Title
Adoption of Resolution Approving Final Map for Tract 8570 to Subdivide a Portion of the Oakland Inner Harbor Tidal Canal (APN 71-289-8) to Create Seven Parcels; and
Adoption of Resolution Amending the Fiscal Year 2023-24 Operating and Capital Budget by 1) Increasing Property Income Revenue in the Tidelands Fund (Fund 216) by $60,000 from the Sale of Six Small Parcels in Tract 8570; and 2) Upon Receipt of these Revenues, Appropriating $60,000 from the Tidelands Fund (Fund 216) to the Fernside Eastshore Pathway Capital Improvement Project (C73000).
The City previously adopted an Initial Study/Negative Declaration applicable to this project. Pursuant to CEQA Guidelines Section 15162, none of the circumstances necessitating further CEQA review are present. (Public Works 31041520)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On October 18, 2022, the City Council approved with conditions, Tentative Map Tract 8570 per City of Alameda (City) Resolution No. 15985. The Final Map for Tract 8570 (Exhibit 1) creates seven (7) total submerged parcels on 26.7 acres: one large open water parcel of approximately 26.26 acres and six (6) small parcels, ranging in size from 0.06 to 0.10 acres. The small parcels are adjacent to two existing public pathways, one existing private pathway and six upland residential properties on Fernside Boulevard. The subdivision is for the purpose of transferring ownership from the City to the adjacent property owners. The Final Map does not entitle or approve any new development. Any future proposal to improve facilities on the submerged parcels will require separate entitlements at that time. Based on previous sales of comparable submerged parcels from Tract 8337, it is anticipated that the sale price for the six small parcels in Tract 8570 will be $10,000 each, or $60,000 total. Revenues from the sales will be allocated toward future pathway improvements projects, once designed and approved by regional regulatory agencies and City Council.
BACKGROUND
On September 15, 2015, City Council directed City staff to pursue a real estate transaction whereby the U.S. Army Corps of Engineers (“Army Corps”) would transfer, at no cost, the Alameda side of the Oakland Inner Harbor Tidal Canal (“Tidal Canal”) to the City and the City would then sell most of the parcels to adjacent private property owners, maintaining ownership of the center open water parcel.
On September 20, 2016, City Council approved Tentative Map Tract 8337 and on December 6, 2016, City Council approved Final Map for Tract 8337 which subdivided the property into 99 individual parcels. After approving the Final Map for Tract 8337,
• The Army Corps retained five (5) parcels, including: the Oakland side, property adjacent to the Navy Operational Support Center, and bridge footings for the High Street Bridge, the Miller-Sweeney Bridge and the Fruitvale Rail Bridge, and the Park Street Bridge;
• The City retained the open water parcel APN 71-289-8, which was preserved for open navigation though the Tidal Canal (“Open Water Parcel”). The Open Water Parcel includes the Alameda side of the canal and the water areas immediately adjacent to three existing pathways, two of which are publicly accessible and one which is private (“Pathways”).
• The City transferred 92 of the 99 parcels along the waterfront to the adjacent residential and commercial property owners at fair market value. These 92 parcels were historically used by the adjacent property owners through lease, license agreements or other approvals with the Army Corps to support their docks, piers, boathouses and/or commercial activities.
During the Tidal Canal approvals in 2016, City Council did not create parcels adjacent to the Pathways, which are existing ten-foot wide pathways that provide access from Fernside Boulevard to the shoreline. As a result, two property owners on each side of the three pathways, six property owners in total, did not have the opportunity to acquire the water areas behind their homes.
On October 1, 2019, City Council provided final approval of the design concepts for these three pathways, and directed staff to implement the following and return to City Council for approval of subdivision maps and easements, consistent with the approved designs:
• Create six parcels for the remaining six property owners on the estuary adjacent to the three public pathways at 3227, 3229, 3267, 3301, 3335, and 3341 Fernside Boulevard.
• Retain the existing upland easement over the existing path at Fernside Boulevard near High Street and transfer the two new submerged water parcels to the two adjacent property owners at 3227 and 3229 Fernside Boulevard. The two submerged parcels are created by the Final Map for Tract 8570. See Parcels 2 and 3 on sheet 8 of Exhibit 1.
• Retain the existing upland easement over the existing path at Fernside Boulevard and Monte Vista Avenue and transfer the two new submerged water parcels to the two adjacent property owners at 3267 and 3301 Fernside Boulevard. The two submerged parcels are created by the Final Map for Tract 8570. See Parcels 4 and 5 on sheet 9 of Exhibit 1.
• Close the upland pathway at Fernside Boulevard at Fairview Avenue, preserve a view corridor easement over the pathway and the water, and transfer the two new submerged water parcels to adjacent property owners at 3335 and 3341 Fernside Boulevard. The two submerged parcels and Scenic Easement are created by the Final Map for Tract 8570. See Parcels 6 and 7 on sheet 10 of Exhibit 1.
On May 18, 2021, City Council approved the relinquishment of the easement rights for the upland pathway located at Fernside Boulevard and Fairview and established a view corridor.
On July 20, 2021, City Council approved the easement amendments for the upland pathway at Fernside Boulevard near High Street and the pathway at Fernside Boulevard and Monte Vista Avenue.
On September 26, 2022, the Planning Board unanimously approved Resolution PB-22-19 recommending City Council approval of the proposed Tentative Map to create seven new parcels as described above.
On October 18, 2022, City Council approved Resolution No. 15985 approving the proposed Tentative Map for Tract 8570 to create seven new submerged parcels.
DISCUSSION
Pursuant to the City Council’s direction in 2019, the Final Map for Tract 8570 subdivides the City-owned Open Water Parcel into seven parcels, which includes one large open water parcel and six small water parcels adjacent to the three pathways. As shown on pages 11, 12 and 13 of Exhibit 1, two water parcels are located at the end of each of the three pathways.
The City will retain the remaining open water parcel (approximately 26.26 acres) along the Oakland/Alameda city line to ensure that the navigable portion of the Tidal Canal remains open to recreational and commercial traffic.
Between 3227 & 3229 Fernside Boulevard (page 8 of Exhibit 1), the City retains a 35-foot wide Public Access Easement (PAE) from the shoreline out to the City-owned open water parcel over the two new submerged (water) parcels (Parcels 2 and 3 on page 8). The PAE over the water parcels preserves views out to the open water from the shoreline public access, preserves rights for use by City, Regional, State or Federal emergency access and response in the event of disaster or emergency, and preserves rights for the City to construct recreational or other docks for public use, if desired at a future date. At this time the City has no plans to construct public access on the water at this location, due to the limited landside public access path (10-foot wide) and existing shoreline conditions at this location that are not conducive to a public dock.
Between 3267 & 3301 Fernside Boulevard (page 12 of Exhibit 1), the City retains an 18-foot wide PAE over the submerged parcels (Parcels 4 and 5 on page 9) to match the upland public pathway easement of 18 feet. The provisions of the easement are similar to the provisions described above.
Between 3335 & 3341 Fernside Boulevard (page 10 of Exhibit 1), the City retains a 10- foot scenic and emergency access easement in favor of the City over the water parcels (Parcels 6 and 7 on page 10). Based upon City Council’s prior decision to close the upland path but retain a 10-foot wide view corridor down the path from Fernside Boulevard, the easement over these submerged parcels preserve views and emergency access, but not a public access easement, since the public access on the uplands path was removed.
ALTERNATIVES
• Approve the Final Map for Tract 8570.
• Return the project back to staff for further consideration and evaluation on any specific Tentative Map condition of approval.
FINANCIAL IMPACT
The subdivision is for the purpose of transferring ownership from the City to the adjacent property owners. Based on previous sales of comparable submerged parcels from Tract 8337, it is anticipated that the sale price for the six small parcels in Tract 8570 will be $10,000 each, or $60,000 total. It is also anticipated that each buyer will pay for the closing costs associated with each property sold, up to $1,000 and the City will be responsible for any closing costs in excess of $1,000. Estimated closing costs will be $2,661 for each lot for a total of $15,966.
Revenues from the parcel sales will be received in the Tidelands Fund (Fund 216) and closing costs will be covered by funds budgeted in the Tidelands Fund. Historically, the City has allocated proceeds from the sale of Tidal Canal real estate to appropriate capital improvements. Staff recommends that this practice continues and proceeds from the sale of these six parcels in Tract 8570 be allocated to the Fernside Eastshore Pathways Capital Improvement Project (CIP C73000).
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
As described in findings in the Resolution, the Final Map is consistent with the Subdivision Map Act, the Alameda General Plan, and the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
On September 20, 2016, in accordance with CEQA the City adopted an Initial Study/Negative Declaration (“IS/ND”) for the parcelization and acquisition of the Alameda side of the Oakland Inner Harbor Tidal Canal which addressed all potential environmental impacts associated with the proposed transfer and subsequent transfers into private ownership, amendments to the Estuary District Zoning, and the proposed subdivision map application. The IS/ND concludes that the proposed project would not cause any potentially significant environmental impacts, and accordingly, no mitigation measures would be required as part of the project. No further review is required pursuant to Public Resources Code section 21166 and CEQA Guidelines Section 15162 because the environmental effects of the project were considered and disclosed in the IS/ND 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 was identified in the previously adopted IS/ND. Any proposed future improvements along the Tidal Canal will be subject to separate review and discretionary approval by the City.
CLIMATE IMPACTS
There are no identifiable climate impacts related to this action. The map preserves the existing physical conditions on the submerged parcels. The proposed map does not entitle or approve any new development. Any future proposal to improve facilities on the submerged parcels will require separate entitlements at that time.
RECOMMENDATION
Adopt a resolution approving Final Map for Tract 8570 to subdivide a portion of the Oakland Inner Harbor Tidal Canal (APN 71-289-8) to create seven parcels.
Adopt a resolution amending the Fiscal Year 2023-24 Operating and Capital Budget by 1) increasing property income revenue in the Tidelands Fund (Fund 216) by $60,000 from the sale of six small parcels in Tract 8570; and 2) upon receipt of these revenues, appropriating $60,000 from the Tidelands Fund to the Fernside Eastshore Pathway Capital Improvement Project (C73000).
Respectfully submitted,
Erin Smith, Public Works Director
By,
Robert Vance, Deputy Public Works Director & City Engineer
Brendin Christolear, Senior Engineer
Financial Impact section reviewed,
Margaret L. O'Brien, Finance Director
Exhibit:
1. Final Map Tract 8570