Title
PLN22-0401 - 2800 Fifth Street - Master Plan/Development Plan Amendment - Applicant: Pulte Homes. Public Hearing to consider a recommendation to the City Council to adopt an amendment to the Alameda Landing Waterfront Mixed Use Master Plan and Bay 37 Development Plan to replace a requirement for a 5,000 sq. ft commercial retail building with other land uses at the terminus of Fifth Street. 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) in 2006.
Body
To: Honorable President and
Members of the Planning Board
From: Andrew Thomas, Planning, Building and Transportation Director
EXECUTIVE SUMMARY
Pulte Homes and the residents of the Alameda Landing waterfront residential development known as “Bay 37” are requesting an amendment to the 2017 Alameda Landing Waterfront Mixed Use Development Master Plan and Bay 37 Development Plan (together, “Proposed Amendment”). The Master Plan and Development Plan require development of a small 5,000 square foot commercial building at the entrance to Bohol Circle Immigrant Park. The applicants are requesting that the requirement be changed to allow for either housing, open space, or a combination of housing and open space or recreational uses.
A Master Plan Amendment can only be approved by the Alameda City Council. Therefore, the role of the City staff and the Planning Board is to make a recommendation on the merits of the Proposed Amendment to the City Council. This report describes five alternative scenarios for the site, and includes the residents’ recommendation to the City Council and City staff’s recommendation to the City Council. Staff is recommending that the Planning Board identify its preferred use of the site and recommendation to the City Council at this time.
Of the five alternatives described in this report, the residents at a recent community meeting decided to recommend Alternative #2. Staff is recommending Alternative #1.
BACKGROUND
In 2006, the City Council approved the Bayport/Alameda Landing Master Plan, and in 2017, the City Council approved an amendment to the Bayport/Alameda Landing Master Plan to allow residential development along the waterfront, provided that the development included construction of a waterfront park and provided 5,000-square-feet of space for commercial, retail, and/or commercial recreational uses (as amended, “2017 Master Plan”).
In 2019, the Planning Board approved Resolution No. PB-19-21 for a residential development plan for Pulte Homes, LLC (the “applicant”) which included a site for the 5,000-square-foot commercial development on Fifth Street adjacent to the waterfront park subject to conditions of approval. One condition of approval required the applicant to return to the Planning Board for design review for the commercial building.
On December 13, 2021, the Planning Board amended Resolution No. PB-19-21 to modify the timing for Design Review approval commercial building within the Alameda Landing Waterfront Mixed Use Project in order to avoid a delay in housing construction at the site. The Planning Board agreed with the applicant that a retail commercial use at the site would be difficult to maintain given the uncertain economic outlook for retail spaces, but the Board also discussed the importance of having a community space next to the waterfront park. The Board directed the applicant to work with staff to return with a plan that included some form of community benefit.
On October 10, 2022, the Planning Board considered a recommendation from City staff and Pulte Homes to amend the 2017 Master Plan and Bay 37 Development Plan to replace the 5,000 square foot commercial building with a 1,500-square-foot one-story community building and two 2,500-square-foot single family units. The community building would be donated to the City of Alameda Recreation and Parks Department for public use, and the two residential units would be deed-restricted at the moderate-income level (up to 120% average median income (AMI)). At the meeting several Bay 37 residents opposed the staff recommendation and the Planning Board continued the item for further review and analysis by Pulte and City staff.
On February 1, 2023, staff and the applicant hosted a community meeting with the Bay 37 residents to discuss the Proposed Amendments. The community members voiced concerns regarding preservation of existing views, concerns with parking, and concerns with loading areas for users of the Waterfront Park. There was also discussion related to whether the affordable housing units proposed in the Alternative options could be mixed with unsold units in the development. A majority of the residents were in favor of the community park alternative.
As of January 2023, Pulte Homes is working on the final phases of the Bay 37 development and plans to have submitted for its final residential building permits by this fall. The conditions of approval require that the City stop issuing building permits at the 330th unit if progress has not commenced on the development of this site, so it is imperative that the future of this final, but very important parcel be resolved by the City Council as quickly as possible.
DISCUSSION
The 2017 Master Plan and Bay 37 Development Plan establish the applicant’s rights and obligations. In this case, one of the obligations is to provide 5,000 square feet of ground floor commercial space in return for the rights to construct 357 residential units at Bay 37. The applicant is requesting the proposed Amendments due to concern that a retail commercial use at the site would not be viable given the uncertain economic outlook for retail spaces. For instance, the nearby Alameda Landing Shopping Center is experiencing 15%-20% vacancy rates, which is an unfavorable sign for the retail market.
At the October 10, 2022 Planning Board meeting, the Board requested that Pulte meet with the neighboring Bay 37 residents to discuss alternatives to the 5,000 sf commercial use on the site. Pulte met with the residents to discuss their preferences for the site and included their preferred option for open space and parking as an alternative listed below. Pulte is now quickly approaching the 330 residential unit threshold of Condition No. 4 of the Development Plan Resolution which would put a hold on issuance of building permits for the 27 final units until building permits for the commercial building has been issued. At this time, it appears construction of those units will be significantly delayed until the Proposed Amendment has been resolved. Furthermore, staff and the City Council have been receiving comments from the neighbors on a weekly basis about the site and moving forward with the Proposed Amendment. For these reasons, staff believes it is necessary for the Planning Board to make a final recommendation to the City Council.
Staff has been working with Pulte Homes and the residents to develop four (4) alternative uses for the site. Pulte Homes is willing and able to implement any one of the four alternatives, once the City Council approves the Proposed Amendment to allow for one of the four alternatives.
The four alternatives include:
Alternative #1. Two Moderate-Income Single-Family Detached Units and a Community Building. Under this alternative the applicant will provide an approximately 1,500-square-foot one-story community building and two single family detached units deed-restricted at the moderate-income level (up to 120% average median income (AMI)). The single family homes will use the same designs as the Breeze homes located on the adjacent lots containing four-bedroom floor plans ranging from approximately 2,374-square-feet to 2,504-square-feet in size with standard 2-car garages for each home. The community building will be located on a separate lot and both will be conveyed to the City at no cost. The building would be owned and operated and maintained by the City of Alameda Recreation and Parks Department.
Staff is recommending this alternative as it remains consistent with the original Alameda Landing Waterfront Master Plan vision to have the residential development provide a community benefit and affordable housing. As documented in the City of Alameda Housing Element, deed restricted, moderate-income housing is badly needed in Alameda. In addition, this alternative provides, at no cost, a community facility that the Recreation and Parks Department believes would be a significant benefit to the Alameda community and the City’s newest waterfront public park. The community building could serve as a recreation room and possible satellite public library. The nearest library is currently over 1 mile away at 8th Street and Santa Clara Avenue.
Alternative #2. Neighborhood Park and public access easement. Under this alternative the site would be developed as a public open space. A public access easement would ensure public access and use in perpetuity. The open space would be owned and maintained by the Bay 37 Homeowners Association. The open space will be designed with benches for seating, landscaping, and accent shade trees similar to the existing pocket parks located along the northern edge of the Bay37 development.
The Bay 37 residents are recommending this alternative in order to preserve existing views and avoid the perception of over-crowdedness adjacent to the Fifth Street plaza entering Bohol Circle Immigrant Park.
Alternative #3. Two Low-Income Single Family Detached Units and Smaller Neighborhood Park - Under this alternative the applicant will provide two 2,500-square-foot single family detached dwellings that are deed-restricted at the low-income level (up to 80% AMI). The single-family homes will use the same designs as the Breeze homes located on the adjacent lots containing four-bedroom floor plans ranging from approximately 2,374-square-feet to 2,504-square-feet in size with standard 2-car garages for each home. The remaining portion of the lot will become a small neighborhood park with landscaping and open space.
Alternative #4. Five Low-Income Multifamily Homes. Under this alternative the applicant would build a five-plex building using a similar design to the three-story townhome buildings located within the development. The five units would be deed restricted for occupancy by five low income households (up to 80% AMI). Each unit contains two or three bedrooms and ranges in size from 1,186-square-feet to 1,896-square-feet.
The Planning Board also has the option of rejecting all four alternatives and recommending that the City Council maintain the existing requirement for a minimum of 5,000 square feet of commercial space with 12-foot floor to ceiling dimensions for commercial, retail, and/or commercial recreation uses.
Staff does not recommend maintaining the existing requirements for a 5,000 square foot commercial building. Neither Pulte Homes nor the Homeowners Association is well equipped to be a long-term commercial property manager for a commercial building. Staff is concerned that once constructed, the building will sit vacant until such time that a buyer of the commercial buyer is identified and a sale is completed. Given the location of the building and the retail commercial market in Alameda, staff is concerned that the building may quickly become an unfortunate and unattractive entrance to the City’s newest public waterfront park. Furthermore, the Alameda Landing Shopping Center one block away is facing unhealthy vacancy rates hovering around 15%-20% and growing. All signs indicate that a commercial building at this location is unlikely to be successful in attracting a long term business tenant. Neither Pulte nor the neighbors are in favor of keeping the current requirements for a commercial space.
Pulte anticipates that the construction of the approved Alternative will not begin until late summer 2024 when the existing units have been sold and the sales office on the site can be removed. Staff is recommending the Planning Board recommend the City Council adopt a condition of approval that requires any building, grading, or other construction permit of the selected Alternative be eligible for the “Ready to Issue” status in the City’s permit system prior to the issuance of the 343rd building permit. The permits for the selected alternative shall be in “Issued” status prior to the final inspection for the building permit of the 350th unit This condition will allow Pulte to continue their housing construction schedule for 2023 while they are developing plans for the Alternative and ensures that the plans have been submitted and approved prior to the issuance of the second to last building permit.
In conclusion, staff recommends that the Planning Board consider the alternatives described in this report and make a recommendation to the City Council.
PUBLIC NOTICE AND COMMENTS
Property owners and residents within 300 feet of the project’s boundaries were notified of the public hearing and given the opportunity to review and comment on the proposal. Staff and the applicant also hosted a community meeting on February 1, 2023 to gather public comments on the alternatives.
CLIMATE ACTION
The alternatives for the Proposed Amendment 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.
ENVIRONMENTAL REVIEW
On December 5, 2006, the 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 SEIR in 2007, 2008, 2012 and 2017. The alternatives for the Proposed Amendment 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 Supplemental Environmental Impact Report (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.
RECOMMENDATION
Staff recommends the Planning Board approve the draft Resolution that recommends that the City Council approve the Proposed Amendment to replace the 5,000-square-foot commercial space requirement with Alternative #1 (two moderate-income single-family detached units and a community building).
Prepared By:
Henry Dong, Planner III
Reviewed By:
Allen Tai, City Planner
Exhibits:
1. Project Plans
2. Draft Resolution