Palo Alto Daily News
From the article:
The San Carlos City Council voted 4-1 Monday night to sell Wheeler Plaza and some surrounding downtown parcels owned by the city for $1 to a developer who wants to build homes, restaurants and a parking garage there.
The developer, Redwood City-based Silverstone Communities, was selected by San Carlos officials in 2009 to develop the properties.
Mark Sawicki, the city's economic development and housing manager, told the council that although Silverstone expects to make about $72 million from the sale of housing and commercial units, the total development costs will eat almost all of the profit.
If the city doesn't sell the property for $1, "the project would not be feasible," Sawicki said. A staff memo indicates Silverstone expects to net $3,993,282 fee from the development.
The properties Silverstone picks up include a six-unit residential building at 657 Walnut St., a furniture store at 1245 San Carlos Ave., a string of shops at 1249-1265 San Carlos Ave. and a portion of the Wheeler Plaza parking lot.
In return, according to the memo, the city will get a 237-space public parking garage -- 50 more than the 187 at Wheeler Plaza -- an 8 percent share of any profits from the homes and commercial buildings if they exceed a "break-even" threshold, vehicle and pedestrian access improvements, and more than $2 million in revenue from construction-related fees and permits. In addition, the new residences and businesses are expectedto generate more than $100,000 a year in sales taxes, according to the memo.
The development along Walnut Street and San Carlos Avenue would feature 108 condominiums in buildings up to five stories high and 9,855 square feet of retail space.