SAN RAMON -- The city is considering a plan to replace two office buildings with 48 condominiums.

At Tuesday night's City Council meeting, Tom Schulz of Acre Investment Company said the three-bedroom, two-car garage homes would be priced around $500,000 to $550,000.

The proposed site includes two properties on three acres at 125 and 130 Ryan Industrial Court. It is off of Old Crow Canyon Road and adjacent to Home Depot and the San Ramon Valley Bible Church.

City planner Lauren Barr told the council the project would provide housing close to the city's employment base.

Mayor Bill Clarkson expressed concerns that the project is isolated from other residential neighborhoods, on a slope, surrounded by commercial properties and not near parks.

"The question I pose is: Where are children who live in that neighborhood going to play?" Clarkson asked. "Anybody that lives there and has friends, they're going to have to get in the car and actually commute and go somewhere else. There's not going to be any way for the people who live in this particular complex to walk and access anything."

To build the condos, Acre Investment is requesting a general plan amendment to rezone the properties from mixed use to multiple family, high-density housing.

Because the properties are in a former redevelopment area, any increase in property taxes from the project would not go to the city, but instead to the Redevelopment Property Tax Trust Fund, according to a city report.

A large portion of the increase in property tax revenue would go to debt service and other contractual obligations of the former Redevelopment Agency, which was abolished by the state last year.

To offset the costs of providing city services, the city is proposing the formation of a Community Facilities District, in which each residential unit in the project would pay an annual assessment of about $495, the report said.

Councilman Scott Perkins asked the city staff to look at similar projects in surrounding cities and whether they cause problems or solutions for their communities.

A second public hearing on the project is scheduled for the 7 p.m. March 12 City Council meeting at City Hall, 2222 Camino Ramon.

Contact Jason Sweeney at 925-847-2123. Follow him at Twitter.com/Jason_Sweeney.