Elected California Legislators Sacramento, CA Cc: Santa Clara County Supervisors Cc: Governor Schwarzenegger Elected CA Officials: California

clearly needs to find new revenue streams, in addition to putting an end to the never-ending pork-barrel spending that has become so commonplace in our state. One source of revenue is ending the tax exemptions on housing that have allowed upscale individuals to hide from property taxes, such as Channing House, in Palo Alto, CA. In the past decade, Palo Alto has become a target of non-profits, often being seeded with taxpayer funds, to build big, expensive facilities which become tax-exempt by the consent of the Legislature. These residents of these facilities, none the less require the same services as those living in single-family homeswhich bear the heavy brunt of property taxes. In many cases, the residents in these homes require even more government serviceswhile paying nothing into the general funds over the local municipalities, school districts, county general funds, or State general funds via property taxes included in the cost of their housing. The material following identifies some of these not-for-profit housing operations here in Santa Clara County that are becoming an ever bigger burden on the taxpayers, year after year: ------------------There are tax consequences associated with the project that is being planned at the corner of San Antonio Road and East Charleston Road, at the old Sun Microsystems Headquarters site. This property has been assessed as a commercial property in the past, providing significant revenues for the School District (PAUSD), and a somewhat smaller amount (about 9% of every property tax dollar) for the City of Palo Alto government (as specified by AB-8). With the approval of whatever plans that Build/Bridge (and other owners) have for this site, there is every reason to fear that the site will be exempted from property taxes, as other Bridge sites have been. Given that one component of this site is supposed to be dedicated to a religious/cultural purpose, its very likely that this component will end up being tax-exempt also. Given the ever-increasing costs of government in Palo Alto (both county, municipal and educational), the costs to the City and School District should be characterized as a part of the planning processes, and made public as a part of the decision process in granting whatever permissions are needed to allow this, or any such facilities, to be built. The following is from the Bridge WEB-site, which outlines their view of this project, and its proposed financial footprint: ------http://www.bridgehousing.com/Default.aspx?DN=190,32,7,1,Documents

Fabian Way Senior Affordable/Total Units: 65/227 Project Value: $83,250,000 Architect: To be determined General Contractor: To be determined Lenders: To be determined

RENDERING OF FABIAN WAY To be built as part of a larger development on the former Sun Microsystems site in south Palo Alto, Fabian Way Senior Apartments will provide 65 high-quality, affordable apartments for very-low-income senior households on just under one acre of land. The development will feature two to four floors of residential and common space above a ground-level podium parking garage. Amenities will include an inner courtyard, private and public decks and attractive landscaping throughout. Development of this site will be complemented by three acres of for-sale condominiums and an eight-acre recreational campus and senior assisted-living facility. Together, these three entities will transform the abandoned site into an exciting new pedestrian-oriented, mixed-use, mixed-income community offering a dynamic array of recreational, educational and other services available to both residents and the greater community. Leasing is expected to begin in early 2008.

Notice that from the Bridge Development vision, their component alone could have a taxable footprint of almost $84M. But how will this $84M footprint benefit local government in terms of increases taxes? The following three assessment records (from the Santa Clara County Assessors on-line data base) are for the three parcels believed to comprise this site: Number of Property Address(es): 1 Billing Address(es): 851 SAN ANTONIO RD Map it! 291 GEARY ST UNIT 605 SAN PALO ALTO Assessor Map FRANCISCO CA 94102-1811 Property Information

Document No. Document Type

14193408 GRANT DEED

Transfer Date Tax Default Date

05 / 20 / 1998 n/a

Tax Rate Area: 06-012 Palo Alto [City] Palo Alto [Unified School] Bay Area Jt(1,7,21,28,38,41,43,48,49,57) Foothill [Comm. College] [Air Quality Mgmt.] Mid-peninsula Regional Jt(41,43,44) [Open Santa Clara Valley [County Water] Space] Santa Clara Valley-zone Nw-1 [County Santa Clara Valley-zone W-4 [County Water] Water] Santa Clara County Importation [Watermisc.] For more information about your tax rate area: Assessed Values on: 127-37-020 Real Property Business
(Assessed Information as of 6/30/2006)

Exemptions $ 0 Homeowner $ 0 Other $0 $0 $0 $0 $0

Net Assessed Value

Land $ 759,484 Fixtures Improvements $ 327,160 Structure Personal Prop. Total $ 1,086,644

$ 1,086,644

APN: 127-37-024 Current Address/Deed Information 2006 Assessed Values 2005 Assessed Values 2004 Assessed Values

Situs Address and Mailing Address Information Number of Property Address(es): 1 Billing Address(es): 901 SAN ANTIONIO RD Map it! 345 SPEAR ST STE 700 SAN PALO ALTO Assessor Map FRANCISCO CA 94105 Document No. Document Type Property Information 18750963 Transfer Date GRANT DEED Tax Default Date 12 / 30 / 2005 n/a

Palo Alto [City] Foothill [Comm. College]

Tax Rate Area: 06-012 Palo Alto [Unified School] Bay Area Jt(1,7,21,28,38,41,43,48,49,57)

[Air Quality Mgmt.] Mid-peninsula Regional Jt(41,43,44) [Open Santa Clara Valley [County Water] Space] Santa Clara Valley-zone Nw-1 [County Santa Clara Valley-zone W-4 [County Water] Water] Santa Clara County Importation [Watermisc.] For more information about your tax rate area: Assessed Values on: 127-37-024 Real Property Business
(Assessed Information as of 6/30/2006)

Exemptions $ 0 Homeowner $ 0 Other $0 $0

Net Assessed Value $0 $ 0 New Parcel 2004 $ $ 0 11,444,400

Land $ 11,444,400 Fixtures Improvements $ 0 Structure Personal Prop. Total $ 11,444,400

Assessment Roll Information for: APN: 127-37-025 Current Address/Deed Information 2006 Assessed Values 2005 Assessed Values 2004 Assessed Values

Situs Address and Mailing Address Information Number of Property Address(es): 1 Billing Address(es): 901 SAN ANTONIO RD Map it! 5150 EL CAMINO REAL STE 11D LOS PALO ALTO Assessor Map ALTOS CA 94022 Document No. Document Type Property Information 16325926 Transfer Date GRANT DEED Tax Default Date 06 / 21 / 2002 n/a

Tax Rate Area: 06-012 Palo Alto [City] Palo Alto [Unified School] Bay Area Jt(1,7,21,28,38,41,43,48,49,57) Foothill [Comm. College] [Air Quality Mgmt.] Mid-peninsula Regional Jt(41,43,44) [Open Santa Clara Valley [County Water] Space]

Santa Clara Valley-zone Nw-1 [County Santa Clara Valley-zone W-4 [County Water] Water] Santa Clara County Importation [Watermisc.] For more information about your tax rate area: Assessed Values on: 127-37-025 Real Property Land $ Business
(Assessed Information as of 6/30/2006)

Exemptions $ 0 Homeowner $ 0 Other $0 $0 $0 $0 $0

Net Assessed Value New Parcel 2004 $ 21,335,000

Fixtures 21,335,000 Improvements $ 0 Structure Personal Prop. $ Total 21,335,000

Owners of the $21M parcel (127-37-025): ---JCCs & Campuses

Taube-Koret Campus for Jewish Life A multi-purpose intergenerational Jewish campus that will include a Jewish Community Center, Jewish Senior living residences, serve all age groups and welcome the entire community. 5150 El Camino Real, Ste. 11-D, Los Altos, CA 94022 (650) 691-0100 E-mail: info@campusforjewishlife.org

--The current taxable footprint/assessment is roughly $34M for these three parcels, bring in roughly 340,000 for governmental needs. Will this assessment increase as a result of the investment in new structures at this site?

Bridge Housing Developments and Property Taxes The Bridge Housing WEB-site provides small overviews of some of their projects in Santa Clara County. Three of these sites are presented below, with their Assessment Records from the Santa Clara County on-line Data Base: ----http://www.bridgehousing.com/Default.aspx?DN=72,32,7,1,Documents Oak Circle COURTYARD AT OAK CIRCLE APARTMENTS Affordable/Total Units: 200/200 Project Value: $18,000,000 Architect: James Guthrie and Associates Architects General Contractor: L & D Construction Lenders: The City of San Jose, Wells Fargo Bank, CalHFA, John Hancock Realty Advisors Oak Circle is part of an innovative master plan developed by BRIDGE in conjunction with another local nonprofit developer. The master plan combines BRIDGEs 100 units of senior housing with the other developers 100 units of housing targeted for teachers and families. The project plan focuses on integrating these uses and fostering an intergenerational community. Amenities include a community room that opens to a large courtyard with a fountain, a rose garden, ample seating, and a separate garden area where residents can raise their own flowers and vegetables. Oak Circle Apartments maps.google.com 1410 Roberts Ave San Jose, CA 95122 (408) 971-9099

Assessment Roll Information for: APN: 477-54-039 Current Address/Deed Information 2006 Assessed Values 2005 Assessed Values 2004 Assessed Values

Situs Address and Mailing Address Information Number of Property Address(es): Billing Address(es): 1410 ROBERTS AV Map it! 345 SPEAR ST SUITE 700 SAN SAN JOSE FRANCISCO CA 94105 Document No. Document Type San Jose [City] Property Information 16177463 Transfer Date GRANT DEED Tax Default Date 03 / 26 / 2002 n/a

Tax Rate Area: 17-172 Franklin Mckinley [Elem. School]

East Side Union [High School] Guadalupe-coyote [Resource Consv.]

San Jose [Comm. College] Bay Area Jt(1,7,21,28,38,41,43,48,49,57) [Air Quality Mgmt.]

San Jose-strong N'hoods Initiative (nrd) Santa Clara Valley [County Water] [Redevelopment] Santa Clara Valley-zone E-1 [County Santa Clara Valley-zone W-4 [County Water] Water] Santa Clara County Importation [Watermisc.] For more information about your tax rate area: Assessed Values on: 477-54-039 Real Property Land Business
(Assessed Information as of 6/30/2004)

Exemptions $ 0 Homeowner $ 0 Other $0 $0 $ 15,590,901 $0 $ 15,590,901

Net Assessed Value

$ 2,365,901 Fixtures $ Improvements Structure 13,225,000 Personal Prop. $ Total 15,590,901

$0

http://www.bridgehousing.com/Default.aspx?DN=45,32,7,1,Documents Almaden Lake Apartments Affordable/Total Units: 144/228 Project Value: $40,000,000 Architect: David Baker + Partners General Contractor: L & D Construction, Devcon Lenders: Wells Fargo Bank, City of San Jose, SAMCO, CalPERS, State of California

ALMADEN LAKE APARTMENTS

Nestled in a hillside in South San Joses popular Almaden Valley is Almaden Lake Apartments. This property is a 144-unit rental development and affordable to very-lowincome households. Overlooking Almaden Lake, the property is adjacent to a Cityowned regional park and is located a block away from a light rail station. Developed in conjunction with a for-sale single-family development, Alamaden Lake Apartments provides shared facilities including a pool, a community center and a tot lot for family enjoyment.

http://www.sjhousing.org/project/ala.html Total Funding: $23M 978 Almaden Lake Dr San Jose, CA 95123 408-323-8020

Assessment Roll Information for: APN: 694-47-085 Current Address/Deed Information 2006 Assessed Values 2005 Assessed Values 2004 Assessed Values

Situs Address and Mailing Address Information Number of Property Address(es): 1 Billing Address(es): 970 ALMADEN LAKE Map it! 345 SPEAR ST STE 700 SAN DR Assessor FRANCISCO CA 94105 SAN JOSE Map Document No. Document Type Property Information 11682836 Transfer Date GRANT DEED Tax Default Date 12 / 10 / 1992 n/a

Tax Rate Area: 17-108 San Jose [City] San Jose [Unified School] Bay Area Jt(1,7,21,28,38,41,43,48,49,57) San Jose [Comm. College] [Air Quality Mgmt.] Santa Clara Valley-zone C-1 [County Santa Clara Valley [County Water] Water] Santa Clara Valley-zone W-4 [County Santa Clara County Importation [WaterWater] misc.] For more information about your tax rate area: Assessed Values on: 694-47-085 Real Property Land Business
(Assessed Information as of 6/30/2006)

Exemptions $ 0 Homeowner $ 0 Other $0 $ 17,316,033 $ 17,316,033

Net Assessed Value

$ 4,209,360 Fixtures $ Improvements Structure 14,507,414 Total $ Personal 18,716,774 Prop.

$ 41,793 $ 41,793

$ 1,442,534

Cinnabar Commons Affordable/Total Units: 245/245 Project Value: $60,500,000 Architect: Levy Design Partners General Contractor: Nibbi Brothers Lenders: City of San Jose

CINNABAR COMMONS A newly completed property in San Jose, Cinnabar Commons provides 245 family rental apartments and well-designed common spaces. Attractive landscaping is complemented by an open space for resident families to relax and interact. Santa Clara VTA buses provide public transportation as well as a connection to CalTrain. The Alameda, a large commercial and retail area for shopping as well as a source of potential employment, is easily accessible from the site. As an additional enhancement to the living environment, a new city park will be created adjacent to the property. Cinnabar Commons is currently leasing up. Please visit our Vacancy and Interest List Page for more information.

Cinnabar Commons

City of San Jos - Housing - 200 East Santa Clara Street, San Jos, CA 95113 - ph:408.535.3860 Home | Department | Programs | Policies | Projects | Homeless Services | Data | Reports | Publications | Links <City of San Jos><Web Page Disability Access Design Standard> http://www.sjhousing.org/project/cc.html

This affordable housing development replaces a mixture of commercial and industrial uses and supports revitalization of the Downtown Core. A residential community consisting of four independent complexes, it includes a half-acre park dedicated to the preservation of a large coastal live-oak tree: a representative of San Jos's rich natural history. Residents are able to enjoy the safety and convenience of this community park, as well as landscaped courtyards exhibiting a diverse variety of landscaping themes.

Completed: Location: Unit Mix: Unit per Acre: Developer: Architect: General Contractor: Property Manager: Financing: Total Funding: 875 Cinnabar Street at Stockton Cinnabar Commons 875 Cinnabar Street San Jose, CA 95126

Anticipated completion 2004-05 Lenzen Avenue at Stockton Avenue 245 units; 49 VLI/196 LI 60.0 Southern Hill Properties Levy Design Partners Nibbi Brothers Construction Yerba Buena Commons Associates, Inc. City of San Jos - $14,983,000; Other Partners - $48,274,000 $63,257,000

http://www.bridgehousing.com/Default.aspx?DN=73,32,7,1,Documents Ohlone Court Apartments

Affordable/Total Units: 135/135 Project Value: $15,000,000 Architect: MVE & Partners General Contractor: L & D Construction Lenders: Wells Fargo Bank, City of San Jose, SAMCO, CalPERS, World Savings, Federal Home Loan Bank

OHLONE COURT'S COMMUNITY BUILDING Winner of a 1998 Gold Nugget Award, Ohlone Court was masterplanned along with the rest of the property and an adjacent 12-acre site. This San Jose complex offers a large swimming pool and childrens wading pool, structured childrens play areas, barbecues and lawn areas, and a beautiful community center. A nearby light rail stop provides access to transportation.

Ohlone Court Family Apartments

City of San Jos - Housing - 200 East Santa Clara Street San Jos, CA 95113 - ph:408.535.3860 Home | Department | Programs | Policies | Projects | Homeless Services | Data | Reports | Publications | Links <City of San Jos><Web Page Disability Access Design Standard>

http://www.sjhousing.org/project/ocfa.html

As the result of an extensive neighborhood process, which included receiving input on the design and amenities of the development, the Ohlone Court Family Apartments have been positively received by the surrounding community. Located on a light rail line and near other transposrtation options, Ohlone's residents often choose to stay home to enjoy the large pool and children's wading pool, structured children's play areas, BBQ's and lawn areas, and a beautiful community center.

Completed: Location: Unit Mix: Unit per Acre: Developer: Architect: General Contractor: Property Manager: Financing:

1997-98 5225 Terner Way and Winfield Boulevard 135 units; 135 VLI 32 BRIDGE Housing Corporation McLarand Vasquez and Partners, Inc. L & D Construction BRIDGE Property Management City of San Jos - $2,700,000;

Other Partners - $11,256,980 Total Funding: $13,956,980 Ohlone Court Apts 5225 Terner Way San Jose, CA 95136 264-5985 Assessment Roll Information for: APN: 458-11-015 Current Address/Deed Information 2006 Assessed Values 2005 Assessed Values 2004 Assessed Values

Situs Address and Mailing Address Information Number of Property Address(es): 9 Billing Address(es): 5225 TERNER WY Map it! 345 SPEAR ST STE 700 SAN SAN JOSE Assessor Map FRANCISCO CA 94105 5201 TERNER WY Map it! 345 SPEAR ST STE 700 SAN SAN JOSE Assessor Map FRANCISCO CA 94105 5207 TERNER WY Map it! 345 SPEAR ST STE 700 SAN SAN JOSE Assessor Map FRANCISCO CA 94105 5213 TERNER WY Map it! 345 SPEAR ST STE 700 SAN SAN JOSE Assessor Map FRANCISCO CA 94105 5219 TERNER WY Map it! 345 SPEAR ST STE 700 SAN SAN JOSE Assessor Map FRANCISCO CA 94105 5223 TERNER WY Map it! 345 SPEAR ST STE 700 SAN SAN JOSE Assessor Map FRANCISCO CA 94105 5231 TERNER WY Map it! 345 SPEAR ST STE 700 SAN SAN JOSE Assessor Map FRANCISCO CA 94105 5237 TERNER WY Map it! 345 SPEAR ST STE 700 SAN SAN JOSE Assessor Map FRANCISCO CA 94105 5243 TERNER WY Map it! 345 SPEAR ST STE 700 SAN SAN JOSE Assessor Map FRANCISCO CA 94105 Document No. Document Type San Jose [City] Property Information 12347238 Transfer Date GRANT DEED Tax Default Date Tax Rate Area: 17-108 San Jose [Unified School] 02 / 07 / 1994 n/a

Bay Area Jt(1,7,21,28,38,41,43,48,49,57) [Air Quality Mgmt.] Santa Clara Valley-zone C-1 [County Santa Clara Valley [County Water] Water] Santa Clara Valley-zone W-4 [County Santa Clara County Importation [WaterWater] misc.] For more information about your tax rate area: San Jose [Comm. College] Assessed Values on: 458-11-015 Real Property Land Business
(Assessed Information as of 6/30/2006)

Exemptions $ 0 Homeowner $ 0 Other $0 $ 20,286,110

Net Assessed Value

$ 4,984,163 Fixtures $ Improvements Structure 15,517,417 Personal Prop. $ Total 20,501,580

$ 41,316 $ 41,316 $ 20,286,110 $ 256,78

From reviewing each of the property assessment records, it is clear that these properties have been exempted from property taxes which are necessary to pay for the services which the occupants of these properties require (and doubtless demand). An inquiry to the Santa Jose Housing Authority as to why these properties were tax exempt was answered thusly: State law authorizes such exemptions. Other questions about exemptions for various local impact fees being waived was answered Yes, impact fees have been waived for these properties also. Interestingly, the City of San Jose has been a financial partner in many of the Bridge Development properties using taxpayer resources to build homes for people who are then exempted from paying property taxes as a component of their rent. A final question as to what makes these people special and not subject to contributing to the services that single-family home owners must contribute, as well as renters in commercial properties, was not answered in a way that one could characterize as logical, or with clarity.

BUILD Housing: In addition to the Bridge Housing on this site, there is a large section of for-sale properties to consider: http://www.bridgehousing.com/Default.aspx?DN=25,23,2,1,Documents 901 San Antonio Road 901 San Antonio Road is a joint project of BUILD and BRIDGE. Located in Palo Alto, this development includes 230 family condominiums and affordable senior apartments. The for-sale family condominiums will be priced to attract entry-level homebuyers who traditionally would not be able to purchase a home in the area. The apartments will be affordable to low- and very-low income seniors. 901 SAN ANTONIO ROAD RENDERING In addition to the Bridge housing, the BUILD group is planning housing which will include both for sale units, as well as presumably affordable senior apartments will no doubt end up being tax exempt also. Property as a Basis For Taxation For Government Services Taxes for local government have been assessed against property owners for centuries now (at least in the British family of countries). The fairness of this approach may be subject to much debate, but reality is that much of the revenue for government services comes from property tax. While Prop.13 has created what is effectively a split-tiered property roll in California (and Palo Alto), about 85 million dollars in property taxes exacted from the City/School District jurisdictions are returned to Palo Alto/PAUSD for municipal/educational services. Granting property tax exemptions to special interest groups is destabilizing in terms of revenue generation, as well as to the general assumptions of honest and effective selfgovernance. Potential Tax Implications For Governmental Agencies Currently, it is too soon to estimate the total potential tax assessment for this three-parcel site. However, given the roughly $84M project cost that can be found on the Bridge WEB-site, and the $22+M assessment for the parcel owned by the religious group

intending to open a cultural center, it would be fair to estimate that the total valuation of this site might end up in the range of $125M. If the Bridge project is allowed to proceed, there is every reason to believe that the $84M project value (footprint) will end up being tax exempt, having a zero-dollar (or nearzero dollar) footprint. The following Santa Clara County governmental agencies are dependent on revenue from property owners in the county: Palo Alto [City] Palo Alto [Unified School] Foothill [Comm. College] Bay Area Jt(1,7,21,28,38,41,43,48,49,57) [Air Quality Mgmt.] Mid-peninsula Regional Jt(41,43,44) [Open Space] Santa Clara Valley [County Water] Santa Clara Valley-zone Nw-1 [County Water] Santa Clara Valley-zone W-4 [County Water] Santa Clara County Importation [Water-misc.] In addition, there are a number add-ons to property tax bills which support a growing number of governmental services, including revenue to pay for retirement benefits for County workers. With the PAUSD being a Basic Aid School District, it becomes the largest single recipient of property tax dollars in Palo Alto. The impact on future revenue of the school district does not seem to be discussed when these projects are going through the various other stages of planning that involves impacts. Why are economic impacts to local government not discussed at a time like this? Again, the question arises: Why are the people who will be living in this location so special that they should not be expected to contribute to the cost of local government?

PAUSD Impact Fees The following is from the PAUSD WEB-site which describes education-based impact fees: Commercial development at $0.42 per sq. ft. assessable space Commercial assessable space is defined as all covered and enclosed space within the perimeter of a commercial structure except for incidental storage areas, garages, parking structures, unenclosed walkways, or utility or disposal areas. Fees are assessed on structures to be used for commercial or industrial purposes, most senior housing, adult-only mobile homes, and hotels and motels. A representative from the School District indicated that the PAUSD was not in the practice of granting exemptions for affordable housing (and the like), so it is likely that this impact fee will be assessed the housing components of the Sun Site project. Services Required By Tax Exempt Housing Projects From General Fund It should be obvious that fire and police services are required by all residents of Palo Alto, regardless of their housing property tax status. Palo Alto spends more than just about any other city in California on services, with per capita expenses of over $2,000 per person. Using this currently well-documented governmental cost-per-resident number, 65 additional residents will nominally cost the City a minimum of $130,000. Given the nature of a group living arrangement, doubtless there will be requirements for fire/safety inspections from the Palo Alto Fire Department, requiring General Fund funding for these inspections. Other services such as parks, libraries, street maintenance and other general city services are all paid for from General Fund sources. Some services, such as the Palo Alto shuttle, are only partially funded by General Fund sources, but nonetheless, do draw from the General Fund. Other County services could be enumerated at this point, since the County Government spends over $1,000 per person providing County services.. Seniors have been the target of violent attacks here in Palo Alto in the past. The cost of investigating these assaults, as well as court proceedings against those identified by the police, must be borne by the General Fund of the City and County. These costs can be considerable further calling into question the correctness of granting tax exemptions to any property where people reside. Exempting people from paying into the City/Countys general fund to pay for these services make no sense. Palo Alto Fee-For-Service Services Palo Alto offers a fee-for-service ambulance service. This service generally is funded by fee-recovery from the users of the service. However, the Council has been known from time-to-time, to supplement the budget of this service when low-income/homeless

peoples use of the ambulance service was unpaid. Concerns should arise at a time like this so that any project that is targeting low-income people (and with property being tax exempt), insure that some sort of insurance be acquired that will insulate the Citys General Fund from health care needs of the individual living in such accommodations. The exact nature of this insurance is an open question, but the City Government should not be the source of these funds. Failure of the project management to provide such insurance should result in the denial of any permits to proceed with such a project. New Services Demanded It probably is not too soon to speculate about the possibility of this projects making demands for social services on the City and County, or new demands on the Palo Alto police department. Special Interest groups routinely target Palo Alto for funding to further their groups goals and/or agendas. It is unlikely that the people behind the project will be any different. It is imperative that the City identify the non-revenue producing nature of these projects in the public debate about the desirability of this (and similar projects) in Palo Alto, and take a firm resolve that no social services will be provided to this project while it is in a property tax exempt status. Given the physical location of this site, it is not unlikely for these people to demand shuttle service, library service, health care services (of some sort) and other city-provided cultural services. Planned Community (PC Zoning) Variances PC Zonings (zonings which allow a Developer to request variances for the surrounding zoning in exchange for project components which are considered to have offsetting public benefit) have been used extensively in Palo Alto, with very little evidence of any public benefit that has been enjoyed by the public (at large) from the variances granted to these projects. One such controversial project is the 800-High Street project, for which precious little in terms of public benefit can be observed. It is reported that this Bridge project is requesting a 27-foot variance from Palo Altos 50foot height limit. One of the components of this 27-foot increase is for a floor to house additional people. If this property were to be exempted from property tax, any increase in the number of people would increase the demand for services (currently thought to be about $2,500 per person) with no offsetting revenue stream, or offsetting community benefit to justify the expense of the community services that will ultimately be demanded by these new residents. As such, the Council can not allow this additional floor. Any other request for variance should be considered on its own merit, provided that it is not intended to facilitate a large number of residents than a 50-foot building would accommodate.

Conclusion While the projects identified above which are the product of Build/Bridge Housing all seem to be well designed and are no doubt a credit to the Developers involved, the reality is that these projects shift the costs of governmental services from the people who live in these projects to the (primarily) to that citys (and countys) single family homeowners. When the number of such projects is small, the additional cost which must be borne by single family homeowners is most likely small, and probably worthy of too much consideration. However, in very small towns, like Palo Alto, which finds itself burdened with a large number of institutional property owners (such as Stanford with a $5.1B property tax exemption, the PAUSD and even the City itself with around 2000 acres of open space/parks/etc.), then the incremental cost-shifting of projects of the size of the old Sun Site project becomes more noticeable on the single family homeowner. Palo Alto has been the target of many so-called non-profits for years. Projects like Channing House, Webster Woods and Lytton Gardens, among the very few, have introduced hundreds of residents to the City, all demanding social, municipal and educational services without contributing their fair share to the General Funds of the various governmental agencies tasked to provide these services. Palo Alto can no longer allow special interest groups to import new residents into our community without these projects paying ALL of the various taxes and fees that other people are expected to pay when they move into our community. Lastly, City and County governments need to petition their legislative representatives for relief from the laws that currently provide for the exemptions of property tax. This relief is particularly necessary in Basic Aid School Districts, like the PAUSD, which is heavily dependent for its revenues from property tax. Legislatorsthe ball is in your court. For decades you have believed that its a rich country and everyone deserves a share! You have engaged in the folly of wealth redistribution until such time that up the top 10% of the taxpayers are responsible for roughly 90% of the income taxes needed to run the government, and fund the irresponsible transfer payments you have cast into law. Senators and Legislatorsthe party is over! Time for you to begin to govern, and not just give away the goodies to your constituents. Lets start by revoking all property tax exemptions for housingand rethink the impact on government of this housing by requiring the residents of such housing to pay into the tax pool also. Wayne Martin Palo Alto, CA