Title
PLN26-0259- Master Plan Amendment - 1999 Clement Avenue (between Lafayette and Chestnut Streets) - Applicant: Sean Murphy on behalf of Alameda Marina, LLC. Public Hearing to consider recommending that the City Council approve a Master Plan Amendment to the Alameda Marina Master Plan to decrease the required number of affordable housing units in Phase III of the Alameda Marina Master Plan project. 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.
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To: Honorable President and Members of the Planning Board
From: Abby Thorn Lyman, Acting Director of Planning, Building and Transportation
EXECUTIVE SUMMARY
The applicant, Sean Murphy for Alameda Marina, LLC is requesting a Master Plan amendment 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 recommended by the Planning Board and scheduled for City Council first reading on May 19, 2026. Staff is recommending that the Planning Board recommend approval of the request to the City Council.
In July 2018, the City Council approved the Alameda Marina Master Plan, which established requirements for the development of a three phased plan for the Alameda Marina site 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.
Then in 2023, the City Council approved a Master Plan and Density Bonus application 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.
Although Phase I and Phase II of the project are substantially complete, Phase III has not begun construction due to financial constraints caused by regional and local economic conditions and certain City of Alameda development requirements.
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 to 21 units. The decrease in affordable units is consistent with the proposed amendments to the Inclusionary Housing Ordinance recently recommended by the Planning Board and scheduled for City Council first reading on May 19, 2026. Any decision by the Planning Board to recommend the requested decrease is dependent on the Inclusionary Housing Ordinance amendments becoming effective after approval of the second reading of the Ordinance amendments and completion of the 30-day statute of limitations.
Staff recommends approval of the requested Master Plan amendments. The specific amendments are described below and shown in detail in Exhibit 1 Planning Board Resolution.
BACKGROUND
In 2018, the City Council approved the Alameda Marina Master Plan (Master Plan), and certified the Alameda Marina Master Plan Environmental Impact Report (EIR), which analyzed environmental impacts of the Master Plan project. A copy of the Master Plan and related project documents are available under the “Alameda Marina” section on this City webpage: <https://www.alamedaca.gov/Departments/Planning-Building-and-Transportation/Planning-Division/Major-Planning-Projects>
In 2023, the Planning Board and City Council approved an amendment to the Alameda Marina Master Plan and Density Bonus application to increase the unit count in the Phase III building from 218 units to 259 units.
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.
Unfortunately, due to difficult regional and local economic conditions, the third phase project has been unable to acquire the necessary private financing to enable construction. The project applicants have informed the City that if they are able to adjust the number of deed restricted affordable units in the third phase to reflect the recently recommended Inclusionary Housing Ordinance amendments, they will be able to begin construction of the building this summer. Since construction costs continue to rise, the applicants have requested that the Planning Board provide a recommendation to the Council on the proposed amendment as soon as possible. The applicants are prepared to proceed with the project based upon a successful first reading of the ordinance amendments by the Council on May 19th and a positive recommendation from the Planning Board on the Master Plan amendment on May 26th.
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 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, 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 finds 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 general conformance with the provisions of the recently recommended Planning Board amendments to the Inclusionary Housing Ordinance. Exhibit 1 Planning Board Resolution includes a detailed description of the 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. the 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. recommend that the Planning Board recommend the proposed amendments to the City Council.
PUBLIC NOTICE
This agenda item was advertised in the Alameda Sun and public notices were posted as required by the Alameda Municipal Code. No public comments have been received as of the writing of this staff report.
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 is required under CEQA Guidelines Sections 15162 and 15163.
RECOMMENDATION
Hold a public hearing and recommend that the City Council approve the Alameda Marina Master Plan Amendment based on the findings and subject to conditions of approval set forth in the Draft Resolution (Exhibit 1).
Respectfully Submitted,
Abby Thorn Lyman, Acting Director of Planning, Building and Transportation
Exhibits:
1. Draft Resolution