The 1.2-acre parcel is located on Mt. Diablo Blvd. between Dewing Ave. and Lafayette Circle. Cortese owns one acre and holds an option for the remaining 0.2 acres. The city council has requested that Cortese meet with the city to talk about a possible public-private partnership that would result in a Downtown redevelopment benefiting both the developer and the public.
Keyser Marston Associates (KMA) analyzed the property for both economic and redevelopment purposes for the city. The firm recommended a mixed-use retail and residential project, including 14,000-sf of retail space and 79-85 apartment units. The project cost was estimated at $23 million.
The public financing involved in the project would include a rebate of the net property tax increment generated by the project, along with assistance with the five affordable housing units in the form of $300,000 from the RDA's Low/Mod Housing fund. The city would also allocate $600,000 from its Public Parking Fund to cover public parking costs and provide funding for a traffic signal.
Critics of the proposal say that while the city needs more housing, it is not economically worthwhile to get it through this project at this price. However the city wants to meet with Cortese and the consulting firm to come up with a plan that offers a greater service to the public at a lower cost. The city has brought up adding a retail building to the project to alter the economic requirements. Cortese has agreed to continue negotiations but no date has been set.
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