Brian is a Senior Vice President with the Mechanics Bank and heads the investment management group responsible for managing $1.4 billion of client assets.  He has been with Mechanics for 21 years and has been involved in the investment management business for 31 years.  Brian currently manages assets for high net worth individuals, qualified plan pension and profit sharing accounts, trusts and charitable organizations.

Before joining Mechanics Bank, Brian and George Springman ran an institutional asset management firm, specializing in value oriented equities, whose clients included the State of Oregon, City and County of San Francisco, and the Contra Costa Employees Retirement System.  Prior to that, Brian worked for Transamerica Corporation as part of a three person Corporate Financial Planning and Analysis team responsible for corporate wide capital planning, forecasting and strategic competitor analysis.

Brian holds an MBA in Finance from San Francisco State University, a BS in Economics from the University of San Francisco, and a BA in Business Administration from the University of San Francisco.  He is a CFA (Chartered Financial Analyst) and a CFP (Certified Financial Planner).

Agenda
4:00-4:30 Networking in the Roof Garden with beer, wine and cheese
4:30-5:15 Commercial Real Estate Market Update featuring Brian Pretti, Mechanics Bank in the Garden Room
5:15-6:00  Networking in the Roof Garden with beer, wine and cheese

Costs:
$25 ULI Member/$40 Non-Member
$40 onsite registration

Pre-registration ends 48 hours in advance.

ULI members, please register online (check back soon for the link) or call 800-321-5011.  If you are a CCIM member, please register here.

CCIM
CCIM Northern California Chapter will have its monthly seminar at 2:30pm, ULI members are invited to attend as guests.  CCIM will have Technology and Mentoring sessions:

CCIM members, for more information, please email ncalccim@ccim.net

Join us for the 10th Annual Multifamily Trends Conference at PCBC in San Francisco. Whether you design, develop, own or invest in multifamily housing, the next few years present great opportunities–and more than a few challenges as well.

The Multifamily Trends Conference, held in conjunction with PCBC’s annual tradeshow, is a two-day summit of the leading analysts and operators in for-rent and for-sale multifamily housing. You’ll get expert perspectives and straight talk on the economy, supply and demand, capital markets, investment strategies, development trends and macro/regional market conditions.

The Multifamily Trends Conference draws a national audience of builders, developers, architects, owners and investors–a who’s who of industry leaders.

You are invited to join us for the 2012 Multifamily Trends Conference, June 27-28 at the Moscone Center in San Francisco.

2012 speaker highlights include:

• Paul Angle, Managing Regional Director, Freddie Mac
• Ziv Cohen, COO, Resmark Apartments Living
• Tim Hennessey, Principal, Prudential Real Estate Investors
• Randall Lewis, Executive VP, Lewis Operating Corp.
• Hessam Nadji, Managing Director, Marcus & Millichap
• Michael Schall, President & CEO, Essex Property Trust
• Larry Scott, Senior VP – Development, Fairfield Residential
• Frank Suryan, Jr., Chairman and CEO, Lyon Communities
• Ron Witten, Founder, Witten Advisors

Multifamily Trends registration includes PCBC’s keynote session featuring Gary Vaynerchuk, social media trailblazer, über-entrepreneur, and bestselling author of The Thank You Economy and Crush It! At times irreverent and always high energy, Gary will share how any business can leverage the transformative effect of social media engagement.
Registration also includes a networking reception where you can connect with colleagues — and interact with speakers — over drinks and hors d’oeuvres.

We hope to see you there.

Alfred Pace
Co-founder and President, Pacific Urban Residential
2012 Multifamily Trends Conference Chairman

Download Multifamily Trends Conference Brochure
View Multifamily Trends program agenda

ULI Members save $50!

Register by May 31st with discount code MFTULISF and receive a $50 discount.

About Alfred Pace, 2012 Multifamily Trends Conference Chairman

Mr. Pace is a graduate of the USF and a CPA (inactive). His early career began with the accounting firm of KPMG, San Francisco, and the subsequent founding of CMR Search in 1983. Prior to Pacific, Mr. Pace spent fourteen years in several senior positions for multifamily pension fund advisor SSR Realty Advisors, culminating in the position of Managing Director, National Acquisitions. Since 1986, he has been an investment advisor and principal in the acquisition of apartment communities totaling more than 22,000 units and $4.5 billion dollars. He is a member and director of NMHC and ULI and has authored articles on the subject of multifamily investments.

The Multifamily Housing Trends Conference is produced by PCBC in partnership with Marcus & Millichap. Association Partners include ULI San Francisco and the California Apartment Association.  Conference sponsors include Cushman & Wakefield, California Advanced Homes and Real Facts Meyers.

Presented by
Charles Gibson, Partner at TMG Partners
Matt Weber, Development Manager at Ellis Partners

Cost:    $15 ULI YLG Members only

Registration is from 5:30-6:00 p.m.   The P2P program will begin and 6:00 p.m. and is followed by no-host networking social at Dogwood.

______________________________________________________________

Peer to Peer Workshops are structured as small educational sessions with attendance capped to facilitate an interactive classroom-like experience. Unlike other courses, these workshops are taught from the perspective of someone who remembers ‘what it’s like not to know’, with the stated intention of helping fellow YLGers better understand different segments of the real estate industry so that they may further strengthen their understanding of how our dynamic business functions.

From Entitlements to Valuation, from Negotiating Leases to Public Speaking, we’ll teach you everything from the ‘basics’ to the ‘tricks of the trade’ Peer to Peer Workshops will help their participants be better rounded real estate professionals resulting in enhanced professional knowledge and personal skills.

On April 26, ULI hosted a networking event at Schroeder’s, a restaurant that built its reputation during the Worlds Fair of 1939 for its classic style Bavarian brats, schnitzels, and cabbage after being purchased for pieces of gold. On this occasion it was the venue for the quarterly networking event hosted by the ULI Young Leaders Group. Soon after the event started the evening was humming with activity and people. Glasses were clinked, new and old friends connected and appetizers were knocked down like tables at Oktoberfest.

As expected there was a great turn out–colleagues, professionals and friends shared a part of the evening together with the opportunity to converse on their latest deals as well as current weekend plans. There was a lively and upbeat atmosphere as the place quickly became full.  Additionally, a few ’OLG’s stopped by to grab a beer with their younger land use peers including Tom Hart, Executive Vice President, Corporate Relations Director and Manager, Shorenstein Properties; Tomas Schoenberg, Senior Vice President-Investments, The Swig Company; and Jeff Smith, CFO, Sack Properties.

Thank you to everyone who came out to the event and the sponsors that made this event a success and piece of networking gold.  If you are interested in attending future ULI networking opportunities, check out the ULIsf’s latest calendar of events.

Authored by:  Jonathan Fishpaw, Partners Group, Inc.

The Urban Land Institute-San Francisco Names Elliot R. Stein Executive Director Leading Global Real Estate Association’s Second Largest Chapter.

The Urban Land Institute-San Francisco, the non-profit organization of land-use professionals, announced today the appointment of Elliot R. Stein as Executive Director effective May 7, 2012.

Established in 1936, the Urban Land Institute is a nonprofit education and research institute with nearly 28,000 members worldwide, dedicated to providing leadership in the responsible use of land and in creating and sustaining thriving communities. With over 1,800 members across the Bay Area, ULI San Francisco represents the group’s second- largest district council, and geographically includes much of Northern California.

“We are very pleased and fortunate to have Elliot as our Executive Director,” states Mike Jameson, Chairman of ULI San Francisco and an executive at Prudential Real Estate.  “Elliot has been a tremendous supporter of the District Council for many years and his experience, intelligence and strong leadership capabilities will add great value to the organization.”

“After many years as a ULI member and volunteer, I’m delighted to be moving into the role of Executive Director,” said Stein.  “With so many vital land use and related issues facing Northern California’s communities, ULI will continue to be a key player in knowledge sharing and helping to find solutions.”

Stein has been a senior real estate advisor providing real estate and urban economic consulting services to private and public sector clients.  He has over 30 years experience in the real estate industry including leadership roles at CB Richard Ellis, Ernst & Young and KPMG.

He advised governmental agencies, developers and investors on economic and financial aspects of development and redevelopment.  His broad base of experience also includes assisting companies and institutional organizations with needs related to planning for expansion or contraction, site selection, and reuse of surplus properties.

Actively involved with ULI San Francisco since 1995, Stein has served in a volunteer capacity on the district council sponsorship committee, the management committee, and as ULIsf treasurer.   Nationally, Elliot participates on the ULI Sustainable Development Council.

For more information on the Urban Land Institute, visit http://www.uli.org/.

Contact:

Ron Heckmann

Heckmann Communications

Communications Co-Chair

ron@heckmanncomms.com

(415) 317-2463

Elliot Stein

Executive Director

elliot.stein@uli.org

415-268-4093

Refreshments will be provided.

Cost
$25 Members / $65 Non-Members
$10 Public Members / $45 Public Non-Members
$20 YLG Members / $55 YLG Non-Members
$10 Student Members / $20 Student Non-Members
*$15 Unemployed Members

Moderator:
JoAnne Dunec, Shareholder, Miller Starr Regalia
Panelists:
Amie Fishman, Executive Director, East Bay Housing Organizations
John Protopappas, President & CEO, Madison Park Financial corporation
Marc Roberts, City Manager, City of Livermore

Moderator Joanne Dunec, shareholder of Miller Starr Regalia, started off the brownbag session with a description of what has happened to redevelopment agencies over the past year.  She described redevelopment as a powerful resource and instrument for economic development in blighted areas with tools like easier site assembly, public improvements and environmental remediation with tax increment financing.  RDAs were also a critical source of funds for affordable housing.  Governor Brown proposed eliminating RDAs and in June two bills were passed, ABx1 26 and ABx1 27.  Lawsuits were filed and the California Supreme Court upheld ABx1 26 which resulted in the dissolution of RDAs effective in February 2012.  Oversight Boards have been created to deal with many of the questions for redevelopment agency projects and existing enforceable obligations.

The panelists described their organizations and why they have unique perspectives on RDAs:

Amie Fishman, Executive Director of East Bay Housing Organizations, an affordable housing advocacy group.  Her organization preserves and protects affordable housing for the lowest income groups.  They are trying to do what the market does not do for itself.  She expressed her concerns for where the most vulnerable in society will live.

John Protopappas, President and CEO of Madison Park Financial Corporation, a private industry developer.  John presented a slide show of his past projects and cost comparisons.  Their projects are privately financed and they have stayed away from projects involving redevelopment agencies.  He commented that when he did one project with RDA financing, the project was more expensive to build than if he has used private sources because of the strong attached.

Marc Roberts, City Manager of the City of Livermore, California, a suburban East Bay city.  From the city’s perspective, RDA’s did great things for Livermore that would not have happened without them—site assemblies, redevelopment of Livermore’s downtown and the completion of hundreds of affordable homes.  The RDAs allowed the city to redevelop brownfields with all of the cleanup costs.  RDAs were a tool providing certainty, timing and cash flow.  Marc described developing infill projects as “death by a thousand nicks”.  Many infill projects cannot carry the total infrastructure costs.  Some of the tools used in recent Livermore developments include impact fee deferral, parking fee sharing, transit occupancy tax sharing, sales tax sharing and community facility districts.  Livermore has built hundreds of affordable housing units with the use of in lieu affordable housing fees, off site land dedications and inclusionary housing.

The panelists discussed the impacts of the demise of RDAs:

Amie Fishman: RDAs provided infrastructure and predevelopment dollars.  Affordable housing projects are very complicated with layers of local, state and federal funding.  When you take out the local RDA dollars, Amie asked the question “who will fill the gap to make these projects work”?  Tax credits are an option but you have to compete for them and it is very difficult in a city like Oakland.  40% of Oakland was in a RDA.  With the recession, market rate builders are not building and providing dollars for affordable housing.  Senator Mark DeSaulnier has a new bill, HOMes Trust Fund (SB 1220) with a $75.00 fee on real estate transactions not including sales.  This could provide $500 million per year for affordable housing.  She also suggested greater leaning on private builders for funding or bonds to finance infrastructure.

John Protopappas: The impact for the market rate, for profit developer is quite different than the impact on affordable housing development.  He said he no longer has to compete against the RDA and pay more for projects.  John’s comment was “now, it is really the market determining value”.   His example was the Tribune Tower with layers of financing and subsidies with city and county participation.  The result was a more costly project because of the strings attached.

Marc Roberts: The worst thing you can do is to add dollars to the cost of an affordable housing project.  The City can build offsite parking and cover infrastructure but once you touch the building, you are in trouble and add costs.  You are creating an artificial market.  He suggested that we allow the city to do the things that we, as developers, cannot do.  Marc also said the new reality means that we are back to market and “some stuff will sit”.

Comments were made about the need for affordable housing in all Bay Area communities including the wealthier communities.  It was suggested that SB375 and the Sustainable Community Strategy (SCS) are intended to have all jurisdictions plan for their fair share of housing across all economic groups.  Amie Fishman said the SCS plan has 40% of future housing in Oakland, San Jose and San Francisco and we need to push for housing in suburban areas also.

Authored by: Cheryl O’Connor, Cheryl O’Connor Consulting

On Thursday morning, April 26, ULI Silicon Valley partnered with the American Institute of Architects’ Silicon Valley chapter to produce a fantastic breakfast panel and tour of Levare, the newest rental property at Santana Row. (For those of you unfamiliar with the Row, it is the South Bay’s premiere lifestyle center, located in San Jose that is owned and managed by Federal Realty Investment Trust.) Approximately 50 members of the 2 organizations were in attendance.

The breakfast was held at LB Steak, part of the Left Bank restaurant group. The event was moderated by Jeff Current (Barry Swenson Builder), President of AIA Silicon Valley. He was joined in greeting the crowd by Jessie Woodyard (Barry Swenson Builder), an active YLG member, and Kay Mascoli, Executive Director of AIA Santa Clara Valley.

The panel was comprised of Randy Paul, Vice President – Development, West Coast, Federal Realty Investment Trust; Isaac Johnson, Senior Associate, AIA, Ankrom Moisan Associated Architects; and Ron Cote, Vice President of Construction, Barry Swenson Builder. Randy oversees Santana Row for Federal Realty and helps execute the company’s vision for the property; Isaac designed Levare and Ron oversaw the construction.

Among the notable features of the project were its strikingly modern exterior and interior, an aggressive timeline – using a design-build approach – and the mindset that Federal brought to the property: while rental for now, it is designed for future condo conversion.

Jeff asked Randy a number of questions about development plans for the remaining lots in the greater Santana Row project and about Federal’s design and marketing philosophy for the project. There is a long-term vision of building out from the core, which is reminiscent of a European main street, through the integration of modern styles and silhouettes on the surrounding properties.

Isaac noted that his firm’s wok in the Pearl District in Portland has helped inform their aesthetic for projects such as this, and that the solid working relationship they developed with Barry Swenson helped expedite the process on Levare.

Ron detailed the project schedule, which was about 11 months from building permits to resident move-in, and praised the City of San Jose for their cooperation in the process. Despite the headaches associated with construction at a very popular destination, it was a positive experience for the team.

At the conclusion of the panel, the guests headed off for a tour of Levare with the principals. The ground-floor amenities include an outdoor courtyard with grills and seating area, a lounge, conference room, and fitness center. Both the interior and exterior feature a variety of materials and finish types to excite visual interest. Because the project is fully occupied, we had to be content with viewing just one unit type, but visitors were able to get a sense of the quality of finishes and options for tenants.

Authored by: Kara Gross, Joint Venture Silicon Valley; & Silicon Valley Economic Development Alliance

A great team of panelists and YLG professionals met on April 24 to bring insight into some of the most complex land use and environmental impact regulations in the country. The presentation was led by Josh Burroughs, Development Manager at Barry Swenson Builders, Koryn Kendall, Manager at First Solar Inc. and Nav Athwal, Real Estate Attorney at Farella Braun + Martel.

Before we dive into entitlement process in California, below is a quick framework overview of the different parts of the process:

• General Plan
• Zoning
• Subdivision Approvals
• Site Specific Permits
  •  Conditional Use Permits
  •  Variances
  •  Design Review
• CEQA (California Environmental Quality Act) / EIR (Environmental impact report)

Every real estate development project is unique with unique needs and therefore there is no set guideline. That being said, we were able to discuss useful tips with our speakers and create general phases of the process as following:

1. Due Diligence Process
2. Pre-entitlement Process
3. Entitlement Process

As in any real estate development project we start at the project’s inception, which is the site investigation, market study and project feasibility study.  Josh emphasized the importance of the due diligence process in the pre-development phase.  Part of due diligence is fact gathering, risk assessments, title review and easements, Phase I and II environmental assessment, zoning, density, infrastructure, endangered species and habitats, site improvement cost and exploring unforeseen variables. Depending on the budget and scope of your project you can either have in-house staff do the investigation or hire a consulting firm.

In the pre-entitlement process we focus on preliminary design, architectural plans, engineering, landscaping, traffic, noise, air quality and fiscal impact reports.  In the final part of the entitlement process we investigate compliance with CEQA, EIR, mitigated negative declarations, zone changes, general plan amendments, project re-design, school districts, parks, public hearings, and conditions of approval and appeals periods. Mapping the process early in the pre-development stage, such as contacting the local planning department and investigating the environmental review process, helps better prepare the project for approval.

The California Environmental Quality Act (CEQA) is an environmental review required for all projects unless categorically exempt (6 or fewer dwelling units, not causing impact) or statutorily exempt. Nav Athwal explained the CEQA process in detail, describing the amount of time expected and different jurisdictions involved. Depending on the project’s scope, impact and reports needed to meet Environmental Planning Division (EPD) compliance, the CEQA process may take somewhere between 18-24 months, and sometimes longer.

For all non-exempt projects the lead agency determines whether there is a “fair argument” that the project may have a significant effect on the environment. All phases of the project should be evaluated and consulted with all responsible agencies. Your consultant team can be a mixed bag of consultants hired directly by the sponsor and consultants hired by EPD. In either case, they need to remain unbiased. Be cautious of moving too quickly with consultants hired by you. In most cases, EPD wants to provide input into the scope of work.

A negative declaration is issued by the lead agency which determines that there is no substantial evidence that a project may have a significant effect on environment.  And the decision-making body is usually the planning commission or board of supervisors.

An Environmental Impact Report (EIR) is required to determine if there is potential of immitigable significant environmental effects. Then, further findings and mitigation measures are needed for each significant impact. Read more details about Environmental Planning Division and review process: http://www.sf-planning.org/index.aspx?page=1570.

During the entitlement process different groups (from small neighborhood groups to labor unions) may raise their voice seeking benefits for local communities or union workers. In order to avoid costly litigations it is common practice to negotiate common ground values for opposition to avoid costly delays and legal scrutiny. As Koryn Kendall pointed out, establishing relationships with the community at the start helps limit later opposition to the project. Having the right attitude in negotiations and simply being willing to listen play an important role as well. Koryn also advised to get the sense of people you are going to communicate with by reaching out to the public at the very beginning of the project.

Below is a basic timeline of strategy to protect a project.

• Build relationships
• Provid strong public outreach
• Create JV with familiar faces in the arena who then articulate our project to public
• Have a positive attitude

Entitlement processes take experience, patience and the right team with the right attitude to successfully sail through political issues, bureaucracy and never-ending meetings and negotiations.

Two exciting case studies were presented by Koryn Kendall (Solar Project) and Josh Burroughs (Vendome Project).

The Solar Project – Desert Sunlight Solar Farm is located in Riverside County on approx. 4,000 acres. Generated power output is projected to 550 megawatts AC, enough to provide energy for 160,000 homes. The project’s entitlement timeline was 5-6 years. Since this is a large-scale project crossing different jurisdictions, the  entitlement process underwent complex Federal, State and Local permitting approvals. Many agencies were involved such as Bureau of Land Management, U.S. Fish and Wildlife Services, State Historical Preservation Office, California Public Utilities Commission, and Metropolitan Water District to name a few. Several encroachment permits and franchise agreements were negotiated during the permitting process. Construction started in September 2011, financing was closed in September 2011 and commercial operation is projected to run Q1 2015.

The Vendome Apartment Project is a 500 unit TOD project located in San Jose. The project was approved in 2006 with a General Plan Amendment (increasing height to 200 ft). Planned development rezoning processes took place from  2006-2012. Some of the most notable features of this project are electric car charging stations, bicycle parking stalls, a rain harvesting irrigation system, a heat recovery system and LEED certification. As part of mitigation strategies, discounted eco passes were offered to residents and the developer implemented a car-share program through traffic impact fees. As of February 2012, the project was approved by the Planning Commission and City Council and the Phase 2 planned development permit submittal is due this fall 2012. Construction start time is planned for early 2013 and occupancy of Phase 2 for mid-2014.

The take away from this Peer-to-Peer workshop is the connection we create with communities and government officials and the endurance needed to win our project’s approvals! Good Luck with your project!

Authored by: Tomas Janik, 49developments.com

Come join us for a tour of one of their newest facilities in Santa Clara and hear from the experts about the challenges of development, where the technology is headed, and how their market works.

All this and drinks to follow at the Athena Grill, graciously sponsored by Digital Realty Trust.

50 person limit

Speakers
Mike Edie, PE, LEED AP / Sr Sales Engineer of Digital Realty Trust

Agenda
4:00-4:15pm Registration
4:00pm Event Start
4:45-5:30pm Program and Tour
Reception short drive/walk to Athena Grill, sponsored by Digital Realty

Pricing
$25 Members / $45 Non-Members
$10 Public Members / $35 Public Non-Members
$20 YLG Members / $55 YLG Non-Members
$10 Student Members / $15 Student Non-Members
$15 Unemployed Members, must call 800-321-5011 to take advantage of this offer