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Board of Supervisors <br /> January 28, 2013 <br /> Page 5 <br /> proposed project are so great that a reasonably prudent property owner would not <br /> proceed with the rehabilitation. (See San Franciscans Upholding the Downtown <br /> Plan Y. City and County of San Francisco,supra, 102 Cal.AppAth at pp. 693-694 <br /> [applying prudent person standard to determine economic feasibility of proposed <br /> alternatives].) <br /> (Uphold Our Heritage, supra, 147 CaLApp.4th at pp. 599-600(emphasis added).) <br /> Distilled to its essence, the legal standard for assessing the economic feasibility of an <br /> alternative to a proposed private development project is whether "a reasonably prudent property <br /> owner" would proceed with the alternative in light of its cost differential compared to the <br /> "project" as proposed. <br /> The CEQA concept of"feasibility," however, is sufficiently broad to embrace concerns <br /> other than pure private-sector economics.Fiscal considerations are also relevant. Thus, evidence <br /> indicating that a proposed alternative would generate less tax revenue than a project as proposed <br /> may also be a legitimate ground for rejecting the alternative as infeasible. (Foundation for San <br /> Francisco's Architectural Heritage v. City and County of San Francisco (1980) 106 Cal.App.3d <br /> 893, 913 (Foundation) (noting that CEQA "specifically provides for the weighing of economic, <br /> social and `other' conditions"); seealso Pub. Resources Code § 21002.1, subd. (c).) In <br /> Foundation, which involved a legal challenge to a proposed retail project requiring the <br /> demolition of an existing historical structure, the respondent lead agency's decision-makers <br /> properly rejected project alternatives that called for the rehabilitation of the existing structure. <br /> The lead agency's analysis showed that the alternatives would have generated between 15 and 20 <br /> percent less sales tax revenue for San Francisco than would have been created by the project as <br /> proposed. This information, combined with other data regarding the economic costs of the <br /> alternatives, constituted"substantial evidence" supporting the Board of Supervisors' finding that <br /> the alternatives were infeasible. (Foundation,supra, 106 Cal.AppAth at pp. 913-914.) <br /> As the Foundation decision makes clear, the broad definition of feasibility under CEQA <br /> does not limit the thought process of agency decision-makers to the question of whether a <br /> proposed alternative is infeasible due to purely financial considerations. Rather, the definition <br /> impliedly recognizes the inevitable need to allow elected officials to legislate or to otherwise <br /> consider the policy ramifications of their actions,while requiring them generally to strive to find <br /> means to avoid or reduce significant environmental damage where reasonably possible. <br /> CEQA case law also supports an even broader, more discretionary notion of feasibility. <br /> Thus,agency decision-makers are free to reject an alternative that they consider undesirable from <br /> a policy standpoint, provided that any such decision reflects "a reasonable balancing of the <br /> relevant economic, environmental, social, and technological factors." (City of Del Mar v. City of <br /> San Diego (1982) 133 Ca1.App.3d 401,417 (City of Del Mar).)As the California Supreme Court <br /> has emphasized, "[t]he wisdom of approving . . . any development project, a delicate task which <br /> requires a balancing of interests, is necessarily left to the sound discretion of the local officials <br /> and their constituents who are responsible for such decisions. The law as we interpret and apply <br />