Title
Introduction of Ordinance Amending the Alameda Marina Master Plan and Approving Density Bonus Application No. PLN23-0179 to Increase the Alameda Marina Sitewide Housing Unit Count from 760 Units to 801 Units.
The Alameda Marina Master Plan Environmental Impact Report (State Clearinghouse #2016102064) and the Alameda General Plan 2040 Environmental Impact Report (State Clearinghouse #2021030563) were certified in accordance with the California Environmental Quality Act. None of the circumstances necessitating further environmental review exists under CEQA Guidelines Sections 15162 and 15163. (Planning Building and Transportation 20962700)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The applicant, Alameda Marina, LLC, is requesting the City Council increase the total number of housing units allowed at Alameda Marina from 760 units to 801 units, an increase of 41 housing units. The action requires the City Council adopt an ordinance amending the Alameda Marina Master Plan and approving a Density Bonus. The proposed addition of 41 housing units will be added to Phase III of the Alameda Marina Master Plan, which consists of the construction of a single 5-story multifamily building, and with the approval of both the proposed amendments to the Master Plan and the Density Bonus, the building will increase from 218 units to 259 units. Despite an increase in unit count, there are no changes to the previously approved Phase III building footprint, height or size. On July 10, 2023, the Planning Board unanimously recommended the City Council approve the Master Plan Amendment and Density Bonus application.
The Planning Board also approved a Development Plan and Design Review for the Phase III multifamily building (referred to as “Wrap B” in the Master Plan).
The project qualifies for a density bonus under State Density Bonus Law, Government Code section 65915 et seq., and is a residential project that is governed by the Housing Accountability Act, Government Code section 65589.5 (HAA).
BACKGROUND
In July 2018, the City Council approved the Alameda Marina Master Plan (Master Plan), which established requirements for the development of a mixed-use plan for the Alameda Marina site that includes 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. At the same meeting, the City Council certified the Alameda Marina Master Plan Environmental Impact Report (EIR), which analyzed environmental impacts of the Master Plan project. The EIR studied a development scenario for up to 779 housing units. 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>
Since the Master Plan approval, the applicant has:
• Completed construction of a new $35M, 4,009-foot seawall along all three phases of the Alameda Marina project site;
• Completed $10M construction of pedestrian/bike improvements along a 1/2 mile of Clement Avenue along all three phases of the Alameda Marina project site;
• Completed construction of Wrap A, the first phase 360-unit multifamily residential building named “Launch”;
• Commenced construction of second phase 182 townhomes; and
• Commenced commercial tenant improvements in the historic Building 19.
The applicant is now requesting that the City Council approve an amendment to the Alameda Marina Master Plan and Density Bonus to increase the unit count in the Phase III building, referred to in the Master Plan as “Wrap B,” from 218 units to 259 units, which is an increase of 41 units for Phase III and an increase from 760 total units to 801 total units for the entire Alameda Marina Master Plan area. As a result of the housing unit increase, the number of affordable units in the Master Plan project area will also grow from 104 affordable units to 117 affordable units.
DISCUSSION
Housing Need and Progress in Meeting RHNA
The City’s General Plan 2040 (adopted on November 30, 2021) and 2023-2031 Housing Element (certified in January 2023) provide a plan to construct the City’s regional housing need for 5,353 new units during the upcoming housing cycle, or approximately 669 units each year for the next eight years. Due to local market conditions, the City has only issued 45 permits for new housing units to-date in 2023. The Alameda Marina Phase III building represents a very important opportunity for the City to catch up on its housing production for the first year of the eight-year cycle.
Affordable Housing and Density Bonus Amendment
State law imposes a mandatory density bonus program that requires the City to approve the construction of additional residential units, and, if requested by the applicant, provide regulatory incentives/concessions, and waivers to developers who agree to build a certain percentage of affordable housing that meets statutory criteria. Gov. Code, section 65915(b)(1). The applicant proposes to increase the number of residential units approved in the Master Plan from 760 to 801, this corresponds to an overall increase in the sitewide affordable housing count from 104 affordable units to 117 affordable units. The applicant is not requesting any waivers or concessions. The density bonus calculations for the Alameda Master Plan Project are as follows:
The base density permitted on the Alameda Marina site is 649 units. The applicant previously proposed five percent (5%) (33) of the units to be very low-income units, which under State Density Bonus Law and the Alameda Municipal Code (AMC) qualified the project for a 20% density bonus, or a maximum allowable residential density of 779 units.
The applicant proposes to increase the total number of very low-income units to seven percent (7%) (46), which qualifies the project for a 25% density bonus, or a maximum allowable residential density of 812 units. As authorized by state law, the applicant is electing a lesser percentage of density increase and proposes to build 801 units instead of the allowable 812.
In addition, the applicant will provide 4% (26) of the units to be deed restricted to low-income households and 7% (45) to be deed restricted to moderate-income households, as required by the City’s inclusionary ordinance (AMC section 30-16). The number of units to be deed restricted to very low-income households will increase from 33 units to 46 units, increasing the total number of affordable units from 104 to 117. The 259 units in Wrap B will include 43 deed restricted affordable housing units. This is demonstrated in the calculations shown in Table 1 below.
|
Table 1 - Proposed Alameda Marina Master Plan Total Housing Counts: |
|
|
Total Units |
Affordable Units |
|
|
|
Total Affordable |
Moderate-Income |
Low-Income |
Very Low- Income |
|
Phase I - Wrap A: The Launch |
360 |
49 |
21 |
12 |
16 |
|
Phase II - Townhomes |
182 |
25 |
11 |
7 |
7 |
|
Phase III - Wrap B: The Foundry |
259 |
43 |
13 |
7 |
23 |
|
Master Plan Total |
801 |
117 |
45 |
26 |
46 |
|
% of Total |
100% |
18%* |
7% |
4% |
7% |
*Percentage of the base 649 units
Since Phase I was completed with 49 affordable units and Phase II is already under construction with 25 affordable units, Phase III will provide the remaining 43 affordable units adding up to the 117 affordable unit total across Alameda Marina. The sum of 43 affordable units in Phase III includes 23 units affordable to very-low income households, seven (7) low-income units, and 13 moderate-income units. The multifamily building will provide studio, one-bedroom, two-bedroom, and three-bedroom units ranging from 485 square feet for the smallest studio unit to over 1,300 square feet for the largest three-bedroom unit. The Affordable Housing Agreement for Phase III will be drafted to reflect the unit counts prior to issuance of building permits.
Updated Project Phasing Plan
The Master Plan was adopted in 2018 and envisioned a phased development that would occur over 10 years. The Master Plan requires that each phase complete its portion of the seawall frontage public improvements and its portion of the Clement Avenue frontage public improvements. When construction began in 2019, the Alameda Marina development team determined it would be most cost effective and least disruptive to the adjacent neighborhoods to complete all of the Clement Avenue frontage improvements for all phases and all of the pile driving for the shoreline improvements for all phases prior to the construction of the first residential or commercial building. As a result, those improvements are complete.
As required by the Master Plan, the applicant submitted a revised sitewide phasing plan for the completion of the remaining public improvements for all phases of the project. The phasing plan is attached as Exhibit 2. The major remaining improvements and their anticipated dates for completion are as follows:
- Temporary Bay Trail [Quarter 3 of 2023]
- Building 19 commercial building opening [Quarter 2 of 2024]
- Final Bay Trail behind Building 19 [Quarter 2 of 2024]
- Svendsen Maritime Park [Quarter 1 of 2025]
- Dry Boat Storage opening [Quarter 4 of 2026]
- Remaining commercial building openings [Quarter 4 of 2026]
The revised phasing plan reflects a need to sequence project deliverables with anticipated construction schedules. For example, while the land behind the Launch building is currently paved for both the dry boat storage yard and the Bay Trail, the dry boat storage cannot operate until additional utility installation work can be completed. As a result, only a “Temporary” Bay Trail will be open to the public in late 2023. The temporary nature of the Bay Trail will last until construction of the utilities for the dry boat storage yard can be completed. This sequencing is necessary to avoid having construction work damage newly installed landscaping and site work for the Final Bay Trail. A similar plan is in place on the eastern side of the Alameda Marina site where the Bay Trail and the park construction is being coordinated with the construction schedule of the townhomes.
Boatyard Update
The Master Plan requires the City and the applicant issue one Request of Qualification/Request for Proposal (RFQ/RFP) to seek a boatyard/dockyard operator to construct and operate a boatyard/dockyard at Alameda Marina. Consistent with the Master Plan, the applicant, with Planning Board and Planning staff input, issued two RFQ/RFPs in 2019, to find a qualified boatyard/dockyard operator per the Master Plan. No qualified boatyard/dockyard operators were identified in either process. Staff and the applicant also learned the following:
• Demand is insufficient for a boatyard/dockyard at Alameda Marina;
• The Grand Marina boatyard nearby already serves the local need;
• Environmental regulations are not friendly to new outdoor boatyards; and
• A boatyard is unnecessary for most maintenance which can be performed in the water.
Staff and the applicant believe it is highly unlikely there will be a boatyard/dockyard operator willing to invest in a new outdoor boatyard at Alameda Marina. The economic and regulatory factors are not favorable to such an investment. However, the existing zoning regulations in the Alameda Marina Master Plan continue to support a commercial core. Furthermore, the commercial core area is located on tidelands, which require maritime uses or other businesses that invite people to the waterfront. Staff believes these zoning regulations will ensure future commercial use that is compatible with residential development while also activating the waterfront. No further action is proposed by the applicant at this time. The existing Master Plan and zoning provisions will continue to allow a boatyard and/or dockyard should economic conditions change in the future to support investment in a boatyard and/or dockyard.
Conclusion
In conclusion, the proposed Master Plan and Density Bonus application is consistent with the General Plan, the General Plan Housing Element and zoning goals to increase housing production in Alameda.
ALTERNATIVES
• Approve the Master Plan Amendment and Density Bonus application as recommended by the Planning Board and City staff.
• Deny the Master Plan Amendment and Density Bonus if findings can be made, based upon substantial evidence, that the proposed housing unit increase by 41 units would have a specific adverse impact on public health or safety and there is no feasible method to satisfactorily mitigate the specific adverse impact or, the project is contrary to state or federal law.
FINANCIAL IMPACT
Adoption of the Master Plan Amendment will continue the Alameda Marina Master Plan project’s positive financial impact for the City of Alameda, including revenue from:
• Annual Tidelands Lease Revenue to the City
• General Fund revenues from increase in property taxes and property transfer taxes
• Development Impact Fees for Transportation Improvements, Public Safety and General Public Facilities
• School Fees (going to AUSD)
Or savings to the City from not having to fund the construction of the following:
• Reinvestment in City-owned Tidelands and Major Infrastructure Improvements along the Seawall
• Improvements to the City-owned Clement Avenue Right-of-Way
• Bay Trail, Parks and Open Space
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
As described in this report, the Master Plan is designed to implement General Plan and applicable Alameda Municipal Code requirements and standards for the property.
ENVIRONMENTAL REVIEW
The proposed project relies on previous CEQA documents including (1) the Final Environmental Impact Report (EIR) for the Alameda Marina Master Plan (Alameda Marina EIR) (State Clearinghouse #2016102064), which analyzed the development of 779 new residential units, a marina with up to 530 boat slips and a harbormaster’s office, approximately 250,000 square feet of maritime and commercial uses, and approximately 3.59 acres of waterfront-related public open space and parks, 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, including the Master Plan Amendment to increase the housing unit count of the Master Plan from 760 units to 801 units (an increase of 41 units, and net increase of 22 units from what was analyzed in the Alameda Marina EIR), 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 exists under CEQA Guidelines Sections 15162 and 15163.
CLIMATE IMPACT
By enabling people to live closer to jobs and services, this infill development reduces driving and greenhouse gas emissions while providing other quality of life and economic benefits outlined in the Climate Action and Resiliency Plan.
RECOMMENDATION
Introduce an ordinance amending the Alameda Marina Master Plan and approving Density Bonus Application No. PLN23-0179 to increase the Alameda Marina sitewide housing unit count from 760 units to 801 units.
Respectfully submitted,
Allen Tai, Acting Director of Planning, Building and Transportation
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Alameda Marina Phase III Master Plan Amendment and Density Bonus Application
2. Sitewide Phasing Plan