increased by approximately 30% through June of 2024 (see Appendix C).

George Miers & Associates, a then-San Francisco based architectural firm designed the Oliver and Rawls Building in 1989 as an example of Modernist architecture. The two-story building contains classrooms and gallery space. Accordingly, it does not directly generate a reasonable economic return. As currently configured, the Oliver and Rawls Building is not designed or intended to generate a return. This building is among the medium-sized buildings on the CCA campus with a gross square footage of 7,655. Current costs to rehabilitate it for other uses is estimated at $2,587,735 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs. Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate the Oliver and Rawls Building is $5,446,443.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other miscellaneous expenses. The mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

Given the cost for rehabilitation and the current use of the Oliver and Rawls Building for educational uses, the current use would not generate a reasonable economic return as explained below in section b.
b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

The Oliver and Rawls Building was constructed in 1989 and covers 7,655 gross square feet.

Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co-zoned CN-1 and RM-3.

These classifications are defined below
53:

CN-1: Neighborhood Commercial - 1 Zone. “The intent of the CN-1 Zone is to maintain and enhance vibrant commercial districts with a wide range of retail establishments serving both

53 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 57 short and long term needs in attractive settings oriented to pedestrian comparison shopping.”54
RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”55
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse. The building was constructed to provide educational uses and studio space. No other use appears to have occurred in this building.

A comparable analysis
56 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to the Oliver and Rawls Building, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design, and configuration of this building, we would assume rents at the low end of this range at $36.80 per square foot.

This building has a rentable area of 6,945 square feet after deducting the area for exterior walls and other non-rentable area. Gross rental income is therefore estimated at approximately $255,576 per year. Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $148,135.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $148,135.

Dividing that amount by the estimated development cost of $5.5 million results in a return of

2.7%, which is well below the 7% to 8% threshold for a reasonable economic return. To achieve a 7.5% return at the assumed market rents, the Oliver and Rawls building would require a subsidy of approximately $3.5 million.

Alternatively, a rental rate of $76.94 per square foot would be required to achieve a reasonable 7.5% economic return on $5.4 million in total rehabilitation/development cost. A rental rate more than twice the rent that the current market will bear for rehabilitated

54 Ibid.
55 Ibid.
56 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 58 commercial space, shows that the costs of renovating the property cannot be supported in the market through commercial rental income for a building of this quality in this location.

The configuration of the Oliver and Rawls Building is also not suitable for residential use. It is designed to contain classroom and a gallery and unsuitable for subdivision into multiple residential units and the conversion cost of the building for residential use would be more than the cost for office conversion. As a result, the monthly rent necessary to support a reasonable economic return on the rehabilitation and conversion cost would be more than $44,525 per month.

For these reasons, appropriate and reasonable alternate uses of the Oliver and Rawls Building as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of the Oliver and Rawls Building for commercial office, retail or residential use cannot support a reasonable economic return. d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential National Register eligibility as a historic district. The extant buildings are considered as functionally related as a historic district, which is defined in official National Park Service (NPS) guidance as a resource that “possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development” (NPS 1997:5). Two buildings in the API that were found individually eligible for the National Register as well as designated Oakland City Landmarks, i.e., the Treadwell Mansion/Macky Hall and the Carriage House will remain and be rehabilitated as part of the proposed project.

As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, collectively, particularly those which are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their context would render the proposed project non-viable and prevent construction of housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits would prove insufficient in providing a reasonable economic return for the rehabilitation and reuse of these buildings.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 59 Applicable federal credits to the project site may result in income tax savings for a tax credit investor of up to 20% of qualifying costs through the use of the Federal Rehabilitation Tax Credits. The net benefit or subsidy available through the 20% Rehabilitation Tax Credit is approximately 15% of qualifying rehabilitation costs after related transaction costs, a minimum preferred return to the tax credit investor (typically 2% of the tax credit equity per year) and the buyout of the tax credit investor after 5 years of operation (typically 5% of the tax credit equity investment).

In order to be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible, or it may qualify if it is a contributing building to a nationally registered historic district. According to the 2019 HRE, the Oliver and Rawls Building is not individually eligible for the California Register, however for the purposes of this analysis it is assumed the building is also not individually eligible for the National Register. If the entire API is eligible and were to be designated an historic district on the National Register, then the Oliver and Rawls Building, as a contributing element to the nationally registered historic district, may be an element of a potential rehabilitation project eligible for the 20% Rehabilitation Tax Credit program, provided that the majority of the API’s extant built environment were also retained. If several or most of the API’s extant built environment were demolished, the Oliver and Rawls Building alone would likely not qualify for the historic tax credit and would also be unfeasible to a tax credit investor on its own.

If the Oliver and Rawls Building qualified for the historic tax credit, the net benefit of the subsidy would be approximately $816,966 (15% of $5,446,443), which would increase the return on development cost from 2.7% referenced above without historic tax credits to 3.2% with historic tax credits, which is still below the threshold for a reasonable economic return. .

Barclay Simpson Sculpture Studio
The following addresses the five submittal requirements for Finding 1 as applied to the Barclay Simpson Sculpture Studio building (built 1992).

1. Building Use – Economic Viability. The applicant shall submit a market analysis prepared by an architect, developer, real estate consultant, appraiser, or other real estate professional with extensive experience in both real estate and historic rehabilitation that demonstrates all of the following:
a. The current use does not generate a reasonable economic return (may include market report of like uses and building scale in the same or similar neighborhood).

This section is informed by two cost estimates, one prepared April 17, 2020, by San Francisco- based TBD Consultants and the other prepared April 15, 2020, by San Francisco-based Build Group. These documents are attached as Appendices A and B, unless noted. The two estimates indicate total costs within 1% of each other, so for the purposes of this analysis, LSA will use the costs provided by TBD Consultants as an independent cost estimator. TBD subsequently completed an analysis of construction cost escalation since 2020 that indicates

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 60 that construction costs have increased by approximately 30% through June of 2024 (see Appendix C).

San Francisco-based architect Jim Jennings designed the Barclay Simpson Sculpture Studio building in 1992 as an example of Minimalist Modernist architecture. The single-story, double- height building contained the school’s large-scale glass and sculpture studio space.

Accordingly, it does not directly generate a reasonable economic return. As currently configured, the Oliver and Rawls Building is not designed or intended to generate a return.

This building is among the medium-sized buildings on the CCA campus with a gross square footage of 2,644. Current costs to rehabilitate it for other uses is estimated at $1,112,212 based on the estimate prepared by TBD in April 2020 as escalated by 30% to reflect current 2024 costs. Including costs for hazardous materials abatement, an allowance for tenant improvements, owner contingencies for construction and soft costs for design, permitting, insurance, legal and other related project costs, the total cost to rehabilitate the Barclay Simpson Sculpture Studio building is $2,355,597.

These hard costs include addressing the general condition of the building, site work (prep, improvements, mechanical and electrical utilities, and site construction), landscaping, partial building demolition (to retrofit existing interior spaces for new uses), foundation work, structural work, façade rehabilitation, roofing/waterproofing, interior work (construction stairs, interior finishes, furnishings), plumbing, climate control equipment, rewiring, and other miscellaneous expenses. The mechanical, electrical plumbing and climate control systems would have to be replaced and any remnant hazardous materials (e.g., asbestos, lead paint, and potential other hazards) would need full abatement or proper mitigation during construction and before occupancy.

Given the cost for rehabilitation and the current use of the Barclay Simpson Sculpture Studio building for educational uses, the current use would not generate a reasonable economic return as explained below in section b.
b. That appropriate and reasonable alternate uses in the building could not generate a future reasonable economic return.

The Barclay Simpson Sculpture Studio building was constructed in 1992 and covers 2,644 gross square feet. Appropriate adaptation to new uses fails to yield a reasonable rate on investment. According to current City zoning information, the building within the API are co- zoned CN-1 and RM-3. These classifications are defined below 57:

CN-1: Neighborhood Commercial - 1 Zone. “The intent of the CN-1 Zone is to maintain and enhance vibrant commercial districts with a wide range of retail establishments serving both

57 Sources: Parcel Information. City of Oakland, Electronic document, https://www.oaklandca.gov/resources/zoning-map, accessed various.

Oakland Planning Code updated March 15, 2022. City of Oakland. Electronic document, https://cao- 94612.s3.amazonaws.com/documents/Planning-Code-after-03-15-22-Flex-Streets-and-Density-Bonus- Amendments_2022-09-01-200911_zugr.pdf, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 61 short and long term needs in attractive settings oriented to pedestrian comparison shopping.”58
RM-3: Mixed Housing Type Residential - 3 Zone. “The intent of the RM-3 Zone is to create, maintain, and enhance residential areas characterized by a mix of single-family homes, duplexes, townhouses, small multi-unit buildings at somewhat higher densities than in RM-2, and neighborhood businesses where appropriate.”59
While these zoning classifications currently apply, (pending potential rezoning via General Plan Amendment), there appears to be no other demand for the building and the property it rests on that would generate additional revenue to justify the expense in rehabilitation, remodeling, or adaptive reuse. The building was constructed to provide educational uses and studio space. No other use appears to have occurred in this building.

A comparable analysis
60 of current commercial office rental leases in Rockridge ranges from $30 per square foot to $55.00 per square foot. The segment of College Avenue and the area near Rockridge BART draw higher rates. When narrowed to buildings of comparable size and age to the Barclay Simpson Sculpture Studio building, the range of potential annual gross leasing income narrows to $32.00 to $40.00 per square foot. Given the location, design, and configuration of this building, we would assume rents at the low end of this range at $32.00 per square foot. This building has a rentable area of 2,564 square feet after deducting the area for exterior walls and other non-rentable area. Gross rental income is therefore estimated at approximately $82,048 per year. Assuming operating costs of $8.12 per square foot, a 3% management fee, and the assumption that property taxes would be reduced based on the Mills Act, the net income from commercial office is approximately $51,221.

Developers and investors in commercial office properties of this type typically require a return of 7% to 8% on the cost for development. Given the vacancy and overall current condition of the office market in Oakland and San Francisco, developers and investors are likely seeking higher returns closer to 10% or more. For this analysis, however, we are assuming a more typical 7.5% return on cost. This is calculated by dividing the net rental income by the total development cost. As indicated above, the net rental income is estimated at $51,221. Dividing that amount by the estimated development cost of $2.4 million results in a return of 2.2%, which is well below the 7% to 8% threshold for a reasonable economic return. To achieve a

7.5% return at the assumed market rents, the Barclay Simpson Sculpture Studio building would require a subsidy of approximately $1.7 million.

Alternatively, a rental rate of $84.80 per square foot would be required to achieve a reasonable 7.5% economic return on $2.4 million in total rehabilitation/development cost. A rental rate nearly two-and-one-half times the rent that the current market will bear for

58 Ibid.
59 Ibid.
60 LoopNet.com. Commercial lease rates in Rockridge, Oakland, Electronic document, https://www.loopnet.com/search/commercial-real-estate/rockridge-oakland-ca/for-lease/, accessed various.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 62 rehabilitated commercial space, shows that the costs of renovating the property cannot be supported in the market through commercial rental income for a building of this quality in this location.

The configuration of the Barclay Simpson Sculpture Studio building is also not suitable for residential use. It is designed to contain a large open space for large glass and sculptural projects and unsuitable for subdivision into multiple residential units and the conversion cost of the building for residential use would be more than the cost for office conversion. As a result, the monthly rent necessary to support a reasonable economic return on the rehabilitation and conversion cost would be more than $18,100 per month.

For these reasons, appropriate and reasonable alternate uses of the Barclay Simpson Sculpture Studio building as a commercial office, retail or residential rental space could not generate a future reasonable economic return.
c. That alterations or additions to the existing building could not make the current or future use generate a reasonable economic return; and
As illustrated in b. above, the alteration and rehabilitation of the Barclay Simpson Sculpture Studio building for commercial office, retail or residential use cannot support a reasonable economic return.
d. Potential Federal Tax Credits, Mills Act Contracts, Façade Grants, Transfer of Development Rights or other funding sources are not feasible to bridge the gap identified above.

Federal Historic Rehabilitation Tax Credits.

The 2019 HRE indicates that all the extant buildings contribute to the API and its potential National Register eligibility as a historic district. The extant buildings are considered as functionally related as a historic district, which is defined in official National Park Service (NPS) guidance as a resource that “possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development” (NPS 1997:5). Two buildings in the API that were found individually eligible for the National Register as well as designated Oakland City Landmarks, i.e., the Treadwell Mansion/Macky Hall and the Carriage House will remain and be rehabilitated as part of the proposed project.

As a result, individual buildings and the overall project are not likely to be eligible for the Federal Rehabilitation Tax Credit unless most of the extant buildings and their context are preserved, collectively, particularly those which are eligible for listing in a national, state, or local register of historical resources. Preservation of most of the extant buildings and their context would render the proposed project non-viable and prevent construction of housing.

Furthermore, as detailed below, even if enough of the extant buildings and context are retained to qualify, the value of the historic tax credits would prove insufficient in providing a reasonable economic return for the rehabilitation and reuse of these buildings.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 63 Applicable federal credits to the project site may result in income tax savings for a tax credit investor of up to 20% of qualifying costs through the use of the Federal Rehabilitation Tax Credits. The net benefit or subsidy available through the 20% Rehabilitation Tax Credit is approximately 15% of qualifying rehabilitation costs after related transaction costs, a minimum preferred return to the tax credit investor (typically 2% of the tax credit equity per year) and the buyout of the tax credit investor after 5 years of operation (typically 5% of the tax credit equity investment).

In order to be eligible for the Rehabilitation Tax Credit, a building must be National Register eligible, or it may qualify if it is a contributing building to a nationally registered historic district. According to the 2019 HRE, the Barclay Simpson Sculpture Studio building appears individually eligible for the California Register. For the purposes of this analysis, it is assumed the Barclay Simpson Sculpture Studio also appears individually eligible for inclusion in the National Register. If the entire API is eligible and were to be designated an historic district on the National Register, then the Barclay Simpson Sculpture Studio building, as a contributing element to the nationally registered historic district, may be an element of a potential rehabilitation project eligible for the 20% Rehabilitation Tax Credit program, provided that the majority of the API’s extant built environment were also retained. If several or most of the API’s extant built environment were demolished, the Oliver and Rawls Building alone would likely not qualify for the historic tax credit and would also be unfeasible to a tax credit investor on its own.

If the Barclay Simpson Sculpture Studio building qualified for the historic tax credit, the net benefit of the subsidy would be approximately $353,339 (15% of $2,355,597), which would increase the return on development cost from 2.2% referenced above without historic tax credits to 2.5% with historic tax credits, which is still below the threshold for a reasonable economic return.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 64 CATEGORY II - FINDING 4 – (ALL BUILDINGS)
The design quality of the replacement facility is equal/superior to that of the existing facility.

Finding 4 applies to all properties. For this analysis, the ten buildings proposed for demolition are contributing elements to the California College of the Arts (CCA) Area of Primary importance (API).

Note: to prevent unnecessary redundancy in the analysis and reduce document length, the analysis under demolition findings for Finding 4 are presented once and the discussion ranges to specific buildings, as appropriate. See Appendix D, which contains Design Guidelines prepared February 2023 by Sitelab on behalf of the Applicant for more detailed information.

The following addresses the submittal requirements for Finding 4.

A report shall be submitted that addresses whether the proposal demonstrates equal or superior quality with respect to:

1. A clearly identifiable visual or design value. For instance, does the replacement proposal express its present character as strongly as the historic design expressed its past? The proposed design reflects contemporary architectural composition and aesthetic and demonstrates equal or superior quality with respect to a clearly identifiable visual or design value. The buildings within the API vary in size, age (1920s-1990s), and design. The design of the buildings within the API comprises an assortment of architectural styles and aesthetic popular during the late-19th and the 20th centuries, ranging from Queen Anne/Stick-Eastlake, Mission Revival, Third Bay Tradition, Brutalism, to New or Minimalist Modernism. A typical design element within the API is multiple-story construction; varied massing, rooflines, and entries. Exteriors are varied in their materiality, wood, brick, stucco, cinder block masonry, or raw or unfinished concrete.

The replacement project would express an entirely different architectural aesthetic in a uniform fashion. The proposed new construction that would replace the existing built environment would possess contemporary visual and design principles. The replacement buildings would be taller than the existing built environment and constructed using the modern building codes so to perform better during seismic events when compared to the existing built environment. The design of the proposed development contains a unifying architectural aesthetic that is clearly different and read as contemporary, albeit informed by the surrounding neighborhood’s architectural fabric and the CCA Period buildings. The proposed design would express a clearly distinctive character in a uniform way that is different from the varied architectural palate of the current built environment.

The project proposes to use high-performance glazing which allows for larger windows than were available in the historic-period construction within the API. Larger windows would allow for more passive solar heating and potential reduction in energy usage via more natural light into interior spaces. In addition, flat roofs allow maximum area for photovoltaic panels for renewable on-site energy production while reflecting the true construction means and methods which will be used on these buildings.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 65 Other contemporary aspects of the proposed design that reflect its period of construction include a varied and articulated façade with varying façade depths to minimize an impression of a strong monoplane vertical wall facing the street.

A varied height and façade setbacks create visual relief and shadows to further impart a sense of depth, texture, and variation. The rhythmic façade planes create visual breaks to demarcate changes in use or density and appropriately compliment or contrast materiality, which includes but is not limited to, a cast in place concrete base, running bond brick regularly spaced with solider courses, ceramic tiles, painted cement plaster, opaque spandrels at the floor lines, decorative metal guardrails and sunshades, aluminum window systems, board and batten patterned cementitious wall paneling, and more. Taken together, this proposed design reflects contemporary architectural composition and aesthetic and demonstrates equal or superior quality with respect to construction materials and a clearly identifiable visual or design value while incorporating compositional elements and material references from the CCA Period buildings as well as nearby College Avenue, Broadway and Rockridge buildings.

2. Durability, quality, and design value of surface materials. Durable and quality materials include, but are not limited to: stone, granite, marble, concrete, highest quality and detailed glass curtain wall, terra cotta or other materials appropriate to the design style of the building or context of the neighborhood. In terms of design value, are materials in the replacement building used to enhance the architectural design elements of the building instead of used solely for the sake of variety?
The proposed design demonstrates equal or superior quality with respect to the materials in the replacement project that would be used to enhance the architectural design elements of the building. The replacement project would use high quality, durable materials familiar to existing CCA Period buildings as referenced in Design Guidelines 2.5.10. Materials should age well, express their construction, remain natural in their appearance and expression, and have an inherent tactility and visual depth. As also referenced in the Design Guidelines 2.5.10, preferred materials shall be applied on a minimum of 20 percent of all new building elevations facing the street or open space—excluding glazed surfaces.

For Building A, the proposed materials palate includes:
• Brick or decorative metal perforated panels on the corner sections. • Painted board-and-batten cement panel board (i.e., Hardie Board) and painted metal spandrels on the vertical volumes.
• Cement plaster on the infill field sections.
• Cement plaster and painted metal trellis structural elements on the upper portions of the infill field sections.
• Decorative tile and cast-in-place concrete along the base.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 66 • Wood for the trellis beams at the ground floor.

For Building B, the proposed materials palate includes:
• Brick and Laminam (or equivalent) for the tile spandrels in the central volume. • Brick and metal panel spandrels for the secondary volumes. • Cement plaster and tile window headers and metal trellis in the infill field sections. • Cement plaster or painted board-and-batten cement panel board (i.e., Hardie Board) on the upper sections of the east-facing façade.
• Board formed concrete or cast in place concrete and wood planks or large-format tile (Laminam or equivalent) along the building base.
• Arcadia T200 or equivalent for the window mullions.

Preferred materials include but are not limited to concrete, earthen materials and masonry (including glass block), wood, ceramics, and metal. Additional materials beyond those listed shall qualify as preferred materials if they are found in the façades of Early Estate Period or CCA Period buildings. Stucco shall not be considered a preferred material. Refer to Building Materials Board on page 125 (i.e., the last page) of Appendix E for more information.

The new buildings, while taller, will also be designed to current seismic codes and will be less susceptible to seismic vulnerabilities than the existing buildings.

3. Significant enhancement of the visual interest of the surrounding area.

The proposed design demonstrates equal or superior quality with respect to enhancement of the visual interest of the surrounding area. The replacement project would transform the project site by constructing two new prominent buildings in this area of Rockridge. The gently sloping topography underlying the site creates a raised “shelf” or knoll, combined with selectively manicured landscaping, would add visual interest into the site. Views into the project site are currently screened by vegetation, such as the row of Eucalyptus trees, and other vegetation. Few areas of the site are visible beyond the Broadway Wall and Stairs and Carriage Entrance. The visual opening of the site will significantly enhance the visual interest of the surrounding area while restoring the historic view corridor to Macky Hall.

Once completed, the replacement project would utilize a broad range of quality building materials, massing and façade articulation that reflect the neighboring built environment and draw visual interest. See discussion above in Finding 4, Item 2 for more information on building materials. Massing and façade articulation is consistent with the following Design Guidelines and illustrations on pages 104-115 within the Appendix to the Design Guidelines (DG).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 67 • Façade materials of the new buildings reference the existing CCA Period façade materials (DG 2.5.10, App P).
• The new buildings have an intensity of detailing that expresses the structural elements and uses materials to accentuate the beauty and character of the new buildings, similar to the CCA Period architecture and buildings in Rockridge (DG 2.5.8, App R). • New buildings reference Rockridge architecture by limiting the scale of glazing (DG

2.5.4, 2.5.5), creating depth at windows and openings, integrating trellises and landscape, and incorporating details and materials to enhance the pedestrian scale and character at the lower levels (DG 2.5.8, App PP).
• The Broadway Wall is preserved, and new buildings are setback from the Broadway Wall (DG 2.3.9).
• The new building height at the intersection of Broadway and Clifton Street is reduced with setbacks above 65 feet (DG 2.3.13).
• Midrise volumes along Broadway are subdivided to reduce the perceived scale of the new buildings (DG 2.3.16).
• New buildings along Clifton Street are setback above 75 feet (DG 2.3.17). • The façades of the new mid-rise buildings are subdivided along Clifton Street and the Neighborhood Paseo to reflect the width of the CCA Period and Early Estate period buildings as well as neighboring residential buildings. Mid-rise façades along Broadway and fronting Macky Lawn are subdivided to reflect the approximate widths of buildings along Broadway (DG 2.3.21, App M, FF, GG, HH). • The new buildings use various strategies (setbacks, horizontal elements, façade articulation, etc.) to create a defined based to respond to the heights along College Avenue and CCA Period buildings (DG 2.4.6, App PP).
• New building elevations limit the length of blank walls on the ground floor through changes in plane, openings, landscape and integrated murals (DG 2.4.10). • Fenestration is organized in linear grids consistent with the modernist architecture of the CCA Period and the scale of the adjacent contributing buildings and the residential neighborhood as appropriate (DG 2.5.1, App O, PP).
• Adjacent façades of new buildings incorporate different façade systems, materials, color or articulation (DG 2.5.7).
• Roof profiles of the new buildings are generally flat, consistent with the CCA Period buildings, but are articulated with varied parapet heights, changes in materials,

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 68 massing projections, trellises, upper-level setbacks, etc. to reflect the variety of roofline conditions seen in the Rockridge neighborhood (DG 2.3.14, 2.3.15). • Building materials and treatment at the base of the new buildings integrate color, murals and decorative elements and materials (DG 5.5.12).

4. High quality detailing.

The proposed design demonstrates equal or superior quality with respect to high quality detailing. The replacement project would utilize a broad range of quality building materials that reflect the neighboring-built environment and draw visual interest. See discussion above in Finding 4, Item 2 for more information. Contemporary best practices in materials and detailing will be applied, such as an additional layer of exterior insulation to increase the building performance by reducing heating and cooling loads. In addition, the resulting thicker wall assemblies will allow greater natural depth for architectural expression. • The new buildings provide design quality and craftsmanship by expressing the structural elements and use of materials to accentuate the beauty and character of the new buildings, like the CCA Period architecture (DG 2.5.8, 2.5.10, App R). • Building materials and treatment at the base of the new buildings integrate color, murals and decorative elements and materials (DG 5.5.12).

5. Composition. A well composed building integrates all aspects of the building (materials, façade patterns, proportions, openings, forms, massing, detailing, etc.,) into its overall character and design.

The proposed design demonstrates equal or superior quality with respect to building composition. The proposed construction would replace a collection of buildings representing multiple differing architectural styles with two large new multi-story buildings uniform in appearance, composition, and material differentiation. The proposed new construction would not be construed as replicative or mimicking the API’s historic built environment. The new construction would be clearly modern in appearance and reflect a unified design aesthetic, proportion, façade differentiation to generate visual interest and reduce bulk, as well as provide a varied yet consistent arrangement of fenestration openings and doorways. • The façades of the new mid-rise buildings are subdivided along Clifton Street and the Neighborhood Paseo to reflect the width of the CCA Period and Early Estate period buildings as well as neighboring residential buildings. Mid-rise façades along Broadway and fronting Macky Lawn are subdivided to reflect the approximate widths of buildings along Broadway (DG 2.3.21, App M, FF, GG, HH). • The new buildings use various strategies (setbacks, horizontal elements, façade articulation, etc.) to create a defined based to respond to the heights along College Avenue and CCA Period buildings (DG 2.4.6, App PP).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 69 • Roof profiles of the new buildings are generally flat, consistent with the CCA Period buildings, but are articulated with varied parapet heights, changes in materials, massing projections, trellises, upper-level setbacks, etc. to reflect the variety of roofline conditions seen in the Rockridge neighborhood (DG 2.3.14, 2.3.15). • Fenestration is organized in linear grids consistent with the modernist architecture of the CCA Period and the scale of the adjacent contributing buildings and the residential neighborhood as appropriate (DG 2.5.1, App O, PP).

6. Site setting, neighborhood, and streetscape contexts.

The proposed design demonstrates equal or superior quality with respect to site setting, neighborhood, and streetscape contexts. The degree of change in this area’s setting, neighborhood activity, and streetscape would be significant as the site is fenced off and closed to the public. As previously stated, the replacement project would transform the project site by constructing two new prominent buildings in this area of the Rockridge neighborhood. The gently sloping topography underlying the project site creates a raised “shelf” or knoll that would add emphasis to overall building height. The prominence of the replacement project would serve as a way finding marker for travelers along Broadway, State Route 24, and within this area of Rockridge and North Oakland. Adding to the site’s default visual prominence is an approximately 7.5-acre parcel (APN 014-1242-006) south of and adjacent to the project site bounded by Pleasant Valley Avenue to the South, Broadway to the west and an unnamed access road to the north. This parcel, the former site of the Rockridge Shopping Center, is currently vacant.

The replacement project would provide a new streetscape context and an overall increase in neighborhood activity by an increase in foot traffic in the area as visitors to the new commercial retail spaces facing Broadway and Clifton Street, residents arriving or leaving the site, or the public visiting the accessible open areas near Macky Hall and associated Carriage House, which are currently closed. The replacement project would retain the Broadway Wall and Stairs and Carriage Entrance as well as select landscape features that contribute to the site’s historical significance.

7. Incorporating “especially fine” construction details, methods, or structural materials. These include those that successfully address challenging structural problems, contribute significantly to the building’s overall design quality, exhibit fine craftsmanship, or are visible design elements.

The proposed design demonstrates equal or superior quality with respect to “especially fine” construction details, methods, or structural materials. As described above in Finding 4, Item 1, the replacement project would express a different architectural aesthetic in a uniform way.

The use of a modern aesthetic allows the project to enjoy technological advances in materials, features, and applications of different claddings and design elements to create a balanced, superior design on a sloping site, retention of two historical elements (Macky Hall and associated Carriage House) while maintaining open space within the API.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 70 As described above, varied height and façade setbacks create visual relief and shadows to further impart a sense of depth, texture, and variation. The broken façade plane creates visual breaks to demarcate changes in use or density and appropriately compliment or contrast materiality, which includes but is not limited to, a cast in place concrete base, running bond brick with regularly spaced soldier courses, ceramic tiles, painted cement plaster, opaque spandrels at the floor lines, decorative metal guardrails, aluminum window systems, board and batten patterned cementitious wall paneling, and more. Taken together, this proposed design reflects contemporary architectural composition and aesthetic with “especially fine” construction details as further described in Finding 4, Items 3 and 4 with references to the Design Guidelines as appropriate.

This range of high quality and familiar materials, visually “breaks up” the façades, to create opportunities to appropriately compliment and contrast materials thereby stimulating visual interest.

8. The replacement building’s reflection of the time it was designed, not merely a caricature of the demolished building.

The proposed design demonstrates equal or superior quality with respect to the buildings’ reflection of the time they were designed. The replacement project features a consistent contemporary architectural aesthetic. As described above in Finding 4, Items 1 and 3, the replacement project would be clearly read as modern in design with aesthetic nods and references to the existing historic fabric of the surrounding neighborhood. The replacement project would consist of two main buildings that share this modern aesthetic and not mimic the wide architectural palate of the API’s existing built environment. In addition, the replacement project will reflect our current ideas and methods for greater sustainability both through materials and systems applications and through formal elements, such as exterior shading systems, recessed windows, and flat roofs for energy production.

9. The replacement building’s contemporary interpretation of the demolished building’s elements in terms of the cultural, historic, economic, or technological trends of its time.

The proposed design demonstrates equal or superior quality with respect to the replacement building’s contemporary interpretation of the demolished buildings’ elements. The buildings within the CCA API vary in size, age (1920s-1990s), and design. The design of the buildings within the API comprises an assortment of architectural styles and aesthetic popular during the late-19
th and the 20th centuries, ranging from Queen Anne/Stick-Eastlake, Mission Revival, Third Bay Tradition, Brutalism, to New or a Minimalist Modernism. A typical design element within the API is multiple-story construction; varied massing, rooflines, and entries. Exteriors are varied in their materiality, wood, brick, stucco, cinder block masonry, or raw or unfinished concrete.

As described above, the CCA API’s built environment reflects several distinct and evolving architectural trends that span 113 years (1879-1992). The buildings within the API are structurally and physically independent of each other and are not integrated with a uniform architectural aesthetic. This is understandable, as the HRE prepared in 2019 by Page &

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 71 Turnbull (2019 HRE) notes that the API’s built environment reflects the several stages of the campus’ development and growth. The 2019 HRE goes on to state, “[e]ven some buildings that were constructed within the same phase of development do not share notable stylistic cohesion, such as Martinez Hall and Founders Hall, which, despite having been designed by the same architects and constructed concurrently, represent different architectural styles.” 61 A proposed replacement project that attempted to reference each of the several architectural styles, massing, and materiality of the existing API while seeking to balance compatibility with differentiation with the demolished buildings would require an overall design that would essentially reconstruct and mimic the API and result in an aesthetically jumbled group of buildings of varying size and visual texture. Alternatively, the replacement project avoids this by using a clearly contemporary design and uniform appearance while referencing the demolished buildings’ elements and the existing historic fabric of the surrounding neighborhood.
• The façades of the new mid-rise buildings are subdivided along Clifton Street and the Neighborhood Paseo to reflect the width of the CCA Period and Early Estate period buildings as well as neighboring residential buildings. Mid-rise façades along Broadway and fronting Macky Lawn are subdivided to reflect the approximate widths of buildings along Broadway (Design Guidelines (DG) 2.3.21). • Fenestration is organized in linear grids consistent with the modernist architecture of the CCA Period and the scale of the adjacent contributing buildings and the residential neighborhood as appropriate (DG 2.5.1).
• The new buildings provide design quality and craftsmanship by expressing the structural elements and use of materials to accentuate the beauty and character of the new buildings, similar to the CCA Period architecture (DG 2.5.8, 2.5.10). • Roof profiles of the new buildings are generally flat, consistent with the CCA Period buildings, but are articulated with varied parapet heights, changes in materials, massing projections, trellises, upper-level setbacks, etc. to reflect the variety of roofline conditions seen in the Rockridge neighborhood (DG 2.3.14, 2.3.15). • Art is integrated into the building façades, including a location for a rotating mural similar to the existing mural wall at Martinez Hall, and additional art or artifacts are retained or integrated into the overall project (DG 2.4.11, 3.3.6). • The new buildings use various strategies (setbacks, horizontal elements, façade articulation, etc.) to create a defined based to respond to the heights along College Avenue and CCA Period buildings (DG 2.4.6, App PP).

61 Historic Resource Evaluation – California College of the Arts (5212 Broadway), Oakland, California.

November 19, 2019. Project No.: 18322. On file at Page & Turnbull, San Francisco, California. Page 145.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 72 CATEGORY II - FINDING 5 – (ALL BUILDINGS)
For all properties in a district: the design of the replacement project is compatible with the character of the preservation district, and there is no erosion of design quality at the replacement project site and in the surrounding area. This includes, but is not necessarily limited to, the following additional findings.

Finding 5 applies to all properties. For this analysis, the ten buildings proposed for demolition are contributing elements to the CCA API. Note: to prevent unnecessary redundancy in the analysis and reduce document length, the analysis under demolition findings for Finding 5 are presented once and the discussion ranges to specific buildings, as appropriate.

The following addresses the six submittal requirements for Finding 5.

1. The replacement project is compatible with the district in terms of massing, siting, rhythm, composition, patterns of openings, quality of material, and intensity of detailing.

The replacement project would demolish ten buildings in the API, thereby removing approximately 83% of the API’s total built environment. Only Macky Hall, the Carriage House, Macky Lawn, the Broadway Wall, Broadway Gate and Broadway Stairs, and various landscape features would remain and would reflect the contributing elements as identified by OCHS in or about 1986.

As discussed above in Finding 4, Item 1, the new construction would be clearly modern in design and use contemporary materials to express its design aesthetic. The replacement project would be markedly different in massing, siting, rhythm, composition, patterns of openings, quality of material, and intensity of detailing than is expressed in the three-story Macky Hall and the associated two-story Carriage House constructed 1879-1881 in the Queen Anne and Stick-Eastlake styles while recreating, in the aggregate, the architectural qualities of the built environment elements within the API associated with the subsequent growth of CCA during the 20
th Century.

The API is defined by the juxtaposition of building footprints, architecture, landscape features, and arts and artifacts that create a campus. The proposed project would maintain these qualities by rehabilitation of Oakland Landmark buildings and structures, retain elements of the historic landscape, site and orient new buildings and open space design similar the extant spatial arrangement of buildings and open space within the API, and incorporate art reflective of the project site’s history as an arts college.

Fronted along Broadway by the preserved, historic Broadway Wall, Broadway Gate and Broadway Stairs, Macky Hall, Carriage House, and Macky Lawn would occupy the center of the site and be framed by new buildings. New building heights in the proposed project would follow the topography of the site which gently rises west to east approximately 45-50 feet from the Broadway sidewalk to the eastern edge of the campus. Lower building heights with deep setbacks near rehabilitated historical resources are mandated by the Design Guidelines and provided to frame the landmarked buildings and open space and then transition in taller

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 73 height and larger scale when receding from the historical elements. This maintains a similar separation of buildings as seen with the CCA campus. The massing adjacent to Macky Hall references the width of the existing buildings and frames the Landmark building as the primary historical building on site. Additionally, the rhythm of openings on the ground floor and mid-rise levels of the new buildings relates to the rhythm and scale of the campus-era buildings as well as those on nearby College Avenue and Broadway but would be clearly modern and avoid false historicism.

The proposed design provides a level of detail and craft consistent with the extant campus and the principles of the Art & Crafts movement that informed design elements of several campus buildings. Natural, tactile materials such as plaster, brick, ceramic tile, wood, and concrete are used throughout, as seen in all the extant buildings. Building structure, joinery details and the natural properties of materials are utilized throughout the new buildings in reference to the extant campus buildings. For example, sculpted concrete columns and beams would display the plasticity of concrete, like the effect of concrete ceiling coffers in the Founders Hall Library. Similarly, wood and metal trellises with carefully detailed attachments would reflect the brise-soleil (trans: “sun breaker”) of the Treadwell Hall building, as well as the typical detailing seen in the Arts & Crafts movement and found throughout the adjacent Rockridge neighborhood. In addition, the fenestration composition is organized in linear grids consistent with the architectural specimens of CCA’s Modernist period and façade articulation accentuate building details and would generate stronger shadow lines, consistent with existing buildings.

Particular attention is paid to the base of the buildings where tactile and structural details can be viewed most closely. For example, new building entries would reference the covered landing and stairs of “Building B” and the expressed structural elements and covered entry at Martinez Hall. Similarly, the primary entry sequence to the lobby in Building A and the double- height dramatic opening between the Building A residential courtyard and Macky Lawn draw inspiration from Founders Hall’s series of stepped, raised volumes and pathways above entries and open spaces.

At the upper levels of the new buildings, recessed, articulated windows and Juliette balconies would create depth and shadow, further enhancing the building details and emphasizing the shifts in façade planes. A similar depth of openings and layering of shadow lines is visible throughout the extant campus including at the openings of “Building B” and more recent buildings such as Founders Hall. Upper-level trellis elements would provide areas for vine cover and sun protection on the building façades, similar in character and effect to the brise- soleils at Treadwell Hall and trellises found in residential architecture within Rockridge.

The Campus-era buildings were constructed as inward-facing, purpose-built buildings with a variety of construction types and architectural styles. Collectively, these buildings reflect the use of the site as an arts campus with buildings that seek to inspire by experimenting with new ideas while still serving their specific functions. The proposed project similarly reflects an inward-facing collection of buildings creating a campus-like experience among the new residential buildings while simultaneously opening the four-acre site to the wider community, both visually and programmatically.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 74 Vehicular access is limited to Clifton Street, consistent with the extant pedestrian-oriented campus layout. The Broadway Gate entrance along Broadway would be pedestrian only. The Neighborhood Paseo would create a common space between the two new residential buildings and serve as a connector between Clifton Street and the central historical features.

The publicly accessible open spaces would be linked visually through view corridors and pedestrian pathways like pathways within the extant campus. Finally, residential stoops and abundant glazing at the ground levels would create both visual and physical connections between the indoor and outdoor spaces, activating the site and recreating a sense of community when CCA was an active campus.

Summary of Response to Design Guidelines
As discussed in more detail above, the replacement project responds to the following criteria and recommendations in the Design Guidelines in terms of massing, siting, rhythm, composition, patterns of openings, quality of material, and intensity of detailing. • Macky Hall is retained in its existing location and rehabilitated in accordance with the Secretary of the Interiors Standards (DG 2.1.3).
• Carriage House is relocated in a similar setting, orientation, and secondary location relative to Macky Hall and rehabilitated in accordance with the Secretary of the Interiors Standards (DG 2.1.4).
• New buildings are sited in similar locations to the existing buildings and surface parking lot. Building A generally occupies the footprint of Shaklee Hall, Simpson Sculpture Studio, Irwin Studio, and the campus parking lot. Building B generally occupies the footprint of the campus era buildings along the east side of the site including the Facilities Building, Building B, Oliver Arts Center, Nonni Eccles Treadwell Sculpture Studio, Martinez Hall, and part of Founders Hall. (DG 2.3.2, 2.3.3, 2.3.4). • Vehicular access is maintained along Clifton Street and the existing Broadway Carriage Entrance is maintained for pedestrian access to the commercial uses on the ground floor of Building A (DG 3.4.7).
• New construction is primarily oriented inward similar to the existing CCA Period campus.
• Existing pedestrian access and circulation are maintained from the Broadway Stairs by Macky Lawn and from Clifton Street by an internal pedestrian paseo in the location of the existing internal drive (DG 3.4.4, 2.4.9).
• Spatial relationships between buildings are similar to those seen on existing buildings. o New buildings are clearly differentiated by differences in materials, fenestration, rhythm, depth and orientation (DG 2.5.7).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 75 o New buildings are setback from Macky Hall and Carriage House similar to their relationship to CCA Period buildings (DG 2.3.7, 2.3.8). o New building heights are reduced surrounding Macky Hall to respond to scale and relationships of CCA Period buildings and visually frame Macky Hall (DG

2.3.11, 2.3.12, 3.1.1).
o Finished floor elevations and entries elevations respond to sloped topography.
• New buildings demonstrate an equal design quality to the existing buildings. o Massing adjacent to Macky Hall responds to its width and frames the retained building as the primary building on site (DG 2.3.11, 2.3.16). o New buildings have a defined base similar to the one to three story existing buildings (DG 2.3.5, 2.3.6, 2.3.20, 2.4.6).
o Fenestration is organized in linear grids consistent with the modernist architecture of the CCA Period architecture (DG 2.5.1). o The depth of key openings and entries are increased to accentuate building details and generate stronger shadow lines consistent with existing buildings (DG 2.4.3).
o Façade materials of the new buildings reference the existing CCA Period façade materials (DG 2.5.10).
o The new buildings have an intensity of detailing that expresses the structural elements and uses materials to accentuate the beauty and character of the new buildings, similar to the CCA Period architecture (DG 2.5.8, App R). • New buildings reference Rockridge architecture by limiting the scale of glazing (DG

2.5.4, 2.5.5), creating depth at windows and openings, integrating trellises and landscape, and incorporating details and materials to enhance the pedestrian scale and character at the lower levels (DG 2.5.8, App PP).

2. New street frontage with forms that reflect the widths and rhythm of the façades on the street and entrances that reflect the patterns on the street.

The replacement project would retain the historical Broadway Wall, Stairs, and Carriage Gate (built 1905) that spans the entire Broadway frontage. Currently, the Broadway frontage is empty of buildings along the sidewalk. The built environment within the API is concentrated in the northern and eastern portion of the four-acre-site leaving the western half largely undeveloped but for paths, lawn, a driveway, plantings, and art pieces. Except for Barclay Simpson Sculpture Studio and Shaklee Building, much of the API’s built environment is

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 76 obscured behind a vegetative screen of trees, bushes, and the rising topography of the site which further obscures views east from Broadway.

The proposed replacement project would retain the entire span of the nearly 120-year-old Broadway Wall, Stairs, and Carriage Entrance. The stairs near the right-hand side of the span of wall would remain and continue providing pedestrian access to an open area fronting Macky Hall, as well as the existing Carriage Entrance which would serve as a primary pedestrian entrance off Broadway. The extant Broadway Wall would limit direct access to ground floor commercial uses via the Broadway sidewalk, as is traditionally the case as shown in the commercial retail areas west of the project site and across Broadway and College Avenue. The Broadway Wall terminates at the intersection with Clifton Street.

The proposed project significantly improves the site’s relationship with the adjacent streets.

The extant campus is fronted by a surface parking lot at the key intersection of Broadway and Clifton Street. The proposed project would activate the Broadway frontage with ground floor commercial space accessed through the historic Carriage Entrance within the preserved Broadway Wall.

The articulated rhythm of the ground floor and mid-rise façades of the new buildings would relate to the rhythm and scale of nearby College Avenue and Broadway as well as the extant campus buildings. The vertical modulation and rhythm of façades would be adapted for residential use, creating depth, and breaking down individual elements of building masses to reference sizes and proportions found on College Avenue and Broadway.

Horizontal and vertical articulation—including recesses, terraces, changes-in-façade-plane, and materiality—reflect patterning of the existing buildings. The composition of the Broadway elevation is designed to reflect the character of the College Avenue corridor, with a base that creates a pedestrian scale experience and a fenestration rhythm that creates simple fields, with recessed windows, railings and trellises adding a layer of craft and detail seen in the style of the mixed-use buildings along College Avenue and on the surrounding residential blocks.

The building steps back as it moves up the hill, away from Broadway, mirroring the site’s underlying topography, creating a rich layering for the building, and reducing the apparent overall scale of the building as one approaches from Broadway.

The Clifton Street façades would reflect a more residential scale modulation using recesses to create a vertical rhythm as it marches east up Clifton Street. This reflects the more residential character of the neighborhood north of the site. The top two floors step back from the street, creating a set of terraces and reducing the scale of the primary volumes to be more consistent with the height of the three-story building on the opposite side of Clifton Street.

Horizontal datums would define a clear base in the proposed buildings, relating to the ground level scale of the extant architecture on College Avenue, while variety is displayed through recesses, trellises, and use of materials such as brick and ceramic tile at key locations throughout.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 77 The proposed building along Broadway would be setback and entirely detached from the historic Broadway Wall via a landscaped forecourt. This would allow the Broadway Wall to retain its current configuration and appearance with landscape and planting adding character and visual interest. The Carriage Gate within the Broadway Wall would remain in place and provide entry to the forecourt, which in turn provides access to ground floor commercial spaces.

The proposed project also reestablishes the historic, 80-foot-wide Macky Hall View Corridor that is currently overgrown and not visible from Broadway. The restored view would provide pedestrians and motorists a view of historic Macky Hall from the Broadway sidewalk. The extant 80-foot-wide view corridor would be enlarged over 100 feet to enhance its historic importance and create visual break between the historical resources (Macky Hall, the Carriage House, Macky Lawn, trees and landscaped features) from the new construction. The refurbished view corridor will establish Macky Hall as the primary structure in the proposed project and the Broadway Stairs as the primary pedestrian entrance to the site. Additionally, a new ADA entrance within the Broadway Wall will provide accessibility from Broadway for the first time. The proposed Neighborhood Paseo would similarly include a pedestrian pathway connecting Clifton Street to Macky Hall.

Summary of Response to Design Guidelines
As discussed in more detail above, the replacement project responds to the following criteria and recommendations in the Design Guidelines in terms of forms that reflect the widths and rhythm of the façades and entrances on the street.
• The new buildings are setback from the Broadway Wall (DG 2.3.9). • The new building height at the intersection of Broadway and Clifton Street is reduced with setbacks above 65 feet (DG 2.3.13).
• Midrise volumes along Broadway are subdivided to reduce the perceived scale of the new buildings (DG 2.3.16).
• New buildings along Clifton Street are setback above 75 feet (DG 2.3.17). • The west façade of Building B is setback above 65 feet to reduce the perceived height along the Paseo and behind Macky Hall (DG 2.3.19).
• The façades of the new mid-rise buildings are subdivided along Clifton Street and the Neighborhood Paseo to reflect the width of the CCA Period and Early Estate period buildings. Mid-rise façades along Broadway and fronting Macky Lawn are subdivided to reflect the approximate widths of buildings along Broadway. (DG 2.3.21, App M, GG).
• Building A use on Broadway is largely dedicated to commercial use (DG 2.4.1). • Minimum building entries are provided consistent with the Design Guidelines (2.4.2).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 78 • The new buildings use various strategies (setbacks, horizontal elements, façade articulation, etc.) to create a defined based to respond to the heights along College Avenue and CCA Period buildings (DG 2.4.6, App FF, HH, LL). • The base along the west side of Building A is separate from and visually subsidiary to the Broadway Wall (DG 2.4.8).
• Fenestration is organized in linear grids consistent with the modernist architecture of the CCA Period and the scale of the adjacent contributing buildings and the residential neighborhood as appropriate (DG 2.5.1, App O, PP).
• Building materials and treatment at the base of the new buildings integrate color, murals and decorative elements and materials (DG 5.5.12). • Transition spaces are provided at residential entries along publicly accessible open space (DG 3.4.3).

3. The replacement project provides high visual interest that either reflects the level and quality of visual interest of the district contributors or otherwise enhances the visual interest of the district.

The proposed project is of a high-quality design and visual interest. The design retains many historic elements including Treadwell Mansion/Macky Hall, Carriage House, the Broadway Wall, Broadway Stairs, Broadway Carriage Gate, Macky Lawn, 80-foot View Corridor (centered on Macky Hall entrance and extending west towards Broadway), heritage trees and groves, and historic art and landscape elements.

New building construction would occur in the northern and eastern portions of the site, like the extant footprint and spatial arrangement of buildings within the API. The new buildings are designed to frame and emphasize the prominence of Macky Hall and the Carriage House through step backs, changes-in-plane, and façade articulation similar in scale to the landmark buildings—elevating their visual presence on the site. The materiality of the new buildings would reflect the extant buildings with natural, tactile materials such as light-colored plaster (re: Facilities Building and the Shaklee Building), masonry (re: Treadwell Hall) and site-cast, textured concrete (re: Barclay Simpson and Founders Hall). Particular attention would be paid to building bases with use of ceramic tile, sculptural concrete, brick, and wood within enhanced architectural details. The materiality would maintain various finished floor and entry elevations on sloped topography and limit blank façades in keeping with the existing campus.

Additionally, the “landscape of discovery” quality of the extant campus would be retained by meandering paths and outdoor rooms that connect views and vistas, landmark buildings and structures, mature trees, retained landscape features, and integrated art features, all with improved accessibility. The pedestrian path from Clifton Street to Macky Hall would be retained in a similar configuration and improved to allow ADA access while preserving the flanking, mature Redwood groves, Coastal Live Oaks, and Magnolia trees. A two-story portal in

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 79 Building A would create a visual connection between Macky Lawn and residential courtyard, establishing a porch-like setting and enhancing activation.

Landscape elements are included both at-grade and integrated vertically in the new buildings with trellises and shade structures to allow vines and other plantings at multiple levels, including the upper story roof decks—extending the visual expression of landscaped areas, and reflecting traditional elements found in Rockridge. Finally, the proposed plan would remove the surface parking lots at the corner of Broadway and Clifton and adjacent to Macky Lawn enhancing the area’s visual interest.

Summary of Response to Design Guidelines
As discussed in more detail above, the replacement project responds to the following criteria and recommendations in the Design Guidelines (DG) by providing high visual interest that reflects the level and quality of the district contributors or enhances the visual interest of the district.
• The rehabilitation of Macky Hall and Carriage House is in accordance with the Secretary of the Interior Standards and the Design Guidelines (DG 2.1.7 through

2.1.13).
• New buildings establish priority height locations to create a varied roofline and visual interest (DG 2.3.10).
• Multiple entries are provided on the north and south side of Building A to reflect the hillside topography (DG 2.4.5).
• New building elevations limit the length of blank walls on the ground floor through changes in plane, openings, landscape and integrated murals (DG 2.4.10). • Adjacent façades of new buildings incorporate different façade systems, materials, color or articulation (DG 2.5.7).
• The new buildings provide design quality and craftsmanship by expressing the structural elements and use of materials to accentuate the beauty and character of the new buildings, similar to the CCA Period architecture (DG 2.5.8, 2.5.10). • Building materials and treatment at the base of the new buildings integrate color, murals and decorative elements and materials (DG 5.5.12). • Planting is maintained or provided on the north and south of Macky Hall to reflect its current context (DG 3.1.2).
• The visual connection and grade relationship is maintained between Macky hall and the relocated Carriage House (DG 3.1.3 and 3.1.4).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 80 • The relocated Carriage House is embedded in the landscape and accessed through secondary pathways to maintain its subsidiary relationship to Macky Hall (DG 3.1.5,

3.1.6).
• The Broadway Wall is maintained and rehabilitated and a new accessible entry is provided adjacent to the Broadway Stairs (DG 3.2.1, 3.2.5). • Macky Lawn, the Macky Hall view corridor and the approach to Macky Hall are maintained (DG 3.3.1, 3.3.2, 3.3.3).
• Selected contributing landscape features are retained, the Carnegie Bricks are retained and reused on site and additional art or artifacts are maintained or incorporated in the publicly accessible open spaces (DG 3.3.4, 3.3.5, 3.3.6, App W, X). • The ground floor of the Carriage house as well as areas within the open space will provide a publicly accessible display and exhibit of the site’s history (DG 3.3.8). • The publicly accessible open space provides framed vistas of Downtown Oakland, College Avenue and San Francisco Bay (DG 3.4.6).
• Vehicular access and drop off is restricted to the north edge of the site on Clifton Street. (DG 3.4.7).
• Arts and educational programming are planned within the publicly accessible interior and exterior spaces (DG 3.4.8).
• Priority planting zones are established, and selective campus heritage trees are preserved similar to the CCA Period landscape (DG 3.5.1, 3.5.5).

4. If the design contrasts the new to the historic character, the replacement project enriches the historic character of the district.

The replacement project would enrich the historic character of the API by preserving several historic buildings, structures, landscape, and artifacts while respecting the association of the API with the CCA Period through on-site programming, commemoration, and the reinterpretation of its physical characteristics.

The rehabilitated Macky Hall, Carriage House, Broadway Wall, Broadway Stairs, Broadway Carriage Gate, Macky Lawn, the 80-foot Macky View Corridor , heritage trees and groves, and historic art and landscape elements would provide a historic framework for the site while the proposed building design provides a level of detail and craft consistent with the extant campus and references the principles of the Art & Crafts movement that informed design elements of several campus buildings. Natural, tactile materials such as plaster, brick, ceramic tile, wood, and concrete are used throughout, as seen in the API’s built environment.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 81 Building structure, joinery details and the natural properties of materials would be utilized throughout the new buildings in reference to the extant campus buildings. For example, sculpted concrete columns and beams would demonstrate the plasticity of concrete, as shown in the concrete ceiling coffers in the Founders Hall Library. Similarly, wood and metal trellises with detailed attachments would reflect the Treadwell Hall building’s brise-soleil. In addition, fenestration composition is organized in linear grids consistent with the CCA’s later Modernist architecture and the openings of increased depth accentuate building details and generate stronger shadow lines, consistent with existing buildings. Salvaged materials would be repurposed. The project design would incorporate site sculptures and integrate murals and artwork on street-facing façades and on façades that face interior open spaces.

Moreover, the project would enrich the API’s historic character by opening it up to the public in a dramatically improved manner both visually (as seen from Broadway) and physically through rehabilitating the Broadway Stairs and walkways and creating new neighborhood- serving amenities including a historic lawn, playground, view deck, community meeting space and public gathering areas that would offer greater numbers of people a place to visit and enjoy the site. A permanent exhibit explaining the campus’ history, CCA, and the Arts & Crafts movement would be located on the ground floor of the Carriage House, further expanding the knowledge of this API, and thus furthering its status as a historic district.

Summary of Response to Design Guidelines
As discussed in more detail above, the replacement project responds to the following criteria and recommendations in the Design Guidelines (DG) to enrich the historic character of the district with new buildings that contrast the historic character. • The new buildings are setback from the Broadway Wall (DG 2.3.9). • Art is integrated into the building façades, including a location for a rotating mural similar to the existing mural wall at Martinez Hall, and additional art or artifacts are retained or integrated into the overall project (DG 2.4.11, 3.3.6). • The ground floor of the Carriage House as well as areas within the open space will provide a publicly accessible display and exhibit of the site’s history (DG 3.3.8). • Open space program and pedestrian areas are created at the Neighborhood Paseo and the Central Plaza between Buildings A and B similar to the CCA Period campus layout (DG 3.4.1).
• A play area is provided within the publicly accessible open space (DG 3.4.2). • Arts and educational programming are planned within the publicly accessible interior and exterior spaces and educational signage will be provided throughout the landscape highlighting the CCA Period history and significance (DG 3.4.8, 3.4.9).

5. Is consistent with the visual cohesiveness of the district. For the purpose of this item, visual cohesiveness is the architectural character, the sum of all visual aspects, features, and

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 82 materials that defines the district. A new structure contributes to the visual cohesiveness of a district if it relates to the design characteristics of a historic district while also conveying its own time. New construction may do so by drawing upon some basic building features, such as the way in which a building is located on its site, the manner in which it relates to the street, its basic mass, form, direction or orientation (horizontal vs. vertical), recesses and projections, quality of materials, patterns of openings and level of detailing. When a combination of some these design variables are arranged in a new building to relate to those seen traditionally in the area, but integral to the design and character of the proposed new construction, visual cohesiveness results.

The replacement project is consistent with the visual cohesiveness of the API as initially identified by OCHS in 1986. The proposed design provides a level of detail and craft consistent with the extant campus and the principles of the Arts & Crafts movement that informed the design of the built environment within the API. As described above, natural, tactile materials such as plaster, brick, ceramic tile, wood, and concrete would be used throughout, as seen in the extant buildings. Building structure, joinery details and the properties of materials are celebrated throughout the new buildings, reflecting the extant campus buildings. Particular attention is paid to the building bases where tactile and structural highlights would be seen closely. At upper levels, recessed, articulated windows and Juliette balconies are designed to create depth and shadow, further enhancing the building details and changes in façade depth.

The two new proposed buildings share a similar language of materials and detailing with the extant buildings. The massing of each new building is designed to frame and accentuate the Treadwell Mansion/Macky Hall, the Carriage House, Macky Lawn, and the View Corridor from the Broadway Stairs. The rear, eastern building would be a backdrop for Macky Hall and the Carriage House. The building’s height would step down as it nears Treadwell Mansion/Macky Hall and the relocated Carriage House. The western building would hold the Broadway/Clifton Street corner, create a welcoming street presence, and reflect the scale and character of the built environment along College Avenue and the residential neighborhood beyond to the north as the building marches east up Clifton Street.

The new buildings would be consistent with the siting (northern and eastern sides of the site) and orientation of the CCA buildings they would replace—creating an inward-facing collection of buildings and a campus-like experience that highlights the landmark Treadwell Mansion/Macky Hall, the Carriage House and landscape features of the Treadwell estate, yet would simultaneously open the site to the community visually and programmatically.

Moreover, the new buildings would enhance the four-acre site’s relationship with Broadway by reestablishing the historic view corridor and placing new commercial uses accessible from the Broadway sidewalk.

The “landscape of discovery” quality of the extant campus would be retained by meandering paths and outdoor rooms that connect dramatic views and vistas, landmark buildings and structures, mature trees, retained landscape features, and integrated art features, all with improved accessibility. Secondary pedestrian paths provide alternate routes through the site allowing the discovery of existing buildings, vistas, and contributing landscape features like the CCA campus. The landscaping would preserve extant native heritage trees and planting

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 83 palette present in the CCA Period landscape and expand their use in the new landscaped areas.

A large mural wall of similar scale to the extant mural wall would be situated in the middle of the site, at the point of convergence of the pedestrian walk, Macky Hall, and the two new buildings, anchoring a shared plaza, like the role and location of the existing mural wall at Martinez Hall.

Considered together, the new buildings and project components would be visually cohesive with the buildings, structures, and landscape features of the API/district that would remain.

Summary of Response to Design Guidelines
As discussed in more detail above, the replacement project responds to the following criteria and recommendations in the Design Guidelines (DG) to reinforce a design that is consistent with the visual cohesiveness of the district.
• New buildings establish priority height locations to create a varied roofline and visual interest (DG 2.3.10).
• The new building height at the intersection of Broadway and Clifton Street is reduced with setbacks above 65 feet (DG 2.3.13).
• Roof profiles of the new buildings are generally flat, consistent with the CCA Period buildings, but are articulated with varied parapet heights, changes in materials, massing projections, trellises, upper-level setbacks, etc. to reflect the variety of roofline conditions seen in the Rockridge neighborhood (DG 2.3.14, 2.3.15). • Midrise volumes along Broadway are subdivided to reduce the perceived scale of the new buildings (DG 2.3.16).
• New buildings along Clifton Street are setback above 75 feet (DG 2.3.17). • The west façade of Building B is setback above 65 feet to reduce the perceived height along the Paseo and behind Macky Hall (DG 2.3.19).
• The south elevation of Building A fronting the open space is setback to enhance solar access (DG 2.3.18).
• The west façade of Building B is setback above 65 feet to reduce the perceived height along the Paseo and behind Macky Hall (DG 2.3.19).
• The façades of the new mid-rise buildings are subdivided along Clifton Street and the Neighborhood Paseo to reflect the width of the CCA Period and Early Estate period buildings. Mid-rise façades along Broadway and fronting Macky Lawn are subdivided to reflect the approximate widths of along Broadway. (DG 2.3.21).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 84 • The west edge of Building B has at least 3 different floor elevations, referencing the varied finished floor heights of the CCA Period buildings (DG 2.4.4). • Multiple entries are provided on the north and south side of Building A to reflect the hillside topography (DG 2.4.5).
• The new buildings have a defined base that is articulated to establish a pedestrian scale along pedestrian paths, open space and streets (DG 2.4.6, 2.4.7). • Vertical volumes are expressed to enhance priority height locations and primary building entrances (DG 2.5.3).
• Façade materials of the new buildings reference the existing CCA Period façade materials (DG 2.5.10).
• Light colored materials are generally used on midrise buildings similar to other prominent buildings in the Oakland Hills with colorful decorative elements, murals and materials used at building bases to provide visual cohesion and reflect the nature of an arts campus (DG 2.5.11, 2.5.12).
• A substantial number of the existing redwood and other heritage trees are preserved, and new buildings are setback from these existing trees as appropriate (DG 3.5.5,

3.5.6).
• A network or secondary pedestrian paths are retained and incorporated to create small scale connections through the landscape similar to the CCA Period (DG 3.4.5) • The publicly accessible open space provides framed vistas of Downtown Oakland, College Avenue and San Francsico Bay (DG 3.4.6).
• Priority planting zones are established, and selective campus heritage trees are preserved similar to the CCA Period landscape (DG 3.5.1, 3.5.5). • New landscape planting will be composed primarily of native and drought-adapted, non-invasive species consistent with the retained species from the CCA Period (DG

3.5.2).
• Planting on trellises is incorporated to provide a vegetated transition in scale and reflect similar conditions and transitions in the Rockridge neighborhood (DG 3.5.3). • New lawn area is limited to the existing Macky Lawn area (DG 3.5.4). • Open space hardscape materials are limited to concrete paving, masonry (including salvaged Carnegie bricks), and other materials, colors and application consistent with the CCA Period exclusive of asphalt paving (DG 3.5.8, 3.5.9, 3.5.10). • Natural materials such as rope, wood, or stone are used in the play areas (DG 3.5.11).

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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The proposed project, when completed, would restore the API as it was originally documented by OCHS in 1986. The Treadwell Mansion/Macky Hall, the relocated Carriage House, Macky lawn, the View Corridors leading to the Broadway Wall and Stairs and Carriage Entrance along the sidewalk would remain. The API designation would remain in place.

CATEGORY II - FINDING 6 – (ALL BUILDINGS)
It is economically, functionally architecturally, or structurally infeasible to incorporate the historic building into the proposed development.

Finding 6 applies to all buildings within the API. The following addresses the submittal requirements for Finding 6. For this analysis, the ten buildings proposed for demolition are contributing elements to the CCA API. Note: to prevent unnecessary redundancy in the analysis and reduce document length, the analysis under demolition findings for Finding 6 are presented once and the discussion ranges to specific buildings, as appropriate.

As described in the sections above, there is no level of rehabilitation of the extant built environment within the four-acre API that would generate a reasonable rate of return and meet the project’s goals. Based on the scale of the proposed project, and the anticipated rentable square footage and number of residential units following project completion, no feasible ways to reuse the API’s built environment could meet the goals of the replacement project. Such a project would provide significantly fewer housing units and not provide for a reasonable return on investment.

1. Could alternations or additions to the existing building make the current or a future use generate a reasonable economic return and/or architecturally/structurally accommodate the proposed uses?
As illustrated under Finding 1 above, the reuse of the existing buildings does not support a reasonable economic return based on the cost to of their rehabilitation and the supportable rents that can be achieved for either office or residential uses. Furthermore, except for the Irwin Student Center, the existing buildings are generally not suited to residential use given their configuration. Additions to these structures would not make them more economically viable as the rehabilitation of the costs and likely revenues for the existing buildings would remain unchanged and the number of overall residential units would be reduced as the area for new residential development is effectively limited to the location and spatial arrangement of existing buildings and vertical additions to the existing buildings would not be feasible.

2. Do preservation alternatives exist which can achieve at least the same level of non- preservation benefits?
Any preservation alternative would result in a reduction of residential units unless taller buildings are constructed, or additional buildings are constructed within the historic Macky Hall view corridor and open space. A taller building was originally proposed and met with

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 86 strong resistance by the community and preservation groups. A taller building would also increase construction costs which would further impact the economic viability of the residential development. In addition to fewer residential units, a preservation alternative would further impact the economic viability of the project because the rehabilitation of the existing buildings would require a significant subsidy as the supportable revenues from reuse or via tax abatement (Mills Act) or tax credits do not offset rehabilitation costs.

The EIR for the project identified Historic Preservation Alternative 3 which proposed the preservation of three additional existing buildings – Treadwell Hall, Martinez Hall, and Founders Hall. The proposed alternative would retain the proposed Building A with 229 units and reduce Building B to 78 units for a total of 306 units. Preservation Alternative 3 would not support a reasonable economic return. The funding shortfall for the three additional buildings in 2024 dollars is approximately $28.9 million ($5.6M for Treadwell, $5.7M for Martinez Hall and $17.6M for Founders Hall) as the potential revenues from these buildings does not support the rehabilitation costs as detailed in Finding 1 above. This funding shortfall for the existing buildings continues to increase with an assumed start of construction in 2029. The reduction in the number of residential units increases the per unit cost because the fixed costs associated with the site, infrastructure and open space improvements must be spread out against fewer units. This results in an estimated hard cost increase of approximately $72,300 per unit and a total supportable funding shortfall of approximately $62.4 million when combined with the added cost and funding shortfall for the preservation of the three additional buildings. As a result, the Preservation Alternative does not support a reasonable economic return.

The following table provides a comparison between the proposed project and the Preservation Alternative.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) 88 3. Include discussion of potential economic benefits of a rehabilitated or reused cultural resource, including how building or district character might affect property values, attract commercial economic development, and increase City tax revenues.

Unfortunately, the preservation of additional buildings will likely have a negative impact on property values, commercial economic development, and City tax revenue.

While office is the highest and best use for the existing buildings, the office market throughout Oakland and wider the San Francisco Bay Area suffers from high vacancy, lower rents, and increased concessions (tenant improvements and free rent) due to the lingering effects of the COVID-19 pandemic and the marked shift to fully remote or hybrid work practices. As a result, it would be challenging to secure long term office tenants for the existing buildings at the assumed rents and may be particularly challenging for larger spaces like those in Founders Hall. These buildings are also not suitable for residential use and alternative institutional, nonprofit or arts uses are limited and would support substantially lower rents. Potential vacancy in these existing buildings would have a negative impact on other commercial economic development and property values as well as may create attractive nuisances and draw public safety-oriented resources.

The reduction in the number of residential units, combined with the reduced property taxes on the existing buildings which are eligible for the Mills Act, which itself would reduce potential tax income to the City, would result in an estimated $956,000 annual reduction in property tax.

The reduction in the number of residential units from 448 to 307 units will also result in 14 fewer affordable residential units.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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Arts Campus Holdings, LLC (Emerald Fund and Equity Community Builders) 2022a CCA Existing Building Reuse Pro Forma – Return-on-Cost by Building. Copy provided by Project Applicant to LSA.
2022b California College of the Arts, Oakland, CA. Preliminary Development Permit Application.

April 22, 2022. Copy provided to LSA.
2022c CCA Oakland – DRC Presentation Plan Renderings. October 26, 2022. Copy provided to LSA.

Build Group
2020 Estimate Detail – CCA C&S Offices SD. Prepared April 15, 2020. Copy provided to LSA.

City of Oakland
N.d. City of Oakland – Soundness Report Requirements. Electronic document, http://www2.oaklandnet.com/oakca1/groups/ceda/documents/agenda/oak055114.pdf, accessed various. Pages 7-12.
1994 Historic Preservation Element (HPE) of the Oakland General Plan. Adopted March 8, 1994.

Electronic document, http://ohp.parks.ca.gov/pages/1072/files/Oakland.pdf, accessed various.
2016 Designated Landmarks, Heritage Properties, and Preservation Districts. Oakland Planning and Building Department. Electronic document, https://www.oaklandca.gov/topics/historic- preservation, accessed various.
2022 City of Oakland – Demolition Findings for Category II Historic Properties. Electronic document, https://cao-94612.s3.amazonaws.com/documents/oak055114.pdf, accessed various.

Crosby Group and Geosyntec Consultants, Inc.
2017 Draft Soundness Report for General Electric Site, Oakland, California. Crosby Group, Tulsa, Oklahoma and Geosyntec Consultants, Oakland, California.

JLL Valuation & Advisory Services, LLC.
2024a Value and Risk Advisory – Former CCA Site – As Is. JLL Valuation & Advisory Services, LLC., Chicago, Illinois. copy on file at LSA.
2024b Value and Risk Advisory – Former CCA Site – As Proposed. JLL Valuation & Advisory Services, LLC., Chicago, Illinois. copy on file at LSA. National Park Service (NPS) 2017 The Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings.

U.S. Department of the Interior, Washington, D.C. Electronic document, https://www.nps.gov/tps/standards/treatment-guidelines-2017.pdf, accessed various. 1997 National Register Bulletin: How to Apply the National Register Criteria for Evaluation. U.S.

Department of the Interior, Washington, D.C.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

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2019 California College of the Arts Oakland Campus, 5212 Broadway, Oakland. On file at Page & Turnbull, San Francisco, California.

Preview Group
2020 DRAFT Code Analysis Memo Site Accessibility for Public Use CCA Oakland Campus Redevelopment. Prepared April 21, 2020. Copy provided to LSA.

TBD Consultants
2020 California College of the Arts. Oakland Campus Existing Buildings Preliminary Rehabilitation.

Oakland, California. April 17, 2020. Copy provided to LSA.

D EMOLITION F INDINGS FOR C ATEGORY II H ISTORIC P ROPERTIES A UGUST 2024

C ALIFORNIA C OLLEGE OF THE ARTS DEVELOPMENT PROJECT

O AKLAND , ALAMEDA C OUNTY , C ALIFORNIA

P:\20241615 - (AHL2201)_CA_College_Demo_Findings\Report\Category_II_Demolition_Findings_5212_Broadway_City_Review_Draft_(08.29.2024).docx ( 08/29/24) A-1

APPENDIX A

CALIFORNIA COLLEGE OF THE ARTS, OAKLAND CAMPUS EXISTING

BUILDINGS PRELIMINARY REHABILITATION
TBD CONSULTANTS. APRIL 17, 2020

Based on review & analysis of:

Report Prepared for:

ARTS CAMPUS HOLDINGS, LLC
April 17, 2020
California College of the Arts
Oakland Campus Existing Buildings Preliminary Rehabilitation Oakland, California
Concept Documents
more value, less risk
www.tbdconsultants.com

California College of the Arts Concept Documents
Oakland Campus Existing Buildings Preliminary Rehabilitation April 17, 2020 Oakland, California

TABLE OF CONTENTS

CONTENTS

BASIS OF ESTIMATE

KEY CRITERIA

GRAND SUMMARY

BUILD GROUP SUMMARY FORMAT

ELEMENT COST SUMMARY - FACILITIES

ESTIMATE DETAIL FACILITIES

ELEMENT COST SUMMARY B BUILDING

ESTIMATE DETAIL B BUILDING

ELEMENT COST SUMMARY OLIVER

ESTIMATE DETAIL OLIVER

ELEMENT COST SUMMARY TREADWELL

ESTIMATE DETAIL TREADWELL

ELEMENT COST SUMMARY MARTINEZ ANNEX

ESTIMATE DETAIL MARTINEZ ANNEX

ELEMENT COST SUMMARY MARTINEZ HALL

ESTIMATE DETAIL MARTINEZ HALL

ELEMENT COST SUMMARY FOUNDERS HALL

ESTIMATE DETAIL FOUNDERS HALL

ELEMENT COST SUMMARY MACKY HALL

ESTIMATE DETAIL MACKY HALL

Page 1 of 67 ends
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