Title
Public Hearing to Consider Amendments to the Alameda Landing Waterfront Master Plan and Bay 37 Development Plan for the Alameda Landing Waterfront Mixed Use Project Located at 2800 Fifth Street;
Adoption of Resolution Amending the Bay 37 Development Plan PLN22-0401 to Replace a Requirement for a 5,000 Square Foot Commercial Retail Lot with Other Land Uses at the Northern Terminus of Fifth Street at Alameda Landing; and
Introduction of Ordinance Amending the Alameda Landing Waterfront Master Plan PLN22-0401 to Replace a Requirement for a 5,000 Square Foot Commercial Retail Lot with Other Land Uses at the Northern Terminus of Fifth Street at Alameda Landing.
CEQA Determination: A Final Supplemental Environmental Impact Report for the Alameda Landing Mixed Use Development Project was certified in accordance with the California Environmental Quality Act (CEQA) (State Clearinghouse #2006012091). (Planning, Building and Transportation 20962710)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
In 2017, the City Council approved an amendment to the Bayport/Alameda Landing Master Plan to allow residential development along the Alameda Landing waterfront (as amended, 2017 Master Plan). In 2019, Planning Board approved the Bay 37 Development Plan, which implements the 2017 Master Plan for a specific site within the larger Master Plan area. The 2017 Master Plan and Bay 37 Development Plan establish a developer obligation to build 5,000 square feet of commercial space in the project in return for the rights to construct 357 residential units along the waterfront. The applicant, Pulte Home Company, LLC (“Applicant” or “Pulte”), is requesting the City Council consider an amendment to the 2017 Master Plan and Bay 37 Development Plan (together, “Proposed Amendment”) to modify that obligation. In-lieu of building 5,000 square feet of commercial space, staff recommends City Council approve two affordable housing units and a small public park. City staff has sought community input throughout the process. Staff hosted two community meetings with Bay 37 residents to discuss the proposed amendments and the Planning Board conducted two public hearings before making its recommendation. The City sent more than 850 public notices and received 39 comment letters.
BACKGROUND
In 2006, City Council approved the Bayport/Alameda Landing Master Plan to facilitate redevelopment of the former navy Fleet Industrial Supply Center and East Housing areas.
In 2017, City Council approved an amendment to the Bayport/Alameda Landing Master Plan to allow residential development along the waterfront. The amendment required the construction of a waterfront park (now known as “Bohol Circle Immigrant Park”) and 5,000-square-feet of space for commercial, retail, and/or commercial recreational uses to support the waterfront setting.
In 2019, Planning Board approved the Bay 37 Development Plan, which implements the 2017 Master Plan. The Bay 37 Development Plan is a site layout for 357 housing units and it shows a 5,000-square-foot lot to be occupied with a commercial building at the end of Fifth Street, near the entrance to Bohol Circle Immigrant Park. The Planning Board conditions of approval require the City of Alameda (“City”) to stop issuing building permits to the Applicant for housing construction if the Applicant has not pulled a building permit on the commercial building by the 150th housing unit.
In 2021, the Planning Board extended the deadline for the Applicant to pull a permit on the commercial building from the 150th housing unit to the 330th unit.
On October 10, 2022 and February 13, 2023, the Planning Board held public hearings to consider alternatives to the 5,000-square-foot commercial requirement proposed by the Applicant that included housing, public open space, a combination of housing and public open space, and a recreation center. The Bay 37 residents who submitted oral and written comments expressed the following concerns to the Planning Board: preservation of existing views, increased demand on neighborhood parking, and the need for additional green space. A majority of the residents expressed overwhelming support of the public open space alternative, and advocated for no housing or recreation center. City staff also hosted community meetings with the Bay 37 residents on February 1 (18 Bay 37 residents attended) and March 21, 2023 (six Bay 37 residents attended) to discuss the proposed alternatives.
The recreation center originally proposed by the Applicant consists of a single-story, 1,500 square foot building to be deeded to the City that would be operated and maintained by the City’s Recreation and Parks Department. Details of the alternatives presented to the Planning Board are contained in the Planning Board staff report at:
(<https://alameda.legistar.com/LegislationDetail.aspx?ID=6017859&GUID=8D5C0256-73BE-4401-9660-136DA2BAE11A>)
After considering all of the public testimony, the Planning Board recommended City Council require the Applicant to build one market-rate single family home on one-half of the lot and public open space, owned and maintained by the Bay 37 Homeowners Association (HOA) on the remaining half. In addition, the Planning Board recommended that the Applicant designate two additional housing units affordable to Very Low-Income households (households earning less than 50% of Area Median Income (AMI), or $71,400 annually for a family of four) among the unsold units in the development. To address neighbor concerns about view blockage, the Planning Board recommended limiting the height of the one market-rate single family house to 20 feet.
As of March 2023, construction progress at Bay 37 is nearing its final phases. Pulte is now quickly approaching the 330th residential unit threshold. According to the conditions of approval, the City cannot issue additional building permits for the 27 final units until a building permit for the commercial building has been issued. To avoid delaying housing construction during a housing crisis, staff believes it is necessary for City Council to make a final decision on the alternate use of the site.
DISCUSSION
Reason for the Developer Request
The applicant’s request is based on concerns that a new retail building will likely remain vacant and underutilized given the uncertain economic outlook for retail spaces. For instance, as of February 2023, the Alameda Landing Shopping Center one block away has vacancy rates of 25%. Furthermore, by nature of what they do, neither Pulte nor the Bay 37 Homeowners Association are suitable entities to serve as a long-term commercial property manager. Likewise, staff is concerned that a new commercial building at Bay 37 will remain vacant until such time that a commercial buyer is identified and a sale is completed. An unoccupied building may quickly become an attractive nuisance next to Bohol Circle Immigrant Park, the City’s newest public waterfront park. Neither staff, Pulte, nor the Bay 37 residents are in favor of keeping the current requirements for a commercial space. Instead, there is consensus that this is an opportunity to find a better use of this 5,000 square-foot site at the end of Fifth Street.
Available Options
Staff and the applicant presented the Planning Board with the following five options as shown in Exhibit 1. These options are not listed in any order of priority.
Option #1: No Action - Keep the 5,000-Square-Foot Commercial Building Requirement. City Council has the option of maintaining the existing requirement for 5,000 square feet of commercial space. Staff does not recommend this option due to concerns about the potential of having a vacant, underutilized building at the entrance of Bohol Circle Immigrant Park.
Option #2: Two Moderate-Income Single-Family Detached Homes and a 1,500-Square-Foot Recreation Center. Option 2 provides construction of two Moderate Income (households earning up to 120% of AMI, or $171,350 annually for a family of four) affordable housing units and a 1,500-square-foot recreation center deeded to the City at no upfront cost to the City. It is staff’s opinion that this option provides two community benefits: affordable ownership housing and a new recreation center on the West End. However, the Bay 37 residents are concerned that the recreation center would invite vehicle traffic and increase demand for parking in their neighborhood and expressed a desire for more green open space. While there are no upfront costs to the City for construction, as Pulte will bear the entire cost of construction, the ongoing costs for upkeep and maintenance for this building have not been thoroughly explored and considered among other Citywide recreation facility needs.
Option #3: 5,000 Square Feet of Public Open Space. Option 3 leaves the entire 5,000-square-foot site as open space owned and maintained by the Bay 37 HOA with a public access easement. The Bay 37 residents who provided public comment advocated for open space in order to preserve views for the units that face the waterfront. Some residents suggest a need for green space because the adjacent 4.5-acre Bohol Circle Immigrant Park contains mostly hardscape surfaces. However, the Bay 37 development is also within a short walking distance of Estuary Park (less than a quarter mile). In addition, Bayport Park, Neptune Park, Marina Village Shoreline Park, and Jean Sweeney Park are within biking distance to the site, about a mile or less away. For this reason, staff believes open space at this location is less of a priority when presented with an option for more affordable housing.
Option #4: Two Low-Income Single-Family Detached Homes and 2,500 Square Feet of Public Open Space. Option 4 is a compromise between providing more affordable housing and addressing the Bay 37 residents’ desire for more open space. Under this option the Applicant will provide two single family detached homes deed-restricted for Low-Income households (households earning less than 80% of AMI, or $109,600 annually for a family of four). These homes are four-bedroom units approximately 2,375-square-feet to 2,500-square-feet in size with 2-car garages. The single-family detached homes will be approximately 35-feet tall, roughly 10 feet shorter than the surrounding townhome buildings. It is important to note that large, single-family detached houses that are affordable are increasingly rare in new development in Alameda, because developers are mostly building smaller one- and two-bedroom multifamily units. The Applicant will build a public open space area that is approximately 2,500-square-feet in size on the remaining portion of the 5,000-square-foot lot.
Option #5: Five Low-Income Townhomes. Option 5 provides five townhomes deed restricted at the Low-Income level. This building would contain smaller one- and two- bedroom units with an exterior design like other Bay 37 townhomes. While this option provides the greatest number of affordable housing units, the Planning Board did not recommend this option due to the neighbors’ strong opposition to the building size. The five-plex is a three-story building and one of the taller buildings in Bay 37 at 45 feet tall.
Planning Board Recommendation
The Planning Board conducted two public hearings to discuss the alternatives and received a number of public comments (Exhibit 2), most of which expressed overwhelming support of the public open space alternative, and advocated for no housing or recreation center. The Planning Board recommended that City Council approve two Very Low-Income housing units, one market-rate single family house capped at 20-feet tall, and public open space on the remainder of the site. The Planning Board asked Pulte to explore using revenue from the market-rate single family house to offset the costs of providing the two Very Low-Income units elsewhere in the Bay 37 development. The remainder of the site would become public open space (privately owned and maintained by the HOA, with a public access easement) as requested by the Bay 37 residents.
After the Planning Board meeting, Pulte studied the Planning Board’s recommendation and found it to be infeasible. According to Pulte, this option would require creation of a new custom home design that is not available in Pulte’s architecture portfolio. With a 20-foot maximum height, this house will be the only one of its kind and will appear inconsistent with the other residential homes in Bay 37. The custom design will require extra soft costs for design and construction. Given the site’s location surrounded by taller townhomes, Pulte does not believe this house will command a premium sales price necessary to offset the cost to subsidize two heavily discounted Very Low-Income units and to build out the public open space. Given the choice, Pulte would rather stay with the status quo and build a commercial building.
Staff Recommendation
Staff recommends City Council approve Option 4, which provides a compromise of two affordable single-family detached homes while satisfying the Bay 37 residents’ request for green space.
Staff recommends this option because it benefits the larger public by providing two deeply affordable Low-Income units (households earning less than 80% of AMI, or $109,600 annually for a family of four). As documented in the City’s recently-adopted Housing Element, deed restricted, Low-Income housing is badly needed in Alameda. These two single-family homes will take an incremental step in meeting that housing need. The homes will be the same designs that were approved on the adjacent lots and do not require a custom design. As described earlier, these are four-bedroom units that can accommodate a family of four and larger households, which is an uncommon housing type for affordable housing units. Given the opportunity to gain two affordable four-bedroom units, staff recommends this option over Option 5 which provides five small affordable units.
While Pulte is willing to build Option 4, they are asking Council to consider a modification to this option with a mix of two affordable income categories. Instead of two Low-Income units, Pulte offers one Low-Income unit (80% of AMI) and one Moderate-Income unit. Where a standard Moderate-Income unit accommodates households earning up to 120% of AMI, or $171,350 annually for a family of four, Pulte’s proposal is a modified version of the Moderate-Income unit that is more affordable and priced for households earning up to 100% of AMI, or $142,800 annually for a family of four. This mix of one Low-Income and one Moderate-Income is consistent with how other affordable units are mixed at different income categories and integrated into the Bay 37 community. In proposing a mix of affordability levels, Pulte is hoping to strike a balance between achieving the City’s need for deeply affordable units while keeping its affordable housing costs reasonable during a housing market slowdown.
Based on the collective review of the City’s Housing Element, community input, market conditions, and Pulte’s application and feedback on feasibility, staff recommends that the City Council relieve Pulte of its obligation to build a commercial building under the current planning approvals and instead approve Option 4, resulting in two greatly needed Low-Income units, along with a green open space desired by the community.
ALTERNATIVES
• Approve the Master Plan and Development Plan Amendment as recommended by Staff (Option 4);
• Approve the Master Plan and Development Plan Amendment as recommended by the Planning Board;
• Approve another Master Plan and Development Plan Amendment alternative; and
• Take no action and maintain the current Master Plan and Development Plan requirement for 5,000 square feet of commercial space.
FINANCIAL IMPACT
All of the proposed alternatives except for the alternative containing a recreation building will be fully funded by the developer and have no financial impact to the City. The recreation building will require financial contribution from the City for the maintenance and operation of the facility that would be subject to future City Council appropriations approval.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The proposed Master Plan and Development Plan Amendment alternatives are consistent with the M-X (Mixed-Use Planned Development) Zoning District with a MF (Multi-Family Residential Combining Zone) Overlay District and the Medium-Density Residential land use designation in the General Plan, which support neighborhoods characterized by a wide variety of housing types, including single family detached homes, attached courtyard homes, and multifamily homes. These neighborhoods also include a variety of non-residential uses, complementary commercial uses, and neighborhood serving uses. The options on the table for either affordable housing, open space, and recreation building, or a combination thereof, are all consistent with the Alameda Municipal Code and the Alameda 2040 General Plan.
ENVIRONMENTAL REVIEW
On December 5, 2006, City Council adopted Resolution No. 14047 certifying the Final Supplemental Environmental Impact Report for the Alameda Landing Mixed Use Development Project (“2006 Supplemental EIR”, a Supplement to the 2000 Catellus Mixed Use Development Project EIR) in accordance with the California Environmental Quality Act (CEQA) (State Clearinghouse #2006012091), and the City has prepared several addenda to the 2006 Supplemental EIR in 2007, 2008, 2012 and 2017. Amending the Master Plan and Development Plan to revise the current 5,000 square foot commercial requirement would not result in a significant change to the environmental impacts associated with the approved project. No further environmental review is required pursuant to Public Resources Code section 21166 and Section 15162 of the CEQA Guidelines because the environmental effects of the proposed project were considered and disclosed in the 2006 Supplemental EIR, and there have been no changes to the project or the circumstances in which it is undertaken that would result in new significant or substantially more severe environmental effects than were identified in the previously certified EIR.
CLIMATE IMPACT
The options considered are consistent with the regional sustainability plans and the City’s climate action policies and local climate action plan. Likewise, adding mixed-use development in the center of the Bay Area is also consistent with local and regional sustainability plans.
RECOMMENDATION
Conduct a public hearing to consider amendments to the Alameda Landing Waterfront Master Plan and Bay 37 Development Plan for the Alameda Landing Waterfront Mixed Use project located at 2800 Fifth Street;
Adopt a resolution amending the Bay 37 Development Plan PLN22-0401 to replace a requirement for a 5,000-square-foot commercial retail lot with other land uses at the Northern Terminus of Fifth Street at Alameda Landing; and
Introduce an ordinance amending the Alameda Landing Waterfront Master Plan PLN22-0401 to replace a requirement for a 5,000-square-foot commercial retail lot with other land uses at the Northern Terminus of Fifth Street at Alameda Landing.
Respectfully submitted,
Andrew Thomas, Planning Building and Transportation Director
By,
Allen Tai, City Planner
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Master Plan/Development Plan Amendment Alternatives
2. Public Comments Received by the Planning Board