ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 25-____
Introduced by Council Member _________
RESOLUTION AUTHORIZI NG THE CITY MANAGER TO NEGOTATE AND
EXECUTE A DISPOSITION AND DE VELOPMENT AGREEMENT WITH BAY
AREA COMMUNITY SERVI CES FOR THE TRANSFER OF TWO PARCELS ON DEPOT ROAD WITH APNS 439 -0070-006-01 AND 439 -0070-006-02; AND
FINDING THAT THE ACTION IS EXEMPT FROM ENVIRONMENTAL REVIEW
WHEREAS, in 2022 and subsequently in 2025, Bay Area Community Services (BACS) received state funding to develop and operate a men tal health rehabilitation center (MHRC) in Hayward to provide psychiatric and rehabilitative treatment on a 24 -hour basis for people with mental health issues, drug use disorders, and related concerns; and
WHEREAS, the MHRC proposed by BACS would be a locked facility for individuals on an involuntary hold under supervision. It would be accessed by referral only with no drop-ins and all patients would be discharged with a housing plan for any unhoused patients; and
WHEREAS, since 2023, BACS and the City h ave been in conversations about using the existing site of the Hayward Navigation Center on Depot Road for the proposed MHRC; and
WHEREAS, the City holds fee title to the 0.73 acre parcel at 3788 Depot Road with Assessor’s Parcel Number (APN) 439 -0070-006-01 which is the current site of the Hayward Navigation Center, as well as a 0.24 acre parcel on Depot Road separated from the Navigation Center by Whitesell Street , with APN 439-0070-006-02, which is currently undeveloped (collectively the “Navigation Center Parcels”), see Exhibit A hereto for further particulars; and
WHEREAS, the City consulted with the California Department of Housing and Community Development (HCD) regarding compliance with the Surplus Land Act (SLA) as a pre-condition to disposition of the Hayward Navigation Center Parcels and development of the MHRC; and
WHEREAS, the City and HCD determined that the appr opriate course of action was to proceed with declaring the Navigation Center Parcels as surplus pursuant to the SLA and issuing a Notice of Availability (NOA) to interested affordable housing developers; and
ATTACHMENT II
WHEREAS, on January 21, 2025 the City Council adopted Resolution 25 -002, declaring the Navigation Center Parcels surplus pursuant to the SLA: and
WHEREAS, pursuant to the SLA th e City issued a n NOA regarding the Navigation Center Parcels to affordable housing developers that had registered their inte rest with HCD; and
WHEREAS, no responses to the NOA were received; and
WHEREAS, t he City has met its obligations under the SLA with respect to the Navigation Center Parcels and may dispose of the m in any manner, subject to recordation of an affordability covenant as described in Government Code section 54233 in the event ten (10) or more residential units are ever developed on the parcels; and
WHEREAS, under Government Code Section 37350 the City may purchase, lease, receive, hold, and enjoy real and per sonal property and control and dispose of it for the common benefit; and
WHEREAS, the City intends to transfer to BACS the fee inte rest in the Navigation Center Parcels for development of the MHRC, subject to the terms and conditions of a Disposition and Development Agreement (DDA); and
WHEREAS, the City has conducted the required review under the California Environmental Quality Act, California Public Resources Code §21000 - §21177, as amended ("CEQA").
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the above recitals are true and correct.
BE IT FURTHER RESOLVED, pursuant to Government Code section 3 7350, the City Council hereby finds that the disposition of the Navigation Center Parcels pursuant to the DDA is for the common benefit.
BE IT FURTHER RESOLVED , that the City Council finds the disposition and development of the Navigation Center Parcels for the MHRC is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sect ion 15332 (Class 32) of the CEQA guidelines for In -fill Developments. An evaluation of the proposed project supports the conclusion that the project meets the categorical exemption criteria included in Section 15332 of CEQA as follows:
A. The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning des ignation and regulations.
ATTACHMENT II
The project meets this criterion in that the project site is located within the General Industrial (IG) zoning district and Industrial Corridor (IC) land use designation within the Hayward 2040 General Plan which allows for the development of mental health rehabilitation centers with a maximum collective FAR of 0.8 across all the industrial sub-districts. The proposed project has a maximum FAR of 1.9. However, the average FAR for all projects within the industrial subdistricts since the adoption of this zoning regulation is 0.41 (See Table Below). At the time of adoption of this regulation in 2019, the average FAR was below 0.8. As such, this project will not result in collective FAR above 0.8 across the industrial subdistricts.
Furthermore, the project will be fully consistent with all applicable provisions of the Zoning Ordinance, Off -Street Parking Regulations, and Bay -Friendly Landscape Ordinance as it requires approval of a Major Site Plan Review and Variance application by the Hayward Planning Commission.
B. The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses.
The
project meets this criterion in that the project would be located on two adjacent parcels that total to 0.97 -acres within the City of Hayward. Furthermore, the project site is substantially surrounded by urban uses with two industrial parks (Crocker - Hayward North Industrial Park and Cabot Bu siness Park) to the north, a former automobile wrecker to the east, an automobi le repair facility to the South (Chilton Auto Body Hayward), and contractor services (Golden Bay Construction and Transport Refrigeration Services & Trailer Repair) to the west.
Application # Approval Date Address Development Type FAR 202200390 3/3/2022 3890/3989 Depot Road Warehouse 0.48
202101456 8/27/2021 24101 Whitesell Street Warehouse 0.29 SPR-23-0041 3/27/2025 24401 Whitesell Street Office Building 0.03 202102725 9/22/2022 3636 Enterprise Avenue Warehouse 0.46 201901039 2/15/2022 4150 Pt Eden Way Warehouse 0.47
SPR-23-0043 11/14/2024 25375 Clawiter Road Warehouse 0.52 202003917 12/9/2021 25450-25550 Clawiter Road Warehouse 0.43 201906718 2/11/2021 25800 Clawiter Road Warehouse 0.54
SPR-23-0036 5/22/2025 26062 Eden Landing Road Data Center 0.76 202206056 10/20/2023 29469 Ruus Road Warehouse 0.3
202201051 10/27/2023 1441 Industrial Pkwy Warehouse 0.42 202104579 2/8/2022 1190 Zephyr Ave Office Building 0.53 202200563 1/25/2023 31145-31153 San Antonio Street Office Building 0.5 201802051 12/18/2019 31500 Hayman Street Warehouse 0.43 202103815 3/4/2022 2429 Whipple Road Resturant 0.11
202003389 12/2/2021 24493 Clawiter Road Warehouse 0.36
VAR-25-0005
3788 Depot Road Office Building 1.9
Average FAR: 0.41
ATTACHMENT II
C. The project site has no value as habitat for endangered, rare, or threatened species.
The project meets this criterion in that the project site has no value as habitat for endangered, rare or threatened species. According to the Figure 7 -1, Existing Vegetation Communities of the City of Hayward General Plan Background Conditions Report (2014), the project site is identified as “developed” and “ruderal” which include properties that have been disked and previously disturbed in some manner, and/or consist of existing development dominated by human use which do not offer suitable habitat for sensitive species.
D. Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.
Traffic: The project meets this criterion in that the proposed project is less than the significance thresholds set by the City’s 2020 Traffic Study Guidelines and the 2018 Governor’s Office of Planning and Research (OPR) Technical Advisory on Evaluating Transportation Impacts in CEQA. The significance threshold for small projects is 110 trips per day or less. Projects that generate less than 110 trips per day generally may be assumed to cause a less -than-significant impact. Based on Institute of Transportation Engineers (ITE) Trip Generation rates, the City’s transportation staff reviewed the proposed project and determined it will result in less than 110 trips per day. In addition, the project does not result in any inconsistency with a Sustainable Communities Strategy (SCS) or the Hayward 2040 General Plan. As such, the project would not result in any significant effects related to transportation.
Noise: The project meets this criterion in that the project will be subject to the City’s existing Noise Ordinance within Chapter 4, Article 1 of Hayward Municipal Code. As such, construction noise and operational noise from this project would not exceed the City’s thresholds of 86 dBA and 70 dBA, respectively and therefore, would not result in any significant effects related to noise.
Air Quality: The project meets this criterion in that the proposed project is less than the significance thresholds set for operational -related criteria pollutant screening sizes and constriction-related screening sizes as prescribed by the 202 2 Bay Area Air Quality Management District (BAAQMD) CEQA Guidelines. The proposed mental health rehabilitation center use is most similar to the “Hospitals” and “Medical Office Buildings” Land Use Categories identified within the guidelines. The significan ce thresholds for “Hospitals” and “Medical Office Buildings” are 452,000 square feet for construction and 611 ,000 or 293,000 square feet for operation, respectively. The proposed development is approximately 62,000 square feet which is below these thresholds. Furthermore, the project will include best management practices, construction-related activities will not overlap operational activities, operational
ATTACHMENT II
activities will not include stationary engines, and the project will not include certain construction-related activities (i.e. demolition, simultaneous occurrence of two or more construction phases, extensive si te preparation, extensive material transport, stationary sources). The existing Navigation Center consists of temporary structures which will not b e demolished but rather transported off -site. As such, the project would not result in any significant effects related to air quality.
Water Quality: The project meets this criterion in that the project would not introduce new surface water discharges, would not substantially increase runoff volumes, result in substantial erosion or siltation, or result in flooding on- or off-site. Furthermore, the project would not alter the existing drainage pattern of the site in that it incorporates stormwater contro l measures pursuant to Provision C.3 of Alameda County’s Municipal Regional Stormwater Permit.
E. The site can be adequately served by all required utilities and public services.
The project meets this criterion in that the project would be located in an exi sting urban area served by existing public utilities and services. The City of Hayward will continue to provi de water, sewer, and solid waste collection services to the project site. Other services, including electricity, will also be provided to the site by existing service providers.
Furthermore, it is concluded that none of the exceptions to the applicability of a Categorical Exemption as outlined in CEQA Guidelines Section 15300.2 would apply as follows:
A. All exemptions for these classes are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant.
This criterion does not apply to this project in that there are no developments within the same place for which to create a cumulative im pact. Within a one -mile radius, there are several proposed or under -construction developments including a speculative warehouse at 3890/3898 Depot Road, the City of Hayward Water Pollution Control Facility Administration Building at 24401 Whitesell Street, a speculative warehouse building at 4150 Point Eden Way, and a Data Center at 26062 Eden Landing Road. The closest listed project to the project site is approximately 0.07 miles away which does not constitute being “in the same place.”
B. A categorical exe mption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances.
This criterion on does not apply to this project in that there are no unusua l circumstances which would have a significant effect on the environment.
ATTACHMENT II
C. A categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway.
The criterion does not apply in that there are no officially designated state scenic highways within the vicinity of the project site. The closest scenic highway is I -580 located approximately 4 miles northeast of the project site, which has been recognized as eligible for designation as a State Scenic Highway. The project will not be visible from this portion of I-580. Therefore, the project would not damage scenic resources within a highway officially designated as a state scenic highway.
D. A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code.
This criterion does not apply in that the project site is not listed on the EnviroStor environmental database, the California Department of Toxic Substances Control Hazardous Waste and Substances Sites (Cortese) List, and the State Water Resources Control Board’s (SWRCB) Geotracker Database.
E. A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource.
This criterion does not apply in that the existing Navigation Center development or project site do not have any value as a historic resource. They are not listed or eligible for listing on the California Register of Historic Resources (CRHR) or the City’s local historic register.
BE IT FURTHER RESOLVED, that the City Manager or de signee is authorized to negotiate an d execute a DDA with BACS for transfer of the Navigation Center Parcels on behalf of the City in substantial conformance to the terms outlined in the staff report, subject to such non -substantive or minor modifications or ame ndments as may be necessary to complete the transactions contemplated hereby, and subject further to the City Attorney's approval as to form.
BE IT FURTHER RESOLVED, that the City Manager or design ee shall execute such other instruments, and take any an d all other action, as may be reason ably necessary to complete the disposition of the properties, and to close escrow, as contemplated in the DDA.
ATTACHMENT II
BE IT FURTHER RESOLVED that the City Manager or designee is directed to cause a notice of exemption to be filed pursuant to the CEQA Guidelines, following adoption of this Resolution.
BE IT FURTHER RESOLVED that the City Council designates the City Clerk as the custodian of the documents and other material which constitute the record of proceedings upon which the decision herein is based. These documents may be found at the office of the office of the City Clerk, at 777 B Street, Fourth Floor, Hayward, CA 94541.
BE IT FURTHER RESOLVED that this Resolution shall take immediate effect from and after its passage.
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2025
ADOPTED BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS:
MAYOR:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ATTEST: ______________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:
_________________________________________
City Attorney of the City of Hayward