Gao, Beilei
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Donna Sider
Tuesday, October 21, 2025 3:37 PM
Gao, Beilei; Bert Newton; Anthony Manousos; Jill Shook
Ed Tech submission 10-21-25
Vacancy Tax 10-21-25.0dt
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Hello,
Kindly find written comments attached which I have filled out a speaker card to present.
Thank you,
Donna Sider
for Justice Commission, Pasadena Mennonite Church
1 We disagree with the consultant recommendation to continue the existing inclusionary housing ceiling at 20%. In the years since this was re-visited, housing has become out-of-reach for most. As a city, we can model strengthening inclusionary housing for those costed out. I, too, urge this commission to accept the research findings that 25% is well-within feasible! Vacancy tax is a mechanism in the Housing Element. We have joined this commission in studying how this can aid our affordability crisis. It saddens me to go to the Paseo Mali and see so many empty storefronts. I'd love to see locally owned start-up businesses in this central corridor which looks up to Centennial Square. One reason we see many vacant commercial properties in Pasadena is that commercial owners are leasing at a rate that is too high to make their buildings attractive for local businesses.
Another reason many commercial properties are vacant is that under Prop 13, property taxes are so low they can afford to keep their buildings empty. This is especially true for those who have held onto properties for decades. Prop 13 has disproportionately benefited commercial property owners especially those who have held onto their property for long periods of time.
The State's Legislative Analyst's Office estimates that this commercial property loophole costs California between $8 billion and $12 billion per year in lost revenue. It therefore makes sense to charge commercial property owners a vacancy tax to incentivize them to lower their rent and attract new businesses revitalizing these areas of the city. Oakland has modeled charging business owners, who are unwilling to lower rents, a percentage which is added to an affordable housing fund.