Facebook is getting a shakedown from the city of Menlo Park, California, the Silicon Valley town the company now calls home. And Facebook is pushing back.
The social network, freshly moved in to the former Sun Microsystems campus near the Dumbarton Bridge on the edge of San Francisco Bay, has begun making plans to add a second campus on the inland side of Bayfront Expressway. In return, the city wants concessions. Lots of concessions. In fact, as the San Jose Mercury News reports, Facebook CFO David Ebersman has pushed back hard at the Menlo Park city council, warning that the company could choose to move on if they are burdened with too many requests. The Merc compared the situation to a Mafia shakedown.
“I believe the discussions over the next few months will prove to be the seminal critical conversations that will determine whether or not Facebook will move forward with our plans to plant our long-term roots in Menlo Park and become deeply imbedded in the community,” Ebersman said at the council meeting, according to the newspaper. He added that he hopes the city has “appropriate, considerate expectations” about the goodies the city should expect from Facebook.
By the of Thursday’s council meeting, the Merc reports, council members had agreed to reduce their list of requests to in-lieu dollars for lost sales tax receipts, support for affordable housing and local schools, and bike route improvements.
Here’s a list of what the city originally wanted, according to a report last weekfrom the City of Menlo Park Community Development Department:
On-Going Revenue: Provide a source of on-going revenue for as long as the land use entitlement to exceed 3,600 employees is in place.
Given the City needs, there appears to be a consensus that a high priority parameter is the provision of a source of on-going revenue for as long as the land use entitlement to exceed 3,600 employees is in place. The revenue could be in the form of an in lieu of sales tax fee or some other mechanism.
One-Time Items: Provide one-time items in the form of public improvements or studies that would benefit the surrounding area.
There appears to be an interest in pursuing one-time improvements or studies that would benefit the surrounding area. One high-profile topic has been improved bicycle access to the site, including improvements to the Bay Trail, striping of freeway overcrossings, and improvements to commonly used bicycle access routes to the site. Other ideas include new or enhanced City facilities near the project site and/or streetscape improvements. The City’s 5-Year Capital Improvement Plan, including unfunded and General Fund items, can serve as a basis for some ideas.
Program, Service, and Policy Items: Provide a mechanism for funding programs and services that meet on-going community needs.
This is a relatively broad category that is meant to capture a number of ideas. This category could help to memorialize ad hoc agreements that the Project Sponsor made with project supporters, formalize volunteer opportunities, and involve the creation of a Community Foundation. This category could also cover items such as the following:
-public access to local shuttle system;
-a priority hiring program for local residents;
-the establishment of a preference for local providers of on-site services;
-creating the catalyst for off-site services and amenities in the vicinity of the project site; and
-provision of free wireless access to Belle Haven.
Housing: Pursue a commitment to fund housing opportunities in the City and surrounding region.
Although not a direct environmental impact, the Project’s potential to affect the affordability of housing in the area has been expressed as a concern. The East Campus does not trigger the need to pay the City’s Below Market Rate (BMR) Housing fee because the fee is only applicable with an increase in floor area and no increase in floor area is proposed for the East Campus. (As a means of comparison, the estimated BMR fee for the West Campus is approximately $4,491,700). Given the increase of employees on the East Campus and the increased demand for housing, the negotiating team could pursue a commitment to funding housing opportunities in the City and surrounding region.
Trip Cap Penalty: Pursue a trip cap penalty amount that is severe enough to ensure compliance with the project description.
As identified previously, the trip cap penalty amount needs to be negotiated. The penalty needs to be severe enough to ensure compliance with the project description. It is important to keep in mind that that the penalty is not intended to be a revenue generator.
Below is a the complete text of an addendum to the report, which you can think of as the Menlo Park Christmas Wish List:
Attachment A
Facebook Campus Project Public Benefit Ideas
February 14, 2012
Improved bicycle access to the site, including improvements to the Bay Trail, freeway overcrossing, and commonly used bicycle access routes to the site;
In-lieu fee for loss of tax revenue;
Use of Facebook shuttles for public transportation, similar to the Marguerite shuttle system implemented by Stanford;
Revenue for Menlo Park City School District;
Improvements to Flood Park;
Landscape and street sign improvements along Willow Road;
Provision of free wireless access to Belle Haven;
Construction of a centrally located library branch at Ivy Drive Plaza;
Installation of bus shelters at key locations;
Improvement of existing City resources, including the Senior Center, Belle Haven Library and Belle Haven pool;
Construction of a housing complex at Flood Park;
Installation of public art;
Financial support for senior/low income households and transit oriented development;
Provision of a major grocery store in Belle Haven;
Provision of job opportunities with preference given to Menlo Park residents;
Facebook funded employee supported mentorship and volunteer programs;
Provision of child care for Facebook employees and the public;
Construction of a sound wall between Kelly Park and US 101; and
Native landscape plantings along Bayfront Expressway.
