A new office building — the piece of the puzzle at Pacific Plaza — should bring in $775,000 annually to the city and create up to 1,000 new jobs, officials said.
The city, which hopes to fill out the redevelopment area along Junipero Serra Boulevard from John Daly Boulevard to near the Interstate 280 overpass, has a draft agreement to sell approximately three acres to Dewey Land Company Inc. to construct a new office building.
The site straddles Westlake Avenue along Junipero Serra Boulevard. The proposal includes 270,000 square feet of Class A office space, 5,000 square feet for retail or commercial space and a parking garage with 775 spaces, said Richard Dewey, president and CEO of Dewey Land Company.
A pedestrian bridge across Westlake Avenue will connect the garage to the second floor of the building, he added.
Mayor Maggie Gomez said the city estimated it would collect an average of $775,000 in annual property tax revenue from the building, which should create 950 to 1000 jobs. The draft agreement also contains provisions requiring prevailing wage for workers and encouraging the hiring of Daly City laborers first, Gomez said. Dewey said the visibility of the site off of Interstate 280, its proximity to the Daly City BART station on John Daly Boulevard and the easy drive time to downtown San Francisco made the site desirable.
<p>”It’s the last site that’s left to develop anything of size and scale like this,” Dewey said.
The building should be LEED certified — meaning it is more environmentally friendly than average buildings — and will hopefully be completed by the end of 2008, he added.
The city sold the site to Dewey for $3,530,000 — $33.66 per square foot of land — after having accumulated the property, which contains buildings that increased the price of the land but will be demolished, in a series of transactions that cost the city $5,035,340, Gomez said.
Some disagreed with the city selling the property for such a low price. Planning Commission member Dana Smith said she was “surprised” by the $33.66-per-square-foot number and was “upset” that the city would even consider selling the real estate for that price.
The building and accompanying parking structure would be the third phase of the Pacific Plaza development, which suffered a setback in May when hotelier B.B. Patel pulled his application for two floors of luxury condominiums at the top of an eight-story hotel.
The city hopes to continue negotiations with Patel, who has been out of the country, on the hotel project soon, said Economic and Community Development Director Terry Sedik.
What’s proposed for Pacific Plaza
Office building (Phase III)
» 270,000 square feet Class A office space
» 775 parking spaces
» 5,000 square feet available for retail or commercial space
» 950-1,000 new jobs to city
» Estimated annual revenue to the city: $775,000
Hotel (Phase II)
» 150 hotel rooms
» 2 restaurants
» 2,000 square feet of retail space
» 12,500 square feet of banquet space
» Estimated annual revenue to the city: $700,000
– Source: City of Daly City
What should Daly City do with its Pacific Plaza development?
Share your comments below.