Delay of Game

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The folks that were planning to make the move into the new Mirabella community that is planned on the big 15 acre site, or Parkview Plaza received a letter a few weeks ago announcing that the project is going to experience a delay for at least a year due to our current economic climate. The sales staff isn’t functioning there anymore and the folks who have made deposits are entitled to change their minds at this point and get refunds.

I guess the cynical part of me thinks, Oh no…is this thing ever going to happen? I really do hope so. It’s understandable that in this environment, obtaining financing and boldly moving forward with projects the size of this one could be delayed. I’ve been on record as favoring this project, it’s going to be great for the community…and I’m tired of that big vacant lot! This artist’s depiction sure makes the project look good, doesn’t it? Anyway, here’s a link to a San Mateo County Times story about this delay:

MirabellaDelay

Comments

  1. Wow, I didn’t know the buildings were going to be that tall.

  2. Jim Minkey says:

    14 stories on the tallest one. More square footage was added to make them profitable for the developer. Pretty wild, huh?

  3. After several delays, let us see what the city officials would say about their decisions. What they are arguing is simply untrue.

  4. Jim Minkey says:

    Not sure what you mean Alex, could you please explain?

  5. “At this point in time I think it’s just another victim of the economic crisis that’s happening. I’m not surprised, given what’s going on out there,” Koelling said. “But I’m not concerned long-term.”

    Remember how much san mateo county is losing from lehman brothers? The county officials still claims that the company is fine until the collapse. But, everyone knows now that Fed prepared the leh’s death since the beginning of 2008.

    I smells that this is the beginning of another victim. But, long-term wise, the project would not make foster city more competitive: do we really miss this at foster city?

  6. This is good news about the delay of the “Mega Plex”. We don’t need it and certainly can’t afford it at this point.

  7. Jim Minkey says:

    In terms of the City “affording” it? They aren’t spending money to have that place on that property … in fact, they stand to earn $2.1 million.

    By the way, the Planning Commission reviewed the financial impact report of the Mirabella project. Net revenue to the City, EXCLUDING the lease income, would be about $100k per year. That uses very conservative figures on sales tax generation.

    I don’t know? Is a vacant lot preferable?

  8. Vacant lot is preferable because it brings opportunity for what might be a better use of the land.

    Seriously how many foster city residents will really benefit from Mirabella? I’m not that old.

    Foster city is financially sound. It does not require so much revenue from this land.

  9. SteveTinFC says:

    That’s not quite entirely true, Lisa. In our now-published 5-year forecast for FY 2009-2010 through 2013-2014, given the economic downturn and the impact it has had on our property and sales tax revenues, combined with the expected increases in employment costs in 2011-12 and beyond, unless this economy rebounds in a remarkable way (which I don’t think any of us expect), we are projecting over a $2 million shortfall per year starting in 2010-2011 over the next five years. This all assumes that we maintain our current levels of service (in other words, we don’t cut staff or services enjoyed by the community at the present time). The forecast also assumes that we do not raise any taxes … sales tax, property tax, utility tax, or transient occupancy (hotel) tax, like so many other cities are doing presently. That forecast also assumes that Pilgrim-Triton and Gilead Sciences projects will move forward based upon their current plans within the 5-year horizon, but does NOT make any assumptions about the Mirabella project moving forward in the next five years (to be conservative).

    So, if the vacant land were to remain as such, the City is projecting over a $2 million annual shortfall starting in FY 2010-2011. We have been very blessed financially based upon sound decisions made by current and former Councilmembers and staff. We have the reserves to weather this economic storm, but the City will need to make sound financial choices in the future, including its choices in the use of its assets.

    The Council will review the 5-year forecast and the preliminary FY 2009-2010 budget at its budget study session on May 11.

    Steve Toler
    Administrative Services Director and Budget Director

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