Guest Opinion: Is Palo Alto becoming River City, spelled "I-n T-r-o-u-b-l-e"? Guest Opinion: Is Palo Alto becoming River City, spelled "I-n T-r-o-u-b-l-e"? (February 19, 2003)

by Jim Balboni

Let's face it. Our city is in trouble. Not trouble like River City had in "The Music Man," but trouble nonetheless and with few places to turn to for help.

Gov. Gray Davis is grappling with a $35 billion budget deficit that will either take some of Palo Alto's money, reduce services that will have to be provided for some other way (or done without), or raise taxes. Maybe all three.

Already, Palo Alto is looking at cuts next year of $11 million in anticipation of actions that Davis and the state Legislature must take. And at this point, no one is offering any assurances or details regarding how this will impact local residents and businesses.

These budget woes are ascribable to various reasons, all well known -- the dot.com meltdown; poor fiscal projections; the "energy crisis" and the state's borrowing to keep the lights on; the war on terrorism; and a sluggish national economy. But the question remains: What to do?

One of our best options, indeed the place to start, involves taking a good look at what we already have, at existing assets which may be cultivated to yield greater revenue to the city, as well as potential assets. In other words, we should attend to opportunities which, if taken proper advantage of, would also yield income to help offset these millions in local budget cuts.

Hyatt Rickeys Hotel and Residential Project, soon to come before Palo Alto city officials in public hearings, is a fine example of both kinds of assets. Rickeys Hotel, a half-century old landmark in south Palo Alto, has been a steady and not insignificant source of city revenue for years through the transient occupancy tax (TOT) it pays.

The currently proposed redevelopment of Hyatt Rickeys -- which involves completely rebuilding the hotel and adding 302 residential units on its ample, 16-acre property -- presents the city with a significant opportunity to optimize General Fund revenue contributions.

A recent fiscal analysis completed by Economic and Planning Systems of Berkeley projected that Hyatt Rickeys Hotel and Residential Project will generate $2.3 million in net annual General Fund revenues to the City, and almost $3 million in fees to the city for libraries, parks and schools. It will also create approximately 1,200 jobs.

Given the revenue it will generate, its modern overnight accommodations and the state-of-the-art facilities it will provide for corporate and community/civic meetings, it isn't particularly surprising that the Palo Alto Chamber of Commerce is among the project's declared supporters.

But what is unique to the project, is that it has inspired a coalition of public support that, in almost any other circumstance, would be unachievable.

Why? Because in addition to its economic benefits, the project represents an efficient and environmentally sensible reuse of an existing urban property. It provides much-needed new housing near established public transit; it preserves existing jobs and creates new ones; and, it will stimulate and encourage a welcomed revitalization of El Camino Real in south Palo Alto, an important gateway to the city.

Citing these and other non-economic reasons for support, the Sierra Club, Greenbelt Alliance, Santa Clara County Housing Action Coalition, League of Women Voters, Silicon Valley Manufacturing Group, Opportunities Industrialization Center West, and H.E.R.E. Local 19, among other groups and scores of individuals, have joined the Chamber in supporting the project.

Clearly these disparate groups see something in Hyatt Rickeys Hotel and Residential Project to which City of Palo Alto would be wise to pay attention.

That something is simply this: Hyatt has done a creditable and patient job of planning an urban-infill redevelopment that is appropriate to the site and that meets real public needs -- the need for revenue, for housing, for overnight accommodations and for creative redevelopment that takes full advantage of our existing infrastructure.

Only by identifying and cultivating opportunities like this one -- and sensibly managing their impacts -- can we hope to secure a future that works for Palo Alto.

Given these real and present needs, and given the state and local budget crisis that is actually upon us, the city should approve Hyatt Rickeys Hotel and Residential Project.

Jim Balboni is a Palo Alto resident since 1951 and is a member Palo Alto Chamber of Commerce Board of Directors. He can be e-mailed at jimbalboni@msn.com.