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I. EXECUTIVE SUMMARY "THE BENEFITS OF A HEALTHY COMMERCIAL REAL ESTATE MARKET IN PASADENA" Following a meeting convened by the mayor and planning director to discuss concerns and issues facing commercial real estate interests, held at the Athenaeum in June 2008, the Pasadena Chamber of Commerce coordinated a series of meetings with Pasadena Transportation and Planning department heads and stakeholders in commercial real estate leasing, construction and management. The attached report is the result of these meetings, identifying the challenges and potential solutions to promote the vitality of the commercial real estate sector in the city of Pasadena. The construction and operation of commercial real estate brings tremendous fees and taxes to the city. Taxes from new development could provide a steady revenue stream to enhance the city's financial position. As an example, a new commercial office building of 100,000 square feet generates more than $1 million in one-time construction tax and traffic mitigation fees. That same building provides direct annual tax revenues to the city of approximately $145,000. Another $91,000 in tax revenues goes to support the Pasadena Unified School District. The attached report discusses the following challenges: 1. Implementing Pasadena's development vision while maintaining the viability of commercial office ventures in a competitive environment. 2. Development that promotes use of mass transit without undermining the marketability of commercial office properties. 3. Adequacy and appropriateness of parking allocations relating to commercial office, retail, restaurant and entertainment uses. 4. Inconsistencies in the planning, design review and permitting process related to commercial office spaces. Encouraging commercial real estate development in the city is consistent with the city's green objectives. It promotes a job housing balance, reduces congestion and promotes rapid transit use when properly planned and executed. Real estate development is a capital intensive, long-term endeavor. The City's efforts to address these challenges will result in an increased and stable tax base, resulting in the enhanced long term economic and social health of the community. The solutions we recommend can be implemented through a series of administrative changes, code changes and, in some cases, incorporated through the general plan revision process.