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Commission debates bonuses and pay‑in‑lieu pricing; staff cites $75,000 per unit benchmark and proposes a working $53.50/ft² pay‑in‑lieu figure
Summary
Staff outlined four bonus programs (public open space, affordable housing, workforce housing, sustainability/LEED) that can yield up to eight bonus floors; the commission discussed a uniform pay‑in‑lieu mechanism and staff’s working methodology with a benchmark near $53.50 per square foot (based on appraiser and market offers) to be refined by further modeling.
Alvarez explained a simplified bonus framework with four public‑benefit categories that together could yield up to eight bonus stories: public open space, affordable housing, workforce housing and sustainability (LEED). He described leverage ratios and said staff intends to allow a unified pay‑in‑lieu mechanism so every property can access bonuses through either on‑site performance or payment into a Public Benefits Trust Fund that the city would create.
Commissioners questioned whether the pay‑in‑lieu price would be attractive or would simply encourage cash payments instead of on‑site public benefits. The city property appraiser provided a benchmark 'dirt cost' of about $75,000 per door; staff and commissioners discussed taking an average with an offer of $52,000 and applying a discount (15% was discussed) leading to a working number near $53.50 per square foot. Multiple commissioners asked staff to model outcomes so the bonus pricing leads to built benefits (workforce/affordable housing, public open space) rather than simply funding.
