Council gives developer more time to find money
The developer of what would become Milpitas’ tallest buildings has been given more time to find money for the ambitious project.
The City Council voted 4-1, with Mayor Rich Tran dissenting, to grant the extra time for the long-planned Milpitas Landmark Towers. Tran said he was voting no because he feels the city is “growing too fast.”
The decision means Southern California-based developer BDK Capital will have up to two years to gather the needed financing and obtain the necessary building permits for the project, approved by the council in April 2016.
The dual 23-story mixeduse towers, planned for a 3-acre plot at 600 Barber Lane west of Interstate 880, would include 450 condominiums and about 55,000 square feet of commercial space in the lower levels, according to city reports.
The developer told the city in a letter earlier this year its original funding plan relied heavily on money from a Chinese investor; “however the Chinese government has since made it extremely difficult to transfer capital out of the country.”
As a result, the developer now needs to pursue money from investment banks.
Despite the previous City Council approval in 2016, Tran expressed doubt that the public had enough of a chance to offer its feedback on the tall structures.
“I feel like as a city, we’re growing too fast.” Tran said at the meeting. “And I don’t think these twin towers will be the last project brought to our city by great developers.”
Tran said he was concerned the city doesn’t have enough resources to support the towers and others that could follow.
Though the city requires that 5 percent of construction costs of a development be paid into affordable housing funds if low-cost homes aren’t part of the project, the developer recently upped its contribution to 7 percent in an attempt to push the extension request through.
City Planning Director Bradley Misner told the council that the total contribution could be worth between $11 million and $15 million for affordable housing.
That, along with other benefits previously approved, including a new ladder truck for the fire department and $500,000 in cash for the city to use as it sees fit, won over Vice Mayor Marsha Grilli and Councilmen Bob Nuñez and Anthony Phan. Councilman Garry Barbadillo voted yes via teleconference from Hawaii.
BDK Capital said in its letter to the city that if the extension is granted, construction could start by early 2019 and the towers could be completed by early 2021.