Published Friday, October 24, 2003, in the San Francisco Examiner

Controversial housing opens doors
Project caps years of development and preservation debate.

By Michele Leung
Of The Examiner Staff
mleung@...

SAN CARLOS -- Following years of debate between preservationists and
developers, the controversial transit corridor housing project, the
Pacific Hacienda, cracked open its doors Thursday giving residents
and business owners a glimpse of the city's newest condominiums.

"It is a strong example of a multi-unit infill development in
downtown areas that can work well in cities, especially close to
transportation corridors," said developer Chris Wuthmann of Pacific
Peninsula Group.

The completed project represents a compromise between those who
sought development and those who would rather have historical
buildings saved. One component of the project is that Hacienda Garden
buildings on San Carlos Avenue -- four 1930's cottages -- were
restored by the developer to be used exclusively as office space.

Originally there were 12 such cottages, all dedicated as single
dwelling units. When the project first began, opponents were
concerned about retaining a part of old-time San Carlos and
preserving the look and feel of these structures. These buildings had
not been well-maintained and dry rot had become one of the main
features of these Spanish-style cottages.

However, in order to meet opponents in the middle, Pacific Peninsula
Group was required to restore four of the dilapidated structures, in
return for being able to tear down cottages to make room for the
larger buildings.

"It was a long and expensive process," Wuthmann said.

Locals got a chance to tour inside the project, consisting of 89
luxury 1- or 2-bedroom condominiums and additional office space at
633 Elm St. The project has been six years in the making, well-worth
the wait for Wuthmann. For him, the location was ideal as the project
is just blocks away from downtown San Carlos, the library, the City
Hall and the train station.

According to the sales office at Pacific Peninsula Group, 49 units
have already been purchased or reserved. The prices begin at $395,000
for a one-bedroom unit and $649,000 for two bedrooms.

However, while a few dentists and doctors have made inquiries
recently about setting up shop here, renting out the office space has
been a slower affair, reflecting the trend of vacant office spaces up
and down the Peninsula.

"The office market is difficult right now," Wuthmann said. "It's a
tough challenge. The economy is just recovering."

The project also includes 13 below-market rate units for those with
low and moderate incomes. Affordability is a relative term in San
Mateo County. For the condominiums priced at $265,000, ranking at the
low end, a one-person household can make no more than $63,350.

Howard Girdlestone could not be happier with the end result. During
the planning process, he was among those pushing for development.

"I'm in favor of progress," he said. "There were some people who
wanted to leave everything as decades-old, but time moves on."

Those who witnessed the planning process say it was a contentious
time. Ultimately, fountains and walkways were also restored to
reflect their original glory.

"From the city's perspective, it was a fair compromise," said Brian
Moura, the city's assistant city manager. There was some preservation
and some development. There was some balance."


[BATN: For more on Pacific Hacienda see:
http://www.cityofsancarlos.org/is/display/1,1124,deptid-20_isid-2768,00.html ]