text: The fate of San Carlos' Wheeler Plaza project rests in part with 17 local agencies - Mercury News
  Print Email Font ResizeThe fate of San Carlos' Wheeler Plaza project rests in part with 17 local agenciesBy Bonnie EslingerDaily News Staff WriterPosted:
  02/14/2014 03:00:00 AM PSTSan Carlos is asking 17 local taxing agencies for a big favor.Instead of selling a parcel at 1245 San Carlos Ave. at market rate and divvying up proceeds among them, the city hopes they'll let it give the property to a developer for $1.This isn't any parcel, after all. It was owned by the city's now defunct redevelopment agency and is considered a prime piece of the 2.4-acre Wheeler Plaza redevelopment project. But Gov. Jerry Brown and the Legislature two years ago dissolved all state redevelopment agencies and ordered their funds and sales proceeds to be redistributed to local taxing agencies. So San Carlos cannot sell the parcel for $1 without permission from the 17 local agencies, which include San Mateo County, the Belmont-Redwood Shores School District and the San Mateo County Mosquito and Vector Control District.In making their pitch, San Carlos officials are pointing out that when the Wheeler Plaza mixed-use project is completed, the parcel's worth will be substantially more then than now."The primary argument is, in the long run the taxing entities will make far more money in tax revenue on a project with an estimated value in excess of $75 million to $100 million, for a property that will likely sell for $2 million to $3 million," San Carlos City Manager Jeff Maltbie told The Daily News this week.The 1245 San Carlos Ave. lot, on which an empty furniture store now stands, is part of a package of properties the city council voted in April to sell for $1 to Redwood City-based Silverstone Communities, which plans to build homes, restaurants and a parking garage. In exchange, the city would get a 237-space public parking garage and a possible share of the project's profits.Advertisement
  The new homes and businesses were projected to generate more than $100,000 a year in sales taxes, according to a staff memo.Although the city owns the rest of Wheeler Plaza, the furniture store parcel was purchased by the redevelopment agency.If the 17 agencies sign letters supporting San Carlos' request, the state Department of Finance will permit the $1 sale.If they refuse to go along, Maltbie said he believes that "would have a very good chance of killing the project without that piece of property."Silverstone President John McMorrow echoed that assessment. And buying the property from the city at market value would put a financial burden on the project, he added."It just makes for a bit of an odd-shaped configuration along San Carlos and deletes a fair amount of (housing) units," McMorrow said. "Any additional burden like having to buy the furniture store or having to reduce the number of units, it makes it more difficult to do this project."The city has told the agencies that it needs to receive answers no later than Feb. 20.Email Bonnie Eslinger at beslinger@dailynewsgroup.com; follow her at twitter.com/bonnieeslinger.Print Email Font ResizeReturn to Top RELATED