preservation of employment land item: 4.5 item 4.5 item # 4.5 item 4.5 laurel prevetti, assistant...

Preservation of Employment LandItem: 4.5Item 4.5Item # 4.5

Item 4.5

Laurel Prevetti, Assistant Director

Department of Planning Building and Code Enforcement

The Vital Cycle of San Jose’s Economy

Maintaining a Diverse Economy has been a Long Battle

1991: Industrial Supplier/Services Study

1994: General Plan Update

2000: Economic Base Study

2004: Towards the Future Study; First Employment Lands Framework

2007: Employment Preservation Framework

Future Growth LocationsFuture Growth Locations

Downtown

Transit-Oriented Development Corridors

Specific Plans– South Rincon

– Japantown

– Midtown

– Tamien

– Communications Hill

Job Centers

– North Coyote– Edenvale– Evergreen

Berryessa

Almaden

Edenvale

Evergreen

Cambrian

Alum Rock

237 680

101

85

87

280

880

Coyote

West Valley

Alviso

North San Jose

North San Jose

San Jose has Sufficient Housing Planned: Existing General Plan includes 60,000+ Units*

General Plan Land Use Designation/OverlayAverage Yield

(Housing Units)

Very Low Density Residential (2 Units/Acre) 180

Low Density Residential (5 Units/Acre) 370

Medium Low Density Residential (8 Units/Acre) 1,600

Medium Density Residential (8-16 Units/Acre) 1,200

Medium High Density Residential (12-25 Units/Acre) 1,700

High Density Residential (25-50 Units/Acre) 2,600

Residential Support for the Core Area (25+ Units/Acre) 500

Transit Corridor Residential (20+ Units/Acre) 6,000

Greater Downtown Core Area 8,000

North San Jose Conversion/Overlay 22,150

Specific Plan Areas 19,150

TOTAL PLANNED HOUSING UNITS 63,450

*Does not include potential units in Evergreen, Coyote Valley, or South Almaden Valley

San Jose’s Employment Lands

• Definition: Non-residential designated land supporting private-sector employment

• High Impact: Employment lands provide 60% of City Revenues

• Limited Supply: Only 15% of City land is designated as employment land

13,000

13,500

14,000

14,500

15,000

15,500

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Since 1990, San Jose has Converted 9%of all Employment Lands

Conversion rate nearly doubled in recent period:

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1990-2000: 68.6 ac/yr2001-2006: 119.7 ac/yr

Total Converted Acreage 1,400

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150

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Industrial Park Light Industrial CombinedIndustrial/Commercial

Campus Industrial Heavy Industrial

Land Type

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San Jose has lost over 1,400 acres of Employment Land since 1990

40,000 to60,000 jobs

Lost Job Capacity: 68,000-110,000 jobs

10,000 to15,000 jobs

10,000 to15,000 jobs

3,000 to5,000 jobs

5,000 to15,000 jobs

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San Jose Remains the Valley’s Bedroom Community1990 2000 2005 2010*

.78 .96 .90 .83

Average: 1.19

* Source ABAG Projections 2007

Progress lost in recent period:(San Jose Jobs per Employed Resident)

Jobs per Employed Resident (2005)

San Jose’s Revenue per Capita* Among Lowest in Region and State

*General Fund Revenues (property, sales, utility taxes, etc) Source: Individual City Budgets FY 06/07

$2,076

$1,794

$1,221$1,118 $1,094 $1,091

$876 $850

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Less Employment Land Equals Revenue Shortfalls

Projected General Fund Budget Surplus/Deficit 2006-2007

Surplus (2.5%)

Surplus (1%)

Balanced (0%)

Balanced (0%)

Deficit (-3.5%)

Revenues from Various Land UsesOne Acre of

Residential UseAssessed

Value

Property Tax to

City/UnitSales

Tax/ UnitUtility Tax

Total Annual

Revenues

Single Family (7 units) $1,400,000 $1,750 $246 $267 $ 15,841

Condominiums (20 units) $700,000 $875 $123 $276 $ 25,480

Apartments (30 Units) $400,000 $500 $123 $184 $ 24,210

Hi-Rise Condominiums (150 Units) $540,000 $675 $170 $184 $ 154,348

One Acre of Employment Use

Assessed Value

Property Tax to City Sales Tax

Utility Tax

Total Annual

Revenues

Office Tower (1 acre of site) $30,000,000 $37,499 $5,000 $21,000 $63,499

Auto Dealer $1,300,000 $1,625 $90,250 $1,250 $93,125

Neighborhood Retail $1,200,000 $1,500 $5,553 $821 $7,873

Large Format Retail $1,700,000 $2,053 $65,000 $3,000 $70,053

**Employment lands generate significantly more revenue than residential uses (<55 Units/Acre)

Framework for the Preservation of Employment Lands (2007)

• No Net Loss of Heavy and Light Industrial Acreage

• Retain Citywide Job Capacity

• Maintain Employment Lands for Non-Residential Uses

Discourage Conversion in Key Employment Areas

Framework for the Preservation of Employment Lands

Opportunities for Action

• Link with “sustainability” objectives

• Foster green businesses

• Encourage a real mix of uses at transit

• Facilitate regional solutions

• Enhance political will