Hitachi Seeks Zone Change for Mixed-Used Village

SAN JOSE -- Hitachi Global Storage Technologies has submitted a Planned Development Zoning application to the city, which details the proposed rezoning and uses of its 332-acre property at 5600 Cottle Rd.

The master plan for the site proposes a mixed-use, transit-oriented village including a range of employment, retail and housing opportunities.

The Cottle Road site serves as the headquarters for Hitachi GST, which is one of the world's leading suppliers of hard disk drives used in IT applications and consumer electronic devices. It has about 2,800 employees at its Cottle Road facilities engaged in development, manufacturing and administrative functions.

"Hitachi GST's goal is to continue to perform its current functions in San Jose for the long term," said Glenn Larnerd, chief operating officer of Hitachi GST. "To do so and to remain competitive, we need to provide a workplace plan that supports our near-term and long-range business needs."

The recent filing is a follow-up to the company's Feb. 19, application to the city for an Amendment to the General Plan, which proposes changes to the zoning of its site from industrial-only use to a mix of industrial, residential and commercial uses.

Hitachi GST proposes that its Cottle Road site be rezoned from 332 acres of industrial property to approximately 148 acres of industrial (office, R&D, manufacturing and other employment uses), 147 acres of commercial and residential, and 37 acres of roads and an existing PG&E substation. Hitachi GST intends to retain the core of the property for the company's operations while outer parcels would be available for commercial and residential use by other parties. A land-use diagram and data summary can be viewed on www.hitachigst.com.

"Due to its strategic location, the site is ideal for a true mixed-use, transit-oriented urban village -- a self-sustaining neighborhood with a strong employment base, retail opportunities and a range of housing options," said Steve McLaughlin, director of real estate site operations at Hitachi GST. The site is located adjacent to VTA Light Rail and Caltrain transit stations and near three major freeways.

The master plan also will ensure that the core site will have the capacity for more intense office, R&D, manufacturing, other employment uses and expansion in the future, ultimately supporting an amount of space that preserves the current employment capacity. The plan also includes a linear park that runs through the site.
Larnerd said that the rezoning and development proposal is intended to benefit the San Jose community. Development of a significant new mixed-use neighborhood would be conducted in a manner that is consistent with the city's smart growth, economic development and fiscal objectives, he added.

Impediment to Interstate 710 Completion Removed; Caltrans to Proceed on Controversial Project

MONTEREY PARK -- The California Transportation Commission's recent action to withdraw the "710 Freeway Notice of Determination" opens the door for construction of a 4.5 mi. extension of the Long Beach Freeway to South Pasadena.

The commission said that the decision would allow Caltrans to prepare a subsequent environmental document moving the 710 Freeway process ahead. Litigation has delayed the project for decades.

"The Commission's action will move the 710 Freeway project forward under federal and state law to help the public relieve traffic congestion," said Nat Read, chairman of a coalition that fought to have the freeway extended.

"Withdrawing the Notice of Determination was the strategy the State of California chose to scuttle the anti-710 litigation and we respect any action by Caltrans that moves the process forward," Read said. "We believed that this step was not necessary because we expect the courts to dismiss the state litigation very soon anyway. On the other hand, we applaud any effort by the state to clear away the lawsuits," he said.

Sen. Gil Cedillo said, "The commission sent an important message today that the freeway must be finished. The important thing is to move the project quickly now that the state litigation is likely to be dismissed. With the state lawsuit out of the way, Caltrans can focus on completing the new environmental study, including the possible use of a tunnel."

State Assembly member Judy Chu said, "I welcome action by the commission to complete the 710 Freeway as quickly as possible. The commission has decided to cut away the lawsuits that have delayed the project and if this turns out to be a way to help complete the freeway, then I salute their decision."

Said Read, "In December, the federal government issued a letter decision that is already helping to clear away the federal suits holding up the freeway. Today's action by the state of California will effectively have the same impact on suits in the state court.

"The process towards completion of the 710 Freeway remains essentially the same after the federal and state actions. A supplemental environmental study and final Federal Record of Decision were already required by the U.S. Department of Transportation's Decision of 1998. Today's decision will speed up the process leading to a final decision and ultimate completion of the 710 Freeway."

Jacobs Receives Hospital Project in France

Pasadena-based Jacobs Engineering Group Inc. has received major hospital reconstruction and relocation project from Hospital Clermont Ferrand University in the Clermont Ferrand Region of France.

Jacobs, one of the top engineering service providers for the French health-care sector, is providing engineering, procurement, and construction management services for a major expansion with a total contract value of over $117 million. It is teaming with Architect Group 6 on the project, constituting the fourth healthcare facility on which they have collaborated.

The project entails the integration of a mother and child health-care facility into the general surgery-oriented hospital complex, upgrading it from an obsolete building into a facility featuring the latest hospital technology. The project encompasses 75,000 sq.-ft. meters and includes an aggressive three-year schedule. The expansion and upgrade allow the hospital to meet growing service demands into the future.

"As an important health-care provider in France, they are a highly regarded client and we look forward to developing a strong and long-lasting partnership," said John McLachlan, a vice president of Jacobs Group. "We are delighted to be able to assist Hospital Clermont Ferrand in meeting its critical expansion strategy."

Jacobs has 35,000 employees and revenues of approximately $5 billion. The firm provides technical, professional, and construction services globally.

Senior Housing Project Under Way in La Quinta

LA QUINTA -- Construction is progressing on the 53,000-sq.-ft. Hadley Villas - a HUD-funded, affordable-housing project for seniors - on the corner of Adams Avenue and 47th Street.

The project will consist of 80 apartments totaling nine buildings and will include 10 acres of site improvements with a swimming pool and fitness trail.
Project owner SCPH , Roel Construction Co. (general contractor) and Matalon Architecture have been working on Hadley Villas for two years.

La Quinta has been instrumental in providing almost $1 million in additional funding for this senior community. The total cost for construction is $7.8 million. The property is scheduled to open in September.

SCPH has been providing housing and health care for seniors since 1955. The organization serves more than 3,142 residents living in six continuing-care retirement communities , one residential-care facility for the elderly, three assisted-living facilities, and 17 affordable-housing facilities in California.
Roel team members include Wayne Hickey (project executive), Don Maloy (project manager), Craig White (superintendent), Joe Clarke (project engineer) and Jennifer LaFrance (project coordinator).

Subcontractors for this project include RL Biggers and Associates, LSW Engineers, DCI Engineering, TKD Associates Inc., Earth Systems Southwest, Hydration Station, Jacobson Engineering Construction Inc., Western Exterminator Co., Sam's Fence Company, IMAC Construction, Steel Tech Fabrication Inc., Tandem West Group, Al Miller & Sons Roofing Co. Inc., Guy Evans Inc., C & C Flooring, Welsh Painting, Architectural Accent, Shasta Fire Protection, GBS Plumbing Inc. and McKenzie Electric.
The project is named after Dr. Paul Hadley and Virginia Hadley. He is the former chairman of the Southern California Presbyterian Homes Board of Trustees and professor at University of Southern California.

Mixed-use Development Planned for Downtown San Francisco

Two square blocks of real estate near downtown San Francisco will be transformed into urban housing as a result of an agreement among the University of California, a partnership formed by a private developer and a non-profit organization with dual reputations for building market rate and affordable housing.

A joint venture between A.F. Evans Development Inc. and Mercy Housing California recently signed an exclusive negotiating agreement with the University of California to plan the development of the former UC Berkeley Extension Campus in San Francisco and to reintegrate it into the neighborhood community.

The partnership is planning to build a residential development that will include apartments with ground-floor retail and commercial space. The overall vision for the re-development of the site is to create a mixed-income, mixed-use development that is compatible with both the physical characteristics of the surrounding neighborhood and with the needs of the local community.

Groundbreaking for the project is anticipated in 2006.

The partnership has hired the architectural firm of Van Meter Williams & Pollack to design the master plan for the development.

The estimated cost of the project was not disclosed. The 5.9-acre site is located at Laguna, Haight, Buchanan and Hermann streets. An undetermined number of the residential units will be designated affordable housing.

"The University is delighted to be working with a very capable team that clearly understands the importance of working with the community to develop a high quality project," said UC Berkeley project manager Jeff Bond.

Jane Graf, president of Mercy Housing California, said, "The Mercy/A.F. Evans/UC Partnership is a wonderful opportunity to make a real dent in the housing production needs in San Francisco. This is the kind of development that is needed to tackle the housing crisis that we face in San Francisco and Mercy is proud to be a part of the solution."

It is expected that UC will retain land ownership of the site and receive ground rent payments from the development team. After completion, the A.F. Evans/Mercy Housing partnership will manage the complex.

AC Martin Partners Promotes 3

AC Martin Partners has promoted Gail Bouvrie to senior associate, director of design. Craig O'Connor, senior planner, and Tammy Jow, designer, have been promoted to the associate level. The three work in the design firm's Los Angeles office.
Bouvrie works closely with Design Principal David C. Martin and is responsible for design and review of projects.

With an expertise in educational buildings, she has played a significant role in the design of the College of Engineering Classroom and Laboratory Building at Cal Poly San Luis Obispo, College of Business Administration at CSU San Marcos, Sequoia Hall Technological Center at CSU Northridge and UC Santa Barbara's Snidecor Hall Office Wing replacement.

Bouvrie has a masters of architecture degree from Syracuse University.
O'Connor is a senior planner for the planning and urban design department, in charge of project coordination and management. He has used his background in land use, facilities planning, and environmental analysis to create master plans for several educational campuses, including CSU Chico, CSU Fullerton, Oxnard College and Pasadena City College. O'Connor, who is interested in Third World development, has volunteered for Habitat for Humanity in Santa Cruz, Bolivia, and is currently a member of Habitat for Humanity in the San Fernando Valley. He holds a masters of urban planning degree from Cal Poly Pomona.

Jow has worked in the design department, coordinating and producing schematic design documents, site analysis and site planning since 1996. Her wide range of civic, institutional, religious, and adaptive re-use projects includes the Hollenbeck Replacement Station for the LAPD, the Fifth District Court of Appeal in Fresno, the LAUSD South Central High School at 17th and Grand and the Cal-EPA Headquarters building in Sacramento. As a volunteer member of the First Chinese Baptist Church Building Committee, she has also overseen the building of several projects for the Chinatown congregation in Los Angeles.

State Construction at $5.1 Billion for February, Up .1%; Private Sector Down by 4.9%

California's statewide construction activity in February totaled $5.1 billion, down 0.7% from January, but up slightly at 0.1% from February 2003, according to statistical data gathered monthly by the Construction Industry Research Board.

CIRB said that the sectors of housing, private nonresidential and public building construction were down in February but heavy construction was up 26.3% from January due primarily to two highway projects.

A $186 million freeway widening on Interstate 215 in Riverside County (that had already been approved and funded and waiting for award) and a $38.8 million highway project in Imperial County helped boost heavy construction to $562.2 million in February. In the first two months of 2004, heavy construction totaled $1.007 billion, up 3.2% from last year.

Ben Bartolotto, the director of CIRB, said that without the two highway projects "public works construction would be down both from a month ago as well as from February 2003."

CIRB is forecasting that public works construction, which includes highway-heavy and public buildings (government owned buildings) will decline by 4.1% in 2004. After two months in 2004, public works construction totals $2.43 billion, up 0.9% from February 2003.

California's private building activity, including both residential and nonresidential construction, totals $3.8 billion in February, down 3.7% from January and down 4.9% from February 2003. The bulk of the February decline is due to a sharp drop in multi-family housing. Bartolotto said "that drop is an aberration that results in an unusual spike in multi-family units in February 2003."

In the first two months of 2004, total building activity totals $7.8 billion, down 2%.

CIRB forecasts show modest increases in both residential and private nonresidential building in 2004.

CIRB analysts are keeping a close eye on new office building construction, which has been one of the weakest areas since 2000 in the private nonresidential building sector. In the first two months of the year, new office building is up $49.3 million (32.2%). CIRB forecasts nonresidential building to increase by 2.3% in 2004. This anticipated increase follows three years of substantial decline in that sector.

San Mateo Firm to Manage Embassy Suites' First Hotel in Mexico

San Mateo-based Landmark Hotels will manage the first Embassy Suites Hotel in Mexico, set to open in the first quarter of 2005.

The 18-story, 162-suite upscale hotel will be operated under an Embassy Suites franchise agreement. It is owned by Promotora Paseo de la Reforma S. de R.L. De D.C. of Mexico City.

Embassy Suites has more than 170 hotels in the Western Hemisphere.

"We are thrilled to work with Promotora Paseo de la Reforma and Landmark Hotels to bring an Embassy Suites Hotel to Mexico," said David Greydanus, senior vice president, brand management, Embassy Suites Hotels.

"A phenomenal location -- in the heart of Mexico City's business/financial district -- and the brand's ability to cater to the business and leisure traveler represent a powerful combination that will contribute to the success of this hotel."

The hotel will feature amenities to serve both the business and leisure traveler, including full-service food and beverage, daily complimentary cooked-to-order breakfast, and an evening manager's reception; high-speed Internet access; swimming pool; retail stores; and four boardrooms.

A unique feature of the hotel will be its conference suites, which will have the same spacious bedroom/living room design, but also will feature an adjoining conference room with seating for up to six people.

The Embassy Suites Hotel Mexico City is situated in a building on the Paseo de la Reforma in the heart of Mexico City's business/financial district, near the monument to Christopher Columbus sculpted by French sculptor Charles Cordier, Historic District, Zona Rosa and many embassies.

The hotel is about a 15-minute cab ride from Mexico City International Airport.

Fairfield Residential to Buy Multifamily Property, Convert to Affordable Housing

RICHMOND -- Fairfield Residential LLC is in the process of buying a Richmond multifamily property with plans to convert it to affordable housing.

Fairfield secured a $31.16 million bridge and mezzanine loan for the property, located just northeast of San Francisco across the San Francisco Bay. The garden-style apartment complex has 342 rental units located in 23 two-story buildings.

The property is situated on a hilltop and has excellent views of the San Francisco skyline and bay, Mount Tamalpais and San Pablo Bay. The property was constructed in two phases; phase one was completed in 1976; phase-two was completed in 1978. At the closing of the loan, the property was 92-percent occupied.

Although the property has been well maintained, Fairfield intends to spend approximately $4.8 million in interior and exterior improvements and site amenities. Funds for the improvements and to pay off the interim acquisition financing will be provided by a combination of proceeds from affordable-housing bonds and tax credit equity.

Fairfield has applied for $29.9 million of affordable-housing bonds from the California Debt Limitation Allocation Committee and $10.6 million of tax credit equity from Paramount Financial Group, a wholly-owned subsidiary of GMAC Commercial Holding Capital Corp.

The Bay Area, including Contra Costa County where Richmond is situated, continues to rank among the nation's least-affordable housing markets. Vacancies are low, rents continue to increase and additions to the multifamily inventory are primarily market-rate projects.

The $31.16 million bridge and mezzanine combination loan covered 95 percent of total costs. The remaining five percent was contributed by the borrower.

SPG was able to achieve comfort with the highly leveraged transaction because of the strong performance of the property and the local market as well as the solid exit strategy. Newman Financial Services' Structured Products Group recently closed the loan for Fairfield.

Jon Jerde Receives 2004 Stars of Design Award

LOS ANGELES -- World-renowned architect Jon Jerde, founder of the Jerde Partnership, was honored recently as a recipient of the Pacific Design Center's Stars of Design Award. The award was conferred for Jerde's "significant achievements and contributions" in the field of urban design.

"For more than 25 years, Jon Jerde has been a leading influence in urban design," said Charles S. Cohen, president of Pacific Design Center. "His distinctive work has served to regenerate and revitalize urban centers in Southern California and all over the world."

Jerde's projects are visited by more than 675 million people annually. They include Las Vegas' Bellagio and Fremont Street Experience; Japan's award-winning RiverWalk Kitakyushu, Roppongi Hills, and Canal City Hakata; Zlote Tarasy in Warsaw; Rotterdam's Beursplein; San Diego's Horton Plaza; the 1984 Olympics site in Los Angeles; and The Gateway in Salt Lake City.