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Attachment 22Joel Paulson iffilIMICSISEIZZABIT From: Pam Winkleman <pam@winklemandesigns.com> ;ent: Friday, May 31, 2013 10:12 PM To: Council Subject: Please support the Netflix expansion I couldn't agree more with the Editorial piece in the Mercury news: "This plan falls short of what the region needs to concentrate jobs at transportation hubs, preserve the natural environment everyone values and prevent costly and ugly urban sprawl. But it is far better than the dinosaur of a one- and two-story office park that's there now. The new buildings will leave more open land and will be energy efficient. Opponents argue that this threatens the town character. Oh, please. It's nowhere near downtown, and Netflix's current campus across the freeway is about the same height. There are some very smart people on the Los Gatos council, and we hope they prevail Monday. If not, we hope San Jose does salvage Netflix's new jobs -- but the embarrassing tale still will have business recruiters gloating in Austin, Boston and Denver. Who could blame them? " Respectfully, Pamela Winkleman, Mother of twins entering LGHS in the fall. Our town needs the revenue, our schools need the money. i ATTACHMENT 2 2 Joel Paulson From: Sent: To: Subject: William von Kaenel <wvonkaenel@gmail.com> Friday, May 31, 2013 10:16 PM Council Approve the Netflix project! Dear Council -- If a Nasdaq 100 firm wants to set up shop in Los Gatos, you let them. Does Cupertino shoo Apple? Mountain View Google? Palo Alto HP? I don't think so If Netflix is sent packing to some other lucky city, it is going to be remembered come election day. William and Lynn von Kaenel 34 Filimer Ave Los Gatos, 95030 Joel Paulson From: ,ent: To: Subject: Derik Benson <DBenson@ctbt,com> Friday, May 31, 2013 10:50 PM Council Please Support the Netlix Expansion I am a commercial real estate broker and a local resident. I live very close at 17170 La Rinconada Drive. This project is needed for our community and our schools. Please support this project. I will be very disappointed with our local leadership if this fails to pass as this is good for everyone. The few residents opposing it are too short sited to see the benefit for the community and probably don't even realize this will actually increase their property values as there are many high paying jobs that will want to live right by their work. In the long run even those against it will be so grateful to see this happen and we need our community leadership to step up and see to it that it does happen. Thanks for your support, Derik Derik Benson Partner Cassidy Turley 300 Santana Row, Fifth Floor, San Jose, CA 95128 D 408.436.3670 0408.615.3400 M 408.568.0325 F 408.615.3444 derik.bensonctbt.com www.ctbt.com vcard CA License 01182654 Profile Listings r;assi Turley iClilf .149Li, {:CtWkX7s Cassidy Turley Northern California If you need to send me a file larger than 10M please use this link 1 Joel Paulson From: Richa Kamal <richa.kamal@gmail.com> Sent: Friday, May 31, 2013 10:50 PM To: Council Subject: Netflix expansion My sincere request for the council to approve the Netflix expansion. It makes every sense for our community. Thanks, Richa 1 Joel Paulson BMW cram: ,ent: To: Subject: Los Gatos Town Council Mark Youngblood <m,youngblood@comcast.net> Saturday, June 01, 2013 12:03 AM Council Please Vote "YES" to keep Netflix in L.G. Please vote for the future of Los Gatos, pass the Albright project, and keep Netflix here where they belong. Star Trek has a saying, "The needs of the many out weights the needs of the few"! Yes, this may inconvenience a few people who have chosen to live near an industrial zone, but it will benefit all of the people who choose to live in Los Gatos. Not only providing jobs, and money, but most importantly helping educate out children! If for no other reason than that, you should pass this project! The LGEF can only raise so much money, and it is already being put to good use, which is one of the reasons out schools, our teachers, and our kids are doing so well! Please vote "Yes" for this project! I want Netflix employee to move to Los Gatos, send their kids to our schools, and contribute to LGEF too. Maybe they will buy the Charter Oaks houses from the people that are opposed to this project, since they would be so close to their work! I bet they would be willing to pay good money for them too, enough so those people could afford to move away from an industrial zone. One mans trash is another mans treasure! Different strokes, for different folks! After all real estate really is a personal value about Location, Location, Location!!! The Charter Oaks folks probably got a good deal on the purchase of their house when they bought, because it is right next to an industrial zone. I wonder if they have considered that their property values could actually improve with the passage of this project, because it would be a very desirable location for Netflix employee to live! Please vote "Yes" and help guide Los Gatos in the smart, right direction! Thank You for taking the time to read my email before you vote! ,ark Youngblood Sent from my iPhone 1 Joel Paulson From: Kdaboll <kdaboll@aol.com> Sent: Saturday, June 01, 2013 7:43 AM To: Council Subject: Approve Albright I am writing to implore you to approve Albright. Netflix has proven itself to be a solid corporate citizen. The ability to bring in solid funds to our schools without increasing the student population is absolutely critical to the success of our town and our children. This is not inviting anything into our town but an established partner who has already contributed to Los Gatos' health and vitality. You must approve Albright!! Karen Daboll 703.869.5928 i Joel Paulson From: Sent: To: Subject: Dear Town Council Member, Nancy Field <field_nancy@yahoo.com> Saturday, June 01, 2013 8:47 AM Council Please approve Netflix expansion Will our Town move forward, and approve the Netflix expansion, or will we deny the project, lose revenue, and send a message to future businesses that Los Gatos is not a good place to call home? When I told my teenage son that the Town Council was considering denying Netflix their project (at the edge of town, near two major thoroughfares) he was incredulous. I had a hard time explaining to him the Council's opposition, and we are former residents of Charter Oaks, so we know the area well. Please approve the Netflix project. The Town has enough nail and beauty salons and it is time to move forward. With my thanks for your time and consideration, Sincerely, Nancy Field 1 From: Sara Morabito [samorabito@yahoo.com] Sent: Saturday, June 01, 2013 9:51 AM To: BSpector; Steve Leonardis; Marcia Jensen; Diane McNutt; Joe Pirzynski Subject: Town Council: Vote against Albright project! On May 9, 2013 I sent a letter to you asking (begging) you to vote against the Albright project. Today, I am doing the same. Because the vote did not occur on that evening and was moved to June 3, I am resending my letter to you with a plea - Vote Against the Albright Project. Please put the People in our darling Town first and the Developers last. There is a right and a wrong way to grow but this project profits one person and hurts hundreds of tax paying residents. Here is a copy of the letter sent to you on Wednesday, May 8, 2013. My neighbor, Janis Ratcliffe at 117 Charter Oaks Drive, joins me in this plea. A special plea to the Town Council regarding the Albright Office Park Impact on the Charter Oaks Community off of Lark Avenue. Please, please, Town Council, vote against the huge development plans of the Albright Office Park on Winchester Blvd. I have owned a home here at Charter Oaks for two decades - Janis for several years - and love living here. My neighbors feel the same way about our community. The traffic congestion in the last few years has become horrible, and the thought of more traffic and a changing landscape is something that should be stopped. Right now! Can you imagine opting to live in a lovely, quiet, rural atmosphere and find that years later - especially after your retirement - that your community would be surrounded by tall buildings and heavy traffic congestion? What is happening to Los Gatos? Do we want to be another San Jose? With tall businesses and condos? No! We do want to keep the country feeling that comes with open space and our Los Gatos Creek Environment. Please stop the Albright Office Park now! Let's become the town we were once known to be and not a fringe of an industrial park. Please, please, Los Gatos Town Council, especially our Mayor and those Council Members that love our area as we do, please vote against the Albright project and its tall buildings. Please place the residents of our special town first. Yes, we plan to be at the Council meeting on June 3, 2013. Sincerely, Sara A. Morabito, 120 Charter Oaks Circle and Janis Ratcliffe, 117 Charter Oaks Circle, Los Gatos. Joel Paulson From: :ent: To: Subject: Julie Jenkins <jco-jco@comcast,net> Saturday, June 01, 2013 10:00 AM Council PRO Albright Project To Madam's and Sir's, We are PRO Albright project. The schools need it, the town needs it, and we need it. My husband is CEO of Barracuda, and they have been looking for real estate for nearly a year. The mayors of San Jose, Santa Clara, and Campbell are all vying for Barracuda to relocate to their towns. We live on Kennedy Court, and 5 of the 6 founders are Los Gatos residents. We encourage you to pass this measure Monday evening. Fondly, Julie and BJ Jenkins 102 Kennedy Court Joel Paulson From: Sent: To: Subject: Dear Town Council Members - Michael Hart <themichaelhart@gmail.com> Saturday, June 01, 2013 10:25 AM Council Allow the Netflix Campus Expansion I'm writing to express my family's support for the Netflix campus expansion that you'll be deciding on this Monday night. While one has to acknowledge the minor neighborhood impact the expansion will have to the existing office park at that location, that has to be taken in context of the significant tax revenue that Netflix provides our community today and the even larger amounts the growing company will provide in the future. I'm sure you're all aware of the difficulties in finding new sources of tax revenue to fund our schools. Losing this important source of revenue from a vibrant community corporate citizen by denying the necessary campus expansion would be the wrong decision to make at this time. Regards, Michael Hart Los Gatos Resident 18800 Favre Ridge Rd. 1 Joel Paulson rrom: ,ent: To: Subject: Dear Los Gatos Council: David Kay <david@dbkay.com> Saturday, June 01, 2013 10:30 AM Council The planned Netflix expansion I'm writing as a resident to hope you approve Netflix's planned campus expansion. Netflix is not only a source of revenue for us; it's a source of pride. When I travel, I mention that my home town is home to Netflix when I see the red envelopes or hear people talking about it, They've done a nice job with the current campus, and I trust they will with the planned expansion. I do go through the 85 / Lark interchange from time to time, and I'm willing to accept that there might be marginally more congestion there. I hope you vote to keep Netflix here. Thanks, David David Kay 8275 Knuth Road Js Gatos, CA i Joel Paulson From: Sent: To: Subject: Dear City Council, Lael <laelbeer@gmail.com> Saturday, June 01, 2013 11:06 AM Council Pro Albright Project My name is Lael Beer and my family live in LG on Kennedy Court. I am writing to you today to voice our support for the development project. It is important to LG & must be approved. Sincerely Lael Beer Sent from my iPhone 1 Joel Paulson from: lent: To: Subject: Dear Council, Carol Peske <peskes@comcast.net> Saturday, June 01, 2013 12:04 PM Council IN SUPPORT OF NETFLIX We FULLY SUPPORT the expansion of Netflix in Los Gatos. It would be foolish to deny this valuable member of our community the right to expand the business that has brought much revenue and validity to our community. We feel that the neighbors' objections are not valid and it is not worth losing Netflix over this dispute. We know that in the end you will do the right thing. Sincerely, Carol and Richard Peske 1 Joel Paulson From: Sent: To: Subject: Dennis Chambers <Dennis.Chambers@ctbt.com> Saturday, June 01, 2013 1:51 PM Council Net Flix The good reasons outweigh the bad. "Just clo it". Vote yes please! Do what's best for the Town. Dennis and Heather Chambers, 361 Pennsylvania Ave. From: John Shepardson [shepardsonlaw@me.com] Sent: Saturday, June 01, 2013 7:31 PM To: Council; BSpector; Steve Leonardis; Marcia Jensen Subject: Albright Dear Madam Mayor Spector and Council Members: I offer the attached letter for your consideration. John:) JOHN A. SHEPARDSON, ESQ. 59 N. Santa Cruz Avenue, Suite Q Los Gatos, CA 95030 T: (408) 395-3701 F: (408) 395-0112 LAW OFFICES OF JOHN A. SHEPARDSON 59 N. Santa Cruz Ave, Ste. Q Los Gatos, CA 95030 Tel (408) 395-3701 Fax (408) 395-0112 June 1, 2013 ISSUE PRESENTED What is best for the Town of Los Gatos regarding the Albright land use decision before the Town Council on June 3, 2013? ARGUMENT SUMMARY There is a much better way. The developers' proposal is too big. 350K sq. ft. is the environmentally superior alterative, and is feasible. ARGUMENT The Council should reject the project as proposed, and to suggest to the developers that they return with a plan that is in keeping with the EIR preferred 350K sq ft. alternative, and the General Plan 35-ft. maximum height limit. The reasons for this conclusion are: 1) EIR says 350K best for Environment. The Town's court -ordered EIR report states that the environmentally superior alternative is a build out at 350K sq. ft. This option best meets the Town's General Plan sustainability and environmental goals. A number of experts approved the report, and the developer does not contest this pivotal finding. 2) The 550K sq. ft environmentally inferior alternative. In addition to affirming 550K provides less protection for the environment, the EIR assumed the VTA will extend the light rail system to Los Gatos. However, the VTA extension is presently estimated to cost $175M, and there is no funding for it. Moreover, anticipated ridership for the extension is projected to be very low according to a local news article: VTA light -rail extension to Los Gatos: 0.75 million fop• 200 new riders Still, he conceded the VTA board is not locked into the project and the rider estimates are at the "forefront" of their minds. "There are some who say, 'If you build it they will come,' but, at the same time, that can't be a wish. It has to be validated," Pirzynski said. "I do believe that we have to be realistic in our evaluation and take a long, hard look at the benefit." (emphasis added) The Los Gatos line would feature fewer riders per mile than 13 of 14 Tight -rail extensions proposed around the nation, according to statistics compiled by San Francisco Muni. Only a line in Salt Lake City would have fewer passengers...The VTA's estimates show that from 2015 to 2035, the Los Gatos leg would carry an additional 430 one-way riders daily, or 215 people taking roundtrips. That's 0.007 percent of the town's population." http://www.mercurynews.com/traffic/ci 22082567/vta-light-rail.. extension-Ios-gatos-175-million) (emphasis added) Given these realities, it seems it would be unwise to give much weight to the VTA extension. The premise that if a larger project is built, that the line will be extended, contains too much risk of error. As Council Member Pirzynski states, the project approval can't be based "on a wish", and must be "validated". To assume otherwise would be contrary to the General Plan standard to act with "extreme care". 3) 550K Not Compatible. The General Plan requires the development be compatible with the existing surroundings. The project is not compatible with any of the surrounding properties. It is my understanding the existing Netflix buildings average height is 43 feet, 22 feet lower than the proposed 65-feet. OFFICE (2) 53'11" MAX E/W CROSS SECTION 44' MAX N/S CROSS SECTION ROOF 37'6" ROOF -TWO STORY 49'6" ROOF -THREE STORY 60' TOWER ELEMENT APARTMENTS 2 36' - 40' ROOF RIDGES 46' - 51' TOWER ELEMENTS (Sources: Lee Quintana & Plans approved by TO 4/23/2004) Moreover, the other closer properties are much lower than 43-feet high, and contain single-family 1 and 2-story homes, and 2-story commercial buildings. 3) Direct Entrance/Exit. The traffic impact could perhaps be greatly mitigated with a direct entrance off of the southbound Hwy 85 freeway off - ramp. The developer should have explored this alternative, which is something that apparently is possible, if third -party approval is sought. 4) Underground Parking. Google and Safeway provide it, why can't these developers? Commissioner Talesfore suggested underground parking which would create more open space, less intrusive to the nearby homes, and reduce headlights into the riparian corridor. 5) A drive on 85. There is no question the building adjacent to 85 will tower over the roadway, and block view sheds of the mountains. is that what we want? Is that Los Gatos? Do we want to be like Mountain View, Santa Clara, and San Jose? Once they views are gone, they won't be coming back, and the green mountains are a significant part of the magic of Los Gatos. 6) "City" Lighting. The 65-foot tall buildings at night will create "city - like" lighting structures inconsistent with the treasured small-town character of Los Gatos (cited 18 times in the General Plan). Noticeably absent from the developers is any presentation of what the buildings will look Like at night. 7) Where's are the Buildings? Can anyone honestly say they can visualize what the buildings will look like from the Cherry Pickers? These savvy developers no doubt engaged in their minimalist approach to visual indicators of the size and mass of the buildings because they realized the public would rise up against the project if they had provided a meaningful full disclosure. If public sentiment supported the size and mass, the developers would naturally net all the buildings with banners calling for calls to the Town Council Members to approve the project. 3 8) "Los Gatos is a town of compromise." Commissioner Talesfore. In response to inquiries from both Commission members and the Council, the developers have made it clear that they refuse to compromise, and that suggests Los Gatos must bend to their demands, which is troubling, and poor precedent. Use of school funding to drive a development inconsistent with the Town's standards fosters a double standard application of the General Plan, which is expressly prohibited by it: + Consistent and resolute enforcement of the General Plan, specific plans and the Town code. (emphasis added) 9) Dependency. The size of the project promotes a dependency for revenue on a single source, which is contrary to the General Plan, and undermines Los Gatos's small-town and independent character. Pro Albright supporters' speeches for maximizing school revenue carries with a huge cost: Dependency on the source for funds. If funds are desperately needed as they suggest, what happens if the owner threatens to leave if further concessions down the road are not made by the Town. Why would we make our Town more vulnerable to the demands of a single property owner? If car dealers can leave Town based on their own business interests, so can't hi -tech companies? 10) Planning Commission. The Planning Commission is composed of experts on Los Gatos Land Use. They voted 4-3 against the 65 ft tal1/550K sq. ft. proposal, and their recommendation should be afforded substantial weight. 11) For .08%. The developers' primary basis for rejecting the environmentally superior option of 350K sq. ft. is feasibility. The projected rate of return by EPS for 350K is 6.3%, and less 1 % more for 550K, 7.1%. First, 6.3% is a favorable rate of return, even if not within EPS's typical threshold of 7 to 9%. Two, the Netflix lease appears to be generating a 7- 8% return ($46.11 sp. ft. x 350K =$16M divided by development costs of $200M = 8% rate of return —no vacancyfactor since Netflix is taking the entire building). Third, EPS's assessment is based in part on the developers' costs, and is probably actually lower than provided to EPS. Fourth, the Carlyle Group, a $157B private equity firm would naturally only invest if their financial analysis projected a rate of return well exceeding 7.1% for 550K, and is probably in the double digits. Five, we have not been 4 provided Carlyle's projections or Sand Hill's. No doubt Carlyle did far more analysis than EPS before it invested in this project. Since the rate of return most probably well exceeds 7-9%, the developers' excuse for rejecting 350K does not appear credible. Six, to the extent that the developers failed to undertake an EIR at the outset, and did not bring a project in keeping with the Town's General Plan, which caused its own development costs to increase, they are entirely responsible for that action. The Town should not pay for their mistakes in underestimating the importance of the EIR report in Los Gatos for such a large project (550K = 18.333 x the size of the new Los Gatos Library, which is 30K sq. ft.). 12) 350K Fits Netflix. 350K sq. ft. would provide ample room for Netflix to expand to. They are only in contract for 137.5K sq. ft. 13) Underestimated Traffic & Parking. The developers' proposal will most probably generate more car trips than identified because of the "Google Effect". Additionally, the parking based on 3.3 persons/thousand sq. ft. is insufficient, since the actual office usage will probably be double that number. The developers' traffic expert admitted in response to Commissioner Sayoc's question, that they had no local traffic data to present, which was a glaring omission in the presentation. 14) Winchester Blvd. Main Artery Clogging Up. Residents in Charter Oaks, Courtside, Smith Ranch will not be the only ones impacted. A substantial portion of Town residents residing in other areas will suffer the increased traffic because Winchester Blvd. is a main point of entry and departure for Town access. 15) Los Gatos has unique character, charm, calm, public safety, location in Silicon Valley, and desirability. Class A, 35-foot tall buildings or can attract a number of high paying tenants that generate rents higher than a single tenant. 16) Sand Hill's Shaky Track Record. The past performance of developer Sand Hill Properties is reason to pause. Although its website touts a number of projects it has built, it has engaged in troubling actions: Litigation in Sunnyvale, the 4-year delay in building the Gateway project in Los Gatos, the over 5-year delay in building the Swanson project, and its listing the Albright project as a "Stabilized" project on its website. 5 15) Why use Money and Intimidation? Money for schools is not expressly identified in the General Plan. The General Plan prohibits Increasing the tax base as the sole justification for project approval. Nevertheless, the most repeated message from the developer and project supporters is expanding the tax base to support the schools. "This improved tax base is what the school districts can use to support their bonds and improve their bonding capacity, which will directly help them provide the educational environment the community seeks," Shenk said. (http://www.mercurynews.com/business/ci_22256769/netflix-signs- lease-new-albright-way-development) One supporter has publicly stated that she and her group are "watching" you, a kind of veiled threat, that if you don't vote their way, you will be targeted for removal from office. The intimidation tactic underscores the weakness in the merits of the 65 ft. tal1/550K sq. ft. proposal. 17) Differential Income Benefit. The differential in income to the schools between 350K and 550K is $510K ($1.4M $890K). With 5,000 students, that equates to additional revenue of $100/student. Is this additional benefit (assuming full build out), worth the adverse impacts? 18) Don't Reward Violations. If school money is allowed to drive the decision -making on this project, and General Plan standards violated, then we only "feed the beast", and naturally more developers will follow suit. On the other hand, if we hold true to our standards, this will encourage more reasonable, high -quality proposals for projects worthy of Los Gatos. CONCLUSION ELEGANT SOLUTION: LOTS OF GREEN. 35 ft. tal1/350K sq. ft. is a fit within the Town's standards, best for the environment, the schools get $890K, and the developers make good money. Win -Win -Win. 65 ft. tall/550K sq. ft. is outside our General Plan standards, inconsistent with our vibrant and cherished small-town character, substantially increase traffic, damage vistas, increases dependency, and sends the message, that irrespective of the General Plan, that tall structures may be coming to your front or backyard next. 6 The developers have effectively roused emotions for parents to demand 65 ft. tal1/550K sq. ft. to maximize revenue to the schools. I and others in opposition to the developers' proposal support our great schools too! I volunteered several years at Lexington (Sam Bowers, our young local film maker, was one of my students) coached youth basketball in the LG Rec. league and for Fisher Middle School, and did many things to benefit the schools while in the Lions Club. Maximizing school revenues is important, and not our only consideration. We must guard against "tunnel vision" on a single consideration. When the incremental monies are weighed against the other multiple and major adverse impacts, it is simply not worth the short-term and long-term damage to the Town. Now is when strong leadership is required to look to the long-term. You are entrusted to protect the gem that Los Gatos is. In time of large public group anger for immediate gratification, calm, balanced and reasoned decision -making is all the more important, to protect the entire Town, and represent all of its citizenry. We want consistent application of the General Plan, protection for Los Gatos's small town character, Netflix to stay and thrive, and the school money to flow. Please deny the project as presented, and suggest the developers return with a project smaller in height and mass as indicated in the EIR, and consistent with the General Plan and Town's Character. You have been entrusted with the discretion to do what is best for the Town, and I thank you for considering my views, as you continue the preparatory work, to exercise that discretion. Yours truly, John A. Shepardson, Esq. 59 N. Santa Cruz Ave., #Q Los Gatos, CA 95030 (408) 395-3701 E Shepardsonlaw@me.com Joel Paulson From: :ent: To: Subject: deborah_robinson@comcast,net Saturday, June 01, 2013 9:38 PM Council Albright Project Dear Town Council Members, As Los Gatos residents living in the La Rinconada neighborhood, we are very concerned about the potential negative impact of the proposed Albright project, in particular the amount of traffic it will generate. The intersections at Lark and Winchester, including the new signal lights at Lark and University are already creating an series of delays through the local area. We fear what may come once the North 40 project is completed and urge you to reduce the height and density of the buildings in the Albright location. Please help us to protect our corner of Los Gatos! Sincerely, Deborah Robinson and Jonathan Pickering 14703 Eastview Drive, Los Gatos, CA 95032 1 Joel Paulson From: Sent: To: Subject: Dear Town Council, David Bohn <bohndave@gmail,com> Saturday, June 01, 2013 1116 PM Council Please Approve Albright I was in the last meeting and had my name submitted to speak in support of the Albright project, Unfortunately, we ran out of time at the last meeting and my name was moved to speak Monday evening, June 3. I will be unable to attend this meeting so please accept this email as my statements of approval for the project. I lived on Willow Hill Ct in Charter Oaks from June 2006-April 2012. I was very involved in the original proposal of the Albright project and approved that one as well. Keep in mind that at the time I had no intentions of selling. We only moved due to a buyer making an offer on our town home while off the market , We did buy another home in Los Gatos, This current Albright project seeking approval is even better than the original in terms of the low impact to Charter Oaks (I would still argue the original plan was better for every one, but this current plan is a good second choice). I lived in 307 Willow Hill Ct which backs up to the current old industrial buildings which are right next to the property line. The current old industrial buildings look awful and really makes you feel boxed in. I am shocked that the Charter Oaks residents are not saying "Thank you for wanting to improve the current eye sores by removing the old industrial buildings, Thank you for wanting to improve that property, Thank you for increasing our property values, and Thank you for making the Town of Los Gatos a better place to live." The new structures will be placed much farther from the Charter Oaks development. Should 35' buildings be built on the Albright site those buildings would be able to be built even closer to the property line than what the current proposal is asking due to set back codes which allows buildings to be closer to the property line if the building height is lower. What many of the current Charter Oaks residents are asking for (to keep the new buildings to 35') will be worst for their privacy, views, and property values, If you look at the data of projects like these going in in other cities/towns you will note that the value of the properties that surround it always go up, We must develop and beautify some of the old structures/property in a smart and responsible way (such as the Albright proposal) to help continue to improve our Town's integrity / beauty, and assist our great schools and local businesses. PLEASE APPROVE THE ALBRIGHT PROPOSAL. Thank you for your time and consideration. Dave Bohn 408-320-7499 i Joel Paulson crom: Robert Schwimmer <bobn3faw@sbcglobal.net> ,ent: Sunday, June 02, 2013 12:36 PM To: Council Subject: Asking Council to send the Albright Proposal back to Developer for redeign to conform to General Plan Attachments: LG-TCletter,pdf Dear Mayor Spector and Council Members, June 2, 2013 I am confident that you have seen John-Shepardson-Esq.'s June lst very thorough and convincing arguments. If not, please refer to the attachment to this email. I could have reprinted them here, but have not done so, in respect for your valuable time. John has done an excellent job to present the objections that we also strongly believe. As a dedicated Los Gatos (7 year) home owner (Charter Oaks), I ask you to reject the Shenk proposal for Albright Way, in his present configuration. The Moneyed Outsiders and the LG people they have convinced are apparently not sufficiently concerned with the best long term interests for Our Unique Town We are and we know you are. incerely, Robert Schwimmer 200 Charter Oaks Circle i LAW OFFICES OF JOHN A. SHEPARDSON 59 N. Santa Cruz Ave, Ste. Q Los Gatos, CA 95030 Tel (408) 395-3701 Fax (408) 395-0112 June 1, 2013 ISSUE PRESENTED What is best for the Town of Los Gatos regarding the Albright land use decision before the Town Council on June 3, 2013? ARGUMENT SUMMARY There is a much better way. The developers' proposal is too big. 350K sq. ft. is the environmentally superior alterative, and is feasible. ARGUMENT The Council should reject the project as proposed, and to suggest to the developers that they return with a plan that is in keeping with the EIR preferred 350K sq ft. alternative, and the General Plan 35-ft. maximum height limit. The reasons for this conclusion are: 1) EIR says 350K best for Environment. The Town's court -ordered EIR report states that the environmentally superior alternative is a build out at 350K sq. ft. This option best meets the Town's General Plan sustainability and environmental goals. A number of experts approved the report, and the developer does not contest this pivotal finding. 2) The 550K sq. ft environmentally inferior alternative. In addition to affirming 550K provides less protection for the environment, the EIR assumed the VTA will extend the light rail system to Los Gatos. However, the VTA extension is presently estimated to cost $175M, and there is no funding for it. Moreover, anticipated ridership for the extension is projected to be very low according to a local news article: VTA light -rail extension to Los Gatos: $175 million for 200 new riders Still, he conceded the VTA board is not locked into the project and the rider estimates are at the "forefront" of their minds, "There are some who say, 'If you build it they will come,' but, at the same time, that can't be a wish. It has to be validated," Pirzynski said. "I do believe that we have to be realistic in our evaluation and take a long, hard look at the benefit." (emphasis added) The Los Gatos line would feature fewer riders per mile than 13 of 14 light -rail extensions proposed around the nation, according to statistics compiled by San Francisco Muni. Only a line in Salt Lake City would have fewer passengers... The VTA's estimates show that from 2015 to 2035, the Los Gatos leg would carry an additional 430 one-way riders daily, or 215 people taking roundtrips. That's 0.007 percent of the town's population." http://www.mercurynews.com/traffic/ci 22082567/vta-light-rail- extension-los-gatos-175-million) (emphasis added) Given these realities, it seems it would be unwise to give much weight to the VTA extension. The premise that if a larger project is built, that the line will be extended, contains too much risk of error. As Council Member Pirzynski states, the project approval can't be based "on a wish", and must be "validated". To assume otherwise would be contrary to the General Plan standard to act with "extreme care", 3) 550K Not Compatible. The General Plan requires the development be compatible with the existing surroundings. The project is not compatible with any of the surrounding properties. It is my understanding the existing Netflix buildings average height is 43 feet, 22 feet lower than the proposed 65-feet. OFFICE (2) 53'11" MAX E/W CROSS SECTION 44' MAX NUS CROSS SECTION ROOF 37'6" ROOF -TWO STORY 49'6" ROOF -THREE STORY 60' TOWER ELEMENT APARTMENTS 2 36' •• 40' ROOF RIDGES 46' - 51' TOWER ELEMENTS (Sources: Lee Quintana & Plans approved by TC 4/23/2004) Moreover, the other closer properties are much lower than 43-feet high, and contain single-family 1 and 2-story homes, and 2-story commercial buildings. 3) Direct Entrance/Exit. The traffic impact could perhaps be greatly mitigated with a direct entrance off of the southbound Hwy 85 freeway off - ramp. The developer should have explored this alternative, which is something that apparently is possible, if third -party approval is sought. 4) Underground Parking. Google and Safeway provide it, why can't these developers? Commissioner Talesfore suggested underground parking which would create more open space, less intrusive to the nearby homes, and reduce headlights into the riparian corridor. 5) A drive on 85. There is no question the building adjacent to 85 will tower over the roadway, and block view sheds of the mountains. Is that what we want? Is that Los Gatos? Do we want to be like Mountain View, Santa Clara, and San Jose? Once they views are gone, they won't be coming back, and the green mountains are a significant part of the magic of Los Gatos. 6) "City" Lighting. The 65-foot tall buildings at night will create "city- like" lighting structures inconsistent with the treasured small-town character of Los Gatos (cited 18 times in the General Plan). Noticeably absent from the developers is any presentation of what the buildings will look like at night. 7) Where's are the Buildings? Can anyone honestly say they can visualize what the buildings will look like from the Cherry Pickers? These savvy developers no doubt engaged in their minimalist approach to visual indicators of the size and mass of the buildings because they realized the public would rise up against the project if they had provided a meaningful full disclosure. If public sentiment supported the size and mass, the developers would naturally net all the buildings with banners calling for calls to the Town Council Members to approve the project. 3 8) "Los Gatos is a town of compromise." Commissioner Talesfore. In response to inquiries from both Commission members and the Council, the developers have made it clear that they refuse to compromise, and that suggests Los Gatos must bend to their demands, which is troubling, and poor precedent. Use of school funding to drive a development inconsistent with the Town's standards fosters a double standard application of the General Plan, which is expressly prohibited by it: 0 Consistent and resolute enforcement of the General Plan, specific plans and the Town code. (emphasis added) 9) Dependency. The size of the project promotes a dependency for revenue on a single source, which is contrary to the General Plan, and undermines Los Gatos's small-town and independent character. Pro Albright supporters' speeches for maximizing school revenue carries with a huge cost: Dependency on the source for funds. if funds are desperately needed as they suggest, what happens if the owner threatens to leave if further concessions down the road are not made by the Town. Why would we make our Town more vulnerable to the demands of a single property owner? If car dealers can leave Town based on their own business interests, so can't hi -tech companies? 10) Planning Commission. The Planning Commission is composed of experts on Los Gatos Land Use. They voted 4-3 against the 65 ft tall/550K sq. ft. proposal, and their recommendation should be afforded substantial weight. 11) For .08%. The developers' primary basis for rejecting the environmentally superior option of 350K sq. ft. is feasibility. The projected rate of return by EPS for 350K is 6.3%, and Tess 1% more for 550K, 7.1%. First, 6.3% is a favorable rate of return, even if not within EPS's typical threshold of 7 to 9%. Two, the Netflix lease appears to be generating a 7- 8% return ($46.11 sp. ft. x 350K =$16M divided by development costs of $200M = 8% rate of return —no vacancyfactor since Netflix is taking the entire building). Third, EPS's assessment is based in part on the developers' costs, and is probably actually lower than provided to EPS. Fourth, the Carlyle Group, a $157B private equity firm would naturally only invest if their financial analysis projected a rate of return well exceeding 7.1% for 550K, and is probably in the double digits. Five, we have not been 4 provided Carlyle's projections or Sand Hill's. No doubt Carlyle did far more analysis than EPS before it invested in this project. Since the rate of return most probably well exceeds 7-9%, the developers' excuse for rejecting 350K does not appear credible. Six, to the extent that the developers failed to undertake an EIR at the outset, and did not bring a project in keeping with the Town's General Plan, which caused its own development costs to increase, they are entirely responsible for that action. The Town should not pay for their mistakes in underestimating the importance of the EIR report in Los Gatos for such a large project (550K = 18.333 x the size of the new Los Gatos Library, which is 30K sq. ft.). 12) 350K Fits Netflix. 350K sq. ft. would provide ample room for Netflix to expand to. They are only in contract for 137.5K sq. ft. 13) Underestimated Traffic & Parking. The developers' proposal will most probably generate more car trips than identified because of the "Google Effect". Additionally, the parking based on 3.3 persons/thousand sq. ft. is insufficient, since the actual office usage will probably be double that number. The developers' traffic expert admitted in response to Commissioner Sayoc's question, that they had no local traffic data to present, which was a glaring omission in the presentation. 14) Winchester Blvd. Main Artery Clogging Up. Residents in Charter Oaks, Courtside, Smith Ranch will not be the only ones impacted. A substantial portion of Town residents residing in other areas will suffer the increased traffic because Winchester Blvd. is a main point of entry and departure for Town access. 15) Los Gatos has unique character, charm, calm, public safety, location in Silicon Valley, and desirability. Class A, 35-foot tall buildings or can attract a number of high paying tenants that generate rents higher than a single tenant. 16) Sand Hiil's Shaky Track Record. The past performance of developer Sand Hill Properties is reason to pause. Although its website touts a number of projects it has built, it has engaged in troubling actions: Litigation in Sunnyvale, the 4-year delay in building the Gateway project in Los Gatos, the over 5-year delay in building the Swanson project, and its listing the Albright project as a "Stabilized" project on its website. 5 15) Why use Money and Intimidation? Money for schools is not expressly identified in the General Plan, The General Plan prohibits Increasing the tax base as the sole justification for project approval, Nevertheless, the most repeated message from the developer and project supporters is expanding the tax base to support the schools. "This improved tax base is what the school districts can use to support their bonds and improve their bonding capacity, which will directly help them provide the educational environment the community seeks," Shenk said. (http://www.mercurynews.com/business/ci 22256769/netflix-signs- lease-new-albright-way-development) _ One supporter has publicly stated that she and her group are "watching" you, a kind of veiled threat, that if you don't vote their way, you will be targeted for removal from office. The intimidation tactic underscores the weakness in the merits of the 65 ft. tall/550K sq. ft. proposal. 17) Differential Income Benefit. The differential in income to the schools between 350K and 550K is $510K ($1.4M $890K), With 5,000 students, that equates to additional revenue of $100/student. Is this additional benefit (assuming full build out), worth the adverse impacts? 18) Don't Reward Violations. If school money is allowed to drive the decision -making on this project, and General Plan standards violated, then we only "feed the beast", and naturally more developers will follow suit. On the other hand, if we hold true to our standards, this will encourage more reasonable, high -quality proposals for projects worthy of Los Gatos. CONCLUSION ELEGANT SOLUTION: LOTS OF GREEN. 35 ft. tal1/350K sq. ft. is a fit within the Town's standards, best for the environment, the schools get $890K, and the developers make good money. Win -Win -Win. 65 ft. tal1/550K sq. ft. is outside our General Plan standards, inconsistent with our vibrant and cherished small-town character, substantially increase traffic, damage vistas, increases dependency, and sends the message, that irrespective of the General Plan, that tall structures may be coming to your front or backyard next. 6 The developers have effectively roused emotions for parents to demand 65 ft. tal1/550K sq. ft. to maximize revenue to the schools. I and others in opposition to the developers' proposal support our great schools too! I volunteered several years at Lexington (Sam Bowers, our young local film maker, was one of my students) coached youth basketball in the LG Rec. league and for Fisher Middle School, and did many things to benefit the schools while in the Lions Club. Maximizing school revenues is important, and not our only consideration. We must guard against "tunnel vision" on a single consideration. When the incremental monies are weighed against the other multiple and major adverse impacts, it is simply not worth the short-term and long-term damage to the Town. Now is when strong leadership is required to look to the long-term. You are entrusted to protect the gem that Los Gatos is. In time of large public group anger for immediate gratification, calm, balanced and reasoned decision -making is all the more important, to protect the entire Town, and represent all of its citizenry. We want consistent application of the General Plan, protection for Los Gatos's small town character, Netflix to stay and thrive, and the school money to flow. Please deny the project as presented, and suggest the developers return with a project smaller in height and mass as indicated in the EIR, and consistent with the General Plan and Town's Character. You have been entrusted with the discretion to do what is best for the Town, and I thank you for considering my views, as you continue the preparatory work, to exercise that discretion. Yours truly, John A. Shepardson, Esq. 59 N. Santa Cruz Ave., #Q Los Gatos, CA 95030 (408) 395-3701 E Shepardsonlaw@me.com From: Dick Allen [rallen a garlic.com] Sent: Sunday, June 02, 2013 12:40 PM To: BSpector Subject: RE: Albright Way I fully support the comments of John Shepardson regarding the Albright Way development. The current proposal by the developer would forever alter the character of our Town. Richard Allen rallen@garlic.com garlic.com f III' I'.('(I/I llll l!'.l' Ill I,n l7' I se Economic & Planning Systems, Inc. 2501 Ninth Street, Suite 200 Berkeley, CA 94710-2257 510 841 9190 tel 510 841 9208 fax Berkeley Denver Los Angeles Sacramento MEMORANDUM To: John Shenk, LG Business Park, LLC From: Teifion Rice -Evans, Ashleigh Kanat and Walker Toma Subject: Albright Development, Reduced Area Alternative Feasibility Analysis; EPS #121103 Date: April 4, 2013 At the request of LG Business Park, LLC, Economic & Planning Systems, Inc. (EPS) has independently evaluated the financial feasibility of developing the 350,000-square foot Reduced Area Alternative and compared the development feasibility of the Reduced Area Alternative relative to the 550,000-square foot Proposed Project. The purpose of this analysis is to provide planning level guidance on the viability of different development configurations under current market conditions. It should be noted that changes in market conditions and/or unforeseen changes to development costs could alter the conclusions of this analysis. EPS developed financial feasibility pro formas (see Tables 1 and 2) to demonstrate the results of our analysis. The analyses are based on a combination of standard, industry -accepted development cost assumptions; EPS-vetted, project -specific assumptions provided by the Developer; and, market revenue research based assumptions developed internally by EPS. Applying these assumptions (described further below), EPS has estimated the potential development return for the Reduced Area Alternative and the Proposed Project. In EPS experience, a return on cost of 7 to 9 percent is typical (calculated as annual stabilized income divided by total project costs). EPS has identified a development return of 7 percent as the minimum "hurdle rate" required for development feasibility. EPS tested the robustness of our analysis by varying the lease revenue assumptions to determine how sensitive the development return is to changes in revenue. The results of the sensitivity analysis are shown on Table 3. www.epsys. cern Memorandum Albright Development Feasibility Analysis Key Findings April 4, 2013 Page 2 1. Under EPS's base case lease rate assumptions ($40 per square foot), the Reduced Area Alternative is not financially feasible as the development return is below 7 percent. The Reduced Area Alternative is projected to generate approximately $12.6 million in net annual income. Projected development costs, including land costs, are approximately $199.1 million. This results in a development return of 6.3 percent, below the 7 percent "hurdle rate" EPS identifies as an indicator of feasibility. 2. Under EPS's base case lease rate assumptions ($40 per square foot), the Proposed Project is financially feasible with a development return of 7.1 percent. The Proposed Project is projected to generate approximately $19.8 million in net annual income. Projected development costs, including land costs, are approximately $280.5 million. This results in a development return of 7.1 percent, a return on costs that EPS identifies as marginally above the "hurdle rate" required for feasibility. 3. A sensitivity analysis to test the robustness of these findings suggests that the Reduced Area Alternative remains infeasible even under improved market conditions. Increasing the annual lease revenue to $42 per square foot results in a development return of 6.6 percent (still below the hurdle rate of 7 percent). Reducing the annual lease revenue to $38 per square foot further erodes the development return to 6.0 percent. The development return under the Proposed Project increases to 7.4 percent when annual lease revenues increase to $42 per square foot. The development return decreases to 6.7 percent when annual lease revenue decreases from $40 per square foot to $38 per square foot. Site Description The 21.5-acre- Los Gatos Business Park site is currently developed with ten buildings (total of 250,000 square feet of existing development) and accompanying surface parking at the intersection of Winchester Boulevard and Albright Way in Los Gatos. The existing buildings consist of one and two-story office/R&D developments and were constructed in the 1970s and 1980s. The Project site is bounded by Highway SR 85 to the north, Winchester Boulevard to the west, and the Los Gatos Creek Trail to the east. Project Description Proposed Project The Proposed Project consists of four 4-story, 137,500-square foot buildings with a height limit of 65 feet, totaling 550,000 square feet of office/R&D space. In addition to a reconfiguration of the existing surface parking, the Proposed Project would include a structured parking garage to accommodate the site's parking. Reduced Area Alternative The Reduced Area Alternative calls for the construction of four buildings (two 2-story buildings and two 3-story buildings). The four buildings would total 350,000 square feet of R&D/office. The Reduced Area Alternative would include a minimum of 1,155 parking spaces, consisting P:1121000\121103Albright Los GatosVModel\Feasability1121103_Feasability__040413.docx Memorandum Albright Development Feasibility Analysis April4, 2013 Page 3 primarily of surface spaces with a small structured garage to accommodate approximately 80 spaces. Methodology EPS has prepared financial pro formas for the Reduced Area Alternative and the Proposed Project that estimate the financially feasibility of development. Development feasibility is indicated by a return of 7 percent or higher (a typical range is 7 to 9 percent). Development return is calculated as annual net income divided by total project costs (including land). A development project that generates returns below the feasibility "hurdle rate" of 7 percent is unlikely to attract the necessary financing and would likely not result in development. Key Revenue Assumptions Lease Revenue To identify an appropriate lease rate, EPS reviewed market comparables in the Silicon Valley region, as there are few, if any, appropriate comparables available in Los Gatos specifically. Annual lease rates for new, finished Class A office space range from $40 to $48 per square foot in multi -tenant buildings. Because the Owner is developing the space to warm shell conditions (which does not include improvements such as interior walls, flooring, fixtures, etc.) rather than full build out, achievable lease rates for this project will be lower than for finished spaces. In addition, unlike most of the available office development reflected in the comparables, these buildings are designed to attract single -tenant users who will take the full square footage. Such an arrangement is expected to be reflected in a discounted rent to account for the scale of the space being occupied when compared to lease rates for smaller or multi -tenant leases. Therefore, in this analysis, EPS assumes a lease rate of $40 per square foot of warm shell office space. EPS also considered the location of the site relative to roadways and transit and the provision of tenant improvements of approximately $50 per square foot. Tenant Improvements Tenant improvements (TIs) represent a cost to the Landlord but they are tied to achievable lease rates. In EPS's experience, TIs vary widely, depending on market conditions, the quality and condition of the space (in this case brand new warm shell construction), and the type of tenant. Tech tenants often require higher TIs due to specific heating/cooling needs related to their technology infrastructure. For these pro formas, EPS has estimated TIs of $50 per square foot. Key Cost Assumptions Land Cost Basis The land cost basis of $52 million was provided by the property owner. Hard Costs Direct construction costs vary between the Proposed Project and the Reduced Area Alternative. Direct construction costs for the Proposed Project are assumed to be $160 per square foot based on EPS experience in Silicon Valley for similar product types, assuming a warm shell condition. The cost per square foot is increased to $170 for the Reduced Area Alternative to reflect the loss P: \121 000 \121103Albright_L os Gatos\Model\Feasability\121103_Feasability_040413.docx Memorandum Albright Development Feasibility Analysis April 4, 2013 Page 4 of cost efficiencies associated with the shorter buildings.1 This $10 differential (approximately 6 percent) is conservative. EPS spoke with construction experts who felt a 10 to 15 percent differential would be appropriate depending on the number of `middle floors". Garage construction costs also vary by alternative and according to the same "efficiency" logic. The Proposed Project will include a structured garage (ground level parking and one level of deck parking) for approximately 965 spaces. The Reduced Area Alternative will include a structured garage for approximately 80 spaces. Per space savings are realized in the larger garage as fixed costs (elevator, ramp, etc.) can be spread across more spaces. This analysis assumes $25,000 per space (not including soft costs) for the Reduced Area Alternative garage and $20,000 per space (not including soft costs) for the Proposed Project. Demolition Costs Demolition costs can vary widely. EPS has assumed $3.50 per square foot, applied to the existing development of 250,000 square feet Off -Site Costs The off -site work estimate is provided by the owner and includes a new signalized intersection, the connection of four existing signalized intersections, street widening, and a new bus stop pad. EPS has no basis to verify or adjust this estimate. Soft Costs In EPS's experience soft costs can vary from 20 to 50 percent of hard costs depending on length and challenges of entitlement period, Agency -specific development fees, and other project - specific factors. EPS has used a soft cost ratio of 30 percent of hard costs, excluding tenant improvements, fees, and miscellaneous other costs. Soft costs include architecture and engineering, other professional services, taxes and insurance, and other soft costs. Other soft costs include testing and inspection, surveys, environmental, construction period real property taxes, construction period insurance costs, construction period, common area maintenance (CAM) expenses, financing costs, and emergency prevention costs. EPS has included a "Miscellaneous Costs" line item to account for potential lease buy-outs of existing tenants. Permits and Fees Permits and fees estimates vary by Project/Alternative. EPS researched the City's development impact fees based on readily accessible fee information and prepared fee estimates for the Proposed Project and the Reduced Area Alternative. Owner Costs Owner costs include leasing commissions, project administration and management costs, and owner contingency. 1 There is a difference in cost of constructing the bottom and top floors of a structure (e.g., grading, foundation, utilities, and HVAC improvements) versus the middle floors, which are less expensive to construct. P:\121000\121103Mbright_Los Gatos\Model\Feasability\121103_Feasability_040413.docx Table 1 Pro Forma: Reduced Area Alternative Albright Development; EPS #121103 Item Assumption Amount DEVELOPMENT PROGRAM Gross Building Square Feet Net Leasable Area (sq.ft.) 350,000 100% Efficiency Ratio 350,000 Parking Spaces Structured 80 Surface 1 075 Total Parking Spaces 1,155 ANNUAL INCOME Lease Revenue Annual Income (NNN) [1] (less) Vacancy/Mgmt/Reserves [2] Net Annual Income $40.00 /sq. ft./yr. 10.0% of Gross Revenue $14,000,000 j$1, 400, 000[ $12,600,000 DEVELOPMENT COSTS Land Cost Basis [3] $52,000,000 Hard Costs Demolition/ACM Abatement/Utility Removal [4] $3.50 /existing bldg. sq. ft. $875,000 Direct Costs $170 /gross sq. ft. $59,500,000 Garage Work [5] $25,000 /structured space $2,000,000 On -Site Work $20 /site sq. ft. $18,835,000 Off -Site Work [6) fixed cost $3 850 000 Subtotal, Hard Construction Costs $85,060,000 Soft Costs Soft Costs [7] 30% of Hard Costs $25,518,000 Permits and Fees [8] $1,750,000 Tenant Improvements [9] $50 /net leasable sq. ft. $17,500,000 Miscellaneous Costs [10] $500,000 Total Soft Costs 53% of Hard Costs $45,268,000 Owner Costs Leasing Commissions [11] $18 /net leasable sq. ft. $6,300,000 Project Admin./Mgmt. 3% of Hard and Soft Costs $3,910,000 Owner Contingency 5% of Hard and Soft Costs $6,516,000 Total Owner Costs 20% of Hard Costs $16,726,000 Total Costs $199,054,000 Return on Cost [12] 6.3% [1] Annual triple net lease based on Silicon Valley comps and assumes new, Class A construction to warm shell, freeway and transit accessibility, single tenant lease agreement, and $50 per sq.ft. Tls. [2] 10% Is typical of other pro formes EPS has prepared. [3] Provided by the Owner. [4] Demolition costs based on existing square footage of 250,000. [5] Garage costs are calculated on a per stall basis and shown without associated soft costs, Including soft costs, per stall costs equal approximately $32,500. A higher per stall cost, relative to the Proposed Project, Is assumed due to the lower number of total stalls and the need to spread fixed costs across fewer stalls. [6] Off -site work estimate is provided by the Owner and includes a new signalized intersection, the connection of four existing signalized intersections, street widening and a new bus stop pad. [7] Soft costs include architecture and engineering, other professional services, taxes and insurance, and other soft costs. [8) Permit and fee estimate prepared by EPS based on readily accessible fee information. (9) Tenant improvements vary widely and typically range from $20 to $100 per square foot, with tech tenants often requiring higher Tls. Higher Tls typically result In lower effective rents. [10] Miscellaneous costs include potential lease buy-outs. [11] Leasing commission estimate assumes $18 per gross leasable square foot, and includes commission for both landlord and tenant brokers. Typical range is between $16 and $20 per square foot. (12] Typical return on cost is 7 to 9 percent. Sources: Loopnet; Silicon Valley brokers; LG Business Park, LLC: Economic & Planning Systems, Inc. Economic & Planning Systems, Inc. 4/4/2013 P:11210001121 f03Albdght Los GatoslModeloFoasability1121103 Albrighl_Proro,ma 040413.xlsx Table 2 Pro Forma: Proposed Project Albright Development; EPS #121103 Item Assumption Amount DEVELOPMENT PROGRAM Gross Building Square Feet Net Leasable Area (sq.ft.) 550,000 100% Efficiency Ratio 550,000 Parking Spaces Structured 965 Surface 970 Total Parking Spaces 1,935 ANNUAL INCOME Lease Revenue Annual Income (NNN) (1) (less) Vacancy/Mgmt/Reserves [2] Net Annual Income $40.00 /sq. ft./yr. 10.0% of Gross Revenue $22,000,000 ($2,200,000) $19,800,000 DEVELOPMENT COSTS Land Cost Basis [3] $52,000,000 Hard Costs Demolition/ACM Abatement/Utility Removal [4] $3.50 /existing bldg, sq. ft. $875,000 Direct Costs $160 /gross sq. ft. $88,000,000 Garage Work [5] $20,000 /structured space $19,300,000 On -Site Work $20 /site sq. ft. $18,835,000 Off -Site Work [6] fixed cost $3,850,000 Subtotal, Hard Construction Costs $130,860,000 Soft Costs Soft Costs [7] 30% of Hard Costs $39,258,000 Permits and Fees [8] $4,250,000 Tenant Improvements [9] $50 /net leasable sq. ft. $27,500,000 Miscellaneous Costs [10] $500,000 Total Soft Costs 55% of Hard Costs $71,508,000 Owner Costs Leasing Commissions [11] $18 /net leasable sq. ft. $9,900,000 Project Admin./Mgmt. 3% of Hard and Soft Costs $6,071,000 Owner Contingency 5% of Hard and Soft Costs $10,118,000 Total Owner Costs 20% of Hard Costs $26,089,000 Total Costs $280,457,000 Return on Cost [12] 7.1% [1] Annual triple net lease based on Silicon Valley comps and assumes new, Class A construction to warm shell, freeway and transit accessibility, single tenant lease agreement, and $50 per sq.ft. Tls, [2] 10% is typical of other pro formes EPS has prepared. [3] Provided by the Owner. [4] Demolition costs based on existing square footage of 250,000. [5] Garage costs are calculated on a per stall basis and shown without associated soft costs. Including soft costs, per stall costs equal approximately $26,000. A lower per stall cost, relative to the Reduced Area Alternative, is assumed due to the higher number of total stalls and the opportunity to spread fixed costs. [6] Off -site work estimate is provided by the Owner and includes a new signalized Intersection, the connection of four existing signalized intersections, street widening and a new bus stop pad. [7] Soft costs include architecture and engineering, other professional services, taxes and insurance, and other soft costs. (8) Permit and fee estimate prepared by EPS based on readily accessible fee information. [9] Tenant improvements vary widely and typically range from $20 to $100 per square foot, with tech tenants often requiring (10] Miscellaneous costs include potential lease buy-outs. [11] Leasing commission estimate assumes $18 per gross leasable square foot, and includes commission for both landlord and tenant brokers. Typical range is between $16 and $20 per square foot. [12] Typical return on cost is 7 to 9 percent. Sources: Loopnet; Silicon Valley brokers; LG Business Park, LLC; Economic & Planning Systems, Inc. Economic & Planning Systems, Inc. 4/4/2013 P:11210001121103AIbdght_Los GatoslModelrFeasability1121103__Albright Prolom,a 040413.xlsx N �f N 43 co 4.0 a. z `Z _0 u Alternative Reduced Area Alternative (350,000 sq.ft.) Proposed Project (550,000 sq.ft.) Source: Economic & Planning Systems, Inc. P.t1210001121103Albright Los Gatos1ModellFeasability1121103 Albright Proforma 040413.xlsx Economic & Planning Systems. Inc. 4/4/2013 From: <Largomark@aol.com> Date: June 2, 2013, 12:4131 PM PDT To: <sleonardis@losgatosca.gov> Cc: <ccarn.athan@mac.com> Subject: support class A Steve It would a benefit to our community to have a predictable developer. with a plan to execute the project with the least amount of in convince to the community. I would much rather see a class a office space now. I have experienced the previous development and the traffic impact was minimal. I have lived across the street and up the hill off of Newell for 26 years and I completely support the project. I was your neighbor at 29 Tait. Please call me at 408 839-3903 if you would like to discuss this issue. Mark Carnathan This Page In tention cclly Left Blank Joel Paulson crom: ,ent: To: Subject: Honorable Barbara Spector Members of the Town Council Town of Los Gatos Town Council Town of Los Gatos 110 E. Main Street Los Gatos, CA 95030 LezLi Logan <lezli@logandesignservices.com> Sunday, June 02, 2013 12:44 PM Council Letter in Support of Albright Way Corporate Campus Dear Mayor Spector and Members of the Town Council: Please approve the Albright Way Corporate Campus as currently proposed on Monday, June 3, 2013. You have an important opportunity to show us that you really are working in the best interest of ALL residents of Los Gatos, and not just a few "interested citizens"... ...That you have heard the cries of support from the vast majority of your constituents and the disbelief that you would even consider denying this project. That you understand the unique needs of a modern dynamic small town and will be good stewards for the future of Los Gatos. Our town character is not defined by the height of buildings. Our Los Gatos town character is the investment we make in each other and the investment we make in our community's success. The economic vitality of our town, the health of our schools, and adequate town services supporting a vibrant community absolutely have an impact on quality of life in Los Gatos. All these things will benefit from the Albright corporate campus and retention of Netflix. You have heard from multiple experts that the Town Council absolutely has the authority under the General Plan and the P►anned Development Overlay zoning to approve this project and its height. There is no legal issue that prohibits you from making this decision. The data that should be used for evaluation of this project is clearly presented in the EIR and through expert testimony —not emotion or amateur calculations, but standard, professional, peer -reviewed methodologies and conclusions. The financial benefits to our town and our schools are crystal clear. Netflix spends $3 million per year at local businesses in Los Gatos in addition to the approximately $1.5 million in sale tax revenue to the Town. This does not account for what their employees may spend personally at local businesses and restaurants. Over $1.4 million in property tax would be generated by this project for local schools with no students. There is no other project in Los Gatos that can generate this level of property tax income to our schools without the burden of more students. This is revenue not borne on the backs of our parents or taxpayers, and our schools need each and every dollar. One time boons such as the recent RDA funding are simply a drop in the bucket when it comes to the long-term costs of educating our students. Assertions to the contrary are not only misinformed and wrong, they are destructive. . .lis project is in the right location. It is located in a current industrial zone, surrounded by freeways, and far away from downtown. The height of the proposed buildings is consistent with building heights across highway 85. Driving down the 1 freeway, at freeway speeds, these buildings are barely noticeable, and trees will buffer. Photo simulations and physical demonstrations clearly show that the buildings are lower than the height of the trees and mountain vistas will be preserved. The new buildings will be further away from Charter Oaks than the current buildings on the site and they will be veiled by trees and greenery. / Netflix has been clear — they want 4 story buildings. They are currently out of space and they will not grow in 2 or 3 story buildings like the opponents are asking. Other nearby communities are watching this process and waiting for Netflix with open arms. The compromises and concessions have been made that still allow this development to be commercially viable and therefore beneficial to Los Gatos. It is time to stop the delays and diversions by the opposition and do what is right for our community. I look forward to watching you make your decision on Monday night. -LezLi Logan 136 Loma Alta Ave. Los Gatos, CA 95030 2 From: sedoralogan@comcast.net[mailto:sedoralogan@comcast.net] Sent: Sunday, June 02, 2013 1:57 PM To: Council Subject: Approve Albright for the kids of Los Gatos Honorable Barbara Spector Members of the Town Council Town of Los Gatos Town Council Town of Los Gatos 110 E. Main Street Los Gatos, CA 95030 Dear Mayor Spector and Members of the Town Council: Please approve the Albright Way project on Monday night. I am a student at Los Gatos High School along with my sister. My father and both of my grandparents grew up in Los Gatos and went to LGHS. I learned to ride my bike in the same alley as my dad, and I've played sports on the same fields that he has played on and coached on, just like his dad before him. Los Gatos has always been a special place, and I want the future to be just as bright. Our schools need money. I know this because I have spent more than one semester in a science class without a desk, and because we can't take summer school classes at our own school to get ahead. I know this because our sports fields are in worse condition than ANY other school we play. I know this because I've watched my mom work so hard with all the other parents to raise money for the schools, and I've helped too. We need the Albright project because it will bring more money for schools, but it won't bring any more kids in class. Some of the tax money also pays for things I really need, like time to study at the Library, police officers, and clean and safe places to hangout downtown. I want you to know how important this decision is for me and ALL the kids of Los Gatos. Please remember that when you vote. Sincerely, Sadie Logan LGHS ASB Athletics Commissioner Joel Paulson From: Todd Yellin <tyellin@netflix.com> Sent: Sunday, June 02, 2013 2:36 PM To: Council Subject: Please approve the Albright building plans I am proud to both live and work in Los Gatos and want our town to remain such a vibrant community. I implore you to vote for the approval of the new building. I work on the product side of Netflix and have nothing to do with facilities but am concerned that we'll lose a great company which contributes a lot to the town if this isn't approved. Best, Todd Yellin 1 From: Angie & Craig Smith[angiesmith.losgatos@verizon.net] Sent: Sunday, June 02, 2013 8:28 PM To: Marcia Jensen Subject: Please approve Netflix building Dear Ms. Jensen, We truly hope you will vote to approve Netflix' new building in Los Gatos. We're sure you've been studying this matter diligently, and will vote with our entire town's best interests in mind, so we look forward to hearing a positive outcome from tomorrow night's Council meeting. Kind regards, Angie & Craig Smith 1 From: J Torre [jtorre@prodigy.net] Sent: Sunday, June 02, 2013 8:57 PM To: BSpector; Steve Leonardis; Diane McNutt; Joe Pirzynski; Marcia Jensen Subject: Albright property proposal Mayor Spector and members of the Town Council, On Sunday 5-26-2013 at the Los Gatos Farmers Market, I spoke with many market shoppers about the proposal for 65-ft office buildings at the Albright Way property. A few were visitors who much admired our charming town. Of the rest, who were local, only 2-3 approved of the proposal as is. All others favored a solution, such as the 35-ft/350K alternative, that upholds the Town's General Plan and vision for the future while still providing new high-class office space and increased revenues. Jeanne Torre 306 Willow Hill Ct Los Gatos, CA 95032 itorre@prodigy.net<mailto:jtorre@prodigy.net> Joel Paulson From: cent: To: Subject: To the Town Council, J Torre <jtorre@prodigy.net> Sunday, June 02, 2013 8:58 PM Council Albright property 35/350K The Town's General Plan specifies a maximum building height of 35 ft. The developer's proposal for 550 sq ft of office space in 65-ft tall buildings violates the General Plan. The Planning Commision recommended denial of the developer's proposal. The EIR identifies 35-ft buildings providing 350K sq ft of office space as an environmentally superior design. Please please uphold the General Plan and require the developer to accept the superior solution. Jeanne Torre 306 Willow Hill Ct Los Gatos, CA 95032 jtorre !,prodigy. net 1 This Page Intentionally Left Blank Joel Paulson From: LezLi Logan <lezlilogan@comcast.net> on behalf of lezli@wesupportlosgatos.org Sent: Sunday, June 02, 2013 9:30 PM To: Council; Joel Paulson; Greg Larson Subject: Petition in favor of Albright Corporate Campus Attachments: WSLG Petition 6-2.pdf Dear Mayor Spector and Members of the Town Council: On behalf of We Support Los Gatos, I am proud to submit the following petition with 609 signatures: • Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. We Support Los Gatos is a group of over 130 Los Gatos residents, neighbors and families who support our schools, local jobs and preservation of town services today and for future generations. Working together, we will continue to advocate for and focus on the betterment of the entire community of Los Gatos. Sincerely, LezLi Logan We Support Los Gatos i Date: June 2, 2013 To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, 609 Signatures follow this cover sheet. • 504 signatures collected online (with comments included) (The online petition appears on Change.org at the following Zink: http://tinyurl.com/c63gsdn) ® 43 additional names collected downtown on 5/19/13. O 62 additional names collected downtown on 6/2/13. www.1, o p .9 t aces .at sa or We Support Los Gatos is a group of Los Gatos residents, neighbors and families who support our schools, local jobs and preservation of town services today and for future generations Los Gatos Town Council: Approve Albright --Keep Netflix in Los Gatos! al 4-4 (0 U (4 0 AI'O a) E co z V) 0 c cu 0 C O N co 0 0 0 C on 0 bA C .5 ro t 0 0 oe m c-1 O c-1 c-1 95032 United States 95032 United States 95032 United States 95032 United States TS (13 0 c 0 T3 0 C CU -c 4-- 0 0 C Vl 0) s t 0 c > 0) t C m 0 N N -1 95032 United States (o (a (a (a (a CCCC L L L L L o To 73 U UUUU V) V) 0 N (0 (▪ 0 (.9(.9(..70 ba 0 VI VI O 0 J J Alex Garwood 0 -J 0 -J Carl Chambers 1st N m cr u1 l0 m O N c-1 95032 United States C ro a) 0) C O .0 a) co a) C a) 0 > a) X (o a) c 'O a) 0) c 0 (0 C9 3-1 0 m 0 N c-1 95032 United States 0 0 (0 (0 (9 (9 0 O J J daniel madsen Dean Westman ai 7 V1 CO c 0 -173 7 (1) c O 4- 0 c 0 .0 N v C 0 0 0 (0 0) VI O O n. 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L L L L L L. L L L L L L L - L y y L L L L a o 0 0 0 0 0 0 0 0 0 0 0 0 0 oo 0 0 0 0 0 0 0 o vl• UUUUUOCO DUUU a 0ro 0000000UUHU 0 0 0 0 0 0 0 (0 i--� CO ((00 ((00 N CO'~ (9 MOO V'' O ( (9 ( • O 0 0 0 0 0 0 a E (o 7k 322 Jonathan Hurd 323 julie micalief Rohnert Park 0 0 0 0 0 0 0 (9 (9 (9 (9 O L0 l9 J- 0 J J J J T c ro 3 c N _c Y 0 U 7 • 7 N U N •@•N .O U v c t o u U ( '-c ) E '� CO CO CO Y Y Y J J 2 d' if( LO N 00 Ol O r-I NNNNNNMM m m m m m m m m a mary van roy 332 Michele Moretti 333 Paul Brodie 334 Rachel Brodie 335 Robin Mano Victoria Doll Rohnert Park • v 0 0 0 0 = 'moo (o (- moo (10 N 0 (7 C7 C7 C7 . 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O CO 0 a)0 a V Y "3 J C O VI E 0 O N a, a 0) 0) 0) c c c r 0) D 0) 0 m m m m m m m m m (n m m m m m m m m m m m m m m m m m m Cr) -( c-1 ci c-1 ,-1 c-1 r1 N c1 r1 ,1 1 ,-1 <-1 c111 c,c-1 ,-1 ,-1 1 c-1 ,-1 ci ,-1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O � r � ,, ', r -0 Lo N N N N N N N N N N N N CO CO 00 CO CO CO CO CO CO CO CO CO 00 01 LT LT cp ,1 ,--1 c-1 c-1 ci r1 c1 ,-1 c1 ,1 ,-1 ,-1 1 ci ,-1 c1 c-1 , -1 ,1 c1 ,-1 ,-1 ,--1 c-1 c1 ,-1 ,--1 ,-1 c-I to In L(1 L(1 L() L() m in Lry Ln Ln Ln m L(1 L11 ill in m m in m m L() Ln Ln Ln Ln m In II) • 95030 United States 95032 United States 95032 United States v 2 X c 0) 0 m 3 ao 95030 United States 95030 United States 95032 United States 95030 United States 95128 United States 95033 United States 95032 United States 95030 United States 95032 United States 95033 United States N N a1 N 4.' +' (O (0 4-0 Y Ln N "O "0 N N N N N N 0 m m m m m m m 0 0 0 0 0 0 0 Ln IJl Ln Ln L1) L1) Ln LT 01 01 01 LT 01 LT United States United States United States United States United States 95030 United States 95032 United States 95030 United States 95032 United States 95032 United States 95030 United States 95060 United States 95032 United States CO (0 CO CO 10 (0 CO (9 CO CO (0 (6 (0 (0 ro (0 CO CO (0 (0 (0 ro CO CO RI (0 (9 (0 (0 c 'c c c c c c c c c 'c c c c c c c c 'c 'c c c c c c c c L L L L L L L L L L L L L L L L L L L L L L L L L N O O O O O O O O O O O O O 0 O O 0 O 0 0 0 0 0 0 0 0 0 0 0 +cm 4-- 4- 4- 4- 4-- 4- 4- 4- 4- 4- 4- 4- 4-- 4- 4-. 4- 4- 4- 4- 4- 4- 4-- 4- 4- 4- 4-- 4- 4- 4-. 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(7 U' U' 0 0 0 J O J O O L a) �+ O C' CO >, ra m y (% = u N Y a) w� 0 3> 0 c ro J c vy + •E (0 co L ( C LL 1- > a U o CO Ol 0 c-1 N m 'cf Ln L,0 N CO LT LT 0 0 0 O O O O O 0 m m `71" cl- ch d' a' d' v' �r d' Julie Sheehan Lea Westman Marnette Atkinson Monte Sereno 409 Patrice Petroff 2000N N 0 4-4 O ro N CO�((00 1-' (6 (7 L7 (7 6 l7 J J J J J Rebecca Hanson 413 Susan Flatness Santa Cruz 0 VI 0 -J 417 Gwen Pinkston 03 03 N 0 0) co a -0 0 0 00 no 0 0) (0 0 0) U 0 O N L 03 L 0) ai ro a 0 ro E 00 c 0 c 0) 0 0) 0 0 4-, 0) aJ N s c 0 0) 1- F- businesses to operate for way too long. m m m m m -1 00000 NNNNN 01 01 01 0 0 c1 c-1 c-1 N N \ \ \ \ 111 Ln L/1 111 Ln United States N m 0 L1) m 95031 United States 95030 United States 94560 United States 95032 United States ro (o (a (a ro u 0 u 0 ro u 0 0 + 4-' CI) CO (7 U( N N 0 0 418 Leah Chun 419 marlene harden Monte Sereno 0 4-4 ro (7 0 J 422 Brenda Carlozzo Online Signatures and Comments as of 6/2/13 at 8:15pm Los Gatos Town Council: Approve Albright —Keep Netflix in Los Gatos! - N (a N @ L a`, 0a 4, v 0 N 0 @ ,co > Q.) 0 0. c a)- al 0 [ o. 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It would be a shame to lose them. 95030 United States CO CO ro ro £ £ £ L L. L L w 000 ri, U U U U in O ▪ a) ro 0 CJ --, U Jro V1 Santa Cruz 0 0 ra a-+ C7 0 J 504 Steve Fazio To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Na Last Name Address ,4( 7 CI I i Li I )r947LI ez 4, ( /_ p r City, Zip Email Address First Name , I Signa ..averummaczahonrcersesesoransana Last Nam Address 1 r), C ' --- V- City, Zip / t /..) L'S Email Address Signature t : , 1 \ A ,- Last Na e ".. • First Nan _ Address g-/ \2 4( City, Zi „ - Email Address Signat ,..---. , --- Last Name First Name,---? , ... „ , .,--. .-/-'-- Address , 7/(,-(Nq / • cay / L,) r„,v,t2,-, 3,-,7 - ,2:77 t ain--i-- City, Zip — --I Email Address ,--- D i• Signature /7 Last Name/ ,,,,,// ht)P-f1-0/X) it.,.61 First Name iii ii "IA d/ti Address 141,0 r"' /72 i I, ./ Yik/ City, Zip ( 01 (xui(c7 S 6:-/i "i" D 2 Email Add ess, (,,, , 0 7/ /..,:pt 4:1 6?) /1,s-7.4. A s 0,/, ev(„5, Signature e , if 7' , ;› First Name ./\ 1 t,- ,71 •', ( Last Name ' \)e-.) r/,:'. 1,1- Address Cit , Zip Email Address Signature ,_---/ ' , earstoa ..0.7.1142, To: Los Gatos Town Council Please support the reinvestment ioLos Gatos ho keep NotDizand millions ofdollars iuour community tnsupport town mervioaa public euYetv and our schools for future generations by approving the Albright Way corporate campus. Sincerely, First Name Lao Name ` Add/es �� . . ` Oty, zip. / , /- First Name // ' a� ' v ku�'�^� Lox` Name . / Address ~7�\ � .�� City, Zip / 5 Email Addres |�J~]��[^*\��V�_/~7- --'---------- First Name Signature Last Name \ - ---- ' Address //�/'�^ City, Zip Email Address S! ture Last �a`rne First Name Address City, Zip Email Address First Name Signature Last Name x Address City, ZPi_I Email Address Fir�pN�ame Signature Last Name Address 2/ City Z�_ �r�� Emai|Addrno Signatu To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Name Last Name Address City, Zip Email Address First Name Signatire \) Last Name Address City, Zip tO s, a Email Address First Nrme -ii—TriA-V,-,ef Signature j L Last Name t 69 c rj 6 Address -1'q6`-c ° 4 Rct •.:i; < f City, Zip te..ztJcc, .s , (>4j `t.S0`.> Email Address First Name Signature Last Nam Address 11-.5 f City, Zip G Email Address 5 First Name c\ Signature'' Last 'jN.aa�me Address 1 I ,, 0 City, Zip Email Addressl 5 Lia-{ 1 G 7' L'j 1 Ci. 1 k. \ C...4 . i.. c1re. j i i Signature r st ,,,,,,/ /.„ % First Na Addrr%esl! �/ftt f / ( Ci Z'p r{ Email Address /! gnatre To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First N me ,F Last Na e Addre s /� City, Zip , -. , Email Address '`1 i . G a, First e \ (L [ / - % L i-c' Signature, Last 1/i' /� : '(/`'/-f Address : , / City, Zip '2) , /[.... g,,(,,k__A—.) A-- Email dress Signat e Last/)hv' . me/-rd 9 4, 4,..."4„....._ -->� • ;ry— Fir $`/tl Name_ y d / Tess Cit4,ip Email Address First Name-- L,------)aV/W Signature Last Nye --, ./.--/ Address % / / /(� /� City, Zip�, r / f ( Email Address First Na e Signature Last Name „ ._ f9///<i(f/ ll Address oi-il til A0 -2 0rr� c 1r- City, Zip .,. �-f,- `j s// 0 Email Address W � i� hf iyl � � 6 7sa ., , Signature �1 1 Last Name ie `/ ( G ti / -, First Name /J/� bV^.... �/ Address A ,- l/ City, Zip C _ Email Address r 6-4:1.s -( g2. C, ,ter 1 .. V-e Signature To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Name 71 r / Last Name V Address City, Zip Email Addre .s First Name �(++ � C � CA \0\ 11 1-., AL; h Signature Last Nam _4 . t e Address \C\<3c.[ l UUv`6Y1e%tY,14 lgcl City Zip bs rr)0 , 5 Email Address Firs same {,) 7 / Signature / G Last e Address / V ��x ���� /tea ity, ip 62— Email72A— Address d Signat e Last Name First N Ufe-L'j Address City, Zip Email First Address Name Signature .,._ Last Name Address City, Zip Email Address ! First M1I er---_,..-- Signature's Last Nary e µ ' Address City, Zip . J Email Address Signature __`_,7.- To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Name (',., Last Name Address ff,,i, ,, 1 \ (r �' �AN\C\ �) r. City, Zip . Email Address CUr fi 0.-; Yy-o , Signature First Name 'IJN ti -6-i A Last Name Address City, Zip Ema L4ddress , y First Name • . i Yi a_ 'vi 5 es— / "C L e-42-- Signatu , Last Name Address '(' 01 6e 1 (0( 'c.5 (-..(c5,--:::-,st\b-,A ,. City, Zip z.,.. Email Address First N e �j ign to a ± ' 3g Last Name Addre City, Zip Email Address crtni Signature .......: .......... ......... ..__. Firs Name Las e Address \. /-(eftIi ��� r , �J City, Zipr _, COO Email Fir Ad''d'�r`e�ss C—k Name' )11 ICI �' • -< VI -PC14 y i 3 ()W4• 1 Sign�,tlur Last Name -jam. Ad 1 ( a V i�6-'01-03 City, Zip Em it Address i Signature ( 5 /A471` (.A.? r 1 P`A dP/Z5 Z3-5) fL.E>f) 6-et.471) E: /44 `f3LA. Ian ne...hbf C Orn(4S-1- YA LiA t 0).e..Ain/A:ro (.7:3a14,o--Di A A ref- n el 1-tire (4tacler. /do virit4,56 : P•C,-1/4/\VN (Ai C-k , c C.) 3 o I-4;41; C 4'1 f0:5Z 1-1-Dr.o LDS eneti eh.0`( r\(7. cCo ey ,,,4 ki 3.z ( (A 0 i \I -NG. 'I• —to A-u .e.,_,-, A cl5,-D 30 _ryke:-- . ..2A 1/05 C-mu(-665, CA gil.k0 C (400'32_ ilikop( SAAV to /J-,72,y)://,1,4 To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] F4gst Name 0 Ni A( 6 N4 tv Address LJ C.-L Email Address First Name Address 2 1 „6 /)id /qy� Email Address ,�,� 'i4"g'7l/'m G4 i Wvt "s ° ¢. U First Narne L or.v -o Address Yv,ek ay. - Email Address oceti. Gsou) & bo-k First Narne Address [ i ov`k Av c IAA Last Narne City, Zip t JD3-6 Signatur Last(( Name City, Zip Zvi o-)»r, o3 Signature Last Name City, Zip Signatur Last Name 6-0 S City, Zip Lc>..s G405 Email Ad ress Sign9,t2 First Name Addre"s Email Address Last Name nK City, Zip Signature First Nam uo J I V F o Las 11170624.921.4.1...157 Name Address/! City, Zip /tin 7 / i /e, ta, 5 a 5-0' Email Address gyp, Ti) , `yfi G nature tek) To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Name Last Name -6 - .. Address t 4 6.00 City, Zip f Email Address First slam re ^3�s Signature Last Name Addre r (Mkt; PA Email Address First Ne 9CU11 b Ci y, Zip 1AS CpifTt9S q5'0ao Sign Las i a.m.:1411 Address City, Zip Email Addre Fie \\ f Sig tur L st Name Address City, Zip 2� MAirl jf -1 25 LOS 62 S c1s0 Email Address /EhOD•cn Fir me Address p 21 a �J vt 1,, Email Address Signatur Lfr t c t City, Zip L-.w_, C�- h5 ?5 3n Signature First Name / Last Name 4 7/4 Aat'A Address 7gz,se411 / ed Email Address City, Zi Signature pp30 To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Wme �1 s(VIa Address ,U Email Address First h arr rtl fib f'b't Address 0 (3LCv, OA, All mail Address First Name E 'a,nnc Cd M Last N City, Signature cD Last Name 7761 VEY City, Zip ,t46, T5 0 Last Na 0 Address _ 41M Email Address First Name Address cre, er.z. &- Email Address First Name Address kti h-c ci;/:eat.1 7 City, Zip v L.. ')36 Signature City, Zip 74 t q (2.� Signature Last Name� t City, Zip 31 `6I, Email Address First Name // Email Address Signature Last Name 0'1 To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Name t Address 3/ 54A- Email Address First Nam Address 0-0 Email Address Email Address First Name ftedko1 Address Email Address First Name Address Email Address Last Name City, Zip Signatu,E Last Name 14 City, Zip L_ Signature Last Name City, Zip Signature/1 Last Name V )1 C 1rz City, Zip `J 10a+-8 3 Signature Last Name City, Zip Signature Last Name City, Zip G, r r Signature To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services; public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Name t o t tom_ l (�r-- 5- Last Name r e (t. Address )�0 0/ )C 0 L01/14/ .i/ 6 P.d -- (aa City, Zip , d 3) -. Email Address_ Signature (---t-------. Last Name First Namea� Address '3 1_o5 G,�,y V? TS SD V-t O t v i i City, Zip L 05 Gam. t0 5 CA q S- : _ Email Address F'Os Na e Signature Last Na / Address / 7 8' A7" (a 4 7--' City, Zip r-0 s G e., , St) 33 Email Address a First Name Signature , 3 -a x. Last Name Address $Q/ I( ; '(l'/ City, Zip ° e 7 Em .1 Address�---- j First e it. ._.T Signature __-.-------- " Last Name Address-7)+ City, Zip r](�._. /\/•�/)Jl- Email Addres 1 Fir g Na e Signature Last Name Address f.,.ri S 31 ASv ]. 1 me Gm City, Zip Email Address ( /V`r C••(t '... ,i PnAkke rliCcon krAhvo 'con Signature To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep :Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Name Address City, Zip I (021 S • I ( Cto 'We— N10 h 6e-1(1Q , 5 3 Email Address First Name Address tob lfi & Email Address v...,' a1' First Name First N Address Email Address Address ) I O a lc. Email Address First Name LaUgein Address i 6c J o\onw f\ c_ Last Name 5o"-I Last Name City, Zip Signature Last..... Name City, Z Signature City, ip L-b5 Signature Lat Name Lem\ y, Zip UI Si_na re Las ame `'T \n R IV1 cxf 9.5-O32 City, ZS ` c ths, "l O3 0 Email Address Sigr1a,'F City, Zip try C.r0,iQ C 96ci To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus, Sincerely, [Your name] First Na Address Email A First Name Address 51 / .VL. (a)Ccsco,� --t Email Address ems e First NamM, ci\s„ Sign Last Nap 472frv/ 5ignaturC Las Ad i�ress City, }Zip a CA q`> `-' 5 Email Address Signature Address r''Q r L i/ ht. City, Zip LG r."° Email Address First Name Address Email Address First Name Signure,. Last Name City, Zip Signature Last Na e Address lob n , ozibl Email Address To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First ame First Narr,}e EmairAddre.s First Name Address I Y-Q.uto. 1CN l A ! -' Email Address First Name L First Name C Add ress 'gar'/ poste Email Address Last Name urA,4 'ratlGe City, Zip Signature Las /lame f City, Zip 5 cTri> CIA Seqer() Signature Laste1j1j c 06%) 3 61-� Signature City, Zi Last Name City, Zip ic2 , Signature =�-- To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Name Last Name Address City, Zip Email Address First Name Address Email Address First .Nd_ Address i ' ( i 14. /--. Email Addr ss 12 First Na . Addres Email Address First Name Last Name City, Zip r Last Narre'� f-,,' City, Zip 5-bc te, Last N Address City, Zip 1-6 x 64, 4-2, f . .c-0 3 /. Yr7 C ?»\-, Email Address First Name eAtle; Get; Address //jj-'n Email Address Signat Last Name City, Zip %O S dos , CA. To: Los Gatos Town Council Please support the reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name] First Name Last Name Address Lltwrc k, S4Yee City, Zip 5 a4v , �1 Email Address Signature First Name Address Email Address First Name AW o \ Address t VY Last Name City, Zip Signatur Last Na r e F- vvir t , City, dp5 G D Email Address First Name Address I a A tier /—\ye. 3 Signature Last Name Lo,i sok City, Zip Los o 0 Email Address First Name d\ Address Signat e City, Zip 1-4 S, =+0 5 DA\ Email Address Signature First Name Address \a'` SVo-r (J Last Name s City, Zi Email Address ; Signature To: Los Gatos Town Council Please support time reinvestment in Los Gatos to keep Netflix and millions of dollars in our community to support town services, public safety and our schools for future generations by approving the Albright Way corporate campus. Sincerely, [Your name First�j ame Last Name Address City,,Zip .r,r,.� Email Address First Name Address Sigtore Last Name rfNt rater City, Zip Los C pews CA 50.36 Email Address Signature First Name Last Name Address City, Zip Email Address First Name Signature Last Name Address City, Zip Email Address First Name Signature Last Name Address City, Zip Email Address First Name Signature Last Name Address City, Zip Email Address Signature Joel Paulson From: Alex Garwood-gmail <agarwood48@gmail.com> Sent: Sunday, June 02, 2013 9:55 PM To: Council; Joel Paulson Cc: Garwood, Christine Subject: Approve NetFlix, Please! Importance: High Town Council: The greater good of the many outweighs the loud complaints of the very few. At least it should! NetFlix and Albright are a good thing for the Town of Los Gatos. The very vocal and, frankly, selfish complaints of an extremely small majority should absolutely not ruin the positives that NetFlix and Albright bring to the majority. The tax revenue for our schools is, by itself, enough to approve. Please do the right thing for our town, our property values, our community, our schools and our kids and vote yes. Vote yes and say no to the tyranny of the few. Alex Garwood 6401 Englewood Ave 1 Joel Paulson From: J Torre <jtorre@prodigy,net> Sent: Sunday, June 02, 2013 11:55 PM To: Council. Subject: Albright proposal - traffic I understand that the traffic study for the proposed Albright Way development has been analyzed as using appropriate numbers to calculate car trips generated by the proposal's 550K sq ft of office space. However, I have seen no similar evaluation of the study's depiction of current traffic to which those trips will be added. Traffic on Winchester Blvd and Lark Ave is already stop and go during commute times. And that is with most of the present Albright Business Park (which at 250K sq ft is less than half the proposed 550K sq ft) unoccupied. No matter how accurate the calculation of additional trips, it belies belief that the resulting traffic can be considered acceptable. Please deny the proposal as submitted and require a less dense design such as the 350Ksq ft in 35-ft buildings described in the EIR as environmentally superior. Jeanne Torre 306 Willow Hill Ct Los Gatos, CA 95032 jtorre cr prodigy.net 1 Joel Paulson crom: Sent: To: Subject: Dear Los Gatos Town Council, zenorbital <zenorbital@gmail.com> Monday, June 03, 2013 12:34 AM Council; BSpector; Marcia Jensen; Steve Leonard's; Diane McNutt; Joe Pirzynski; Joel Paulson Please Approve Albright Way campus I attended the Town Council meeting 2 weeks ago and got the chance to speak to you. My name is Michael James and I live at 111 Loma Vista Ct in L.G. I am a Netflix employee and moved to L.G. about 3 months ago with my family (a wife, a 4-year old daughter, and a son just born 2 months ago). I was not as eloquent as I had hoped during my rambling 3-minutes, may I outline my points in favor of Albright Way? * tall buildings? Everyone in Los Gatos seems to revere Good Samaritan hospital and it being in such close proximity. These are tall buildings that helicopters land on, rubbing shoulders with the freeway. Albright Way would be in keeping with that profile (tall & touching the freeway) and be shorter than Good Sam, I believe. Also, the perception of most people not living in Los Gatos is that Good Samaritan is a part of Los Gatos (not true: it is just over the border in San Jose). But no matter, most people who live here consider it a part of Los Gatos since it's south of Hwy 85 and in between Union Ave and Winchester Blvd. Both of my children were ''orn there. It's 3 minutes from my house. :-) * traffic increase? The Lark Ave freeway access ramps are nowhere near as busy as Hwy 280 ramps at Winchester, Saratoga, or Lawrence. Adding 4 or 5 buildings won't increase Lark traffic too terribly; your own study says so. If more people like me work there and move to L.G. traffic will decrease, since we'll be biking to work or commuting via side streets. Most residents of L.G. don't work in L.G. anyway. Please allow for more people like myself to live *and* work in Los Gatos by approving Albright Way. * Netflix leaving? I have no official say from Netflix, but I can tell you that we are fast running out of cubicle space. If Netflix leaves town, I may leave with it. I moved here for a beautiful commute: 6 minutes, no freeways. * Netflix hires conscientious employees: hard working, efficient, detail -oriented, long-term thinking, do -the - right thing for customers & for the business, honest and straight -forward. A growing fraction of us are choosing to live here in Los Gatos. I want to continue to live in a place that attracts that kind of person. Please Approve Albright Way. tank you! Michael James i 111 Loma Vista Ct, Los Gatos, CA 95032 2 Joel Paulson From: zenorbital <zenorbital@gmail,com> Sent: Monday, June 03, 2013 12:43 AM To: Council Subject: Approve Albright Way Dear Los Gatos Town Council, When I attended the last Town Council meeting (May 20) and spoke, I was struck by others who said it much better than I: * It's for the good of the many. * It's a $300 million dollar investment in the town, without the town needing to spend money. * Class A (Leed certified) office space is "gold" in Silicon Valley. * People move here and renovate their houses, we should renovate the office spaces too. Please APPROVE Albright Way. Thank you, Michael James + family 111 Loma Vista Ct, Los Gatos, CA 95032 { i Joel Paulson From: Sent: To: Cc: Subject: Barry Minkin <barryminkin@earthlink.net> Monday, June 03, 2013 7:07 AM Council BSpector Tens of thousands of Los Gatos trail users would mourn loss of one of the best Los Gatos mountain views if the councial sells out to the profiteers Please distribute to Town Council before tonight's meeting I was on the trail yesterday coming back from Campbell. I stopped as most bikers do before going down the hill under 85. The view of the mountains over the freeway is spectacular. It was nature at its best except for the red crane on Shanks property hanging way up in the air right in the middle of the view. This crane is just the symbol for the massive out of character (for most of Silicon Valley) structures that artist renderings where trees are and the lack of story poles are are also meant to hide and deceive the public what will be a legacy of a massive 60 story walls destroying mountain views for the masses for the favors of a few No one has the right to break the city codes and destroy these breathtaking views. Please don't set terrible precedent by selling out to a developer who otherwise will of course have to follow the 2020 plan to maximize his property after his latest bluffs Don't have your legacy as being the council who sold out the small town foundation of Los Gatos for a developers greed. In behalf of all the trail users thanks for doing the right thing. Barry Minkin Rivera Drive Los Gatos 1 Joel Paulson rom: Sent: To: Subject: Barry Minkin <barryminkin@earthlink.net> Monday, June 03, 2013 7:14 AM Council Fw: Tens of thousands of Los Gatos trail users would mourn loss of one of the best Los Gatos mountain views if the councial sells out to the profiteers Forwarded Message >From: Barry Minkin <barryminkin@earthlink.net> >Sent: Jun 3, 2013 7:07 AM >To: Town of Los Gatos - Town Council Judd <Council@losgatosca.gov> >Cc: los gatos mayor <bspector@losgatosca.gov> >Subject: Tens of thousands of Los Gatos trail users would mourn loss >of one of the best Los Gatos mountain views if the councial sells out >to the profiteers >Please distribute to Town Council before tonight's meeting I was on >the trail yesterday coming back from Campbell. I stopped as most bikers do before going down the hill under 85. The view of the mountains over the freeway is spectacular. It was nature at its best except for the red crane on Shanks property hanging way up in the air right in the middle of the view. This crane is just the symbol for the massive out of character (for most of Silicon Valley) structures that artist enderings where trees are and the lack of story poles are are also meant to hide and deceive the public what will be a legacy of a massive 60 story walls destroying mountain views for the masses for the favors of a few No one has the right to break the city codes and destroy these breathtaking views. Please don't set terrible precedent by selling out to a developer who otherwise will of course have to follow the 2020 plan to maximize his property after his latest bluffs Don't have your legacy as being the council who sold out the small town foundation of Los Gatos for a developers greed. >In behalf of all the trail users thanks for doing the right thing. >Barry Minkin >Rivera Drive >Los Gatos 1 Joel Paulson From: Sent: To: Subject: Nelson, John @ San Francisco DT <John.Nelson@cbre.com> Monday, June 03, 2013 8:04 AM Council APPROVE ALBRIGHT There currently exists a "Window of Opportunity" in front of you to effect a major positive change in The Town of Los Gatos by approving Albright and the Netflix expansion as it is before you. There is currently a "Window of Opportunity" that exists and everything has come together including: 1) An extremely favorable Capital Market which has abundant Construction/development capital offering extremely favorable pricing and terms for premier projects such as this with high quality tenants such as Netflix 2) Exceptionally strong and experienced sponsors/developers including a global Investment fund (one of the largest in the world) as the financial partner that has committed themselves to this project. 3) A very strong economic climate in Silicon Valley, including The West Valley and Los /Gatos, particularly for high quality Technology tenants such as Netflix and other well recognized tenants who have already expressed interest in leasing space in The Albright project. Having been in Commercial Real Estate for approximately 35 years in the Capital Markets, I have rarely seen this combination of factors come together to offer such a "Window of Opportunity". One fact about the commercial real estate market and times such as this is that you must act to take advantage of this window when it presents itself or you will miss the opportunity -- The favorable Capital Markets, The excellent tenant, and the exceptionally strong economic and leasing environment in Silicon Valley. Please approve Albright as it is submitted in front of you, keep Netflix in Los Gatos, and have one of the most premier office campuses in Silicon Valley. If you do not, another city in Silicon Valley will take advantage of this opportunity. Thank you, John Nelson John Nelson ( Executive Vice President I Broker Lic. 00451316 CBRE 1 Capital Markets Debt & Equity Finance 101 California Street, Suite 4400 I San Francisco, CA 94111 T4157720217I F4157740474I 04158607020 Iohn.nelson(cDcbre,com I www.cbre.com/capitalmarkets 1 Joel Paulson crom: Sent: To: Subject: Dear Town Council- charleen renati <charleenrenati@yahoo.com> Monday, June 03, 2013 8:10 AM Council Keep Netflix in Los Gatos I understand you are voting on a Nexflix expansion. Please approve this expansion. Los Gatos NEEDS the tax income. We cannot afford to loose Netflix. First we lost half of the auto dealerships, we do not want to loose Netflix too. We want Netflix to expand and give us more tax income. I live on the "east side" of Los Gatos, and we often think of ourselves as the "forgotten side", as it appears to us that most tax dollars are spent on the downtown neighborhood. I am told that funds are limited, that is why all of the $ goes to downtown. Let's get more tax income and then maybe the east side can prosper as well. -Charleen Renati 112 Belglen Way, Los Gatos r This Page Intentionally Left Blank From: Suzanne B Cochran [mailto:smb.cochranPme.com] Sent: Monday, June 03, 2013 9:14 AM To: Council Cc: Clark Cochran; Suzanne Cochran Subject: Current Albright Office Park Should be Revised Dear Elected Town Council Members, We support the re -development of the Los Gatos Business Park LLC (proposed Albright Office Park) consistent with the following: We support a project consistent with the Goals and Policies of the 2020 General Plan, consistent with the General Plan Light Industrial Land Use Designation, and consistent with the Town's Commercial Design Guidelines. We support a project that minimizes traffic impacts in an already congested area. We support a project that minimizes visual impacts to the adjacent neighbors and along highly traveled roadways. We support a project that is compatible and in harmony with the height, mass and scale of surrounding development and protects adjacent residential development. We support a project that optimizes open space by utilizing underground parking and that minimizes surface parking. We support a project that provides generous landscaped buffers between surface parking areas or structures located adjacent to Los Gatos Creek Trail or adjacent to residential development. We believe it is not possible to achieve the above goals without revising the Albright Office Park proposal, by: 1) reducing areas covered by driveways, surface parking, and buildings footprints and 2) reducing the height of the buildings We need to use this as a model for future office developments in Los Gatos by not approving the current proposal and making the adjustments above. Regards, Suzanne and Clark Cochran 60 Rogers Road Los Gatos, CA 95030 408-354-5155