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00:00THANK YOU FOR JOINING AS. YOU RECENTLY RESIGNED AND DECIDED TO LEAVE PALO ALTO BECAUSE OF YOUR $6,200 A MONTH SHARED RENT. WHY IS THE CITY UNWILLING TO ADDRESS THE ISSUE? >> OUR PROBLEM WITH HOUSING IS THAT WE HAVE SYSTEMATICALLY ADDED FAR MORE JOBS THAN HOUSING FOR DECADES. WE HAVE THE LARGEST IMBALANCE IN THE NATION WITH THREE JOBS FOR EVERY HOUSING UNIT IN PALO ALTO. BECAUSE OF THE IMBALANCE AND REGIONAL SHORTAGE IN THE AREA, HOUSING PRICES SPIRALING OUT OF CONTROL. SCARLET: WHAT I FOUND FASCINATING IS THE PALO ALTO MAYOR'S COMMENTS. WE ARE LOOKING TO INCREASE THEIR RATE OF HOUSING GROWTH, BUT DECREASE THE RATE OF JOB GROWTH. THIS DOES NOT MEAN WE WANT NO JOB GROWTH . WE WANT ME TO JOB GROWTH AND METERED HOUSING GROWTH. JOE: IS THAT A REASONABLE POINT, THAT EVEN IF YOU WERE TO ADD MORE HOUSING IN PALO ALTO THAT IT WOULD CREATE A HUGE'S STRESS ON THAT TRANSPORTATION INFRASTRUCTURE AND THE PROBLEM WOULD SHOW UP A DIFFERENT WAY? >> YOU NEED TO DO BOTH, AT HOUSING AND INVEST IN PUBLIC TRANSPORTATION. MATT: IT IS ODD TO HEAR A MAYOR SUGGESTED THAT HE WANTS TO LIMIT JOB GROWTH IN THE ECONOMY HE RUNS. I DON'T THINK I HAVE EVER HEARD ANY OTHER POLITICIANS SAY THEY WANT TO HOLD JOB GROWTH BACK. ON THE OTHER HAND, I CAN UNDERSTAND WHY HE WOULD NOT WANT TO PUT STRESS ON THE INFRASTRUCTURE. IS TRAFFIC VERY HEAVY? WOULD IT BE POSSIBLE TO GET AROUND IF YOU ADDED MORE HOUSING? >> I THINK IT IS POSSIBLE, BUT IT TAKES SMART PLANNING AND A DESIRE TO MAKE THOSE PLANS. LOOK AT WHO IS ON OUR CITY COUNCIL. THEY ARE EITHER INDEPENDENTLY WEALTHY AND DON'T NEED TO WORK OR RETIRED. YOU HAVE A MAYOR WHO BOUGHT A HOUSE FOR LESS THAN $500,000, BUT NOW IT'S WORTH MORE THAN $4 MILLION. THEY DON'T NEED JOBS ANYMORE. THEY ARE RICH ENOUGH. JOE: THIS IS THE POINT I WANTED TO ASK YOU ABOUT. FROM YOUR TIME ON THE PLANNING COMMISSION, WHAT IS THEIR MOTIVATION FOR THE LACK OF HOUSING? IS IT JUST PERSONAL AND TRYSTS, THAT THEIR REAL ESTATE VALUES HAVE SURGE? OR IS THERE TALK ABOUT PRESERVING THE STATE OF THE COMMUNITY AND NOT CHANGING MUCH, DOES THAT HOLD WATER? WHAT IS YOUR VIEW ABOUT THEIR REAL MOTIVATION HERE? >> I THINK THE FIRST ONE IS AS YOU HAVE OUT LINE, THE HOUSING SHORTAGE PROPS UP PEOPLE'S HOUSING PRICES. YOU HAVE PEOPLE WHO BOUGHT HOUSES FOR $100,000 AND THEY'RE NOW WORTH MORE THAN $3 MILLION OR $4 MILLION. THEY DID NOT EARN THAT MONEY. THEY BOUGHT INTO THAT MARKET AND ENACTED THE POLICIES TO KEEP THOSE PRICES HIGH. WHETHER OR NOT WE COULD DO SOMETHING ABOUT IT, DEFINITELY. MOST OF PALO ALTO IS ONE STORY OR TWO-STORY STRUCTURES. WE HAVE PARKING LOTS, STRIP MALLS. THERE ARE PLACES TO GROW AND GO NEAR EXISTING PUBLIC TRANSIT THAT WOULD ALLOW US TO GROW IN A WAY THAT WOULD HAVE THE LEAST HARMFUL IMPACT ON OUR COMMUNITY, BUT I THINK PEOPLE ARE DOING IT BECAUSE IT IS PROPPING UP HOUSING PRICES, AND NUMBER TWO, THEY WANT TO KEEP LIVING IN THE SUBURB. GO AHEAD. MATT: IS IT OK FOR A COMMUNITY TO COLLECTIVELY SAY WE DON'T WANT TO GET ANY BIGGER, WE DON'T WANT TO INCREASE OUR POPULATION, WE DON'T WANT TO LIVE IN A MORE DENSE AREA? >> I THINK IT IS FAIR FOR A COMMUNITY THAT IS NOT A JOB CENTER. I DON'T THINK IT IS FAIR FOR A COMMUNITY THAT HAS PURPOSELY INVITED LOTS OF FORTUNE 500 COMPANIES TO ESTABLISH HEADQUARTERS IN THEIR CITY AND THEN TO SAY WE WILL TAKE THE TAX REVENUE, BUT WOULD NOT DO ANYTHING TO HOUSE YOUR WORKERS. JOE: HERE IS SOME PUSHBACK. SCARLET: A BLOOMBERG CONTRIBUTOR WRITES "MOST CITIES DON'T HAVE A SHORTAGE OF HOUSING, JUST IN NEIGHBORHOODS WHERE YOUNG PEOPLE WANT TO LIVE. POLICY THAT CAN CONSTRAIN DEVELOPMENT AND THE MORE DEVELOPED PARTS OF CITIES CAN FACILITATE DEVELOPMENT IN LESS DEVELOPED NEIGHBORHOODS." JOE: IS IT POSSIBLE THAT PALO ALTO'S REFUSAL TO BUILD MORE HOUSING IS A DE FACTO SUBSIDY TO HELP OTHER AREAS GROW THAT NEED THAT KIND OF GROWTH AND POPULATION INFLOW? >> I WOULD NOT SEE IT AS A SUBSIDY. I WOULD SEE IT AS A COST. WE ARE A TECH OF IN SILICON VALLEY. -- TECH HUB IN SILICON VALLEY. IT MAKES SINCE TO LOCATE NEXT TO A RESEARCH UNIVERSITY, INVESTORS. WHEN PEOPLE ARE PUSHED INTO AREAS THAT ARE NOT HUBS IN THAT WAY, IT IS MORE EXPENSIVE FOR COMPANIES TO SET UP SHOP, GROW, FIND INVESTORS, FIND EMPLOYEES, SO WHEN YOU PUSH OUT PEOPLE AND CONSEQUENCES PUSH COMPANIES AWAY FROM THAT ECOSYSTEM THAT MAKES THEM THRIVE, EVERY ONE OF THOSE COMPANIES IS THAT MUCH HARDER TO START. THAT MEANS IT'S HARDER TO START NEW COMPANIES AND HARDER TO ADD MORE JOBS. JOE: DO YOU HAVE ANY OPTIMISM THAT ANYWHERE IN THE BAY AREA THAT THINGS ARE GOING TO IMPROVE OR IS YOUR VIEW THAT THIS FIGHT WILL GO ON FOREVER WITHOUT ANY MEANINGFUL CHANGE? >> THE ONLY MEANINGFUL CHANGE WE CAN HOPE FOR IS THAT THE STATE AND FEDERAL LEVEL.

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