Title
Public Hearing to Consider Introduction of Ordinance Amending the Alameda Marina Master Plan to Modify the Affordable Housing Requirement for Phase III of Alameda Marina Master Plan to Decrease the Required Number of Affordable Housing Units.
The environmental effects of the proposed project were considered and disclosed in the Alameda Marina Master Plan Environmental Impact Report (State Clearinghouse #2016102064) and the Alameda General Plan 2040 Environmental Impact Report (State Clearinghouse #2021030563). No further environmental review is required under the California Environmental Quality Act. (Planning, Building and Transportation)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
On May 26, 2026, the Planning Board unanimously recommended approval of a proposed amendment (PLN26-0259) to reduce the number of affordable housing units in the third and final residential phase of the Alameda Marina Project to be consistent with the proposed amendments to the Inclusionary Housing Ordinance recently adopted by the City Council. The specific amendments are described below and shown in detail in the Ordinance. Staff are recommending that the City Council approve the first reading of the draft ordinance approving the proposed amendment.
BACKGROUND
In July 2018, City Council approved the Alameda Marina Master Plan, which established requirements for the development of a three phased plan for the Alameda Marina site located on Clement Street between Lafayette and Chestnut Streets that included up to 760 multifamily housing units, up to 250,000 square feet of commercial and maritime commercial space, approximately 3.59 acres of shoreline open space, and a 530-slip marina. A copy of the Master Plan and related project documents are available under the “Alameda Marina” section on this City of Alameda (City) webpage: <https://www.alamedaca.gov/Departments/Planning-Building-and-Transportation/Planning-Division/Major-Planning-Projects>
In 2023, City Council approved a Master Plan amendment to increase the number of units in Phase III by 41 units. At that time, the design for the Phase III building was also approved.
Currently, the Phase I residential rental building is complete and occupied, and the Phase II ownership buildings are under construction. Both projects include affordable housing consistent with the original project approvals. The final Phase III residential building has not begun construction due to financial constraints largely caused by regional and local economic conditions.
To overcome these financial constraints on the phase III residential project, the applicant is requesting a Master Plan Amendment to decrease the number of deed restricted affordable units within the final phase from 43 units (mix of moderate to very low-income) to 21 units (very low-income). The decrease in affordable units is consistent with the recently adopted amendments to the Inclusionary Housing Ordinance. Any decision by the City Council to approve the requested decrease is dependent on the Inclusionary Housing Ordinance amendments becoming effective after completion of the 30-day statute of limitations.
The project applicants have informed staff that if they are able to adjust the number of deed restricted affordable units in the third phase to reflect the recently approved Inclusionary Housing Ordinance amendments, they will be able to begin construction of the 259-unit residential building this summer.
DISCUSSION
The 259-unit Phase III Project is an important element of the City’s 2023-2031 Housing Element, which is the City’s plan to provide for the City’s regional housing need for 5,353 new units during the 2023-2031 housing cycle, or approximately 669 units each year for the next eight years. Unfortunately, due to market conditions, the City has only issued building permits for 449 residential units over the first two and half years of the eight year (8-year) cycle.
The proposed amendments change the number of affordable units provided in the final residential project, but the amendments do not change the design, size, or total number of housing units previously approved for the Alameda Marina project. If approved by the City Council, the amendments will allow the applicant to provide 21 very low-income deed restricted units within the 259 unit building instead of 23 very low-income units, seven (7) low-income units, and 13 moderate-income units. The 21 very low-income units represent 8% of the 259 rental units, which is consistent with the recently recommended amendments to the Inclusionary Housing Ordinance.
Staff find the request to reduce the number of affordable units in Phase 3 consistent with the General Plan and Housing Element policies to facilitate housing construction in Alameda by reducing local constraints and in conformance with the provisions of the recently approved amendments to the Inclusionary Housing Ordinance. The updated Inclusionary Housing Ordinance expressly permits applicants who have received entitlements but have not yet received building permits to request to proceed under the new ordinance. The Ordinance includes a detailed description of the technical amendments necessary to the Alameda Master Plan to implement the proposed change in the affordable housing plan for Alameda Marina and Phase III of the project.
ALTERNATIVES
• City Council could decline to adopt the amendment to the Alameda Marina Master Plan.
• City Council could require a different allocation of affordable housing units in the project.
FINANCIAL IMPACT
The adoption of the proposed amendment will facilitate development of housing which will have a positive impact on the economy and tax revenues for the City.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The amendment is consistent with the recently adopted Inclusionary Housing Ordinance, which implements the 2022 Housing Element program to review and revise the inclusionary housing ratios to better reflect the needs of the community, which is also part of the City Council Strategic Plan, program HH8. This project is subject to the Levine Act.
ENVIRONMENTAL REVIEW
The proposed amendment does not change the number of housing units to be constructed at the project site nor the physical size or location of any improvements. The project relies on previous California Environmental Quality Act (CEQA) documents including (1) the Final Environmental Impact Report (EIR) for the Alameda Marina Master Plan (Alameda Marina EIR) (State Clearinghouse #2016102064) and (2) the Final EIR for the Alameda 2040 General Plan (General Plan EIR) (State Clearinghouse #2021030563), which analyzed and disclosed the environmental impacts of up to 12,000 new housing units and 12,000 new jobs citywide by 2040. The proposed project does not change the analysis and conclusions made in either the Alameda Marina EIR or the General Plan EIR. None of the circumstances necessitating further environmental review are required under CEQA Guidelines Sections 15162 and 15163.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Hold a public hearing and introduce an Ordinance approving Alameda Marina Master Plan Amendment to decrease the required number of affordable housing units in Phase III of the Alameda Marina Master Plan project.
Respectfully submitted,
Abby Thorne-Lyman, Planning Building & Transportation Interim Director
By,
Steven Buckley, Planning Services Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director