DATE: April 5, 2022
TO: Christine Daniel, City Manager
FROM: Charles S. Bryant, Community Development Director SUBJECT: Study Session – Adeline Sites
RECOMMENDATION
Staff requests that the City Council consider this staff report and provide comment.
BACKGROUND
The City owns three separate but contiguous parcels located at 3602 Adeline Street, (APN: 005-0480-001-01, 0.029 acres), 1122 36th Street (APN: 005-0480-004, 0.012 acres), and 1122 36th Street, (APN: 005-0480-003, 0.009 acres), together, known as “the Adeline Sites”. The property is bounded by single-family properties to the north, a multi-family and single-family property to the west, Interstate 580 and 36th Street to the south, and a commercial property occupied by Rising Sun Center for Opportunity to the east. Together, the Adeline Sites comprise 0.050 acres.
The Adeline Sites were acquired using low and moderate-income housing asset funds by the former Emeryville Redevelopment Agency, over 20 years ago, in an effort to assemble properties for a future residential development. Unfortunately, the Emeryville Redevelopment Agency was unable to assemble the additional parcels prior to dissolution in 2012. Due to the Adeline Sites’ status as a former redevelopment “housing asset”, California Health and Safety Code (“HSC”) Section 33334.16 applies, which requires activities to develop the properties for affordable housing to be initiated within five years from the date of transfer to the Housing Successor. Otherwise, the properties must be sold, and the proceeds deposited in the City’s Low-Moderate Income Housing Asset Fund.
For the Adeline Sites, the time period described in HSC Section 33334.16 commenced on the date that the California Department of Finance approved the property as a housing asset, or August 31, 2012. On July 25, 2017, the Emeryville City Council adopted Resolution No. 17-130, which extended the time period to initiate development by five years, to September 1, 2022.
The City must move expeditiously to meet the requirements of HSC Section 33334.16; therefore, staff is seeking feedback from the City Council on the potential redevelopment of these properties. The City Council’s input will inform the next steps in a developer solicitation process, described in more detail below.
DISCUSSION
Existing Conditions
The Adeline Sites consist of three vacant parcels surrounded by a wrought iron fence. Parcel 1 (APN: 005-0480-001-01) and parcel 2 (APN: 005-0480-004) run along 36th Street from west to east and are both located in the City of Oakland. Parcel 3 (APN: 005-0480-003) is located in the City of Emeryville and sits behind (i.e., east of) an occupied single-family home located at 3604 Adeline Street.
There are several existing commercial and residential uses in the vicinity of the Adeline Sites. Across Adeline Street and running west along 36th Street is the Ambassador, a 100% affordable multifamily project consisting of 69 one-, two- and three-bedroom apartments. Continuing north along Adeline Street are a series of single-family homes (Bungalow and Victorian architectural styles) on both the west and east side of the street. To the east of the Adeline Sites are a series of commercial buildings along the San Pablo Avenue transit corridor.
General Plan and Zoning
The City’s General Plan and zoning classifies the Emeryville parcel (APN: 005-0480-003) as Mixed Use with Residential, which is described as allowing “(o)ne or more of a variety of residential and non-residential uses, including but not limited to, offices, retail and hotels.” The zoning designation is Mixed Use with Residential South (MURS), which requires a mix of uses, one of which must be residential, on sites of over one acre, but which does allow development with a single use on parcels less than one acre. The parcel is also within the Transit Hub Overlay zone, which reduces parking maximums by 50%.
The City of Oakland’s General Plan classifies the Oakland parcels (APN: 005-0480-001-01 and APN: 005-0480-004) as Mixed Housing Type Residential. The Oakland zoning designation is RM-4 Mixed Housing Type Residential Zone, which states that the intent of the RM-4 zone is to “create, maintain, and enhance residential areas typically located on or near the City’s major arterials and characterized by a mix of single-family homes, townhouses, small multi-unit buildings at somewhat higher densities than RM-3 and neighborhood businesses, where appropriate.” This zoning designation limits residential care, service enriched permanent housing, transitional housing, or emergency residential activity to be no closer than 300 feet from any other such activity. The parcels are also located within a Transit Accessible Area, and the West Oakland Priority Development Area.
The development standards for the Adeline Sites are illustrated in Table 1.
Table 1
Parcel
1 2
3 Jurisdiction Authority
Oakland
Oakland
Emeryville
Size
.029 acres
.012 acres
.009 acres
Permitted Density
1 unit on lots < 4,000 sq ft
1 unit on lots < 4,000 sq ft
1 unit
Maximum Height
35 ft
35 ft
40 ft
FAR
NA
NA
1.5 Maximum Lot Coverage
40%
40%
NA
Min. Front Setback
Same as adjacent developed lot if < 20 ft, otherwise 20 ft.
Same as adjacent developed lot if < 20 ft, otherwise 20 ft.
None.
Minimum Interior Setback
3 ft
3 ft
None
Min. Street Side Setback
3 ft
3 ft
None
Min. Rear Setback
15 ft
15 ft
None
Minimum Parking
1 1
None
Additional Parking for Secondary Unit
1 1
None
Both the Emeryville and Oakland 2015-2023 General Plan Housing Elements include an inventory of sites that are intended to demonstrate that each respective city has adequate sites to accommodate its Regional Housing Needs Allocation (RHNA) during the 2015-2023 planning period. Neither Emeryville nor Oakland identify these vacant parcels within their Site Inventory List to meet its Regional Housing Needs Allocation.
Affordable Bond Expenditure and Administration Plan
On March 2, 2021, the City Council approved the Affordable Housing Bond Administration and Expenditure Plan (“Expenditure Plan”). This plan guides the expenditure of $50,000,000 in Measure C Affordable Housing Bond funds authorized by Emeryville voters, as well as approximately $14,000,000 in additional affordable housing resources available to the City, for a total investment of over $64,000,000.
The Expenditure Plan includes the Adeline Sites as part of its Rental Production program area and allocates $240,000 from the Measure C Affordable Housing Bond proceeds to develop the Adeline Sites.
The Expenditure Plan also establishes performance measures including production goals and income targeting for each program in the plan. For the Adeline Sites, the Expenditure Plan performance measures establish a production goal of 4 low-income units. It is important to note that the Expenditure Plan performance measures are not necessarily determinative of what must be produced in any specific program or project, but rather are meant as a guide to assist the City in evaluating outcomes from the Measure C Affordable Housing Bond program.
Financial/Legal Considerations
As discussed above, the Adeline Sites were acquired using low and moderate-income housing funds (LMIHF) by the former Emeryville Redevelopment Agency and, consequently, the properties must be used for the development of affordable housing or be sold and the proceeds from the sale must be deposited into the LMIHF.
Additionally, in 2019, Assembly Bill (“AB”) 1486 and AB 1255 made changes to the Surplus Lands Act (“SLA”, Government Code, Title 5, Division 2, Part 1, Chapter 5, Article 8. Surplus Land) which may have implications for the Adeline Sites. Specifically, the SLA now includes provisions requiring local agencies to notify the State Housing and Community Development Department (“HCD”) of its inventory of lands it has declared as “surplus” or “exempt surplus”, and includes requirements for noticing HCD and negotiations with interested housing sponsors prior to disposal of surplus lands. Staff will be analyzing the implications, if any, of the SLA on the developer solicitation process for the Adeline Sites.
Proposed Options for Consideration
Staff has researched a variety of options for the City Council to consider related to the Adeline Sites. All options could be targeted to a variety of households at varying income groups, based on the ultimate desire of the City Council.
Sale of Vacant Parcels Option – The sale of the vacant parcels on the open market (and pursuant to any requirements of the SLA) could generate revenue for the LMIHF that could be invested in future housing developments or programs in Emeryville.
Single Family Housing Option – A detached single-family home, could be built on the site.
Homeownership Opportunity– A new single-family home to accommodate a larger family could be built on the site in an effort to provide an affordable homeownership opportunity for a family. The home could be restricted to Low-Income (80% Area Median Income (“AMI”) or Moderate-Income (120% AMI) households. The funding set-aside in the Affordable Housing Bond Administration and Expenditure Plan could be used to subsidize the construction of the home or buy down the mortgage for the homeowner to make it affordable.
Co-Housing Rental Opportunity - A new single-family home, with multiple bedrooms to accommodate various households seeking a co-housing opportunity, could be built on the site. The property could potentially be targeted to special needs populations (i.e., seniors, veterans, formerly homeless, extremely low income (30% AMI)), in which each resident would have their own bedroom, but would have shared living, kitchen and outdoor open spaces. The funding set-aside in the Affordable Housing Bond Administration and Expenditure Plan could be used to subsidize the construction of the home “Missing Middle” Housing Option - A small multifamily residential structure, such as a stacked duplex or triplex, could be built on the site to create housing opportunities for multiple households, at varying income categories. Missing Middle Housing is defined as house-scaled buildings, featuring multiple units that reside within a walkable neighborhood. Units are inherently smaller than units in conventional single-family housing, thus making them more affordable through shared land costs.
Homeownership Opportunities at Varying Price Points– Through innovative design, the structure could accommodate two units of varying sizes, thereby creating homeownership opportunities at various price points. The funding set-aside in the Affordable Housing Bond Administration and Expenditure Plan could be used to subsidize the construction of the structure or buy down the mortgage for the homeowner(s) to make their units affordable.
Very Affordable Rental Opportunities - Through increased density, the structure could accommodate 2 or 3 units for smaller households with very low (50% AMI) or low income (80% AMI). The funding set-aside in the Affordable Housing Bond Administration and Expenditure Plan could be used to subsidize the construction of the structure.
Homeownership with a Rental Investment Opportunity– The structure could be built to be sold to a homeowner interested in living in one unit, while renting out the other units in the structure at an affordable rate. This model would create a mixed-income property. The funding set-aside in the Affordable Housing Bond Administration and Expenditure Plan could be used to subsidize the construction of the structure. This model would create a mixed-income property.
Accessory Dwelling Unit (ADU) Option – The opportunity to construct one or more ADUs on the Adeline sites may avail itself under the Single Family or Missing Middle options described above, which could serve as a demonstration project to promote and encourage ADU development in Emeryville.
Discussion Questions
Staff is requesting the City Council’s feedback on how to proceed with the Adeline Sites and what type of development the City Council is interested in. Discussion on the following questions will provide specificity in determining the City Council’s priorities for the property within the bounds of economic and legal feasibility.
Is the City Council more interested in selling the vacant parcels or development of affordable housing on the Adeline Sites? If development of affordable housing is the preference, is the City Council more interested in creating a Single-family or Missing Middle housing opportunity? Is the City Council more interested in a homeownership opportunity, a rental opportunity or a homeownership and rental opportunity? Is there a population or income group the City Council would like to target and serve with the development of the Adeline Sites? In combination with any of the development concepts outlined above, is the City Council interested in pursuing the development of one or more ADUs on the Adeline Sites? Next Steps
In order to best position the City to meet the requirements of HSC 33334.16, the City must move expeditiously to advance the development of the Adeline Sites. Once the City Council provides direction to staff on the best use for the Adeline Sites, the staff can then move forward in either (1) developing a Request for Qualifications/Proposals (RFQ/P) for the redevelopment of the site or (2) ordering an appraisal and engaging a real estate professional to assist with the sale of the Adeline Sites.
FISCAL IMPACT
This item is for informational and discussion purposes only and has no direct fiscal impact.
STAFF COMMUNICATION WITH THE PUBLIC
None.
CONFLICT OF INTEREST
None.
CONCLUSION
Staff requests that the Council discuss the Adeline Sites and provide feedback on the questions outlined in this report.
PREPARED BY: Valerie F. Bernardo, Community & Economic Development Coordinator II REVIEWED BY: Chadrick Smalley, Economic Development and Housing Manager
APPROVED AND FORWARDED TO THE
CITY COUNCIL OF THE CITY OF EMERYVILLE:
________________________
Christine Daniel, City Manager
ATTACHMENTS:
Aerial Photo and Street Views of Adeline Sites
Assessor Parcel Map
Study Session – Adeline Sites
City Council Meeting | April 5, 2022
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City of Emeryville
CALIFORNIA
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