DATE: May 7, 2024
TO: Mayor and City Council
FROM: Development Services Director
SUBJECT: College Heights: Consideration of a Resolution in Support of the College Heights (formerly Bayview Quarry Village) Concept Project
RECOMMENDATION
That the Council discusses the background materials provided by community member Dr. Sherman Lewis, and considers an updated resolution in support of the concepts incorporated in the College Heights, formerly Bayview Quarry Village, concept project and encourage investment that might support the project should it be developed.
BACKGROUND
The Hayward Area Planning Association (HAPA), led by Sherman Lewis, has developed a proposed real estate development concept for which they are eagerly trying to find investment dollars to support. They are seeking City advocacy for the concepts of the College Heights proposal in hopes of finding financial support should it become a reality. The project concept, which potentially would include about 732 units for approximately 1800 residents, is proposed to be located in the Hayward Hills near California State University East Bay (CSUEB) in the former quarry site off Carlos Bee Boulevard. The property was acquired by the State Department of Transportation (CalTrans) related to the previously planned Route 238 Bypass freeway, and is currently designated as Parcel Group 6 under the purchase and sale agreement between the City of Hayward and Caltrans.
The concept intends to be forward thinking in an attempt to reduce sprawl and auto-dependency. Conceptually, residents would select the homes because of their location, environmental sustainability, and the other "green" attributes of the site. Current concepts call for one parking space per unit, or 732 parking spaces, located in a podium style. In order to make the project successful, the concept includes a range of amenities, such as a self-financed "Village Bus" rapid shuttle, cafe and shopping service, along with on-site car sharing.
In May 2014, the City Council adopted a resolution in support of the project concept and Dr. Lewis is seeking an updated resolution from the City Council in support of these concepts in order to be better positioned to find an investment partner.
In September 2019, the City developed a Master Development Plan for this parcel group which was followed by the City issuing an RFP to solicit proposals that were aligned with the Master Development Plan. Proposals submitted in response to that 2019 RFP, were also required to submit a project understanding and impact statement regarding the feasibility of developing the Bayview concept, now College Heights, as presented in a separate proposal document prepared by the Hayward Area Planning Association. At that time, Integral Communities was the proposal awarded an ENRA to develop parcel group 6, but terminated that agreement in January 2022.
DISCUSSION
The concept proponent, Sherman Lewis, has long advocated for the concept and has prepared numerous studies, reports, and presentations regarding the proposed concept benefits. Dr. Lewis has contacted numerous developers over the past several years to seek a development partner with little or no success, in part due to lack of subsidized financing.
The project concepts contained within the College Heights concept proposal are aligned with many goals and objectives outlined in the Hayward 2040 General Plan, including but not limited to the following Land Use (LU) and Mobility (M) policies:
LU-1, Promote local growth patterns and sustainable development practices that improve quality of life, protect open space and natural resources, and reduce resource consumption, traffic congestion, and related greenhouse gas emissions; and LU-3: Create complete neighborhoods that provide a mix of housing options and convenient access to parks, schools, shopping, jobs, and other community amenities; and M-8: Encourage transportation demand management strategies and programs to reduce vehicular travel, traffic congestion, and parking demand.
M-9: Provide and manage a balanced approach to parking that meets economic development and sustainability goals.
Dr. Lewis does not currently have control of the subject property through a purchase and sale agreement or an option on the property; nor does he have completed project plans or a source of financing for the project: College Heights, formerly Bayview Village, is conceptual at this point in time. However, Dr. Lewis is seeking an updated City Council resolution in support of his concepts in the hopes that doing so will aid in the finding of a development partner to help realize this proposal.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority of Preserve, Protect & Produce Housing. This item is not specifically related to a project identified in the Strategic Roadmap. Staff is bringing forth this new item at the request of Dr. Sherman Lewis who seeks an updated City Council Resolution in support of the concepts in his College Heights proposal.
ECONOMIC IMPACT
At this stage an economic impact for the proposed concept is not estimable.
FISCAL IMPACT
As opportunities arise, careful consideration should be given to Council priorities before applying for funds for this concept. Staff time is limited and applying for grant funds and investing staff resources in these efforts would need to be weighed against other demands consistent with Council priorities.
In the longer term, any future development of this site will result in new property taxes; however, it is difficult to estimate those amounts. Further, unless the City or another public entity wishes to be the outright purchaser of this land from CalTrans, the State is required to obtain "fair market value" for the land through their usual auction process. At this time, staff is uncertain if CalTrans has an updated appraised value for the land or when the land parcel will be placed on the auction market. In addition, it does not appear that CalTrans is willing to make allowances within their land disposition process to accommodate the development of this concept into a full-fledged project.
NEXT STEPS
If the attached resolution is approved by Council, staff will forward that resolution to Dr. Lewis for his use in seeking funding and support for his concept; Moving forward, Dr. Lewis will continue to develop his project concept and seek investment dollars in order to secure control of the land and seek out a development or finance partner that can help bring his concept to life.
Prepared by: Sara Buizer, AICP, Development Services Director Recommended by: Adam Kostrzak, Interim Assistant City Manager Approved by:
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Dustin Claussen, Interim City Manager