2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] smoke exposure are all intensified by the climate emergency. These impacts are magnified in communities of color, children, pregnant persons, older adults, and those with chronic medical conditions.
● These examples represent just a fraction of the true costs that the fossil fuel driven climate crisis inflicts upon Calfironia.
● Polling from last year shows 70% of California voters support requiring fossil fuel companies to help pay for climate disaster costs through a climate superfund bill.
The Solution
Big Oil caused this problem and they’re profiting off it. They should pay for it. ● We are not prepared for the climate that the fossil fuel industry has created.
The Climate Superfund is an opportunity to invest in preparing for the future.
● The Climate Superfund will help generate the resources our state needs to respond to climate catastrophes, build climate resilient neighborhoods, prepare for future climate harms, and usher in a thriving and fair transition away from fossil fuels.
● We know that climate damages hit everyone but they harm disadvantaged communities first and hardest. That’s why at least 40% of the funds will be directed to disadvantaged communities, offering opportunities to effectively respond to and prepare for climate disasters while transitioning away from polluting energy.
● Just a few examples of projects that revenue generated through the climate fund could help pay for include:
○ Making schools more climate resilient by upgrading air conditioning systems so kids can learn despite extreme heat.
○ Distributing air filters to homes in wildfire prone areas and providing relief from toxic air created by wildfires.
○ Helping local governments manage the impacts of sea level rise along the coast.
○ Directing additional resources to California’s firefighters and first responders to prepare for future climate threats.
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] ○ Providing funding to help small businesses recover and homeowners rebuild after climate disasters.
○ Investing in clean jobs and green infrastructure projects to accelerate the transition away from climate-harming fossil fuels. ● New York and Vermont have already passed bold legislation to make fossil fuel polluters pay their share of the costs of climate damages in those states. California can too.
● The Climate Superfund offers the greatest opportunity our state has seen in a generation to invest in our communities and our future while ensuring the burden falls on the big polluters, not working families and taxpayers.
How It Works
● The bill tells the California Environmental Protection Agency to carry out a cost study to identify how much damage from climate change is costing California.
● Using climate attribution science, the agency then assesses how much of that damage the big polluters are responsible for through their fossil fuel emissions between 1990 and 2024.
● The bill creates a fund into which the fossil fuel polluters must pay a fee proportional to the fossil fuel emissions they were responsible for between 1990 and 2024.
● Polluters will be made to pay their share of the costs of climate damages in California arising from those emissions, assessed through 2045. ● The California EPA will establish funding criteria and guidelines for how the funds may be used. Eligible programs and projects will include mitigating and adapting to climate change and its impacts, addressing climate-fueled disaster response, and investing in climate-resilient recovery efforts. ● 40% of the revenue raised must be directed towards disadvantaged communities.
CONSENT CALENDAR
June 3, 2025
Igor Tregub, Councilmember District 4
Ceci
lia Lunaparra, Councilmember District 7
To: Honorable Mayor and Members of the City Council
From: Councilmembers Igor Tregub (Author) and Cecilia Lunaparra (Co- Sponsor)
Subject: Referral: Oxford for All
RECOMMENDATION
1. Refer to the City Manager to design and construct a quick-build class IV bicycle facility on the east side of Oxford Street and Fulton Street between Bancroft Way and Hearst Avenue and implement pedestrian safety improvements on the corridor, potentially through quick-build planning and construction methods.
2. Refer $400,000 to the June budget process (FY26 Mid-Biennial Update) to provide the City of Berkeley Public Works Department with necessary funds to support design, engineering, and construction costs for the project.
3. Refer to the City Manager and to The City/UC/Student Relations “4x6” Committee to explore opportunities to leverage existing and establish new financial partnerships with UC Berkeley on safety projects along Oxford Street and adjacent areas, including the Oxford and Bancroft volleyball courts project and similar initiatives.
POLICY COMMITTEE RECOMMENDATION:
On May 7, 2025, the Facilities, Infrastructure, Transportation, Environment & Sustainability Policy Committee adopted the following action:
M/S/C (Humbert/Lunaparra) to send the item to City Council with a positive recommendation1.
FINANCIAL IMPLICATIONS
$400,000 in the June budget process (FY26 Mid-Biennial Update) 1 https://berkeleyca.gov/sites/default/files/legislative-body-meeting-minutes/2025-05- 07%20Annotated%20Agenda%20-%20%20Facilities.pdf
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CONSENT CALENDAR
June 3, 2025
CURRENT SITUATION AND ITS EFFECTS
Oxford and Fulton Streets mark the western boundary of the UC Berkeley campus. The corridor’s current configuration reflects antiquated traffic engineering conventions that prioritize vehicular throughput over pedestrian and bicycle safety. Oxford Street serves as the primary pedestrian gateway to the campus from Downtown Berkeley, yet it lacks a distinct ground-level identity.
Just as if not more importantly, the Oxford/Fulton Street corridor is unsafe for many bicyclists, pedestrians, and micro- mobility users, as traffic throughput has been prioritized over safety and comfort.
The outdated current design for Oxford Street/Fulton Street — focused on maximizing car speeds and throughput — is dangerous for all road users, including drivers. On Oxford Street and Fulton Street from Hearst Ave. to Bancroft Way since 2017, there have been 19 total car driver and passenger injuries, including 2 severe injuries; 8 total pedestrian injuries; and 5 total cyclist injuries, including 1 severe injury. Prior to 2017, Shlomo Bentin, a guest lecturer at UC Berkeley, was killed by a truck driver while cycling at Fulton St. and Bancroft Way in 2012.2 In 2016, Berkeley resident Megan Schwarzman came minutes from death after being struck by a driver at Fulton St. and Bancroft Way and suffered severe injuries.3
From Bancroft Way to Hearst Avenue., Oxford Street and Fulton Street resemble a suburban arterial with four travel lanes, two parking lanes, and a median with turn lanes at intersections. Cyclists must use Class II bike lanes that put them at risk of getting “doored” if they feel confident enough to ride on Oxford Street, and pedestrians must use narrow sidewalks that do not reflect the significant demand generated by the campus and downtown or the increased demand that will be spurred by future developments. Not only is the current Class II bike lane on Oxford dangerous for getting "doored," but also cars frequently use the southbound bike lane as a temporary parking spot and loading zone for Anchor House, placing users at risk. While the solutions to some of these challenges—including sidewalk widening—may require longer-term projects, there are short-term, quick-build solutions that would significantly improve safety along the Oxford-Fulton corridor.
Improving safety on Oxford Street and Fulton Street is especially important at this moment. In the next decade, many significant developments are planned along the Oxford corridor that could dramatically affect transportation, development, urban design, 2 https://www.berkeleyside.org/2012/07/16/neuroscientist-shlomo-bentin-killed-in-bike-accident 3 https://www.berkeleyside.org/2016/02/05/hope-gratitude-after-near-deadly-collision-in-berkeley
CONSENT CALENDAR
June 3, 2025
housing, potentially land values/affordability and more! The University of California is planning to redevelop and expand University Hall at Oxford and University and is planning a student housing project at Fulton and Bancroft that will contain an estimated 1625 beds.4 Anchor House, between University and Hearst on Oxford has already come online with 772 new beds for transfer students.5 Additionally, a 17-story, 283-unit private mixed use development called The Hub will be built at the intersection of Oxford Street and Center Street6. Nearby on Hearst Avenue, the entirely new College of Data and Society Gateway building is currently under construction.7 Beyond these projects, many substantial projects are planned on adjacent streets. These new developments will spur new transportation demand for safe bicycle and pedestrian infrastructure.
There is a long history of interest in redesigning Oxford Street to better serve all street users. The 2017 Berkeley Bicycle Plan identifies the Oxford-Fulton corridor as an ideal candidate for a Class IV cycle track facility. Oxford serves as a crucial connection between the north and south sides of campus and downtown for people riding bikes.
Additionally, Oxford is on the City of Berkeley’s High-Injury Network identified in the City’s 2019 Vision Zero Action Plan,8 meaning that it is one of the small number of streets in the city that account for the most traffic injuries and deaths.
In 2021, UC Berkeley completed an Oxford St./Fulton St. Multimodal Mobility and Urban Design Study, authored by Sasaki and Fehr & Peers9. This comprehensive study included data analysis of vehicle, bicycle, and pedestrian counts and the evaluation of many different alternatives. The study identified the need for improved bicycle and pedestrian safety infrastructure on Oxford Street and recommended the construction of a two-way Class IV cycle track on the east side of Oxford Street. Fehr & Peers found that a cycle track on the east side of Oxford Street, as proposed in this referral, would have “minimal impact on vehicular operations” and would not require removing the median.
4 https://capitalstrategies.berkeley.edu/Bancroft-Fulton 5 https://studenthousingbusiness.com/uc-berkeley-completes-772-bed-residence-hall-for-transfer- students/
6 https://berkeleyca.gov/sites/default/files/2022-04/4-The-HUB-Applicant-Statement-01-20-22-2128- Oxford.pdf
7 https://capitalstrategies.berkeley.edu/gateway
8 https://berkeleyca.gov/sites/default/files/2022-02/Berkeley-Vision-Zero-Action-Plan.pdf 9 http://www.preservenet.com/20211130_OxfordCorridorStudy.pdf
CONSENT CALENDAR
June 3, 2025
Preferred Alternative from UC Berkeley Oxford St./Fulton St. Multimodal Mobility and Urban Design Study between Hearst Ave. and Channing Way. Construction has been completed for the blocks between Bancroft Way and Channing Way as part of the Southside Complete Streets Project (Fehr & Peers).
In 2023, students in UC Berkeley’s Master of City Planning program at the College of Environmental Design studied the existing conditions and needs for safety improvements on Oxford Street as part of an intensive transportation studio. This team reviewed previous plans and documents, collected average pedestrian and bicycle intersection counts, conducted on-site community engagement, and authored a comprehensive 71-page report.10 Among other recommendations, this report recommended implementing protected bicycle lanes connected to existing facilities and installing traffic calming measures including bollard curb extensions and painted crossings.
10 https://ideas.repec.org/p/cdl/itsrrp/qt53g9g83t.html
CONSENT CALENDAR
June 3, 2025
Illustration of what a Class IV bicycle facility on Oxford Street could look like.
Katie Heuser
On September 12, 2023, City Council approved a referral titled 51B BRT + University/Shattuck Corridor Mobility Improvements,11 that, among other recommendations, included a $150,000 budget referral to conduct corridor studies — including on Oxford Street and Fulton Street — to identify appropriate road safety improvements that advance city-adopted safety, transportation, and climate goals.
While $150,000 was allocated in the FY 2025 budget,12 to the best of our knowledge, these funds have not been expended, and no study has commenced.
RATIONALE FOR RECOMMENDATION
This referral builds on prior work and recognizes the urgent need to address traffic safety on Oxford Street with proven infrastructural solutions. In particular, quick-build solutions have become widely utilized to improve traffic safety rapidly at a low cost and could be effective, inexpensive, and quick to implement on the Oxford-Fulton corridor. In fact, quick-build safety improvements were previously successfully implemented on Fulton Street just one block south of this item’s project area.
In 2016, Berkeley resident Megan Schwarzman was struck by a driver while riding her bike on Fulton Street just south of Bancroft Way and dragged under a car for 60 feet. 11 https://berkeleyca.gov/sites/default/files/documents/2023-09-12 Item 29 51B BRT %2B University- Shattuck.pdf
12 https://berkeleyca.gov/sites/default/files/documents/2024-06-25 Item 53 Fiscal Years 2025 2026 Biennial Budget Adoption - Supp %28Budget%29.pdf
CONSENT CALENDAR
June 3, 2025
She suffered severe injuries, including “a lacerated liver, collapsed lung, broken ribs, multiple pelvic fractures, a broken collarbone and broken facial bones, along with extreme blood loss” and was minutes from losing her life.13 After a significant push by advocates to prevent more traumatic crashes like the one that almost took Megan’s life, the City of Berkeley rapidly approved and built a cycle track from Bancroft Way to Channing Way with only paint and plastic delineators, or flex posts. This quick-build facility was recently removed, as the permanent cycle track constructed with the Southside Complete Streets Project replaced it. While this quick- build improvement was implemented in response to a serious crash that almost took a Berkeleyan’s life, it is in our best interest to identify streets in need of quick-build improvements and prevent future tragedies before they occur. We must be proactive, not just reactive.
Before-and-after comparison showing the quick-build bicycle facility constructed on Fulton St. in 2016 (Google Street View).
Quick-build improvements can be implemented without precluding future changes to revise or improve a street’s design and can be built at a low cost and on a quick timeline. While the quick-build bicycle facility constructed on Fulton St. in 2016 is one example, quick-build projects have been implemented across the United States and across the world to great success, especially in the last 10-15 years.14 While quick-build improvements would be an excellent option for this corridor, this referral in no way intends to preclude staff from planning and constructing more permanent facilities. When planning and designing this project, staff may wish to consult the Transportation and Infrastructure Commission to receive input. Staff should 13 https://www.berkeleyscanner.com/2024/08/06/traffic-safety/berkeley-street-trauma-prevention-program- mike-wilson-meg-schwarzman/
14 https://nacto.org/wp-content/uploads/2016PeoplefoBikes_Quick-Builds-for-Better-Streets.pdf
CONSENT CALENDAR
June 3, 2025
additionally consult with AC Transit regarding AC Transit’s current Line 6 terminus on Oxford Street at Addison Street to discuss options to accommodate it in the proposed quick-build design, move it back to its previous location on the 2100 block of Addison St, or otherwise address impacts to this terminus.
ENVIRONMENTAL SUSTAINABILITY
Berkeley’s 2019 Greenhouse Gas Inventory found that 60 percent of emissions in the City come from transportation sources, predominantly private vehicles. Building connected, safe active transportation facilities is one of the most effective ways Berkeley can reduce its largest source of greenhouse gas emissions. Oxford St. and Fulton St. next to campus are highly interconnected to other nearby streets that have already received bicycle and pedestrian safety improvements, such as Bancroft Way, Oxford Street, and Fulton Street south of Bancroft Way. Because this project would close a key gap in Berkeley’s bicycle network, its impacts in reducing greenhouse gas emissions would be particularly high.
CONTACT PERSON
Igor Tregub, Councilmember District 4, [email protected] Olga Bolotina, Chief of Staff, Council District 4, [email protected] Phone: 510-981-7140
Brent Blackaby
Councilmember District 6
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7160 ● TDD: (510) 981-6903 ● Fax: (510) 981-7166 E-Mail: [email protected]]
CONSENT CALENDAR
June 3, 2025
To: Honorable Mayor and Members of the City Council
From: Councilmember Blackaby (Author), Mayor Ishii (Co-Sponsor), Councilmember Humbert (Co-Sponsor), Councilmember Taplin (Co-Sponsor) Subject: The Berkeley Baby Book Project: Relinquishment of Council Office Budget Funds from General Funds and Grant of Such Funds
RECOMMENDATION
Adopt a Resolution approving the expenditure of an amount not to exceed $250 per Councilmember, including $250 from Councilmember Blackaby, the Mayor and Councilmembers Humbert and Taplin, to support the Berkeley Baby Book Project, a non-profit, with funds relinquished to the City’s general fund. The relinquishment of funds from Councilmember Blackaby and all other Councilmembers who would like to contribute, will provide books to Berkeley children aged 0-5 years. The books are delivered by USPS and addressed to the child who owns them at no cost to their family.
FINANCIAL IMPLICATIONS
No General Fund impacts
CURRENT SITUATION AND ITS EFFECTS
The Berkeley Baby Book Project (BBBP) is a childhood literacy project that provides children age 0-5 with free monthly, quality age appropriate books mailed directly to their home. Children love receiving books addressed to them and are excited to interact with them and learn to read.
Brain development rates in the early months of a baby’s life are never again matched.
Research shows that the presence of a generous number of books in the home of a young child is, by itself, a surprisingly strong indicator of later education level attainment, outweighing correlations to income and parent education. Frequent book sharing with babies is the best way to nurture roots of literacy. Ownership makes that easy.
Literacy is a cornerstone of social justice and equality. Without it, full access to and participation in the programs, movements and institutions that shape our culture and society is hindered.
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The Berkeley Baby Book Project: Relinquishment of Council Office Budget Funds CONSENT CALENDAR June 3, 2025
All children 0-5 in Berkeley qualify for the Berkeley Baby Book Project, and BBBP conducts targeted outreach to low-income families directly and through Head Start preschools and the Federal WIC nutrition program.
Since its inception in 2015, the Berkeley Baby Book Project has mailed 85,733 books to almost 5,000 children.
BACKGROUND
The Berkeley Baby Book Project started with enrolling children in Berkeley/Emeryville in 2015. It expanded to San Pablo/Richmond in 2022. In 2023, bilingual books became available with almost 40% of newly enrolled children opting for them.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
No direct environmental sustainability or climate impacts
CONTACT PERSON
Councilmember Brent Blackaby Council District 6 510-981-7160 Attachments:
1: Resolution
2: Article about the BBBP written for the FAB (a retired women's organization)
RESOLUTION NO. ##,###-N.S.
AUTHORIZING THE EXPENDITURE OF SURPLUS FUNDS FROM THE OFFICE
EXPENSE ACCOUNTS OF THE MAYOR AND COUNCILMEMBERS FOR A GRANT
TO PROVIDE FUNDING TO THE BERKELEY BABY BOOK PROJECT
WHEREAS, Councilmember Brent Blackaby, Mayor Ishii and Councilmembers Humbert and Taplin have surplus funds in their office expenditure account and will contribute $250.00 to the Berkeley Baby Book Project to provide free, quality books to children age 0-5 and they invite other Councilmembers to join them in contributing; and WHEREAS, a California non-profit tax-exempt corporation, The Berkeley Baby Book Project, will receive funds in an amount up to $250.00 per contributing Councilmember’s discretionary account; and
WHEREAS, the provision of such services would fulfill the municipal public purpose of supporting literacy by providing a generous number of books to children aged 0-5 to read and have as their own; and
WHEREAS, brain development rates in the early months of a baby’s life are never again matched.
WHEREAS, research shows that books in a young child’s home is a surprisingly strong indicator of later education level attainment, outweighing correlations to income and parent education.
WHEREAS, literacy is a cornerstone of social justice and equality. Without it, full access to and participation in the programs, movements and institutions that shape our culture and society is hindered; and
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that funds relinquished by the Mayor and Councilmembers from their Council Office Budget, up to $250.00 per office, shall be granted to The Berkeley Baby Book Project.
The Berkeley Baby Book Project has grown quite a bit since Helen Marcus wrote about us for FAB in 2020.
The Book Project provided books to over 2,000 children in 2024, all under age 5. Children enrolled in our programs receive new, age-based books by mail monthly – with their name on the label, a detail of great delight to toddlers. They may be enrolled as early as the day they are born.
We don’t mail all those books ourselves. The BBBP is a Partner of Dolly Parton’s Imagination Library , a very large nonprofit.
However, all Imagination Library (IL) Programs are operated by local IL Partner. In the East Bay, that’s us.
Like all IL Partners, we do all the groundwork. We pay IL for books mailed to children we enroll, along with all other costs of our nonprofit organization: overhead, management and insurance. Library programs. IL wraps, labels and mails books. Book lists are updated annually by IL.
In 2023, a Bilingual Spanish-English book list was introduced. Parents choose it or the English book list when enrolling a child, a great thing for many families.
Toddlers love getting their own mail, a special book of they own.
Our outreach targets low-income families directly and through programs serving them like Head Start Preschools and the Federal WIC nutrition program.
We know literacy is key to school success from Kindergarten on. Kinder-Readiness assessments are the first tests of 5-year old’s early literacy knowledge.
A child starting school with low literacy skills falls into the “Kinder-Readiness Gap” and tends to continue lagging behind more skilled students far beyond Kindergarten.
Our book gifting Programs cover Berkeley- Emeryville and Richmond-San Pablo. Enrollment criteria are a child’s home address and birthdate, nothing else. If they are under age 5 and live in one of our IL Program regions they can be enrolled.
Research spanning decades and many nations shows that children with books in their home from the start know more words and have more early literacy and numeracy skills than children from homes with few or no books. In fact, simply counting the number of books
in an infant’s home predicts Kinder-Readiness more accurately than any other metric, including parent income or education levels.
The lead researcher of a 20-year, 27 nation study sums up its findings succinctly:
“You get a lot of bang for your book.”
Brain development rates in the early months are never again matched. It’s simple to spark powerful connections between areas of the brain key to later literacy then with frequent, playful time spent with picture books,
describing images and print, babbling and
talking back and forth with little ones. Daily
time spent with books plants the seeds of later
fluent literacy.
We agree with Dolly, who says, “You can
never put enough books into enough
children’s hands.” Imagination Library delivers
books to over 2.5 million US children every
month. We want more of them coming to East
Bay.
Berkeley-Emeryville families can enroll children online. Richmond-San Pablo families must mail in a paper form we provide to program partners, community centers, and libraries. Our website shows where they are available.
Our annual surveys never fail to strengthen and feed our passion for our work, and warm our hearts. Here are a few of thousands of parent comments received since 2015:
“Thank you for making my family stronger with spending family time learning together and expanding our minds.” (original in Spanish, google translated) “Thank you for encouraging reading with little ones, my kids love the books & we learn a lot together since our books are bilingual! Bless this program and the people who make it possible!”
“My kids are very excited every time they receive
a new book in the mail. Just the fact they get their
own mail makes them feel special & motivated to
read it.”
“We love that our son gets to experience many of
the same books from our childhood AND grandma
gets to read them in Spanish (she doesn’t speak
English).”
Office of the City Manager
ACTION CALENDAR
June 3, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Eleanor Hollander, Manager, Office of Economic Development Subject: Re-Establishment - Berkeley Tourism Business Improvement District
RECOMMENDATION
Conduct a public meeting to review and discuss the intention to renew the Berkeley Tourism Business Improvement District (BTBID) for ten (10) years starting July 1, 2025 (hereafter, “BTBID”, “Tourism BID”, “BID” or “the District”). On May 6, 2025 Council adopted Resolution No. 71,749–N.S., which states the intention to renew the Tourism BID and directed the City Clerk to schedule a public meeting on June 3, 2025, and a public hearing on June 24, 2025 to consider the renewal of the District.
Per state law, a public meeting is required at which local officials allow public testimony regarding the proposed new assessment in addition to the noticed public hearing at which the legislative body proposes to enact the assessment.
FISCAL IMPACTS OF RECOMMENDATION
The proposed renewed BTBID would place a three percent (3%) assessment on short-term sleeping room rental revenue on all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. Lodging businesses may include, but are not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, or other similar structure or portion thereof.
The Resolution of Intention (NO. 71,749-N.S.) to renew the Berkeley Tourism Business Improvement District (BTBID), was adopted by the Berkeley City Council on May 6, 2025 (Attachment 1) with an accompanying staff report detailing the Tourism BID renewal process (Attachment 2). The total BTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,221,000 in FY2026. If renewed, the BTBID would be in effect for ten (10) years and a similar assessment budget is expected to apply to subsequent years, though the total assessment amounts would vary each year based on the revenue generated by the lodging businesses.
The BTBID Management District Plan (Attachment 2, Exhibit 5) designates that the
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funds generated by the BTBID are to be used for marketing & sales promotions, cultural tourism programs, and other specific lodging business-serving activities. One percent (1%) of the funds would be retained annually by the City for its administrative services in collecting the assessments and contracting for the BTBID services.
Because the BTBID programs are designed to bring more visitors to the City, the program may result in an increase in transient occupancy tax (TOT) collections. There may also be an increase in travel-related sales tax revenues as a result of higher hotel occupancies. If the proposed BTBID is renewed, the City will be responsible for collecting and forwarding assessment funds. Annual assessment funds will be deposited into Tourism BID Fund 781-21-208-251-0000-000-000-412110 and expended from fund 781-21-208-251-0000-000-446-636110.
CURRENT SITUATION AND ITS EFFECTS
The Property and Business Improvement District Law of 1994, requires specific actions to create or exp
and a tourism or property-based improvement district including requiring Council to conduct at least one public meeting at which local officials allow public testimony regarding the proposed new assessment in addition to the noticed public hearing at which the legislative body proposes to enact the assessment.
On May 6, 2025 Council adopted Resolution No. 71,749–N.S., which states the
intention to renew the Tourism BID and directed the City Clerk to schedule a public meeting on June 3, 2025, and a public hearing on June 24, 2025 to consider the renewal of the District. The City Clerk’s Office gave joint notice of both by mailing Resolution No. 71,749-N.S. to all affected lodging establishments in the proposed District.
Renewal of the Tourism Business Improvement District CONSENT CALENDAR June 3, 2025
In Berkeley, the convention and visitor’s bureau, known as Visit Berkeley, established a Tourism BID in 2012 known as the BTBID for a term of five years and subsequently renewed the BTBID in 2017 for a term of ten years. The proposed Tourism BID continues the same scope of services going forward, contemplates an increase in collections from 1% to 3% of room rates, and provides an updated Management District Plan which details the proposed BID services for the renewed BTBID and also includes the proposed boundary of the BTBID, a budget, and a proposed means of governance.
The BTBID will continue to include all lodging businesses existing and, in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. The renewed BTBID will have a ten (10) year life. The assessment will be implemented beginning July 1, 2025. Once per year beginning on the anniversary of district renewal there is a 30-day period in which business owners paying more than fifty percent (50%) of the assessment may protest and begin proceedings to terminate the district. The City will be responsible for collecting the assessment on a monthly basis from each assessed lodging business. The City shall forward the assessments to Visit Berkeley, which will have the responsibility of managing BTBID programs as provided in the Management District Plan. The City shall retain a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.
BACKGROUND
A Tourism BID is a special purpose Business Improvement District (BID) focused on the hotel sector. Tourism BIDs are formed by a local city government at the request of hotels and motels which stand to benefit from joint marketing and promotion activities directed by a separate non-profit corporation. Renewal of the BTBID will continue a stable funding source for tourism promotion and visitor resources in Berkeley.
RATIONALE FOR RECOMMENDATION
This public meeting is required by California Government Code’s Property and Business Improvement District Law of 1994.
ALTERNATIVE ACTIONS CONSIDERED
None.
CONTACT PERSON
Eleanor Hollander, Office of Economic Development, 510-981-7536 Attachments:
1.Resolution No. 71, 749-N.S. - Resolution of Intention to Renew the Berkeley Tourism Business Improvement District (2025), Adopted Berkeley City Council, May 6, 2025.
2. Berkeley City Council, Re-Establishment of the Berkeley Tourism Business Improvement District, Item 2, May 6, 2025
Attachment 1
RESOLUTION NO. 71,749-N.S.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY DECLARING ITS
INTENTION TO RENEW THE BERKELEY TOURISM BUSINESS IMPROVEMENT DISTRICT (BTBID) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC
HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, the City of Berkeley (City) created the BTBID on September 18, 2012 by Resolution No. 65,899-N.S.; and
WHEREAS, the BTBID was subsequently renewed on April 25, 2017 by Resolution No. 67-926-N.S.; and
WHEREAS, the BTBID was renewed for a ten (10) year term which ends on June 30, 2027, and the BTBID Owner’s Association, Visit Berkeley, has requested the City Council to modify the Management District Plan (Plan) of the BTBID so that the current BTBID term ends June 30, 2025; and
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and
WHEREAS, Visit Berkeley, lodging business owners, and representatives from the City have met to consider the renewal of the BTBID; and
WHEREAS, Visit Berkeley has drafted a Plan which sets forth the proposed boundary of the BTBID, a service plan and budget, and a proposed means of governance; and WHEREAS, lodging business which will pay more than fifty percent (50%) of the assessment under the BTBID have petitioned the City Council to renew the BTBID.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
1. The recitals set forth herein are true and correct.
2. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the BTBID. The City Council accepts the petitions and adopts this Resolution of Intention to renew the BTBID and to levy an assessment on certain lodging businesses within the BTBID boundaries in accordance with the Property and Business Improvement District Law of 1994.
3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code § 36622.
4. The City Council declares its intention to renew the BTBID and to levy and collect assessments on lodging businesses within the BTBID boundaries pursuant to the Property and Business Improvement District Law of 1994.
5. The BTBID shall include all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City, as shown in the map attached as Exhibit A.
6. The name of the district shall be Berkeley Tourism Business Improvement District.
7. The annual assessment rate is three percent (3%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a government who is exempt by express provision of federal international treaty.
8. The assessments levied for the BTBID shall be applied toward marketing & sales promotions and cultural tourism programs to market assessed lodging businesses in the City as tourist, meeting, and event destinations, as described in the Plan.
Funds remaining at the end of any year may be used in subsequent years in which BTBID assessments are levied as long as they are used consistent with the requirements of this resolution, the resolution of formation, and the Plan.
9. Subject to completion of the modification of the current BTBID term, the renewed BTBID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.
10. Bonds shall not be issued to fund the BTBID.
11. The time and place for the public meeting to hear testimony on renewing the BTBID and levying assessments are set for June 3, 2025, at 6:00 PM, or as soon thereafter as the matter may be heard, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702.
12. The time and place for the public hearing to renew the BTBID and the levy of assessments are set for June 24, 2025, at 6:00 PM, or as soon thereafter as the matter may be heard, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than May 9, 2025.
13. At the public meeting and hearing the testimony of all interested persons for or against the renewal of the BTBID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the proposed BTBID that will pay fifty percent (50%) or more of the estimated total assessment of the entire BTBID, no further proceedings to renew the BTBID shall occur for a period of one year.
14. The complete Plan is on file with the City Clerk and may be reviewed upon request.
15. This resolution shall take effect immediately upon its adoption by the City Council.
Exhibit A: District Boundaries
EXHIBIT A
District Boundaries
Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/
CONSENT CALENDAR
May 6, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Eleanor Hollander, Economic Development Manager Subject: Re-Establishment of the Berkeley Tourism Business Improvement District
RECOMMENDATION
1. Adopt a Resolution declaring the City Council’s intention to renew the Berkeley Tourism Business Improvement District (BTBID) for ten (10) years starting July 1, 2025, and directing the City Manager to schedule a public meeting on June 3, 2025 and a public hearing on June 24, 2025 to renew the BTBID.
2. Adopt a Resolution declaring the City Council’s intention to modify the existing BTBID to end on June 30, 2025, shortening the existing BTBID’s term from ten (10) years to eight (8) years and directing the City Manager to schedule a public hearing on June 24, 2025 on modification of the BTBID Management District Plan (Plan).
3. Adopt a Resolution authorizing the City Manager to execute a contract and any necessary amendments with Visit Berkeley, the BTBID’s Owners’ Association and the City of Berkeley’s Convention and Visitor’s Bureau, for an amount not to exceed total Tourism BID collections for the term of the renewed BTBID, beginning on July 1, 2025 and concluding on June 30, 2035.
SUMMARY
The Berkeley Tourism Business Improvement District or, BTBID, is a benefit assessment district created in 2012 and subsequently renewed in 2017, to fund marketing and sales promotion efforts for assessed lodging businesses in Berkeley with five rooms or more. Lodging business owners decided to pursue renewal of the BTBID in order to maintain a revenue source devoted to marketing the City of Berkeley (City) as a destination for tourism, meetings, and events. The City contracts with Visit Berkeley, the BTBID’s Owners’ Association, which also functions as the City’s Convention and Visitor’s Bureau to implement the activities funded by the BTBID. These activities are described fully in the BTBID Management District Plan and are incorporated as Attachment 5.
The BTBID is proposed to be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et. seq. If
Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025
renewed, the BTBID District would generate funding annually—approximately $2,221,000 in FY 2026—for the promotion of travel and tourism specific to Berkeley.
Staff recommends that the City Council adopt the attached Resolution of Intention to Renew the BTBID, directing the City Manager to schedule a public meeting on June 3, 2025, and a public hearing on June 24, 2025, on the renewal and the levy of assessments on lodging businesses with five rooms or more within the boundaries of the City of Berkeley.
In addition, staff and the BTBID’s Owners’ Association seek to modify the existing BTBID to shorten the term by two years to conclude on June 30, 2025. The purpose of the modification is to align the BTBID’s term with the renewal term, implementing the annual assessment rate of 3% of gross short-term sleeping room rental revenue. Staff recommends that the City Council adopt the attached Resolution of Intention to Modify the BTBID, directing the City Manager to schedule a public hearing on June 24, 2025 on the modification of the Plan.
Finally, staff recommends that council adopt a Resolution authorizing the City Manager to execute a contract and any necessary amendments with Visit Berkeley, the BTBID’s Owners’ Association and the City of Berkeley’s Convention and Visitor’s Bureau, for an amount not to exceed total Tourism BID collections for the term of the renewed BTBID, beginning on July 1, 2025, and concluding on June 30, 2035.
FISCAL IMPACTS OF RECOMMENDATION
The proposed renewed BTBID would place a three percent (3%) assessment on short- term sleeping room rental revenue on all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. Lodging businesses may include, but are not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, or other similar structure or portion thereof.
The total BTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,221,000 in FY2026. If renewed, the BTBID would be in effect for ten (10) years and a similar assessment budget is expected to apply to subsequent years, though the total assessment amounts would vary each year based on the revenue generated by the lodging businesses.
The Management District Plan (Attachment 5) designates that the funds generated by the BTBID are to be used for marketing & sales promotions, cultural tourism programs, and other specific lodging business-serving activities. One percent (1%) of the funds would be retained annually by the City for its administrative services in collecting the assessments and contracting for the BTBID services. Because the BTBID programs are designed to bring more visitors to the City, the program should continue to result in an increase in transient occupancy tax (TOT) collections. There may also be an increase in travel-related sales tax revenues as a result of higher hotel occupancies.
Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025
These Resolutions will have minor administrative impact. The City Manager will be directed to mail notice of hearings and a copy of the Resolution of Intention to all lodging businesses within the proposed BTBID. If the proposed BTBID is renewed, the City will be responsible for collecting and forwarding assessment funds and will be reimbursed for the cost of this service. Annual assessment funds will be deposited into Tourism BID Fund 781-21-208-251-0000-000-000-412110 and expended from fund 781-21-208-251-0000-000-446-636110.
CURRENT SITUATION AND ITS EFFECTS
The BTBID is a benefit assessment district created in 2012 (Resolution No. 65,899– N.S.) and subsequently renewed in 2017 (Resolution No 67-926-N.S.) to provide marketing & sales promotions for assessed lodging businesses. The proposed renewed BTBID includes all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. The proposed renewed BTBID would place a three percent (3%) assessment on short-term sleeping room rental revenue on all lodging businesses. Lodging business owners decided to pursue renewal of the BTBID and increase the assessment from 1% to 3% in order to maintain a revenue source devoted to marketing the City as a destination for tourism, meetings, and events and to add a cultural resources component to their programing as outlined on page 8 of the BTBID Management District Plan (Attachment 5).
The current BTBID was renewed in 2017 for a ten (10) year term, beginning July 1, 2017, through June 30, 2027. Visit Berkeley, the BTBID’s Owners’ Association, has requested that the current BTBID term be modified to shorten the ten (10) year term to eight (8) years. The process to modify the current BTBID is set to be completed concurrently with the completion of BTBID renewal. That is, the proposed modified BTBID’s term will expire on June 30, 2025, and the renewed BTBID will begin on July 1, 2025, with no break in service. The purpose of the modification is to align the BTBID’s term with the renewed term, while simultaneously implementing the annual assessment rate of three percent (3%) of gross short-term sleeping room rental revenue.
The Tourism BID assessment would continue to be collected from the assessed businesses by the City concurrently with Transient Occupancy Tax, or TOT, which remains at 1%. The City would continue to contract with Visit Berkeley to act as the Owners’ Association of the BTBID and provide services with the BTBID funds collected.
The BTBID Management District Plan designates that the funds would be used for marketing & sales promotions and cultural tourism programs. The BTBID Management District Plan also calls for City oversight of Visit Berkeley’s management of BTBID funds, including the yearly submission of an annual report and proposed budget for the following Fiscal Year, typically presented to City Council in late spring/early summer prior to the commencement of the fiscal year on July 1.
Renewal Process
The BTBID Owners’ Association, Visit Berkeley, began the process of renewing the BTBID in January 2025 by circulating a petition of all eligible lodging establishments. In March 2025, the Berkeley City Clerk certified that the City has received written petitions
Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025
signed by lodging business owners in the proposed district who will pay more than fifty percent (50%) of the assessments proposed to be levied (Attachment 4) with the assistance of the City’s Finance Department. This majority petition allows the City Council to initiate proceedings for district renewal. The Adoption of the attached Resolution is the first City Council action required to renew the BTBID.
Following the adoption of the Resolution of Intention to renew the district, the City Council must also schedule and hold a public meeting, where the City Council must allow public testimony regarding the proposed assessment. Finally, the City Council must schedule and hold a public hearing where any protests may be received. If at the time of the public hearing, written protests have not been received from businesses that will pay fifty percent or more of the proposed assessments, the City Council can adopt a resolution renewing the BTBID. Staff recommends that the City Council adopt the Resolution of Intention to renew the BTBID, directing the City Manager to schedule a public meeting for June 3, 2025, and the final public hearing for June 24, 2025.
District Modification Process
At the written request of the BTBID Owners’ Association, the City Council may modify the existing Management District Plan after conducting one public hearing on the proposed modification. Visit Berkeley, the BTBID’s Owners’ Association, has submitted a letter to City Council requesting modification of the current BTBID’s term to shorten the term from ten (10) years to eight (8) years (Attachment 2: Exhibit A). Submission of this written request allows the City Council to initiate proceedings to modify the current term of the BTBID.
The Property and Business Improvement District Law of 1994 requires the City to mail a copy of the Resolution of Intention to modify the BTBID to assessed lodging businesses within the BTBID. The resolution must be mailed at least ten (10) days before the public hearing on the modification. The Property and Business Improvement District Law of 1994 also requires the City to publish a copy of the Resolution of Intention to modify the BTBID in a newspaper of general circulation in the City. The resolution must be published once at least seven (7) days before the public hearing on the modification.
Staff recommends that the City Council adopt the attached Resolution of Intention to Modify the BTBID, directing the City Manager to schedule a public hearing on the proposed modification on June 24, 2025, concurrently with the public hearing to renew the district for ten years for a term of 2025-35. If the City Council, following the public hearing, decides to modify the current BTBID, the City Council can adopt a resolution of modifying the existing Management District Plan to conclude on June 24, 2025.
Contract for Distribution of Tourism BID Funds
Pending the modification of the existing term of the Tourism BID, and the successful renewal of the BTBID for 2025-35, staff recommends that council adopt a Resolution authorizing the City Manager to execute a contract and any necessary amendments with Visit Berkeley, the BTBID’s Owners’ Association and the City of Berkeley’s Convention and Visitor’s Bureau, for an amount not to exceed total Tourism BID
Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025
collections for the term of the renewed BTBID, beginning on July 1, 2025 and concluding on June 30, 2035, so the city may “pass through” the collected assessments to the owners association smoothly.
BACKGROUND
A Tourism BID is a special purpose Business Improvement District (BID) focused on the hotel sector. Tourism BIDs are formed by a local city government at the request of hotels and motels which stand to benefit from joint marketing and promotion activities directed by a separate non-profit corporation. In California, more than 112 communities have established Tourism BIDs, many of which are located in the Bay Area. Tourism BID funds are customized to fit the needs of each destination and allow for a wide range of services including marketing & sales promotions and cultural tourism programs.
In Berkeley, the convention and visitor’s bureau, known as Visit Berkeley, established a Tourism BID in 2012 known as the BTBID for a term of five years and subsequently renewed the BTBID in 2017 for a term of ten years. This renewal of the BID continues the same scope of services going forward, contemplates an increase in collections from 1% to 3% of room rates, and provides an updated Management District Plan (Attachment 4) which details the proposed BID services for the renewed BTBID and also includes the proposed boundary of the BTBID, a budget, and a proposed means of governance. The BTBID will continue to include all lodging businesses existing and, in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. The renewed BTBID will have a ten (10) year life. The assessment will be implemented beginning July 1, 2025. Once per year beginning on the anniversary of district renewal there is a 30-day period in which business owners paying more than fifty percent (50%) of the assessment may protest and begin proceedings to terminate the district.
The City will be responsible for collecting the assessment on a monthly basis from each assessed lodging business. The City shall forward the assessments to Visit Berkeley, which will have the responsibility of managing BTBID programs as provided in the Management District Plan. The City shall retain a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental effects, climate impacts, or sustainability opportunities associated with the subject of this report.
RATIONALE FOR RECOMMENDATION
Renewal of the BTBID will continue a stable funding source for tourism promotion and visitor resources in Berkeley. Modification of the current BTBID’s term will allow the current BTBID’s term to end before the renewed BTBID is implemented. This effort will continue to build on Berkeley’s success as a visitor destination and will help to maintain and grow General Fund revenues generated by TOT and visitor-generated sales taxes.
Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025
ALTERNATIVE ACTIONS CONSIDERED
None.
CONTACT PERSON
Eleanor Hollander, Office of Economic Development, (510) 981-7536 Attachments:
1: Resolution: Resolution of the City Council of the City of Berkeley Declaring its Intention to Renew the Berkeley Tourism Business Improvement District and Fixing the Time and Place of a Public Meeting and a Public Hearing Thereon and Giving Notice Thereof
EXHIBIT A: District Boundaries
2: Resolution: Resolution of the City Council of the City of Berkeley Declaring its Intention to Modify the Berkeley Tourism Business Improvement District and Public Hearing Notices
EXHIBIT A: Letter from Visit Berkeley Requesting Modification of the Management District Plan for the Berkeley Tourism Business Improvement District
3: Resolution: Contract with Visit Berkeley to Implement the Berkeley Tourism Business Improvement District
4: Tourism BID Petition Certification, March 2025
5: Berkeley Tourism Business Improvement District Management District Plan, 2025
RESOLUTION NO. ##,###-N.S.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY DECLARING
ITS INTENTION TO RENEW THE BERKELEY TOURISM BUSINESS IMPROVEMENT
DISTRICT (BTBID) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND
A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, the City of Berkeley (City) created the BTBID on September 18, 2012 by Resolution No. 65,899-N.S.; and
WHEREAS, the BTBID was subsequently renewed on April 25, 2017 by Resolution No. 67-926-N.S.; and
WHEREAS, the BTBID was renewed for a ten (10) year term which ends on June 30, 2027, and the BTBID Owner’s Association, Visit Berkeley, has requested the City Council to modify the Management District Plan (Plan) of the BTBID so that the current BTBID term ends June 30, 2025; and
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and
WHEREAS, Visit Berkeley, lodging business owners, and representatives from the City have met to consider the renewal of the BTBID; and
WHEREAS, Visit Berkeley has drafted a Plan which sets forth the proposed boundary of the BTBID, a service plan and budget, and a proposed means of governance; and WHEREAS, lodging business which will pay more than fifty percent (50%) of the assessment under the BTBID have petitioned the City Council to renew the BTBID.
NOW THEREFORE, BE IT RESOLVED BY THE BERKELEY CITY COUNCIL THAT:
1. The recitals set forth herein are true and correct.
2. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the BTBID. The City Council accepts the petitions and adopts this Resolution of Intention to renew the BTBID and to levy an assessment on certain lodging businesses within the BTBID boundaries in accordance with the Property and Business Improvement District Law of 1994.
3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code § 36622.
4. The City Council declares its intention to renew the BTBID and to levy and collect assessments on lodging businesses within the BTBID boundaries pursuant to the Property and Business Improvement District Law of 1994.
Attachment 1
5. The BTBID shall include all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City, as shown in the map attached as Exhibit A.
6. The name of the district shall be Berkeley Tourism Business Improvement District
7. The annual assessment rate is three percent (3%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a government who is exempt by express provision of federal international treaty.
8. The assessments levied for the BTBID shall be applied toward marketing & sales promotions and cultural tourism programs to market assessed lodging businesses in the City as tourist, meeting, and event destinations, as described in the Plan.
Funds remaining at the end of any year may be used in subsequent years in which BTBID assessments are levied as long as they are used consistent with the requirements of this resolution, the resolution of formation, and the Plan.
9. Subject to completion of the modification of the current BTBID term, the renewed BTBID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.
10. Bonds shall not be issued to fund the BTBID.
11. The time and place for the public meeting to hear testimony on renewing the BTBID and levying assessments are set for June 3, 2025, at 6:00 PM, or as soon thereafter as the matter may be heard, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702.
12. The time and place for the public hearing to renew the BTBID and the levy of assessments are set for June 24, 2025, at 6:00 PM, or as soon thereafter as the matter may be heard, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702. The City Manager is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than May 9, 2025.
13. At the public meeting and hearing the testimony of all interested persons for or against the renewal of the BTBID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the proposed BTBID that will pay fifty percent (50%) or more of the estimated total assessment of the entire BTBID, no further proceedings to renew the BTBID shall occur for a period of one year.
14. The complete Plan is on file with the City Clerk and may be reviewed upon request.
15. This resolution shall take effect immediately upon its adoption by the City Council.
Exhibit
A: District Boundaries
EXHIBIT A
District Boundaries
RESOLUTION NO. ##,###-N.S.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY DECLARING
ITS INTENTION TO MODIFY THE BERKELEY TOURISM BUSINESS IMPROVEMENT
DISTRICT
WHEREAS, on April 25, 2017 the City Council of the City of Berkeley (City Council) adopted Resolution No. 67-926-N.S. declaring the results of the majority protest proceedings and renewing the Berkeley Tourism Business Improvement District (BTBID); and
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., allows cities to modify the Management District Plan (Plan) of a District at the request of the Owners’ Association; and WHEREAS, the BTBID Owners’ Association, Visit Berkeley, has requested modification of the Plan.
NOW THEREFORE, BE IT RESOLVED BY THE BERKELEY CITY COUNCIL THAT:
1. The recitals set forth herein are true and correct.
2. The City Council declares its intention to modify the BTBID Plan.
3. The proposed modification of the BTBID Plan will reduce the term of the BTBID from ten (10) years to eight (8) years, with a modified ending date of June 30, 2025.
4. The time and place for a public hearing on modification of the BTBID Plan are set for 6:00 PM or as soon thereafter as the matter may be heard on June 24, 2025 at School District Board Room located at 1231 Addison Street, Berkeley, CA 94702.
5. This resolution shall take effect immediately upon its adoption by the City Council.
Exhibit
A: Letter from Visit Berkeley Requesting Modification of the Management District Plan of the Berkeley Tourism Business Improvement District
Attachment 2
EXHIBIT A: Letter from Visit Berkeley Requesting Modification of the Management District Plan for the Berkeley Tourism Business Improvement District
RESOLUTION NO. ##,###-N.S.
AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH VISIT BERKELEY THE OWNERS’ ASSOCATION OF THE BERKELEY TOURISM
BUSINESS IMPROVEMENT DISTRICT (BTBID), TO IMPLEMENT THE BERKELEY
TOURISM BUSINESS IMPROVEMENT DISTRICT FOR THE TERM OF THE
RESTABLISHED TOURISM BUSINESS IMPROVEMENT DISTRICT
WHEREAS, Visit Berkeley (VB) has proven to be an effective partner with the City of Berkeley in managing the existing Berkeley Tourism Business Improvement District (BTBID) and implementing hotel and tourism marketing and promotions; and WHEREAS, Visit Berkeley is the single private sector organization that is taking comprehensive action to improve the economic vitality of the hotel sector across Berkeley, as reflected in Visit Berkeley’s current stewardship of the established Berkeley Tourism Business Improvement District; and
WHEREAS, Visit Berkeley, the convention and visitor’s bureau for the City of Berkeley, has declared its intention to renew the Berkeley Tourism Business Improvement District (BTBID) for ten (10) years starting July 1, 2025; and
WHEREAS, Visit Berkeley functions as the Owners’ Association of the BTBID; and WHEREAS, Visit Berkeley, in its capacity as the Owners’ Association of the BTBID, has drafted a Management District Plan which sets forth the proposed boundary of the BTBID, a service plan and budget, and a proposed means of governance; and WHEREAS, The BTBID Owners’ Association, Visit Berkeley, is charged with managing funds and implementing programs in accordance with the Management District Plan, and must provide annual reports to the City; and
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is hereby authorized to execute a sole source contract and any amendments with Visit Berkeley for the purpose of implementation of the BTBID Management District Plan, for an amount not to exceed total Tourism BID collections for the term of the renewed BTBID, beginning on July 1, 2025 and concluding on June 30, 2035. A record signature copy of said contract and any amendments are to be on file in the Office of the City Clerk.
Attachment 3
NOTICE OF PUBLIC MEETING AND PUBLIC HEARING
BERKELEY CITY COUNCIL
CONCERNING THE RENEWAL OF THE BERKELEY TOURISM
BUSINESS IMPROVEMENT DISTRICT AND LEVY OF AN
ASSESSMENT ON CERTAIN LODGING BUSINESSES WITHIN THE
DISTRICT
NOTICE IS HEREBY GIVEN that on May 6, 2025, the City Council (the “Council”) of the City of Berkeley (the “City”) adopted a Resolution of Intention to renew the Berkeley Tourism Business Improvement District (the “BTBID”) and to levy an assessment on certain lodging businesses within the BTBID as set forth in the attached Resolution of Intention.
NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM on June 3, 2025, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702, a public meeting shall be held pursuant to Government Code section 54954.6 to allow public testimony regarding the renewal of the BTBID and the levy of assessments therein as set forth in the enclosed Resolution of Intention and pursuant to Government Code section 54954.6.
NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM on June 24, 2025, at School District Board Room located at 1231 Addison Street, Berkeley, CA 94702 has been set as the time and place for a public hearing at which time the City Council proposes to renew the BTBID and to levy the proposed assessment as set forth in the Resolution of Intention.
Location: The renewed BTBID includes all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City.
Services: The BTBID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing & sales promotions and cultural tourism programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.
Budget: The total BTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,221,000. A similar assessment budget is expected to apply to subsequent years, but this assessment budget is expected to fluctuate as room sales do and as businesses open and close.
Cost: The existing annual assessment rate is one percent (1%) of gross short- term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any officer or employee of a government who is exempt by express provision of federal international treaty; and stays at a bed and breakfast establishment as defined in Section 23F.04.010 of the Berkeley Municipal Code. The proposed annual assessment rate is three percent (3%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a government who is exempt by express provision of federal international treaty.
Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each assessed lodging business located in the boundaries of the BTBID.
The City shall take all reasonable efforts to collect the assessments from each assessed lodging business.
Duration: The renewed BTBID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date.
After ten (10) years, the BTBID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. if business owners support continuing the BTBID programs.
Management: Visit Berkeley shall continue to serve as the BTBID’s Owners’ Association.
The Owners’ Association is charged with managing funds and implementing programs and must provide annual reports to the City Council.
Protest: Any owner of a lodging business within the proposed BTBID that will be subject to the assessment may protest the renewal of the BTBID. If written protests are received from the owners of lodging businesses in the proposed BTBID who represent 50 percent (50%) or more of the estimated annual assessments to be levied, the BTBID shall not be renewed, and the assessment shall not be imposed.
You may mail a written protest to:
Office of the City Clerk
City of Berkeley
2180 Milvia Street, 1st Floor
Berkeley, CA 94704
You may also appear at the public meeting or hearing and submit a written protest at that time.
Information: Should you desire additional information about this proposed BTBID or assessment contact:
Jeffrey Church, President & CEO
Visit Berkeley
2030 Addison Street, #102
Berkeley, CA 94704
(510) 549-7040
A copy of the agenda material for this hearing will be available on the City’s website at https://berkeleyca.gov/ as of June 12, 2025.
Written comments should be mailed or delivered directly to the City Clerk, 2180 Milvia Street, Berkeley, CA 94704, or e-mailed to [email protected] in order to ensure delivery to all Councilmembers and inclusion in the agenda packet.
Communications to the Berkeley City Council are public record and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to the City Council, will become part of the public record. If you do not want your e-mail address or any other contact information to be made public, you may deliver communications via U.S. Postal Service or in person to the City Clerk. If you do not want your contact information included in the public record, please do not include that information in your communication. Please contact the City Clerk at 981-6900 or [email protected] for further information.
Mailed: *________*
Notice provided pursuant to Government Code section 54954.6. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the Notice for this Public Hearing of the Berkeley City Council was posted at the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way, as well as on the City’s website, on June 12, 2025.
__________________________________
Mark Numainville, City Clerk
NOTICE OF PUBLIC HEARING
BERKELEY CITY COUNCIL
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY
DECLARING ITS INTENTION TO MODIFY THE BERKELEY TOURISM
BUSINESS IMPROVEMENT DISTRICT
NOTICE IS HEREBY GIVEN that at 6:00 PM on June 24, 2025, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702 has been set as the time and place for a public hearing at which time the Council proposes to modify the existing BTBID, to conclude service on June 30, 2025, as set forth in the Resolution of Intention.
Location: There is no proposed change to BTBID boundaries which include all lodging businesses with five (5) rooms or more, located within the boundaries of the City of Berkeley.
Services: The BTBID is designed to provide specific benefits directly to payors by increasing room night sales. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales.
Budget: The total BTBID annual budget for each full year of operation is anticipated to be approximately $557,760. This budget is expected to fluctuate as room sales do, but is not expected to significantly change over the BTBID’s term.
Cost: There is no change proposed to the annual assessment rate. The current assessment rate is one percent (1%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any officer or employee of a government who is exempt by express provision of federal international treaty; and stays at a bed and breakfast establishment as defined in Section 23F.04.010 of the Berkeley Municipal Code.
Collection: The City of Berkeley will continue to be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business with five (5) rooms or more, located in the boundaries of the BTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business.
Duration: The modified BTBID will have an eight (8) year life, with a modified ending date of June 30, 2025. The City of Berkeley created the BTBID on April 25, 2017 by Resolution No. 67-926-N.S.; for a ten (10) year term which
currently ends on June 30, 2027. The BTBID Owner’s Association has requested the City Council to modify the Management District Plan of the BTBID so that the current BTBID term ends June 30, 2025. The process to modify the current BTBID is set to be completed concurrently with completion of BTBID renewal. That is, the proposed modified BTBID’s term will expire on June 30, 2025, and the renewed district will begin on July 1, 2025 with no break in service. The purpose of the modification is to align the BTBID’s term with the rewed BTBID, implementing the annual assessment rate of 3% of gross short-term sleeping room rental revenue.
Management: Visit Berkeley will continue to serve as the BTBID’s Owners’ Association.
The Owners’ Association is charged with managing funds and implementing programs in accordance with the Plan, and must provide annual reports to the City of Berkeley.
Protest: Any owner of a lodging business within the proposed BTBID that will be subject to the assessment may protest the modification of the BTBID. If written protests are received from the owners of lodging businesses in the existing BTBID who represent fifty percent (50%) or more of the estimated annual assessments to be levied, the BTBID shall not be modified.
You may mail a written protest to:
Office of the City Clerk
City of Berkeley
2180 Milvia Street, 1st Floor
Berkeley, CA 94704
You may also appear at the public meeting or hearing and submit a written protest at that time.
Information: Should you desire additional information about the modified BTBID or assessment contact:
Jeffrey Church, President & CEO
Visit Berkeley
2030 Addison Street, #102
Berkeley, CA 94704
(510) 549-7040
A copy of the agenda material for this hearing will be available on the City’s website at https://berkeleyca.gov/ as of June 12, 2025.
Written comments should be mailed or delivered directly to the City Clerk, 2180 Milvia Street, Berkeley, CA 94704, or e-mailed to [email protected] in order to ensure delivery to all Councilmembers and inclusion in the agenda packet.
Communications to the Berkeley City Council are public record and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to the City Council, will become part of the public record. If you do not want your e-mail address or any other contact information to be made public, you may deliver communications via U.S. Postal Service or in person to the City Clerk. If you do not want your contact information included in the public record, please do not include that information in your communication. Please contact the City Clerk at 981-6900 or [email protected] for further information.
Mailed: *______*
Notice provided pursuant to Government Code section 54954.6.
Pursuant to Streets and Highways Code section 36636, notice for the public hearing that will result from the adoption of this Resolution shall be accomplished by mailing a copy of the Resolution to assessed business owners and publishing a copy of the Resolution in a newspaper of general circulation in the City.
“Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The Resolution of Intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2) A complete copy of the Resolution of Intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.”
Mailed: *______*
Published: *______*
Notice provided pursuant to Streets and Highways Code section 36636. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the Notice for this Public Meeting and Public Hearing of the Berkeley City Council was posted at the display case located near the walkway in front of the Maudelle Shirek Build,ing 2134 Martin Luther King Jr. Way, as well as on the City’s website, on June 12, 2025.
__________________________________
Mark Numainville, City Clerk
2025-2035
BERKELEY TOURISM BUSINESS
IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
March 5, 2025
CONTENTS
I. Overview .................................................................................................................................................... 3 II. Background ................................................................................................................................................ 4 III. Accomplishments ................................................................................................................................. 5 IV. Boundary ............................................................................................................................................... 6 V. Assessment Budget And Services ........................................................................................................... 7 A. Annual Service Plan ............................................................................................................................. 7 B. Annual Budget ...................................................................................................................................... 9 C. California Constitutional Compliance ............................................................................................... 9 D. Assessment .......................................................................................................................................... 10 E. Interest And Overdue Charges ........................................................................................................ 11 F. Time And Manner For Collecting Assessments ............................................................................ 12 VI. Governance ......................................................................................................................................... 13 A. Owners’ Association .......................................................................................................................... 13 B. Brown Act And California Public Records Act Compliance ....................................................... 13 C. Annual Report .................................................................................................................................... 13 Appendix 1 – Law ............................................................................................................................................ 14 Appendix 2 – Assessed Businesses ............................................................................................................... 26
Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
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March 5, 2025
I. OVERVIEW
Developed by Berkeley lodging businesses and Visit Berkeley (VB), the convention and visitors bureau for Berkeley, California the Berkeley Tourism Business Improvement District ( BTBID) is an assessment district proposed to continue to provide specific benefits to payors by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The BTBID was initially created in 2012 for a five (5) year term , and was subsequently renewed in 2017 for a ten (10) year term. VB and Berkeley lodging businesses now wish to renew the BTBID for an additional ten (10) year term.
Location: The renewed BTBID includes all lodging businesses, existing and in the future, with five (5) rooms or more , available for public occupancy within the b oundaries of the City of Berkeley (City), as shown on the map in Section IV.
Services: The BTBID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing & sales promotions and cultural tourism programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.
Budget: The total BTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,221,000. A similar assessment budget is expected to apply to subsequent years, but this assessment budget is expected to fluctuate as room sales do and as businesses with five or more lodging rooms open and close.
Cost: The annual assessment rate is three percent (3%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on:
stays of more than thirty (30) c onsecutive days; and stays by any officer or employee of a government who is exempt by express provision of federal international treaty .
Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each assessed lodging business located in the boundaries of the BTBID. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business.
Duration: The renewed BTBID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date. After ten (10) years, the BTBID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if business owners support continuing the BTBID programs.
Management: VB shall continue to serve as the BTBID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Management District Plan (Plan), and must provide annual reports to the City Council.
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March 5, 2025
II. BACKGROUND
TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model –Illinois, Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TBIDs without a state law.
California’s TBIDs collectively
raise over $300 million annually for
local destination marketing in
2024. With competitors raising
their budgets, and increasing
rivalry for visitor dollars, it is
important that Berkeley lodging
businesses continue to invest in
stable, commerce -specific
marketing programs.
TBIDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism districts. TBIDs allow
tourism business owners to
organize their efforts to increase commerce. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase commerce.
In California, most TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between Tourism BIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.
There are many benefits to TBIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion.
0 20
40 60
80 100
120
Number of Districts Operating in
California
BTBID Management District Plan 5
March 5, 2025
III. ACCOMPLISHMENTS OF BERKELEY’S TOURSIM BID TO DATE
• Creation of Berkeley Restaurant Week, celebrating the culinary excellence the city has to offer.
• Implementation of Berkeley Bucks, the City of Berkeley’s first e-gift card redeemable only in Berkeley to support local businesses, with a focus on shopping, dining, and accommodations.
• Utilized the Visit Berkeley website and team as a resource during the pandemic to support local businesses with a “What’s Open?” page, hosting restaurant roundtables to phase in outdoor dining, and supported the City of Berkeley’s “Berkeley Relief Fund” campaign to raise funds for those most impacted by the pandemic.
• Sponsorship and support of large-scale events such as the Bay Area Book Festival and Bioneers to increase overnight visitation.
• Sponsored California Hotel & Lodging Association (CHLA) Membership for All Lodging Properties
• Through CHLA, were able to deliver then-hard-to-source PPE (masks and hand sanitizer) to all hotel properties
• Provided Advanced Hotel Performance Metrics through Smith Travel Report (STR) / Kalibri Reports to Lodging Partners
• Invested in metrics-supported online travel agency (OTA) marketing campaigns to boost Berkeley hotel occupancy
• Developed a partnership with Placer AI, utilizing their platform on annual subscription basis to quantify the local economic impact of tourism through location-based data • Hosted meeting planner familiarization tours for Berkeley hotel and event venues • 1,500+ RFP’s received and processed through CVENT & Direct Lead retrieval from various tradeshows
• Created the Visit Berkeley Partner Showcase, connecting UC Berkeley event planners with Berkeley Businesses and vendors (i.e. local caterers)
• Invested in a modern interactive website, VisitBerkeley.com, in 2019 • 503,609 visitors to VisitBerkeley.com in ’24 (14% increase over 2023) • 1,105,293 VisitBerkeley.com page views in ’24 (10% increase over 2023) • Invested in an independent, non-OTA, commission-free booking engine (Ripe Booking) for onsite hotel bookings in 2024
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March 5, 2025
IV. TOURISM BID BOUNDARY
The BTBID will continue to include all lodging businesses, existing and in the future , with five (5) rooms or more, available for public occupancy within the boundaries of the City of Berkeley (City), as shown in the map below.
Lodging business may include, but is not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, or other similar structure or portion thereof.
A complete listing of assessed lodging businesses within the renewed BTBID can be found in Appendix 2.
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March 5, 2025
V. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable c ost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the BTBID funds are sales & marketing and cultural tourism programs available only to assessed businesses.
A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by the VB Board.
The chart below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is estimated to be $2,221,000 in year one.
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the VB Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the BTBID, any and all assessment funds may be used for the costs of defending the BTBID.
Each budget category includes all costs related to providing that service. For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicat ed purely to administrative tasks is allocated to the administrative portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide the services below will be determined by VB on an as- needed basis.
Sales and Marketing
Sales and
Marketing,
$1,887,850 , 85%
Cultural Tourism,
$222,100 , 10%
Contingency / Reserve,
$88,840 , 4%
Collection Fee,
$22,210 , 1%
Initial Annual Assessment Budget -
$2,221,000
BTBID Management District Plan 8
March 5, 2025
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Berkeley as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include , but is not limited to, the following activities:
• Internet marketing efforts to inc rease awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Attendance of trade shows to promote assessed businesses; • Sales blitzes for assessed businesses;
• Familiarization tours of assessed businesses;
• Preparation and production of collateral promotional materials such as brochures , flyers and maps featuring assessed businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed businesses;
• Lead generation activities designed to attract tourists and group events to assessed businesses; • Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses; and
• Development and maintenance of a website designed to promote assessed businesses.
Cultural Tourism
Cultural tourism programs are intended to drive travel to Berkeley by attracting visitors to experience cultural, historical, and artistic attractions to generate visitation to assessed businesses. By promoting Berkeley’s rich heritage and unique cultural offerings, the Cultural Tourism program encourages higher visitation and longer stays to assessed businesses. The Cultural Tourism program may include, but is not limited to, the following activities:
• Creation of new arts, cultural and educational programs and activities to generate overnight visitation to assessed businesses;
• Organizing events including as festivals, performances, and exhibitions that celebrate Berkeley’s unique heritage and arts, resulting in overnight visitation to assessed businesses; • Promoting food-related experiences that highlight Berkeley’s local cuisine, driving demand for overnight visitation to assessed businesses;
• Sustainability programs that offset impacts of tourist visitation within the destination; • Enhancements to environmental experiences, which attr act overnight visitors, and expose visitors to the value of the vital ecosystems;
• Services designed to improve the visitors experience such as, but not limited to, beautification of public spaces to drive overnight visitation to assessed businesses; and • Infrastructure improvements that enhance the destination’s competitive position to attract desirable special events year-round and attract overnight visitors.
Collection Fee
The City shall be paid a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.
Contingency/Reserve
BTBID Management District Plan 9
March 5, 2025
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, advocacy or renewal costs at the discretion of VB. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the VB Board of Directors. Contingency/Reserve funds may be spent on BTBID programs or administrative and renewal costs in such proportions as determined by VB. The reserve fund may be used for the costs of renewing the BTBID.
B. Annual Budget
The total ten (10) year assessment budget is projected at approximately $2,221,000 annually, or $22,210,000 through the ten (10) year term of the BTBID. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and as businesses open and close.
C. California Constitutional Compliance
The BTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property. 1 Rather, the BTBID assessment is a business -based assessment, and is subject to Proposition 26.
Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the BTBID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.
1. Specific Benefit
Proposition 26 requires that assessment funds be expe nded on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits dir ectly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the BTBID. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the BTBID, and are narrowly tailored. BTBID funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees. Assessment funds shall not be used to feature non -assessed lodging businesses in BTBID programs, or to directly generate sales for non -assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into private contracts with non-assessed lodging businesses for the provision of services to those businesses.
The assessment imposed by this BTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with marketing & sales and cultural tourism programs promoting lodging businesses paying the BTBID assessment. The marketing & sales and cultural tourism programs will be designed to increase room night sales at each assessed lodging businesses. Because they are
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
BTBID Management District Plan 10
March 5, 2025
necessary to provide the marketing & sales and cultural tourism programs that specifically benefit the assessed lodging bus inesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed lodging businesses.
Although the BTBID, in providing specific benefits to payors, may produce incidental benefi ts to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” 4 The legislature has recognized that marketing and promotions services like those to be provided by the BTBID are government services within the meaning of Proposition 26 5. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6
3. Reasonable Cost
BTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VB, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from BTBID- funded activities, be featured in adverti sing campaigns, and benefit from other BTBID-funded services. The assessed lodging business list was compiled from records provided by the jurisdiction and complies with the requirements of the 94 Law. Pursuant to Streets and Highways Code Section 36615, the City Council’s determination of ownership is final and conclusive, with no obligation to obtain other information. Non-assessed lodging businesses will not receive these, nor any other, BTBID-funded services and benefits.
The BTBID-funded programs a re targeted directly to benefit assessed businesses . It is, however, possible that there will be a spill over benefit to non -assessed businesses. If non -assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-BTBID funds. BTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.
D. Assessment
The annual assessment rate is three percent (3%) of gross short term sleeping room rental revenue on lodging businesses with five (5) rooms or more . Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a government who is exempt by express provision of federal international treaty.
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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March 5, 2025
The assessment was calculated based on the total cost of the activities to be provide d for the benefit of the businesses within the BTBID, with costs allocated based on the proportional benefit conferred to each business. Activities funded by the BTBID, are specifically targeted to increase room nights at assessed businesses. All room night sales do not represent the same benefit to the payors. For example, a higher priced room night is of greater benefit than a lower priced room night because the assess ee derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to assessed businesses with higher priced room nights.
The term “gross room rental revenue” as used herein means: the consideration charged for the occupancy of space in a lodging business valued in money. Gross sleeping room rental revenue shall not include, and therefore the assessment shall not be charged upon, any federal, state or local tax es collected, including but not limited to transient occupancy taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the BTBID assessment is identified separately it shall be disclosed as the “BTBID Assessment.” As an alternative, the disclosure may include the amount of the BTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment sha ll not be considered revenue for calculation of transient occupancy taxes.
Bonds shall not be issued.
E. Interest and Overdue Charges
The BTBID shall reimburse the City of Berkeley for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent BTBID assessment are sought to be recovered in the same collection action by the City, the BTBID shall bear its pro rata share of such collection costs.
Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency: Any lodging business which fails to remit any assessment imposed within the time required shall pay a n overdue charge of ten percent (10%) of the amount of the assessment.
2. Continued Delinquency: Any lodging business which fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency overdue charge of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) overdue charge first imposed.
3. Fraud: If the tax administrator determines that the nonpayment of any re mittance due is due to fraud, a n overdue charge of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the overdue charges stated in subsections 1 and 2 of this section.
4. Interest: In addition to the overdue charges imposed, any lodging business which fails to remit any assessment imposed shall pay interest at the rate of one percent (1%) per month or fraction
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thereof on the amount of the assessment, exclusive of overdue charges, from the date on which the remittance first became delinquent until paid.
5. Overdue Charges Merged With Assessment: Every overdue charge imposed and such interest as accrues shall become a part of the assessment herein required to be paid.
F. Time and Manner for Collecting Assessments
The BTBID assessment will be implemented beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest and overdue charges) from each assessesd lodging business. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business. The City shall forward the assessments col lected to the Owners’ Association.
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VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the BTBID as defined in Streets and Highways Code §36612. The Berkeley City Council has determined that VB will continue to serve as the Owners’ Association for the BTBID for the term of the renewal (10 years).
B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the VB Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vo te or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.
C. Annual Report
VB shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in su fficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
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APPENDIX 1 – LAW
CURRENT THROUGH ALL LEGISLATION OF THE 2024 REGULAR AND SPECIAL SESSIONS
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994
CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”
36601. Legislative findings and declarations; Legislative guidance
The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to t his act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those
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special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.
This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing fo r a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the o ther provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions.
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36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.
36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622.
36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district.
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36614.5. “Property and business improvement district”; “District”
“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property.
36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment.
36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or ot herwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.
36615.5. “Special benefit”
(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
(b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions
This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district
A property and business improvement district may be established as provided in this chapter.
36620.5. Requirement of consent of city council
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A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district
(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed t o be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities
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and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the am ount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.
Notwithstanding these limitations, a district created pursuant to this part to finance capital improvement s with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a prop erty- based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan.
(m) Any other item or matter required to be incorporated therein by the city council.
36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be
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mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized represent ative. A written protest that does not comply with this section shall not be counted in determining a majority protest.
If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majorit y protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the prop osed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference t o any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishme nt of the district.
Notwithstanding the foregoing, improvements and activities that must be provided outside the
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district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses
The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city coun cil may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.
36629. Provisions and procedures applicable to benefit zones and business categories
All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.
36630. Expiration of district; Creation of new district
If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments
The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at t he same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
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36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or p roceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.
36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.
36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention
(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
36638. Assessment as government imposed fee on Civ C § 1770 transaction [Operat ive July 1, 2024]
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(a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024.
CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments
(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Divisi on 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council
(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of
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assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities
The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to pr ovide services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized t o issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the distri ct, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district
BTBID Management District Plan 25
March 5, 2025
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
BTBID Management District Plan 26
March 5, 2025
APPENDIX 2 – ASSESSED BUSINESSES
Assessed Berkeley Tourism BID Contributors, lodgings with 5 or more rooms, as of: March 2025
Business Name Site Address City, State ZIP
Aiden by Best Western 1499 University Ave. Berkeley, CA 94702 Bancroft Hotel 2680 Bancroft Way Berkeley, CA 94704
Berkeley City Club 2315 Durant Ave. Berkeley, CA 94704
Berkeley Travelodge (Sather
Hotel by Wyndham Berkeley)
1820 University Ave. Berkeley, CA 94703
Doubletree Berkeley Marina 200 Marina Blvd. Berkeley, CA 94710 Downtown Berkeley Inn 2001 Bancroft Way Berkeley, CA 94704 Graduate Berkeley 2600 Durant Ave. Berkeley, CA 94704
Holiday Inn Express 1175 University Ave. Berkeley, CA 94702 Hotel Shattuck Plaza 2086 Allston Way Berkeley, CA 94704 Howard Johnson Hotel 1512 University Ave. Berkeley, CA 94702 Marina Inn 975 University Ave. Berkeley, CA 94710
Nash Hotel 2045 University Ave. Berkeley, CA 94704
Prima Donna Hotels Inc., dba
Sens Hotel & Bistro Berkeley
1540 Shattuck Ave. Berkeley, CA 94709
Residence Inn 2121 Center St. Berkeley, CA 94704
Rose Garden Inn 2740 Telegraph Ave. Berkeley, CA 94705
University Inn 920 University Ave. Berkeley, CA 94710
Urban Adamah 1151 Sixth St. Berkeley, CA 94710
Vista Inn & Suites, dba Quality
Inn
1761 University Ave. Berkeley, CA 94703
YMCA of the East Bay 2001 Allston Way Berkeley, CA 94704
OFFICE OF THE CITY MANAGER
PUBLIC HEARING
June 3, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Monica Walker, Interim Director of Human Resources Subject: Conduct a Public Hearing in Compliance with Assembly Bill 2561 / Government Code § 3502.3 Regarding Vacancies, Recruitment, and Retention Efforts
RECOMENDATION
Conduct a public hearing in compliance with Assembly Bill 2561 (AB 2561) / Government Code § 3502.3 (GC § 3502.3) regarding vacancies, recruitment, and retention efforts.
FISCAL IMPACTS OF RECOMMENDATION
There is no direct fiscal impact associated with conducting the public hearing required under GC § 3502.3.
CURRENT SITUATION AND ITS EFFECTS
Effective January 1, 2025, in compliance with new legal obligations for public agencies under AB 2561 / Government Code (GC)_ § 3502.3, the City of Berkeley (“City”) is required to do the following:
1. Public Hearing: At least once each fiscal year, at a public hearing before the City Council, the City shall present information regarding the status of vacancies, recruitment, and retention efforts (GC § 3502.3 (a)(1)) and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process (GC § 3502.3(a)(3)). If the City adopts an annual or multi-year budget during the fiscal year, this presentation must occur prior to the City Council’s adoption of the final budget. (GC § 3502.3 (a)(2).)
2. Employee Organization Participation: The City shall allow the recognized employee organization for each bargaining unit at the City to make presentations during the public hearing concerning vacancies, recruitment, and retention efforts. There are eight bargaining units at the City. (GC § 3502.3 (b).)
3. Additional Reporting for High Vacancy Rates: If vacancies within a single bargaining unit meet or exceed 20% of authorized full-time positions in that bargaining unit, upon request of the recognized employee organization for that bargaining unit, the City must provide additional information during the public hearing, including the following: (1) the total number of vacancies; (2) the number of applicants; (3) the average time to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit. (GC § 3502.3 (c).)
BACKGROUND
On September 22, 2024, Governor Newsom signed AB 2561 into law, and it was codified as GC § 3502.3, effective January 1, 2025, to amend the Meyers-Milias-Brown Act (MMBA). AB 2561 creates a new obligation for public agencies to publicly address the status of their vacancies. Under AB 2561 and GC § 3502.3, public agencies are required to assess and address vacancy rates on an annual basis,
27
Conduct a Public Hearing in Compliance with Assembly Bill 2561 / PUBLIC HEARING Government Code Section 3502.3 Regarding Vacancies, June 3, 2025 Recruitment, and Retention Efforts
including tracking job vacancies; present information on the status of vacancies, recruitment, and retention efforts at least once per fiscal year prior to the adoption of the next fiscal year’s budget; and identify any policies, procedures, and recruitment activities that may present obstacles in the hiring process. Additional obligations may apply if the vacancy rate in a bargaining unit exceeds 20%.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental impacts or opportunities associated with the subject of the report.
RATIONALE FOR RECOMMENDATION
The City fulfills its legal compliance with AB 2561 / GC § 3502.3 by conducting a public hearing before the agency’s governing body at least once per fiscal year prior to the adoption of the next fiscal year’s budget and identifying any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.
ALTERNATIVE ACTIONS CONSIDERED
None.
CONTACT PERSON
Monica Walker, Interim Director of Human Resources, (510) 981-6818.
ATTACHMENT
1. Assembly Bill 2561 (AB 2561) - Text
Assembly Bill No. 2561
CHAPTER 409
An act to add Section 3502.3 to the Government Code, relating to public employment.
[Approved by Governor September 22, 2024. Filed with
Secretary of State September 22, 2024.]
legislative counsel’s digest
AB 2561, McKinnor. Local public employees: vacant positions.
Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.
This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.
92
The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares as follows:
(a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements.
(b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges. (c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations.
SEC. 2. Section 3502.3 is added to the Government Code, to read:
3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year.
(2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget.
(3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.
(b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.
(c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing:
(1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit.
(3) The average number of days to complete the hiring process from when a position is posted.
(4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies.
(e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(f) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501.
SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the 92 — 2 — Ch. 409
meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public.
SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
O
92 Ch. 409 — 3 —
NOTICE OF PUBLIC HEARING
BERKELEY CITY COUNCIL
CALIFORNIA GOVERNMENT CODE § 3502.3 (ASSEMBLY BILL 2561) The public may participate in this hearing by remote video or in-person.
In accordance with California Government Code § 3502.3 (Assembly Bill 2561), a public agency must once per fiscal year present the status of vacancies, recruitment and retentions efforts at a Public Hearing before the adoption of an annual budget.
The hearing will be held on June 3, 2025, at 6:00 p.m. in the School District Board Room, located at 1231 Addison Street, Berkeley CA 94702.
A copy of the agenda material for this hearing will be available on the City’s website at https://berkeleyca.gov/ as of May 22, 2025. Once posted, the agenda for this meeting will include a link for public participation using Zoom video technology, as well as any health and safety requirements for in-person attendance.
For further information, please contact Monica Walker at 510-981-6818.
Written comments should be mailed or delivered directly to the City Clerk, 2180 Milvia Street, Berkeley, CA 94704, or e-mailed to
[email protected] in order to ensure
delivery to all Councilmembers and inclusion in the agenda packet.
Communications to the Berkeley City Council are public record and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to the City Council, will become part of the public record. If you do not want your e-mail address or any other contact information to be made public, you may deliver communications via U.S. Postal Service or in person to the City Clerk. If you do not want your contact information included in the public record, please do not include that information in your communication. Please contact the City Clerk at (510) 981-6900 or [email protected] for further information.
Published: May 23, 2025 – The Berkeley Voice
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the Notice for this Public Hearing of the Berkeley City Council was posted at the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way, as well as on the City’s website, on May 22, 2025.
__________________________________
Mark Numainville, City Clerk
Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/
PUBLIC HEARING
June 3, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Jordan Klein, Director, Planning & Development Department Subject: Zoning Adjustments Board Appeal: 1950-1998 Shattuck Avenue, Use Permit #ZP2023-0040
RECOMMENDATION
Conduct a public hearing, and upon conclusion adopt a Resolution denying the appeal and affirming the Zoning Adjustments Board (ZAB) decision approving Use Permit ZP#2023-0040.
SUMMARY
On February 27, 2025, the ZAB approved Use Permit ZP#2023-0040 to demolish five commercial buildings; merge four lots; and construct a 28-story (312-foot tall, plus 5-foot parapet), 411,610-square-foot, mixed-use building with 599 dwelling units (including 58 Very Low-Income Density Bonus qualifying units), 16,142 square feet of commercial area, and 154 parking spaces.
On March 19, 2025, Zaden Lippman filed an appeal citing a height reduction, amendments to the Downtown Area Plan, and the need for more public meetings.
FISCAL IMPACTS OF RECOMMENDATION
None.
CURRENT SITUATION AND ITS EFFECTS
On March 23, 2023, the City received an SB 330 Preliminary Use Permit application (PLN2023-0083).
On December 4, 2023, the SB 330 Preliminary Use Permit application was deemed complete.
On April 11, 2024, the Use Permit application (ZP2023-0040) was deemed complete.
On November 19, 2024, staff determined that the project is Categorically Exempt from CEQA – Class 32 Categorical Exemption “In-Fill Development Projects.”
28
ZAB Appeal: 1950-1998 Shattuck, ZP2023-0040 PUBLIC HEARING June 3, 2025
On January 6, 2025, the Landmarks Preservation Commission (LPC) reviewed the demolition referral.
On January 16, 2025, the Design Review Committee (DRC) conducted a preliminary review and provided a favorable recommendation with suggested refinements.
On February 13, 2025, public hearing notices were mailed and posted for the ZAB hearing.
On February 27, 2025 the ZAB held a public hearing on the Use Permit application and received public comment. Following deliberations, the ZAB unanimously approved the ZP2023-0040 by a vote of 5-0-2-0 vote (Moved: Duffy, Second: Gaffney, Ayes: Duffy, Gaffney, Sanderson, Thompson, Yung; Noes: None; Abstain: A. Kashani, S. Allen;
Absent: None).
On March 19, 2025, Zaden Lipman filed an appeal of the ZAB’s decision.
BACKGROUND
The following background is a summary of salient information on the project for the Council’s consideration of this appeal. For details and additional project background, see Attachment 3, the February 27, 2025 ZAB staff report for the project.
Project Setting and Description
The 28,319-square-foot, 0.65-acre, project site consists of five parcels that span the eastern edge of the block bounded by Berkeley Way on the north, Shattuck Avenue on the east, and University Avenue on the south. The site is located within the Downtown Mixed-Use District (C-DMU), Outer Core Sub-Area, as identified in the City’s Downtown Area Plan (DAP). In the site’s immediate vicinity are a mixture of buildings that contain mixed-use residential with ground floor commercial, multi-family residential, and commercial uses, and which range in height from one story to twelve stories. Other nearby tall buildings are the 12-story, mixed-use residential building across Shattuck Avenue at 1951 Shattuck; the 14-story Anchor House at 1950 Oxford Street, one block east; and the Residence Inn Hotel at 2129 Shattuck Avenue, two blocks south of the site.
The project site is associated with the following addresses and Assessor’s Parcel Numbers:
1. 1950 &1958 Shattuck, 57-2053-1
2. 1974 Shattuck, 57-2053-2
3. 1984 Shattuck, 57-2053-3-2 and 1986 &1998 Shattuck, 57-2053-3-1
4. 2071 & 2079 University, 57-2053-4-2
Each of the five parcel numbers (on four lots) is occupied by a one-story commercial building, including long-standing and well-known businesses such as Spat’s, at 1974
ZAB Appeal: 1950-1998 Shattuck, ZP2023-0040 PUBLIC HEARING June 3, 2025
Shattuck, and McDonald’s, at 1986 Shattuck.
The project proposes to demolish the five existing commercial buildings, merge the lots, and construct a mixed-use building that utilizes the State density bonus with the following main components:
28 stories, 312 feet in height (plus a 5-foot parapet) 599 dwelling units – 489 studios and110 one-bedroom (709 bedrooms total) 58 Very Low-Income (VLI) units to qualify for density bonus 16,142 square feet of commercial space – 8,342 square feet of ground-floor retail and 7,800-square-foot, rooftop restaurant/bar
12,491 square feet of usable open space – second-floor podium gardens and 14th-floor roof deck
706 square feet of privately-owned public open space – ground-floor plaza (Shattuck Avenue)
1,020-square-foot parklet at Shattuck Avenue frontage 130 residential and 24 commercial vehicle parking spaces (includes 4 car share spaces)
256 bike spaces in two ground-floor rooms
Community benefits – Project Labor Agreement representing approximately 20 to 25 percent of estimated project construction costs
ZAB Appeal: 1950-1998 Shattuck, ZP2023-0040 PUBLIC HEARING June 3, 2025
Figure 1: Zoning Map
ZAB Appeal: 1950-1998 Shattuck, ZP2023-0040 PUBLIC HEARING June 3, 2025
Image 1. Street View
Image 2. View from Shattuck Ave. facing north
ZAB Appeal: 1950-1998 Shattuck, ZP2023-0040 PUBLIC HEARING June 3, 2025
Landmarks Preservation Commission and Design Review Committee The Landmarks Preservation Commission (LPC) held a meeting on January 6, 2025 to consider the demolition referral for these buildings and took no action. However, the LPC made a recommendation to the ZAB to suggest that the applicant include a readily visible historical display in the new development site and share the story of the block.
The project was referred to the DRC for Preliminary Design Review on January 16, 2025. The DRC provided a favorable recommendation for Preliminary Design Review to ZAB with recommendations for Final Design Review (FDR). (Moved Tam, Seconded Gaffney, Ayes: Gaffney, Hall-Montgomery, Mitchell, Muszynski, Tam, Woo; Abstain:
None. Absent: Kahn. VOTE (6-0-0-1))
CEQA Categorical Exemption
On November 19, 2024, staff determined that the project is categorically exempt from the provisions of CEQA under Section 15332 (“Infill Development Projects”) of the CEQA Guidelines.
RATIONALE FOR RECOMMENDATION
The issues raised in the appellant’s letter (Attachment 2) and staff’s responses follow.
For the sake of brevity, the appeal issues are not re-stated in their entirety.
Issue 1: The appellant asserts that the height and density of the project is “excessive” and will negatively impact the City’s “culture and lifestyle.” Response: Government Code Section 65589.5 establishes that the City may not disapprove the project or reduce the project’s density without making findings supported by a preponderance of the evidence on the record that both of the following conditions exist:
(A) The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. (B) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density.
The project complies with applicable, objective general plan and zoning standards, and is consistent with the goals and policies of the Downtown Area Plan. Additionally, the subject site is identified as a Housing Element Opportunity Site in the 2023-2031 Housing Element. The redevelopment of the site with 599 units of housing counts towards the City’s Regional Housing Needs Allocation and advances housing
ZAB Appeal: 1950-1998 Shattuck, ZP2023-0040 PUBLIC HEARING June 3, 2025
production.
Issue 2: The appellant asserts “I hope that more meetings will be held.” Response: Government Code Section 65905.5(a) states that if a proposed housing development project complies with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete, then the city shall not conduct more than five hearings in connection with the approval of that housing development project. This includes all public hearings in connection with the approval of the housing development project, and any continuances of such public hearings. The city must consider and either approve or disapprove the project at any of the five hearings consistent with applicable timelines under the Permit Streamlining Act (Chapter 4.5, commencing with Section 65920).
The February 27, 2025 ZAB hearing was the third public hearing for the proposed project since the project was deemed complete. The June 3, 2025 City Council appeal review is the fourth meeting for the project.
ALTERNATIVE ACTIONS CONSIDERED
Pursuant to BMC Section 23.410.040(G), the Council may (1) continue the public hearing, (2) reverse, affirm, or modify the ZAB’s decision, or (3) remand the matter to the ZAB.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The project approved by the ZAB is compliant with all applicable State and local environmental requirements, would be located in a transit-rich area, and would be built and operated according to current codes for energy conservation, waste reduction, low toxicity, and other factors.
CONTACT PERSON
Jordan Klein, Director, Planning & Development Department, (510) 981-7534 Anne Hersch, Land Use Planning Manager, (510) 981-7411
Sharon Gong, Principal Planner, (510) 981-7480
Attachments:
1. Draft Resolution
Exhibit A: Findings and Conditions, February 27, 2025
2. ZAB Decision Appeal Letter, received March 24, 2025
3. ZAB Packet (Staff Report and attachments), dated February 27, 2025
4. Public Hearing Notice
5. Index to Administrative Record
6. Administrative Record
RESOLUTION NO. ##,###-N.S.
UPHOLDING THE DECISION OF THE ZONING ADJUSTMENTS BOARD APPROVING ZP#2023-0040 TO DEMOLISH FIVE COMMERCIAL BUILDINGS; MERGE FOUR LOTS; AND CONSTRUCT A 28-STORY (312-FOOT TALL, PLUS 5-FOOT PARAPET), 411,610-SQUARE-FOOT, MIXED-USE BUILDING WITH 599 DWELLING UNITS (INCLUDING 58 VERY LOW-INCOME DENSITY BONUS QUALIFYING UNITS), 16,142 SQUARE FEET OF COMMERCIAL AREA, AND 154 PARKING SPACES.
WHEREAS, on March 23, 2023, the City received an SB 330 Preliminary Use Permit application (PLN2023-0083); and
WHEREAS, on December 4, 2023, the SB 330 Preliminary Use Permit application was deemed complete; and
WHEREAS, on April 11, 2024, the Use Permit application (ZP2023-0040) was deemed complete; and
WHEREAS, on November 19, 2024, staff determined that the project is Categorically Exempt from CEQA – Class 32 Categorical Exemption “In-Fill Development Projects;” and
WHEREAS, on January 6, 2025, the Landmarks Preservation Commission (LPC) reviewed the demolition referral; and
WHEREAS, on January 16, 2025, the Design Review Committee conducted a preliminary review and provided a favorable recommendation with suggested refinements; and WHEREAS, on February 13, 2025, public hearing notices were mailed and posted for the ZAB hearing; and
WHEREAS, on February 27, 2025 the ZAB held a public hearing on the Use Permit application and received public comment. Following deliberations, the ZAB unanimously approved the ZP2023-0040 by a vote of 5-0-2-0 vote (Moved: Duffy, Second: Gaffney, Ayes: Duffy, Gaffney, Sanderson, Thompson, Yung; Noes: None; Abstain: A. Kashani, S.
Allen; Absent: None); and
WHEREAS, on March 19, 2025, Zaden Lipman filed an appeal of the ZAB’s decision; and WHEREAS, on or before May 20, 2025, staff posted the public hearing notice at the site and three nearby locations, and mailed notices to property owners and occupants within 300 feet of the project site, and to all registered neighborhood groups that cover this area; and
WHEREAS, on June 3, 2025, the Council held a public hearing to consider the LPC’s decision, and in the opinion of this Council, the facts stated in, or ascertainable from the
public record, including the staff report and comments made at the public hearing, warrant approving the project.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Berkeley that the City Council hereby adopts the findings made by ZAB in Exhibit A, affirming the decision made by ZAB to approve ZP#2023-0040, and dismisses the appeal.
Exhibits
A: Findings and Conditions
Attachment 1, Exhibit A
ZONING ADJUSTMENTS
BOARD – FINDINGS
FEBRUARY 27, 2025
University Corners
1950-1998 Shattuck Avenue
Use Permit #ZP2023-0040 to demolish five commercial buildings; merge four lots; and construct a 28-story (312-foot tall, plus 5-foot parapet), 411,610- square-foot, mixed-use building with 599 dwelling units (including 58 Very Low-Income Density Bonus qualifying units), 16,142 square feet of commercial area, and 154 parking spaces.
ZONING PERMITS REQUIRED
Use Permit under Berkeley Municipal Code (BMC) Section 23.326.070(A) to demolish non-residential buildings
Use Permit under BMC Section 23.204.020(A) to construct a new mixed-use development
Use Permit under BMC Section 23.204.020(A) to construct dwelling units Use Permit under BMC Section 23.204.030(A)(1) to create new floor area of 10,000 square feet or more
Use Permit under BMC Section 23.204.130(E)(2) to construct a building that exceeds the district height limit, and that is over 75 feet but not more than 120 feet Use Permit under BMC Section 23.204.130(E)(3)(b) to modify the front, side, and rear setback requirements and to exceed 120 feet in width in diagonal measurement above 120 feet in height
Administrative Use Permit under BMC Section 23.304.050(A) to allow architectural projections to exceed district height limits
Administrative Use Permit under BMC Section 23.302.070(E)(2) for a food service establishment over 3,000 square feet in area
Use Permit pursuant to BMC Section 23.310.020(B) to begin alcoholic beverage service (distilled spirits incidental to food service).
Administrative Use Permit pursuant to BMC Section 23.204.020(A) for Amplified Live Entertainment in a commercial district
1950-1998 SHATTUCK AVENUE - USE PERMIT #ZP2023-0040 ZAB FINDINGS FEBRUARY 27, 2025 Page 2 of 10 Administrative Use Permit pursuant to BMC Section 23.302.020(D)(3) for outdoor use not abutting a residential district.
CONCESSIONS/WAIVERS UNDER GOVERNMENT CODE SECTION 65915-65918 Concession from BMC Chapter 23.316 to allow an exemption from the Percentage for Public Art on Private Projects in-lieu fee
Waiver of BMC Section 23.04.130(E)(1) to exceed building height limits – to be 317’ to roof (plus 5’ parapet), where 120 feet is the limit (plus 5-foot parapet, by right, with a use permit)
Waiver of BMC Section 23.204.130(E)(3)(a) to reduce the front setback (University Ave, Shattuck Ave, and Berkeley Way) requirement to 0 feet, where 15 feet is the minimum, above 75-foot building height
Waiver of BMC Section 23.204.130(E)(3)(a) to reduce the interior left side setback requirement to 10 feet, where 15 feet is the minimum, above 75-foot building height and more than 65 feet from the frontage
Waiver of BMC Section 23.204.130(E)(3)(d)(i) to exceed diagonal width, to be 239 feet, 10 inches, where 120 feet is the maximum, above 120’ in height Waiver of BMC Section 23.204.130(E)(4) reduce usable open space minimum to 13,032 square feet, where 47,920 square feet is required
I. CEQA FINDINGS
A. On November 19, 2024, the City determined that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA, Public Resources Code Section 21000, et seq. and California Code of Regulations, Section 15000, et seq.) pursuant to Section 15332 of the CEQA Guidelines (“Infill Development Projects”).
The project applicant’s attorney submitted a letter on October 8, 2024 in support of a Class 32 Categorical Exemption from CEQA and the project’s eligibility for AB 1633 protections.
The applicant separately submitted an Air Quality Report, a Noise Impact Analysis, and a Water Quality Impact Analysis to support an infill exemption. All technical reports were peer reviewed by a CEQA consultant, and were revised for adequacy.
B. Upon review of all evidence on the record, the City determined that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA, Public Resources Code §21000, et seq. and California Code of Regulations, §15000, et seq.) pursuant to Section 15332 (“Infill Development Projects”) of the CEQA Guidelines.
The project meets all of the requirements of this exemption, as follows:
1. The project is consistent with the applicable General Plan designation and policies, and with the applicable zoning designation and regulations.
2. The project occurs within the Berkeley City limits on a project site of no more than five acres, and is surrounded by urban uses.
3. The parcels within the project site have previously been developed and have no value as habitat for endangered, rare or threatened species.
1950-1998 SHATTUCK AVENUE - USE PERMIT #ZP2023-0040 ZAB FINDINGS FEBRUARY 27, 2025 Page 3 of 10
4. The project will not result in any significant effects relating to traffic, noise, air quality or water quality. The Traffic Impact Analysis prepared for the project was reviewed by the City Transportation Division which concurred with the findings of less than significant impacts. City Standard Conditions will address potential impacts related to traffic, noise, air quality, and water quality.
5. The site can be adequately served by all required utilities and public services.
C. Furthermore, none of the exceptions in CEQA Guidelines Section 15300.2 apply, as follows: (a) the site is not located in an environmentally sensitive area, (b) there are no cumulative impacts, (c) there are no significant effects, (d) the project is not located near a scenic highway, (e) the project site is not located on a hazardous waste site pursuant to Government Code Section 65962.5, and (f) the project will not affect any historical resource.
II. HOUSING ACCOUNTABILTY ACT FINDINGS
A. The Housing Accountability Act, Government Code Section 65589.5(j) requires that when a proposed housing development complies with applicable, objective general plan and zoning standards, a local agency may not deny the project or approve it with reduced density unless the agency makes written findings supported by substantial evidence that:
(1) the development would have a specific adverse impact on public health or safety unless disapproved or approved at a lower density; and (2) there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, other than the disapproval or approval at a lower density.
B. The project includes construction of 599 units. Because the base project complies with applicable, objective general plan and zoning standards, Section 65589.5(j) does apply to this project. No significant, quantifiable, direct and unavoidable impacts, based on objective, identified written public health or safety standards, polices, or conditions, have been identified.
III. DENSITY BONUS FINDINGS
A. Pursuant to Government Code Section 65915, the Zoning Adjustments Board finds that:
1. Under the City’s methodology for implementing density bonuses, the base project consists of 411 units;
2. The project will provide at least 58 VLI qualifying units in the 411-unit base project, as more fully set forth in the Below Market Rate Units Condition;
3. The project is entitled to a density increase of 46.25 percent over the otherwise maximum allowable residential density under the Zoning Ordinance and General Plan Land Use Element, under the requirements of Government Code Section 65915(b) and (f), plus two concessions or incentives. This equates to a density bonus of 188 units (191 units maximum) above the base project, for a total of up to 599 units (602 units maximum).
1950-1998 SHATTUCK AVENUE - USE PERMIT #ZP2023-0040 ZAB FINDINGS FEBRUARY 27, 2025 Page 4 of 10 B. In accordance with Government Code Section 65915(d) and (k), the Zoning Adjustments Board hereby grants the following concessions in order to provide for affordable housing costs:
1. Concession from BMC Chapter 23.316 to allow an exemption from the Percentage for Public Art on Private Projects in-lieu fee
C. In accordance with Government Code Section 65915(d), in order to allow construction of the proposed project with the density permitted under State law, the Zoning Adjustments Board finds that the approval of the concessions is required to provide for affordable rents, as provided in Government Code Section 65915(d)(1)(A) because 1) approval of the concession would result in identifiable and actual cost reduction; 2) approval of the concession would not have a specific adverse impact upon public health and safety, or the physical environment, or on any real property listed in the California Register of Historical Resources; and 3) would not be contrary to State or Federal law.
D. In accordance with Government Code Section 65915(e) the Zoning Adjustments Board hereby grants the following waivers to modify development standards as necessary to accommodate these density bonus units.
1. Waiver of BMC Section 23.04.130(E)(1) to exceed building height limits – to be 317’ to roof (plus 5’ parapet), where 120 feet is the limit (plus 5-foot parapet, by right, with a use permit)
2. Waiver of BMC Section 23.204.130(E)(3)(a) to reduce the front setback (University Ave, Shattuck Ave, and Berkeley Way) requirement to 0 feet, where 15 feet is the minimum, above 75-foot building height
3. Waiver of BMC Section 23.204.130(E)(3)(a) to reduce the interior left side setback requirement to 10 feet, where 15 feet is the minimum, above 75-foot building height and more than 65 feet from the frontage
4. Waiver of BMC Section 23.204.130(E)(3)(d)(i) to exceed diagonal width, to be 239 feet, 10 inches, where 120 feet is the maximum, above 120’ in height
5. Waiver of BMC Section 23.204.130(E)(4) reduce usable open space minimum to 13,032 square feet, where 47,920 square feet is required E. In accordance with Government Code Section 65915(e), in order to allow construction of the proposed project with the density permitted under State law, the Zoning Adjustments Board finds that the approval of waivers is required 1) to construct the proposed project at the density permitted under State law; 2) approval of requested waivers will not have a specific adverse impact upon public health and safety, or the physical environment, or on any real property listed in the California Register of Historical Resources; and 3) approval of the requested waivers will not be contrary to State or Federal law.
IV. FINDINGS FOR APPROVAL
A. As required by BMC Section 23.406.040(E), Findings for Approval, the project, under the circumstances of this particular case existing at the time at which the application is granted, will not be detrimental to the health, safety, peace, morals, comfort, and general welfare of
1950-1998 SHATTUCK AVENUE - USE PERMIT #ZP2023-0040 ZAB FINDINGS FEBRUARY 27, 2025 Page 5 of 10 the persons residing or working in the neighborhood of such proposed use or be detrimental or injurious to property and improvements of the adjacent properties, the surrounding area or neighborhood, or to the general welfare of the City because:
1. The project is consistent with all applicable C-DMU District standards and qualifies for concessions and waivers for the listed district standards granted pursuant to State Density Bonus, Government Code, Section 65915.
2. According to the shadow studies submitted for the project, new shadow impacts will occur: a) in the winter and spring months in the hours of after sunrise and around noon, on the residential buildings on the blocks to the north and northwest of the site, and b) in the summer months in the hours of after sunrise on the residential buildings to the west of the site. All other new shadows will impact non-residential buildings in the vicinity. The extent of the new shadow impact from the project on the site’s adjacent areas will be limited to a few hours of the day during certain times of the year, will not be unreasonable for a development in the dense, downtown district that allows building heights up to 60 feet, with 0 to 5-foot setbacks from property lines, by right.
3. The additional height above the district limits from the density bonus will cast shadows in the affected directions further than if the project were limited to the base district height standards. The proposal will include waivers for additional height beyond the district height limits to accommodate the density bonus units and allow a 312-foot-tall (plus 5-foot parapet), 28-story building. Overall, the shadow impacts from the project will be reasonable and not detrimental.
4. The project will be subject to the City’s standard conditions of approval regarding construction noise and air quality, waste diversion, toxics, and stormwater requirements, which will ensure that the project will not be detrimental to the health, safety, peace, morals, comfort or general welfare of persons residing or working in the area or neighborhood of such proposed use or be detrimental or injurious to property and improvements of the adjacent properties, the surrounding area or neighborhood or to the general welfare of the City.
V. OTHER FINDINGS FOR APPROVAL
A. As required by BMC Section 23.326.070(D), the Zoning Adjustments Board finds that the proposed demolition of the non-residential buildings listed below will not be materially detrimental to the commercial needs and public interest of any affected neighborhood or the City, and that the demolition of the structures is required to allow a proposed new building or other proposed new use, will remove a building that which is unusable for activities completable with the purpose of the district or infeasible to modify for such uses, will remove a structure that is an inhabitable attractive nuisance to the public, or is required for the furtherance of specific plans or projects sponsored by the City or other local district or authority.
1950-1998 SHATTUCK AVENUE - USE PERMIT #ZP2023-0040 ZAB FINDINGS FEBRUARY 27, 2025 Page 6 of 10
1. 1950 &1958 Shattuck, 57-2053-1
2. 1974 Shattuck, 57-2053-2
3. 1984 Shattuck, 57-2053-3-2 and 1986 &1998 Shattuck, 57-2053-3-1
4. 2071 & 2079 University, 57-2053-4-2
The proposed demolition of the non-residential buildings will not be detrimental needs of the neighborhood, as the project redevelops an underutilized with a new mixed-use, multifamily building that is compatible with existing development patterns in the downtown.
The project is aligned with the Downtown Area Plan and the C-DMU district’s purposes, which include objectives for Environmental Sustainability, Land Use, Access, Historic Preservation and Urban Design, Streets and Open Space, Housing and Community Health and Services, and Economic Development.
B. As required by BMC Section BMC 23.310.020(C), Alcohol Sales and Service (Distilled Spirits), the Zoning Adjustments Board finds that:
1. The current Alcoholic Beverage Control license owned by the existing restaurant/bar (Spat’s) allows for sales of beer, wine, and distilled spirits for off-site consumption at a bona fide eating place. The number of alcohol licenses within the census tract will not change if the restaurant/bar in the new building assumes ownership of the existing restaurant/bar license, or if the current license owner surrenders the existing license and the new restaurant/bar applies for a new license. A Condition of Approval will be included in the permit to require that no net new alcohol licenses are obtained for businesses at the project site. Additional findings in BMC Section 23.310.020(C)(3) for exceeding the number of licenses within the census tract will not apply.
2. The allowance of distilled spirits sales and service in conjunction with a bona fide eating establishment in the project will provide a wider range of alcoholic menu options to patrons that are customarily available within other restaurants. Such expanded menu choices will contribute to the economic success of the restaurant. The addition of distilled spirits to the offerings will also increase business revenue, resulting in increased tax revenue for the City. The Berkeley Police Department has reviewed the proposal and noted that there are no alcohol-related violations against the property owners of the parcels in the project site, and no violations of alcohol or public safety.
3. Alcohol service standards are included in the Conditions of Approval for the permit, and the applicant will be required to meet applicable ABC standards for the license type.
C. As required by BMC Section 23.302.070(E)(2), Food Service Establishment greater than 3,000 square feet, the Zoning Adjustments Board finds that the use meets the findings in BMC Section 23.204.130(I). The project is compatible with the Land Use and Economic Development purposes of the district because the rooftop restaurant/bar with outdoor seating will contribute to the area’s vitality, livability, and character.
D. As required by BMC Section 23.204.020(A), Amplified Live Entertainment, the Zoning Adjustments Board finds that the use meets the findings in BMC Section 23.204.130(I). The project is compatible with the Land Use and Economic Development purposes of the district
1950-1998 SHATTUCK AVENUE - USE PERMIT #ZP2023-0040 ZAB FINDINGS FEBRUARY 27, 2025 Page 7 of 10 because the rooftop restaurant/bar with amplified live entertainment will contribute to the area’s vitality, livability, and character.
E. As required by BMC Section 23.302.020(D)(3), outdoor use not abutting a residential district), the Zoning Adjustments Board finds that the use meets the findings in BMC Section
23.204.130(I). The project’s rooftop restaurant/bar with outdoor seating is compatible with the Land Use and Economic Development purposes of the district because it will contribute to the area’s vitality, livability, and character.
F. As required by BMC Section 23.204.130(I), the project is consistent with the purposes of the C-DMU district:
1. Environmental Sustainability and Access: The project is a high-density mixed-use development in proximity to regional transit, shops and amenities, and will provide more housing in the Downtown to increase access to local services and amenities by foot, by bicycle and via transit, while promoting public transit as an efficient and attractive choice through its location and through its Transportation Demand Management measures and other associated Conditions of Approval. The project will comply with the State’s Model Water Efficient Landscape Ordinance (MWELO), provide landscaping in its open space areas, and will feature a number of native plant species in its landscape palette. The project proposes GreenPoint Rated Silver certification, which is equivalent to the LEED Gold rating, as required for new buildings in the C-DMU District.
2. Land Use: The mixed-use project, which includes 58 VLI units, will add new affordable housing to the Downtown area. Ground floor commercial uses and a rooftop restaurant/bar with outdoor seating and live entertainment will contribute to the area’s vitality, livability, sustainability, and character. New street trees and landscaping along Shattuck and University Avenues and Berkeley Way will add to the cultivation of the Downtown as an attractive residential neighborhood.
3. Historic Preservation and Urban Design: The project does not propose to demolish or alter any known historic or cultural resource and will preserve the existing historic resources in the Downtown.
The project will provide continuity and harmony between the old and the new in the built environment, improve the visual and environmental quality of Downtown and create an active, safe and visually engaging pedestrian environment. At 28 stories and 317 feet tall (measured to the parapet) the building will be the tallest built structure in the City (taller than the Campanile on the U.C Berkeley campus at 307 feet tall).
However, the building is designed to step down from its 28-story maximum height to 14 stories on the north side, away from the Core downtown area, in a nod to the first “skyscrapers” in the downtown, the 13-story Chase building and the 12-story Wells Fargo building at Center and Shattuck Avenues. The transparency of the commercial storefronts and the 20-foot window/ceiling height on the ground-floor of the Shattuck and University Avenue façades will enliven the streetscape on these frontages. The parklet and publicly accessible plaza on either side of the sidewalk on the Shattuck
1950-1998 SHATTUCK AVENUE - USE PERMIT #ZP2023-0040 ZAB FINDINGS FEBRUARY 27, 2025 Page 8 of 10 Avenue frontage will engage pedestrians walking through the downtown commercial district and welcome them to the businesses in the building.
The DRC deemed the project consistent with Downtown Berkeley design guidelines, and provided a favorable recommendation to the ZAB. The proposed project design incorporates materials, color, façade design, ground-floor transparency, roof forms, setbacks, height and open space elements consistent with guidance in the Downtown Berkeley Design Guidelines.
4. Streets and Open Space: The project will include street trees along Shattuck and University Avenues and Berkeley Way, and a 1,020-square-foot parklet bulb-out and 706-square-foot publicly accessible private plaza on the Shattuck Avenue frontage to benefit pedestrians, as well as future residents. The second-floor podium deck and 14th floor roof deck will provide landscaped open space and amenities for residents.
The project will contribute funds to the Streets and Open Space Improvement Plan (SOSIP).
5. Housing and Community Health and Services: The project will involve construction of a mixed-use building with a total of 599 dwelling units, including 58 VLI units. The project will expand the supply of affordable housing and contribute to a thriving, livable, diverse residential neighborhood with a mix of supportive uses in Downtown.
6. Economic Development: The project will bring new residents and a greater range of household incomes to the Downtown area, while preserving the character of the Downtown Historic neighborhood, to contribute to the area’s vitality and success. The project will bring approximately 8,342 square feet of ground-floor retail and a 7,800- square-foot rooftop restaurant to the area to contribute to making Downtown an attractive regional destination for living, working and visiting. In addition, the project includes a Project Labor Agreement with the Alameda County Building Trades Council, representing approximately 20 to 25 percent of estimated project construction costs, to utilize local workers for project construction.
In addition, the project is compatible with surrounding uses and buildings. The project site is located at the eastern end of the block bounded by Berkeley Way, Shattuck Avenue, and University Avenue in Downtown Berkeley in an urban area with immediate access to transit. The site’s immediate surroundings are a mixture of buildings that contain mixed-use residential with ground floor commercial, multi-family residential, and commercial uses, and range in height from one story to twelve stories.
Other taller buildings are the 12-story mixed-use residential building across Shattuck Avenue at 1951 Shattuck, the 14-story Anchor House at 1950 Oxford Street, one block east, and the Residence Inn Hotel at 2129 Shattuck Avenue, two blocks south of the site. Recently approved “tall buildings” include the 25-story mixed-use residential building at 2190 Shattuck (approved in 2023), three blocks to the south, and the 26- story mixed-use residential building at 2128 Oxford Street (approved in 2024) three blocks southeast of the project site.
As a one of the five “tall buildings” allowed in the C-DMU District and one of the two “tall buildings” allowed in the Outer Core/Core Sub-Areas (combined), the project will
1950-1998 SHATTUCK AVENUE - USE PERMIT #ZP2023-0040 ZAB FINDINGS FEBRUARY 27, 2025 Page 9 of 10 be compatible in size and scale with the other four “tall buildings” that are already constructed or were recently approved in the Downtown area. Thus, the project will be compatible with surrounding uses and buildings. In addition, the DRC deemed the proposed project consistent with Downtown Berkeley Design Guidelines, and provided a favorable recommendation to the ZAB with conditions and recommendations for Final Design Review.
G. As required by BMC Section 23.304.050(A), the Zoning Adjustments Board finds that the proposed rooftop equipment, which exceeds the district height limit, does not exceed 15 percent the average floor area of the building’s floors. None of the equipment structures will be used as habitable or commercial space. The project will include staircase and elevator penthouses 1,464 square feet on the roof of level 28 that will extend seventeen feet over the roof height. These areas represent 10 percent of the 14,058-square-foot average of all the floor areas, and will not exceed the limit of 15 percent of the average floor area, and are therefore permissible.
H. As required BMC Section 23.204.130(E)(2), the Zoning Adjustments Board finds that:
1. The project provides a community benefits proposal that is primarily composed of a Project Labor Agreement – an agreement with the Alameda County Building Trades Council, representing approximately 20 to 25 percent of the estimated project construction cost, which is greater than the minimum 5 percent specified in the Resolution #67,172-NS. It is noted, however, that the project offers no other significant community benefits that exceed regulatory requirements, beyond the Project Labor Agreement.
2. Based on the City’s consultant peer review, the Community Benefits package is reasonable overall, and will not make project infeasible.
I. As required by BMC Section 23.204.130(E)(2), the Zoning Adjustments Board finds that:
1. The setback encroachment in the Base Project will result in a minimal contribution to new shadow impact relative to the increase in shadow impact from the Density Bonus project height and reduced setbacks that are requested as waivers. Thus, the setback reduction the Base Project will not unreasonably limit solar access.
2. The Pedestrian Wind Comfort Assessment found that:
a. Wind speeds onsite are generally calm and considered suitable for pedestrian use. Higher wind speeds, (still appropriate for sidewalks and walkways), occur near the corners of mid-rise buildings with broad west facing facades on the east side of Shattuck Avenue.
b. Increased wind speeds are expected on University Avenue and at the intersection of Shattuck Avenue and Berkeley way during the summer.
However, these speeds are adequate for sidewalks and walkways.
1950-1998 SHATTUCK AVENUE - USE PERMIT #ZP2023-0040 ZAB FINDINGS FEBRUARY 27, 2025 Page 10 of 10 c. In the winter, lower wind speeds are expected. Light breezes are predicted for most areas near the proposed development, with slightly higher wind speeds occurring around the east/northeast side of the building. d. The pedestrian wind safety criterion is predicted to be met at all locations near the project site.
J. As required by BMC Section 23.204.030(A)(2), the Zoning Adjustments Board finds that:
1. The new building will be compatible with the visual character and form of the zoning district. The zoning district allows for heights up to 120 feet (in the base project for density bonus) with a use permit and upon provision of community benefits. Existing buildings in the vicinity of the project site range from one to twelve stories, with taller buildings on University and Shattuck Avenues. The site is located within the Downtown Area Plan and is consistent Downtown Berkeley Design Guidelines as further discussed below.
2. The proposed project will result in a new building that is substantially taller than surrounding buildings in the downtown district. As a result, it will introduce a new visual feature to the district by introducing a building which is almost twice as tall than the existing “skyscrapers” in the downtown. However, the proposed building will be compatible with the most recently approved “tall buildings” in the downtown district, as discussed in the previous section, and will be consistent with the trend of increased density in new housing development fueled by the adoption of laws to remedy the State’s housing crisis.
3. In addition, the DRC reviewed the project and found the proposed design to be consistent the Downtown Berkeley Design Guidelines and the Downtown Area Plan.
ATTACHMENT 2
ZONING ADJUSTMENTS
BOARD – STAFF REPORT
FOR BOARD ACTION
FEBRUARY 27, 2025
1947 Center Street, Second Floor, Berkeley, CA 94704 Tel: 510.981.7410 TDD: 510.981.7474 Fax: 510.981.7420 E-mail: [email protected]
1950-1998 Shattuck Avenue
(University Corners)
Use Permit #ZP2023 -0040 to demolish five commercial buildings; merge four lots; and construct a 28-story (312-foot tall, plus 5 -foot parapet), 411,610-square-foot, mixed-use building with 599 dwelling units (including 58 Very Low-Income Density Bonus qualifying units), 16,142 square feet of commercial area, and 154 parking spaces.
I. Background
A. Land Use Designations:
• General Plan: DT – Downtown; Downtown Area Plan
• Zoning: C-DMU Core – Downtown Mixed-Use Commercial District, Outer Core Sub-Area
B. Zoning Permits Required:
• Use Permit under Berkeley Municipal Code (BMC) Section 23.326.070(A) to demolish non-residential buildings
• Use Permit under BMC Section 23.204.020(A) to construct a new mixed- use development
• Use Permit under BMC Section 23.204.020(A) to construct dwelling units • Use Permit under BMC Section 23.204.030(A)(1) to create new floor area of 10,000 square feet or more
• Use Permit under BMC Section 23.204.130(E)(2) to construct a building that exceeds the district height limit, and that is over 75 feet but not more than 120 feet • Use Permit under BMC Section 23.204.130(E)(3)(b) to modify the front, side, and rear setback requirements and to exceed 120 feet in width in diagonal measurement above 120 feet in height
• Administrative Use Permit under BMC Section 23.304.050(A) to allow architectural projections to exceed district height limits
• Administrative Use Permit under BMC Secti on 23.302.070(E)(2) for a food service establishment over 3,000 square feet in area
ITEM #3
ZAB 2025-02-27
ATTACHMENT 3
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 2 of 32
File: G:\L
ANDUSE\Boards and Commissions\ZAB\Agendas and Action Minutes\2025\Agendas\Final\2025-02-27_ZAB\1950-1988 Shattuck\2025-02-27_ZAB_SR_1950-1998 Shattuck.docx
• Use Permit pursuant to BMC Section 23.310.020(B) to begin alcoholic beverage service (distilled spirits incidental to food service). • Administrative Use Permit pursuant to BMC Section 23. 204.020(A) for Amplified Live Entertainment in a commercial district
• Administrative Use Permit pursuant to BMC Section 23.302.020( D)(3) for outdoor use not abutting a residential district.
C. Concessions / Waivers Requested Pursuant to State Density Bonus Law (California Government Code Section 65915):
• Concession from BMC Chapter 23.316 to allow an exemption from the Percentage for Public Art on Private Projects in-lieu fee
• Waiver of BMC Section 23.04.130(E)(1) to exceed building height limits – to be 317’ to roof (plus 5’ parapet), where 12 0 feet is the limit (plus 5- foot parapet, by right, with a use permit)
• Waiver of BMC Section 23.204.130(E)(3)(a) to reduce the front setback (University Ave, Shattuck Ave, and Berkeley Way) requirement to 0 feet, where 15 feet is the minimum, above 75-foot building height
• Waiver of BMC Section 23.204.130(E)(3)(a) to reduce the interior left side setback requirement to 10 feet, where 15 feet is the minimum, above 75-foot building height and more than 65 feet from the frontage
• Waiver of BMC Section 23.204.130(E)(3)(d)(i) to exceed diagonal width, to be 239 feet, 10 inches, where 120 feet is the maximum, above 120’ in height • Waiver of BMC Section 23.204.130(E)(4) reduce usable open space mi nimum to 12,491 square feet, where 47,920 square feet is required D. The California Environmental Quality Act (CEQA) Exemption Determination:
Pursuant to Government Code Section 65589.5, it is staff’s determination that the project is categorically exempt under Section 15332 (“Infill Development Projects”) of the CEQA Guidelines.
E. Parties Involved:
• Applicant: Isaiah Stackhouse, Trachtenberg Architects, Fourth Street, Berkeley, CA 94710
• Property Owner : 1974 Shattuck Avenue, LLC, 2140 Shattuck Ave, Ste 705, Berkeley, CA 94704
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 3 of 32
File: G:\L
ANDUSE\Boards and Commissions\ZAB\Agendas and Action Minutes\2025\Agendas\Final\2025-02-27_ZAB\1950-1988 Shattuck\2025-02-27_ZAB_SR_1950-1998 Shattuck.docx
Figure 1: Vicinity and Zoning Districts Map
Legend
C-DMU: Downtown Mixed-U
se District
Core: C-DMU Core Sub-Area
Buffer: C-DMU Buffer Sub-Ar
ea
Outer Core: C-DMU Outer Core Sub-Area
Project Site
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 4 of 32
File: G:\L
ANDUSE\Boards and Commissions\ZAB\Agendas and Action Minutes\2025\Agendas\Final\2025-02-27_ZAB\1950-1988 Shattuck\2025-02-27_ZAB_SR_1950-1998 Shattuck.docx
Figure 2: Aerial View
Project Site
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 5 of 32
File: G:\L
ANDUSE\Boards and Commissions\ZAB\Agendas and Action Minutes\2025\Agendas\Final\2025-02-27_ZAB\1950-1988 Shattuck\2025-02-27_ZAB_SR_1950-1998 Shattuck.docx
Figure 3: South Elevation – University Avenue (elevation not to scale) ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 6 of 32
File: G:\L
ANDUSE\Boards and Commissions\ZAB\Agendas and Action Minutes\2025\Agendas\Final\2025-02-27_ZAB\1950-1988 Shattuck\2025-02-27_ZAB_SR_1950-1998 Shattuck.docx
Figure 4: East Elevation – Shattuck Avenue (elevation not to scale) ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 7 of 32
File: G:\L
ANDUSE\Boards and Commissions\ZAB\Agendas and Action Minutes\2025\Agendas\Final\2025-02-27_ZAB\1950-1988 Shattuck\2025-02-27_ZAB_SR_1950-1998 Shattuck.docx
Figure 5: North Elevation – Berkeley Way (elevation not to scale) ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 8 of 32
File: G:\L
ANDUSE\Boards and Commissions\ZAB\Agendas and Action Minutes\2025\Agendas\Final\2025-02-27_ZAB\1950-1988 Shattuck\2025-02-27_ZAB_SR_1950-1998 Shattuck.docx
Table 1: Land Use Information
Location Existing Use Zoning
District
General Plan
Designation
Subject Property
1950 &1958 Shattuck: Restaurant / Restaurant
1974 Shattuck: Bar (Spats)
1984 Shattuck: Restaurant
1986 &1998 Shattuck: Restaurant (McDonald’s)
2071 & 2079 University: Restaurant / Vacant
C-DMU
(Downtown
Mixed-Use
District),
Outer Core
Sub-Area
DT
(Downtown)
Surrounding
Adjacent
Properties
North Mixed-Use Residential w/ Retail (City Landmark,
Morgan Building)
C-DMU,
Corridor Sub-
Area
South Office / Retail
C-DMU,
Core Sub-
Area
West Multi-family Residential, Community Kitchen and
Shelter (Hope Center) / Multi-family Residential
C-DMU,
Buffer and
Outer Core
Sub-Area
East
Mixed-Use Residential w/ Retail / Mixed-Use
Residential w/ Restaurant, Office, and Retail(City
Landmark, Mc Farlane Building)
C-DMU,
Outer Core
Sub-Area
Table 2: Special Characteristics
Characteristic Applies to
Project? Explanation
Affordable Child Care Fee &
Affordable Housing Fee for
qualifying non-residential
projects (Per Resolutions
66,618-N.S. & 66,617-N.S.)
No
These fees apply to projects with more than 7,500 square feet of net new non-residential gross floor area. The project proposes less non-residential gross floor area than currently exists on the site. Therefore, no net-new, non-residential area would be created and the project would not be subject to these fees.
Affordable Housing Fee for
qualifying non-residential
projects (Per Resolution
66,617-N.S.)
Affordable / Inclusionary
Housing Requirements
(BMC Chapter 23.328)
Yes
The project is a housing development project, as defined in BMC 23.328.020 a, and would provide 58 Very Low-Income
(VLI) Below Market Rate (BMR) units and would be required to pay an in-lieu fee to satisfy the remainder of the requirement.
Alcohol Sales/Service Yes
The project is proposing Alcoholic Beverage Service of beer and wine incidental to seated food service in each retail space and Alcoholic Beverage Service of distilled spirits, incidental to seated food service for the rooftop restaurant space. (Alcohol Beverage Control license Type 47).
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 9 of 32
File: G:\L
ANDUSE\Boards and Commissions\ZAB\Agendas and Action Minutes\2025\Agendas\Final\2025-02-27_ZAB\1950-1988 Shattuck\2025-02-27_ZAB_SR_1950-1998 Shattuck.docx
Characteristic Applies to
Project? Explanation
Bird Safe Buildings
(BMC Section 23.304.150) Yes
The project is subject to these requirements and a condition of approval to demonstrate compliance at building permit is included.
Coast Live Oaks No There are no oak trees on the project site.
Creeks No No creek or culvert, as defined by BMC Chapter 17.08, exists on or within 30 feet of the project site.
Density Bonus Yes
The project would provide 58 VLI below market units, or 14 percent of the 411 Base Project units, and qualifies for a 46.25 percent density bonus, or 191 bonus units (188 taken), under Government Code Section 65915. See Section III.B for
discussion.
Green Building Score Yes
The project is designed to achieve a Leadership in Energy and Environmental Design (LEED) - Gold (or equivalent) rating. The project is proposing GreenPoint Rated Silver certification, which is equivalent to LEED Gold.
Hard Hats
(BMC Chapter 13.107) No
The project was vested under the Housing Crisis Act of 2019 prior to the January 1, 2024 effective date of the ordinance, and therefore these provisions do not apply.
a
Historic Resources No
The project would demolish five on-site buildings, Four of the five to be demolished exceed 40 years in age. None of the four buildings are listed on the National, State or local registers, and none are eligible for listing on these registers. The Landmarks Preservation Commission held hearings to consider the
demolition referral and took no action. See IV.C for details.
Housing Accountability Act
(HAA) (Gov’t Code Section
65589.5(j))
Yes
The project meets the definition of a “Housing Development Project” per Government Code Section 65589.5(h)(2).a The base project complies with applicable, objective general plan and zoning standards, and thus section (j) of the Housing Accountability Act applies, and the project cannot be denied at the density proposed unless the findings for denial can be made. See Section VI.A of this report for additional discussion on compliance with the Housing Accountability Act.
Housing Crisis Act of 2019
(SB 330) Yes
The project meets the definition of a “Housing Development Project” per Government Code Section 65589.5(h)(2).a See Section VI.B of this report for additional discussion on the sections of SB 330 that apply to the project.
Public Art on Private
Projects
(BMC Chapter 23C.23)
No
The project is not subject to the Percentage for Public Art on Private Projects Ordinance because the applicant is requesting a Density Bonus Concession to eliminate the fee (0.8% of total building permit valuation) pursuant to Government Code
Section 65915(d).
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 10 of 32
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Characteristic Applies to
Project? Explanation
Rent Controlled Units No The project involves the demolition of non-residential structures and no rent-controlled units would be demolished.
Residential Preferred
Parking (RPP) Yes
The site is located in RPP zone “E”. The project is not eligible for RPP permits per BMC Section 14.72.080(C)(1) as no
permits shall be issued to residents in newly constructed residential units.
Seismic Hazards No
The project site is not located in a liquefaction zone, landslide zone or earthquake fault zone, as shown on the State Seismic Hazard Zones map.c
Soil/Groundwater
Contamination Yes
The project site is located within the City’s Environmental Management Area, but is not listed on the Cortese List.d The applicant submitted a Phase I report which found Recognized Environmental Conditions on the site. The Phase I report was reviewed by the Toxics Division, which will implement Phase I recommendations via the standard Toxics Conditions of
Approval (COAs) at the building permit phase. No further concerns were identified. Standard COAs related to hazardous materials (including
Environmental Site Clearance, a Soil and
Groundwater Management Plan, and a Building Materials
Survey) would apply to the project to ensure compliance with toxics standards. The applicant also submitted a Water Quality Impact Analysis, which concluded that the project would result in less than significant impacts to water quality after incorporation of the City’s Standard COAs, compliance with the federal and State regulations, and compliance with City’s plans, policies, and regulations.
Transit Yes
The project site is served by multiple bus lines (local, rapid, and Transbay) that operate along Shattuck Avenue, and is shares the City block with the Downtown Berkeley Bay Area Rapid Transit (BART) Station.
Notes:
a Government Code Section 65589.5(h)(2) “Housing development project” means a use consisting of any of the following:
(A) residential units only, (B) mixed-use developments consisting of residential and nonresidential uses in which at least two-thirds of the square footage is designated for residential use, and (C) transitional or supportive housing. b. Project vested under SB 330 on/before April 1, 2023, prior to effective date of new inclusionary housing requirements and is therefore subject to the Affordable Housing Mitigations in BMC 22.20.065 that was in effect at the time of vesting. c. California Department of Conservation. DOC Maps: Geologic Hazards. Available:
https://maps.conservation.ca.gov/geologichazards/
d. The Cortese List is an annually updated list of hazardous materials sites complied pursuant Government Code Section 65962.5.
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 11 of 32
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Table 3: Project Chronology
Date Action
March 26, 2023 SB 330 Use Permit Application submitted
December 4 2023 SB 330 Preliminary Application complete (PLN2023-0083) April 11, 2024 Use Permit Application deemed complete
November 19, 2024 CEQA Categorical Exemption determination by staff – Class 32 Categorical Exemption “In-Fill Development Projects”
January 6, 2025 Landmarks Preservation Commission Demolition Referral meeting January 16, 2025 Design Review Committee Preliminary Design Review meeting February 13, 2025 Public hearing notices mailed/posted
February 27, 2025 ZAB decision / hearing
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 12 of 32
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Table 4: Development Standards
C-DMU Standards,
Outer Core Sub-Area Existing Change Proposed Permitted/Required Lot Area (sq. ft.) 28,319 -- 28,319 n/a
Gross Floor Area (sq. ft.) 26,610 +384,720 411,330 n/a
Commercial Floor Area 26,610 -10,468 16,142 n/a
FAR 0.8 +14.2 15 n/a
Dwelling Units 0 +599 599 n/a
Bedrooms 0 +709 709 n/a
Building
Height1
Maximum 14’ +298 312’ (plus 5’
parapet)
50’ min./60’ max.
(75’ max. w/use permit,
180’ max. w/use permit,
5’ max. parapet by right)
Stories 1 +27 28 n/a
Building
Setbacks2
Front
(University) 3 4’-9”
-2’-9”
--
--
2’ to 5’
3’-4”
3’-4”
0’–5’ (bldg. ht.≤20’)
0’ (bldg. ht.>20’ ≤75’)
15’ (bldg. ht.>75’)
Front
(Shattuck) 0’
+5’-3”
--
--
5’-3” to 14’-5”
6’-10”
6’-10”
0’–5’ (bldg. ht.≤20’)
0’ (bldg. ht.>20’ ≤75’)
15’ (bldg. ht.>75’)
Front (Berkeley
Way) 0’
+2’
--
--
2’ to 3’
6’
6’
0’ (bldg. ht.≤20’)
5’ (bldg. ht.>20’ ≤75’)
15’ (bldg. ht.>75’)
Interior
Left Side
0’-65’
from
frontage
2’-10”
-2’-4”
--
--
6” to 1’-6”
15’ to 18’-1”
15’ to 18’-1”
0’ (bldg. ht.≤75’)
5’ (bldg. ht.>75’ ≤120’)
15’ (bldg. ht.>120’)
>65’
from
frontage
2’-10”
-1’-4”
--
--
1’-6”
10’ to 18’-1”
10’ to 18’-1”
0’ (bldg. ht.≤20’)
5’ (bldg. ht.>20’ ≤75’)
15’ (bldg. ht.>75’)
Diagonal Dimension n/a n/a 239-10” 120’ (bldg. ht.>120’) Lot Coverage (%) 80 +8 88 n/a
Usable Open Space (sq. ft.) n/a n/a 12,491 47,920 sq. ft. min. (80 sq. ft./d.u.)
Privately Owned Public Open
Space (sq. ft.) n/a n/a 706
323 s.f. min.
(1 sq. ft./50 sq. ft.. of
commercial)
1 Use permits to allow up to 120’ are included in the Base Project for the calculation of the density bonus, and are not requested waivers. Additional height beyond 120’ is being requested as a waiver. 2 The use permit to allow reduced setbacks up to 120’ building height is included in the Base Project for the calculation of the density bonus, and is not a requested waiver. Setback reductions above 120’ is being requested as a waiver. 3 Façade has elements with 3’ overhang into the right-of-way. ________ = Waiver requested to modify the district standard.
Abbreviations: sq.ft.= square feet; d.u.=dwelling unit; min.=minimum; max.=maximum; bldg. ht.=building height ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 13 of 32
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Table 4: Development Standards (Continued)
C-DMU Standards,
Core Sub-Area Existing Change Proposed Permitted/Required Parking
Commercial
(16,142 sq. ft.) 0 +24 24 0 min.*
Residential n/a +126 126 0 min./ 300 max.
(0.5 spaces/du max.)
Carshare n/a n/a 4
4 min.
(for 61 or more: 3, plus one for
every additional 60 spaces)
Total 0 +154 154 0 min./ 300 max.
Commercial –
Loading n/a n/a 1
1 min.
(1 space/10,000 sq. ft.,
01 additional/each 40,000 sq.
ft.)
Bicycle Parking
Commercial -
Short Term
(16,142 sq. ft.)
8 +2 10
9 spaces
(1 space/2,000 sq. ft.
commercial)
Residential -
Long Term n/a +256 256 237 spaces
(1 space/3 bedrooms)
Residential -
Short Term n/a +18 18 18 spaces
(1 space/40 bedrooms, or 2)
Total 8 +256/20
256/28
(long term/short
term)
237/27
(long term/short term)
________ = Waiver requested to modify the district standard. * Pursuant to Assembly Bill 2097, no parking is required for commercial uses on a site located within ½-mile of a major transit stop.
Abbreviations: sq. ft.= square feet; d.u.=dwelling unit; min.=minimum; max.=maximum; bldg. ht.=building height II. Project Setting
A. Neighborhood/Area Description: The 28,319-s
quare-foot, 0.65-acre, project site consists
of five parcels that span the eastern edge of the block bounded by Berkeley Way on the north, Shattuck Avenue on the east, and University Avenue on the south. The site is located within the Downtown Mixed-Use District (C-DMU), Outer Core Sub-Area, as identified in the City’s Downtown Area Plan (DAP). In the site’s immediate vicinity are a mixture of buildings that contain mixed-use residential with ground floor commercial, multi -family residential, and commercial uses, and which range in height from one story to twelve stories. Other nearby taller buil dings are the 12 -story, mixed-use residential building across Shattuck Avenue at 1951 Shattuck; the 14-story Anchor House at 1950 Oxford Street, one block east; and the Residence Inn Hotel at 2129 Shattuck Avenue, two blocks south of the site.
The project site is served by multiple Alameda County (AC) Transit bus lines that operate along Shattuck and University Avenues, and is two blocks north of the Downtown Berkeley BART station (See Figure 1: Zoning Map and Figure 2: Aerial View.) ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 14 of 32
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B. Site Conditions/Background:
The project site is associated with the following addresses and Assessor’s Parcel Numbers:
1. 1950 &1958 Shattuck, 57-2053-1
2. 1974 Shattuck, 57-2053-2
3. 1984 Shattuck, 57-2053-3-2 and 1986 &1998 Shattuck, 57-2053-3-1
4. 2071 & 2079 University, 57-2053-4-2
Each of the f
ive parcel numbers (on four lots) is occupied by a one-story commercial building, including long -standing and well -known businesses such as Spat’s, at 1974 Shattuck, and McDonald’s, at 1986 Shattuck.
III. Project Description
A. Proposed Project Details:
The project proposes t
o demolish the five existing commercial building s, merge the lots, and construct a mixed-use building that utilizes the State density bonus with the following main components:
• 28 stories, 312 feet in height (plus a 5-foot parapet) • 599 dwelling units – 489 studios and110 one-bedroom (709 bedrooms total) • 58 Very Low-Income (VLI) units to qualify for density bonus • 16,142 square feet of commercial space – 8,342 square feet of ground-floor retail and 7,800-square-foot, rooftop restaurant/bar
• 12,491 square feet of usable open space – second-floor podium gardens and 14th-floor roof deck
• 706 square feet of privately -owned public open space – ground-floor plaza (Shattuck Avenue)
• 1,020-square-foot parklet at Shattuck Avenue frontage • 130 residential and 24 commercial vehicle parking spaces (includes 4 car share spaces) • 256 bike spaces in two ground-floor rooms
• Community benefits – Project Labor Agreement representing approximately 20 to 25 percent of estimated project construction costs
B. Base Project and Density Bonus:
By committing to provide 58 V
LI units, the project is eligible for a density bonus under Government Code Section 65915. Under the City’s density bonus procedures, the Base Project was calculated to have 411 units as the maximum allowable density for the site. 1 1 Per the City’s Density Bonus Procedures (DBP), the Base Project is the largest project allowed on the site that is fully compliant with district development standards (i.e. height, setbacks, usable open space, parking, etc.), or, the maximum allowable density for the site. The City uses the DBP to calculate the maximum allowable density ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 15 of 32
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The Base Project has an average unit size of 659 square feet in an 11-story building. Fifty- eight VLI units, or 14 percent of the Base Project, qualifies the project for a 46.25 percent density bonus or 191 bonus units, of which the project would utilize 188. The resulting proposed project would be a 2 8-story building with 599 units (out of 602 units maximum possible), with an average unit size of 660 square feet (see Table 5: Density Bonus).
Table 5: Density Bonus – Government Code 65915
Base Project Units* Qualifying Units Percent Density
Bonus
Number of Density
Bonus Units*
Proposed Project
Units
411 58 VLI
(14% of base project) 46.25 percent 188 (191 max.)
(38.75% x 333) 599 (602 max.)
*Per Government Code 65915(q), all unit calculations are rounded up to the nearest whole number.
Abbreviations: % = percent, max. = maximum
IV. Community Discussion
A. Neighbor/Community Concerns: Prior to submitting the application to the City , yellow project posters were installed at the project site. On February 21, 2023, the project team held a virtual community meeting via Zoom to inform neighbors and interested citizens of the project. The meeting was attended virtually by one participant, who expressed concerns about the height and scale of the building.
Prior to the Design Review Committee meeting on January 16, 2025, four comment letters were received by staff. One letter from McDonald’s USA, LLC notified the City that McDonald’s has a leasehold interest in the project site through December 31, 2031, a portion of which is subleased to the franchisee of the 1998 Shattuck restaurant. The letter informed the City that McDonald’s intends to occupy the site for the duration of the lease term, and that redevelopment may not commence until the lease expires. The three other letters were from Berkeley citizens, and expressed concerns over the project’s height, size, traffic, parking, affordability , vacancy rate, and the building design and aesthetics.
On February 13, 2025, the City mailed public hearing notices to property owners and occupants within 300 feet of the project site, and to interested neighborhood organizations, and posted notices within the neighborhood in three locations.
Three letters were received by staff from February 14 to 15, 2025, prior to the Design Review Committee meeting for the project, expressing concerns for excessive height, size and scale; not enough parking in building for the increase in residents; an unappealing design; and unit unaffordability.
for a site where there is no density standard in the zoning district, and to determine the number of units in the Proposed Project, which is the number of B ase Project units plus the number of density bonus units that can be added according to the percentage of BMR units proposed, per Government Code, §65915(f).
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 16 of 32
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B. Design Review Committee:
This project proposes development in a non- residential zoning district; therefore, it is subject to review by Design Review Committee (DRC) pursuant to BMC Section
23.406.070(B)(1). The project was referred to the DRC for Preliminary Design Review on January 16, 2025. The DRC provided a favorable recommendation to ZAB with the following conditions and recommendations for Final Design Review (FDR) [VOTE (6 -0-0-1) Kahn – absent]:
Conditions - None
Recommendations
Site Design
• Refine the design at the corner of University and Shattuck Avenues to enhance the pedestrian realm and develop it to be as strong as the design at Shattuck Avenue and Berkeley Way.
• Refine the column design at the corner of University and Shattuck Avenues. • Provide a rendering from the sidewalk that shows the top floor.
Exterior Details
• Refine details at the 14th and top floors with consideration of the guardrails and railings
• Look at resolution of color palette and materials and present final details and material samples at FDR. Details to include metal panels, horizontal bands, parapets, metal awnings, garage gate, windows, railings, and lighting.
Landscaping
• Increase the landscaping on the 14th floor with native plants that are also wind and drought tolerant.
• Consider a green wall on Berkeley Way, as well as the column at University and Shattuck Avenues.
• Consider adding a green edge at the second floor.
Windows / Additional Details
• Add as much depth and interest as possible with detail development. • Consider adding bird safe glass, especially at railings. • Recess windows at the end of the corridor on the north façade.
Miscellaneous
• Consider reallocation of lobby space.
• Recommendation for a pool cover.
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 17 of 32
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C. Landmarks Preservation Commission: The project involves the demolition of five buildings, four of which are existing commercial building s that are over 40 years in age , listed below. The building at 1984-88 Shattuck Avenue is less then 40 years old, and is not subject to demolition referral review.
• 1950-1958 Shattuck Avenue, APN 057-20 53-001-00, built 1922 • 1974-1978 S hattuck Avenue, APN 057-2053-002-00, built 1921 • 1986-1998 Shattuck Avenue, APN 057-20 53-003-01, built 1951 • 2071-2079 University Avenue, APN 057-2 053-004-02, built 1906 None of the buildings subject to demolition referral review are listed on the National, State or local historical registers, and none are eligible for listing on these registers. The Landmarks Preservation Commission (LPC) held a meeting on January 6, 2025 to consider the demolition referral for these buildings and took no action. However, the LPC made a recommendation to the ZAB to suggest that the applicant include a readily visible historical display in the new development site and share the story of the block.
V. CEQA Categorical Exemption
On November 19, 202 4, staff determined that the project is categorically exempt from the provisions of CEQA under Section 15332 (“Infill Development Projects”) of the CEQA Guidelines. (See Attachment 4.) AB 1633, which became effective on January 1, 2024, revised a provision in the Housing Accountability Act (HAA, Government Code Section 65589.5) that allows developers to file a petition to enforce the HAA’s protections where a local agency fails to make a determination that the project is exempt from CEQA when it is eligible for the exemption.
The project applicant’s attorney submitted a letter on October 8, 2024 in support of a Cla ss
32 Categorical Ex emption from CEQA and the project’s eligibility for AB 1633 protections . (See Attachment 5.) The applicant separately submitted an Air Quality Report, a Noise Impact Analysis, and a Water Quality Impact Analysis to support an infill exemption. All technical reports were peer reviewed by a CEQA consultant, and were revised for adequacy.
Upon review of all evidence on the record, staff determined that the project would meet all of the requirements of the Class 32 Infill Exemption, as follows:
1. The project is consistent with the applicable General Plan designation and policies, and with the applicable zoning designation and regulations.
2. The project occurs within the Berkeley City limits on a project site of no more than five acres, and is surrounded by urban uses.
3. The parcels within the project site have previously been developed and have no value as habitat for endangered, rare or threatened species.
4. The project would not result in any significant effects relating to traffic, noise, air quality or water quality. The Traffic Impact Analysis prepared for the project was reviewed by the City Transportation Division,
which returned no concerns . Standard City
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 18 of 32
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Conditions would address potential impacts related to traffic, noise, air quality, and water quality.
5. The site can be adequately served by all required utilities and public services.
Further, staff determined that none of the exceptions to categorical exemptions in CEQA Guidelines Section 15300.2 apply to the project – (a) Location, (b) Cumulative Impact, (c) Significant Effect, (d) Scenic Highways, (e) Hazardous Waste Sites , a nd (f) Historical Resources.
Staff issued a CEQA Determination Letter on November 19, 2024 with the determination that the project is exempt under the Class 32 Infill Exemption. Government Code Section 65950(a)(5) requires a public agency to approve or disapprove a project within 60 days from the determination that the project is exempt from the CEQA, unless the applicant agrees to an extension. In this case, the applicant agreed to bringing this to the ZAB on February 27, 2025.
The ZAB must approve or disapprove the project at tonight’s hearing.
VI. Issues and Analysis
A. Housing Ac countability Act: The Housing Accountability Act (HAA), California Government Code Section 65589.5(j), requires that when a proposed housing development complies with the applicable, objective general plan and zoning standards, but a local agency proposes to deny the project or approve it only if the density is reduced, the agency must base its decision on written findings supported by substantial evidence that:
1. The development would have a specific adverse impact on public health or safety unless disapproved, or approved at a lower density; and
2. There is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, other than the disapproval, or approval at a lower density.
The project is a “housing development project” consisting of a mixed- us e building with at
least two-thirds of the floor area in residential use/transitional or supportive housing. The Base Project includes Use Permits and/or Administrative Use Permits 2 to allow: building height over the district limit , rooftop architectural projections above the height limit, reductions to setbacks and diagonal width , and deviation from fence requirements when abutting a residential district, and complies with applicable, objective general plan and zoning standards. Government Code Section 65589.5(j)(3) provides that a request for a density bonus “shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision.” Therefore, the City may not deny the Base Project 2 The City has determined that the “protections afforded by the HAA and the definition of a base project for density bonus calculations apply to a housing development project up to and including the maximum development allowed with use permits and/or administrative use permits.”
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 19 of 32
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or density bonus request or reduced the density with respect to those units without basing its decision on the written findings under Section 65589.5(j), above.
As shown in Table 4, the project complies with the zoning standards. The project includes Use Permits or Administrative Use Permits to modify standards to represent the maximum allowable density on the site. There are no objective criteria in the permit findings; therefore, the project still complies with the HAA. The ZAB has the discretion to approve, deny or modify the request according to the zoning findings, provided the action does not reduce the project density or effectively deny the project by making it infeasible, unless the ZAB is also able to make the required findings for denial set forth under Section 65589.5(j), above.
Staff is not aware of specific adverse impacts that could occur with the construction of the of the project.
B. Housing Crisis Act of 2019 – Senate Bill (SB) 330: The Housing Crisis Act, also known as Senate Bill 330, seeks to boost homebuilding throughout the State with a focus on urbanized zones by expediting the approval process for and suspending or eliminating restrictions on housing development. A “housing development project” can include any of the following: residential units only; mixed use consisting of residential and nonresidential uses in which at least two -thirds of the square- footage is designated resi dential, and transitional or supportive housing. Sections of SB 330 that apply to the proposed project include the following:
Government Code Section 65905.5(a) states that if a proposed housing development project complies with the applicable, objective general plan and zoning standards in affect at the time an application is deemed complete, then the city shall not conduct more than five hearings in connection with the approval of that housing development project. This includes all public hearings in connection with the approval of the housing development project and any continuances of such public hearings.
The city must consider and either approve or disapprove the project at any of the five hearings consistent with applicable timelines under the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920)).
The February 27, 202 5 ZAB hearing represents the third public hearing for the proposed project since the project was deemed complete. The application must be approved or disapproved at tonight’s hearing. See Section VI.B.3 for details. One hearing must be reserved for a possible appeal to the City Council.
Government Code Section 65913.10(a) requires that the City determine whether the proposed development project site is a historic site at the t ime the application for
the housing development project is deemed complete. The determination as to whether the parcel is a historic site must remain valid during the pendency of the housing development project, unless any archaeological, paleontological, or tribal cultural resources are encountered during any grading, site disturbance, or building alteration activities.
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 20 of 32
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None of the buildings subject to demolition referral review are listed on the National, State or local historical registers, and none are eligible for listing on these registers.
The LPC determined that there is no historic resource on the project site (see section IV.C for discussion). Standard conditions of approval have been included to halt work if any unanticipated discovery of archeological, paleontological, or tribal cultural resources.
C. Density Bonus Waivers and Concessions: The project is entitled to two concessions (or incentives), under Government Code Section 65915(d) for providing at least 10 percent of total units to very low -income households, and an unlimited number of waivers, under Section 65915(e).
1. Concessions: A concession or incentive is a modification of a zoning code requirement that results in identifiable and actual cost reductions to provide for affordable housing costs. The applicant is requesting one concession for the project to allow an exemption from the Percentage for P ublic Art on Private Projects in-lieu fee.
The City may only deny the concession if it finds that the concession would have a specific adverse impact upon public health and safety, or the physical environment, or on any real property listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low -income, very -low income, and moderate-income households, or if the concession would be contrary to State or Federal law. Staff believes such a finding cannot be made.
2. Waivers: A waiver is a modification of a development standard that would otherwise physically preclude the construction of the project with the permitted density bonus and concessions. Waivers for height (maximum height and rooftop projections), setbacks, diagonal width, and private (usable) open space are requested because they are necessary to physically accommodate the full density bonus project on the site. The waivers are requested because they are necessary to physically accommodate the additional 188 units allowed with the density bonus project on the site.
The City may only deny the waivers if it finds that the waivers would have a specific adverse impact upon public health and safety, or the physical environment, or on any real property listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low -income, very -low income, and moderate-i
ncome households, or if the waiver would be contrary to State or Federal law. Staff believes such a finding cannot be made.
D. Demolition of Non- residential Buildings and Structures: Pursuant to BMC Section
23.326.070 main non-residential buildings may be demolished provided that the demolition will not be materially detrimental to the commercial needs and public interest of the ITEM #3
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ZONING ADJUSTMENTS BOARD 1950-199
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impacted neighborhood and one of the following findings can be made: that the demolition of the structure is required to allow a proposed new building or other proposed new use; will remove a building which is unusable for activities which are compatible with the purposes of the District in which it is located or which is infeasible to modify for such uses; will remove a structure which represents an un-abatable attractive nuisance to the public; or is required for the furtherance of specific plans or projects sponsored by the City or other local district or authority.
The proposed demolition of the five existing one-story, commercial buildings would not be materially detrimental to the commercial needs and public interest of the neighborhood because the proposed project would replace the 26,610 square feet of eliminated commercial floor area (restaurants, bar) with approximately 16,142 square feet of new commercial (retail, restaurants, and bar) in a 411,330-square-foot, mixed-use building that would provide 599 net-new residential units, including 58 VLI affordable units, to bring more diversity of services to residents and workers in the vicinity and new housing to the neighborhood and the City at large. The demolition is required in order to allow the proposed project to be constructed. The proposed development would be compatible with the C-DMU District purposes and the adjacent permitted uses, as discuss ed in the Section VII. Other Considerations.
In addition, if demolishing a non-residential building more than forty years old, the demolition may be allowed if the LPC, upon review, does not recommend against granting the permit.
The LPC reviewed the demolition referral for the project and did not recommend against the demolition permit.
E. Use Permit to Commence Alcohol Sales and Service (Distilled Spirits): The sale and service of distilled spirits incidental to food service is allowed in the C-DMU District if a Use Permit is granted by ZAB in accordance with required Findings for Public Convenience or Necessity as specified under BMC 23.310.020(C). This section requires the City to make the following findings:
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 22 of 32
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1. The number of alcoholic beverage sales licensees in the census tract does not exceed the limit set by the Department of Alcoholic Beverage Control (ABC), as defined in California Business and Professions Code Section 23958.4; and
2. At least one of the following:
a. The proposed establishment will promote the City’s economic health, contribute to General Plan or area plan policies, or further the district purpose. b. The economic benefits associated with the establishment could not reasonably be achieved without the proposed alcohol sales or service. c. The applicant has operated a licensed establishment that has not been the subject of violations regarding alcohol, or violations of public safety or nuisance statutes or regulations in Berkeley. In making this finding, the decision- making body may consider the number, frequency, and severity of prior violations and the time elapsed since the last violation, and other relevant factors.
The current A lcoholic Beverage Control license owned by the existing restaurant /bar (Spat’s) allows for sales of beer, wine, and distilled spirits for off-site consumption at a bona fide eating place. The number of alcohol licenses within the census tract will not change if the restaurant/bar in the new building assumes ownership of the existing restaurant/bar license, or if the current license owner surrenders the existing license and the new restaurant/bar applies for a new license. A Condition of Approval will be included in t he permit to require that no net new alcohol licenses are obtained for businesses at the project site. A dditional findings in BMC Section 23.310.020(C)(3) for exceeding the number of licenses within the census tract would not apply.
The allowance of distilled spirits sales and service in conjunction with a bona fide eating establishment in the project would provide a wider range of alcoholic menu options to patrons that are customarily available within other restaurants . Such expanded menu choices would contribute to the economic success of the restaurant. The addition of distilled spirits to th e offerings would also increase business revenue, resulting in increased tax revenue for the City. The Berkeley Police Department has reviewed the proposal and noted that there are no alcohol-related violations against the property owners of the parcels in the project site, and no violations of alcohol or public safety.
Therefore, staff recommends approval of this permit. Alcohol service standards are included in the Conditions of Approval for the permit, and the applicant would be required to meet applicable ABC standards for the license type.
F. Administrative Use Permit for Food Service Establishment Greater Than 3,000 Square Feet: Pursuant to BMC Section 23.302.070(E)(2) , the ZAB may approve a use permit for Food Service Establishment (rooftop restaurant/bar) greater than 3,000 square feet, if the use meets the findings in BMC Section 23.204.130(I). See section VII.A below.
G. Administrative Use Permit for Amplified Live Entertainment: Pursuant to BMC Section
23.204.020(A), the ZAB may approve a use permit for Amplified Live Entertainment in the rooftop restaurant /bar if the use meets the findings in BMC Section 23.204.130(I). See section VII.A below.
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 23 of 32
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H. Administrative Use Permit for an Outdoor Use Not Abutting a R esidential District:
Pursuant to BMC Section 23.302.020(D)(3), the ZAB may approve a use permit for outdoor use (outdoor dining for rooftop restaurant/bar) in a c ommercial district not abutting a residential district, if the use meets the findings in BMC Section 23.204.130(I). See section VII.A below.
VII. Other Considerations (Zoning and Land Use Considerations) The following analyses of conformance with district purposes, and the 2002 General Plan goals and policies are provided for informational purposes only, to provide context, because the proposed project is HAA-compliant. The following permits have been determined by the City to be included in the Base Project of the proposal, and are subject to Section 65589.5(j) of the HAA. See section VI.A for discussion of the HAA. All permits are subject to the C-DMU District permit findings and General Non- Detriment findings discussed in sections VII.A and VII.B.
A. Findings for Use Permits in C -DMU District: Pursuant to BMC Section 2 3.204.130(I), in order to approve any Use Permit in the district, the Board must make the findings that the proposed use or structure:
1. Is compatible with the purposes of the district:
The purpose of the C-DMU district is to implement the vision and goals of the Downtown Area Plan (DAP) (adopted 2012), which include: Environmental Sustainability, Land Use, Access, Historic Preservation and Urban Design, Streets and Open Space, Housing and Community Health and Services, and Economic Development.
Environmental Sustainability and Access : DAP goals: Integrate environmentally sustainable development and sustainability best practices; encourage high density, highly livable development to utilize regional transit and improve the availability of diverse walk-to destinations; promote “green” buildings; promote ecologically beneficial landscaping and stormwater features; minimize waste generated Downtown; improve options that increase access to Downtown on foot, by bicycle, and via transit; provide parking to meet the needs of Downtown, while discouraging commuter parking; promote transit as an efficient, attractive choice and as a primary mode of travel.
The project is a high- density mixed-us
e development in proximity to regional transit,
shops and amenities, and would provide more housing in the Downtown to increase access to local services and amenities by foot, by bicycle and via transit, while promoting public transit as an efficient and attractive choice through its location and through its Transportation Demand Management measures and other associated Conditions of Approval. The project would comply with the State’s Model Water Efficient Landscape Ordinance (MWELO), provide landscaping in its open space areas, and would feature a number of native plant species in its landscape palette. The project propos es GreenPoint Rated Silver certification, which is equivalent to the LEED Gold rating, as required for new buildings in the C-DMU District.
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 24 of 32
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Land Use: DAP goals: Encourage a thriving, livable Downtown that is a focal point for the city and a major destination for the region, with a unique concentration of housing, jobs and cultural destinations near transit, shops and amenities; new development contributes fair share toward Downtown improvements; cultivate Downtown as an attractive residential neighborhood with a range of housing opportunities, with an emphasis on affordable housing and family housing; new development enhances Downtown’s vitality, livability, sustainability, and character through appropriate land use and design; enhance Downtown as a center for employment and innovative businesses.
The mixed-use project, which includes 58
VLI units, would add new affordable housing
to the Downtown area. Ground floor commercial uses and a rooftop restaurant/bar with outdoor seating and live entertainment would contribute to the area’s vitality, livability, sustainability, and character. New street trees and landscaping along Shattuck and University Avenues and Berkeley Way would add to the cultivation of the Downtown as an attractive residential neighborhood.
Historic Preservation and Urban Design: DAP goals: Conserve Downtown’s historic resources and unique character and sense of place; enhance areas of special character in Downtown, such as clusters of historic resources; provide continuity and harmony between the old and the new in the built environment; improve the visual and environmental quality of Downtown, with an emphasis on pedestrian environments that are active, safe and visually engaging.
The project does not propose to demolish or alter any known historic or cultural resource and would preserve the existing historic resources in the Downtown.
The project would provide continuity and harmony between the old and the new in the built environment, improve the visual and environmental quality of Downtown and create an active, safe and visually engaging pedestrian environment. A t 28 stories and 317 feet
tall (measured to the parapet) the building would be the tallest built structure in the City (taller than the Campanile on the U.C Berkeley campus at 307 feet tall). However, the building is designed to step down from its 28-story maximum height to 14 stories on the north side, away from the Core downtown area, in a nod to the first “skyscrapers” in the downtown – the 13-story Chase building and the 12-story Wells Fargo building located at Center and Shattuck. The transparency of the commercial storefronts and the 20-foot window/ceiling height on the ground- floor of the Shattuck and University Avenue façades would enliven the streetscape on these frontages. The parklet and publicly accessible plaza on either side of the sidewalk on the Shattuck Avenue frontage would engage pedestrians walking through the downtown commercial district and welcome them to the businesses in the building.
The DRC deemed the project consistent with Downtown Berkeley design guidelines, and provided a favorable recommendation to the ZAB . The proposed project design incorporates materials, color, façade design , ground-floor transparency, roof forms, setbacks, height and open space elements consistent with guidance in the Downtown Berkeley Design Guidelines.
ITEM #3
ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 25 of 32
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Streets and Open Space: DAP Goals: Enhance public open spaces and streets to benefit pedestrians, improve Downtown’s livability, and foster an exceptional sense of place; promote watershed health through the use of ecologically beneficial landscaping and other features; adequately fund streets and open space improvements, maintenance, and cleaning; new development contributes to greenery and open space.
The project would include street trees along Shattuck and University Avenues and Berkeley Way, and a 1,020-s
quare-foot parklet bulb-out and 706-square-foot publicly- accessible private plaza on the Shattuck Avenue frontage to benefit pedestrians, as well as future residents. The second-floor podium deck and 14th floor roof deck would provide landscaped open space and amenities for residents. The project will contribute funds to the Streets and Open Space Improvement Plan (SOSIP).
Housing and Community Health and Services: DAP Goals: Encourage Downtown as a thriving, livable, diverse residential neighborhood with a mix of supportive uses; offer diverse housing opportunities for persons of different ages and incomes, households of varying size, and persons of varying abilities; preserve existing affordable housing Downtown, and expand the supply of affordable housing to low-income, very low-income and working-class households in Downtown.
The project will involve construction of a mixed-us
e building with a total of 599 dwelling
units, including 58 VLI units. The project would expand the supply of affordable housing and contribute to a thriving, livable, diverse residential neighborhood with a mix of supportive uses in Downtown.
Economic Development: DAP Goals: Make Downtown a more attractive regional destination, by building on Downtown’s unique blend of cultural, historic, entertainment and by promoting successful retail businesses and other attractions with daytime and nighttime populations to support them; make Downtown more at tractive and economically successful, encourage placemaking through the preservation of historic buildings, street and open space improvements, and high- quality new construction; Invest in civic improvements (such as streets, open spaces, and community facilities) to enhance Downtown as a place to live, work, and visit; Increase the number of Downtown jobs that go to Berkeley residents, and support the development of job skills for Berkeley residents – especially Berkeley’s youth; serve the housing needs of all income groups and provide a growing base of residents who support a broad range of Downtown retail and other business.
The project would bring new residents and a greater range of household incomes to the Downtown area, while preserving the character of the Downtown Historic neighborhood, to contribute to the area’s vitality and success. The project would bring approximately 8,342 square feet of ground-f
loor retail and a 7,800-square-foot rooftop restaurant to the area to contribute to making Downtown an attractive regional destination for living, working and visiting. In addition, the project includes a Project Labor Agreement with the Alameda County Building Trades Council, representing approximately 20 to 25 percent of estimated project construction costs , to utilize local workers for project construction.
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ZONING ADJUSTMENTS BOARD 1950-199
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2. Is compatible with surrounding uses and buildings.
The project site is located at the eastern end of the block bounded by Berkeley W ay, Shattuck Avenue, and University Avenue in Downtown Berkeley in an urban area with immediate access to transit. The site’s immediate surroundings are a mixture of buildings that contain mixed- use residential with ground floor commercial, multi -family residential, and commercial uses, and range in height from one story to twelve stories.
Other taller buildings are the 12- story, mixed-use residential building across Shattuck Avenue at 1951 Shattuck; the 14-story, Anchor House at 1950 Oxford Street, one block east; and the 16-story, Residence Inn Hotel at 2129 Shattuck Avenue, two blocks south of the site. Recently approved “tall buildings” include the 25-story, mixed-use residential building at 2190 Shattuck (approved in 202 3), three blocks to the south; and the 26- story, mixed-use residential building at 2128 Oxford Street (approved in 2024) three blocks southeast of the project site.
As a one of the five “tall buildings” allowed in the C-DMU District and one of the two “tall buildings” allowed in the Outer Core/Core Sub-Areas (combined), the project would be compatible in size and scale with the other four “tall buildings” that are either already constructed or were recently approved in the Downtown area. Thus, the project would be compatible with surrounding uses and buildings. In addition, the DRC deemed the proposed project consistent with Downtown Berkeley Design Guidelines, and provided a favorable recommendation to the ZAB with conditions and recommendations for Final Design Review. (See section IV.B for discussion.)
B. General Non-Detriment Finding: BMC Section 23.406.040 states that before the ZAB approves an application for a Use Permit, it must find that the project, under the circumstances of this particular case existing at the time at which the application is granted, would not be detrimental to the health, safety, peace, morals, comfort, and general welfare of the persons residing or working in the neighborhood of such proposed use or be detrimental or injurious to property and improvements of the adjacent properties, the surrounding area or neighborhood, or to the general welfare of the City.
1. The project is consistent with all applicable C -DMU District standards and qualifies for concessions and waivers for the listed district standards granted pursuant to State Density Bonus, Government Code, Section 65915.
2. Shadows : According to the shadow studies submitted for the project (see Attachment 3, Project Plans – Sheets A0.4a through A0.4c), new shadow impacts would occur:
a) in the winter and spring months in the hours after sunrise and around noon , on the residential buildings on the blocks to the north and northwest of the site, and b) in the summer months in the hours after sunrise on the residential buil dings to the west of the site. All other new shadows would impact non-residential buildings in the vicinity. The extent of the new shadow impact from the project on the site’s adjacent areas would be limited to a few hours of the day , during certain times of the year, would not be unreasonable for a development in the dense, downtown district that allows building heights up to 60 feet, with 0 to 5-foot setbacks from property lines, by right.
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ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 27 of 32
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The additional height above the district limi ts from the density bonus would cast shadows in the affected directions further than if the project were limited to the base district height standards. The proposal would include waiver s for additional height beyond the district height limits to accommodate the density bonus units (see Section VI.C for a discussion of waivers) and allow a 312-foot-tall (plus 5-foot parapet), 28- story building. Overall, the shadow impacts from the project would be reasonable and not detrimental.
3. Non-Detriment: The project is subject to the City’s standard conditions of approval regarding construction noise and air quality, waste diversion, toxics, and stormwater requirements, thereby ensuring the project would not be detrimental to the health, safety, peace, morals, comfort or general welfare of persons residing or working in the area or neighborhood of such proposed use or be detrimental or injurious to property and improvements of the adjacent properties, the surrounding area or neighborhood or to the general welfare of the City.
C. Administrative Use Permit for Architectural Projections to Exceed Height L imit:
BMC Section 23.304.050(A) requires an Administrative Use Permit for roof -top projections, such as mechanical penthouses, elevator equipment rooms or stair towers, that would exceed the maximum height limit. Such projections are limited to no more than 15 percent of the average floor area of all of the building’s floors and cannot be used as habitable space or for commercial purposes. The project would include staircase and elevator penthouses 1,464 square feet on the roof of level 28 that would extend seventeen feet over the roof height. These areas represent 10 percent of the 14,058-square-foot average of all the floor areas, and would not exceed the limit of 15 percent of the average floor area, and are therefore permissible.
D. Use Permit to Exceed Building Height Limits: Pursuant to BMC Section
23.204.130(E)(2), the ZAB may issue Use Permits for up to five buildings that exceed the 75-foot height limit – two buildings in the C-DMU District Combined Core and Outer Core Sub-Areas between 75 and 120 feet, and three buildings in the Core Sub-Area between 120 and 180 feet. The Use Permits shall include a condition of approval that establishes a schedule for submittal of a building permit application, timely response to plan check comments, payment of building permit fees such that a building permit can be issued, and beginning construction. If approved, this project secures a position as the second of two buildings in the Outer Core Sub-Area (combined) that are allowed to exceed height limit of 75 feet, up to 120 feet (base project height for density bonus projects). It would be the last of the five “tall buildings” allowed in the Core and Outer Core Sub- Areas that are allowed to exceed height limit of 75 feet, up to 180 feet (base project height for density bonus projects).
3 3 The other “tall building” allowed to exceed height limits in the Outer Core Sub-Area has been constructed – the mixed-use residential building at 1951 Shattuck Avenue. The three “tall buildings” allowed to exceed height limits in the Core Sub-Area have either been constructed – the Residence Inn Hotel at 2129 Shattuck Avenue – or have recently been approved – the 25-story mixed-use residential building at 2190 Shattuck (approved in 2023), and the 26-story mixed-use residential building at 2128 Oxford Street (approved in 2024).
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ZAB 2025-02-27
ZONING ADJUSTMENTS BOARD 1950-199
8 SHATTUCK - ZP2023-0040
February 27, 2025 Page 28 of 32
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Community Benefits . Use Permits to exceed building height of 75 feet must provide significant community benefits, either directly or by providing funding for such benefits to the satisfaction of the City, beyond what would otherwise be required by the City.
Significant community benefits may include, but are not limited to affordable housing, supportive social services, green features, open space, transportation demand management features, job training, and/or employment opportunities. The applicant is required to provide proforma estimating the costs of the proposed benefits for the City to evaluate whether the benefits package is adequate in proportion to the value of the height and whether the project can achieve a reasonable rate of return while providing the significant community benefits proposed. Community benefit requirements shall be included as conditions of approval and the owner shall enter into a written agreement with the City that shall be binding on all successors in interest. City Council provided direction for determining significant community benefits with Resolution #67,172- NS, adopted in July, 2015.
The project provides a community benefits proposal that is primarily composed of a Project Labor Agreement – an agreement with the Alameda County Building Trades Council, representing approximately 20
to 25 percent of the estimated project construction
cost, which is greater than the minimum 5 percent specified in the Resolution #67,172- NS. It is noted, however, that the project offers no other significant community benefit s that exceed regulatory requirements, beyond the Project Labor Agreement.
The City engaged Strategic Economics t o review the project’s Pro Forma Financial Analysis Summary (see Attachment 6). The peer review memorandum dated November 7, 2024 concluded that key assumptions in the applicant’s pro forma are optimistic, but that the Community Benefits package is reasona ble overall, and would not make project infeasible.
E. Use Permit to Reduce Setbacks: Pursuant to BMC Section 23.204.130(E)(2), the ZAB may approve a permit to modify setbacks upon finding that the modifications will not unreasonably limit solar access or create significant increases in wind experienced on the public sidewalk.
The project requests reduced front and side setbacks above 75 feet, up to 120 feet in building height in the Base Project. The findings in this section are not applicable to reduced setbacks above 120 feet building height that are requested waivers in the Proposed Density Bonus Project. The setback encroachment in the Base Project would result in a minimal contribution to new shadow impact relative to the increase in shadow impact from the Density Bonus project height and reduced setbacks that are requested as waivers. See section VI.C for shadow study analysis. Thus, the setback reduction t he Base Project would not unreasonably limit solar access.
A Pedestrian Wind Comfort Assessment was prepared in March, 2023 by Rowan Williams Davies & Irwin Inc. (RWDI) for the project. The assessment was based on computational modeling, simulation and analysis of wind conditions for the proposed development design (28 stories), in conjunction with the local wind climate data and the RWDI wind criteria for pedestrian comfort and safety. The assessment found that:
ITEM #3
ZAB 2025-02-27