Development Update
Hercules City Council
01/23/2024
MajorDevelopment Projects in Hercules
Owl Ranch
Sycamore Crossing Hampton Inn Hotel
Bayfront Blocks KLMPO
Bayfront Blocks E&G
Hill Town
Franklin Canyon
RV Resort
Willow Commercial
Interest Rates
Prime rate was 3.25% in March 2020
Current prime rate 8.5%
Economic Context
Construction Costs
Increased by:
13.4% in 2021
9.3% in 2022
9.4% in 2023
Total 35.6% increase since 2020
Economic Context
Residential Rental Rates
Year over Year Rent Changes by Submarket, June 2023
NW Contra Costa submarket down 1.0% at end of 2023
Source: CBRE
Economic Context
Owl Ranch
Approved residential subdivision consisting of 40 single-family residential lots on a 7.44-acre site at 215 Skelly, the former McLeod Ranch property.
Developer: D.R. Horton
Wet utility installation anticipated Spring 2024; vertical construction and sales offices anticipated Fall 2024 6 The Mint at Bayfront (M&P)
Approved 325-unit multi-family residential development within the approved 90-acre mixed-use Bayfront project Developer: Ledcor
Building review completed; building permit application lapsed 7 Bayfront Blocks KLMP&O
Alternative proposal for 175 townhomes (incl. 22 live/work) within the approved 90-acre mixed-use Bayfront project Master developer: Ledcor
Application anticipated early 2024
8 Bayfront Affordable Housing Request
Ledcor has requested to credit the 58 existing 80% AMI units in The Exchange toward the project’s affordable housing commitment (5% of a proportionate mix of units at 60% AMI) 9 Hill Town
Approved 325-unit multi-family residential development within the approved 90-acre mixed-use Bayfront project Developer: SCVHG
Remediation completed 2015
Mello-Roos request denied 2022
10 Sycamore Crossing Residential
Approved for 120 multifamily units
Master Developer: The Lewis Group
Pursuing partnership with BlackPine Communities
11 Hampton Inn & Suites Hotel,Sycamore Crossing
Approved 4-story, 105-guest room hotel on a 1.8-acre site within the approved 12.8-acre Sycamore Crossing mixed-use project Developer: WRSJG LLC/Hercules Hospitality LLC
Seeking to sell site and entitlements to another hotel developer 12 Willow Avenue Commercial
Approved 7.1-acre commercial project including mini storage, car wash and auto service uses Master Developer: The Claremont Companies
Mini storage opened 2022 under Temporary CofO, since expired Development conditioned to replace private sanitary lift station 13 Safeway Center
Approved 57,100 supermarket plus bank, coffee shop and gas station/convenience store Master Developer: McNellis Partners
Opened 2021 under Temporary CofO, since expired
Negotiating MOU to fulfill remaining permit conditions for EV charging and TIF Solar canopy project under building review
14 Franklin Canyon RV Resort
Approved RV/tent cabin resort with clubhouse, pool and RV storage Developer: Madison MRH-1 Franklin Canyon LLC Site
Minor Modification completed
Entitlement extension requested pursuant to condition of approval 15 Bayfront Blocks E&G Hotel
Proposed 207-key hotel with retail, restaurant, meeting rooms and amenities Master developer: Ledcor
Planning submittal anticipated in 2024
16 America’s Tire
Approved 8,938-square foot tire store at Creekside Center Building permit ready to issue; site improvement plans approved Potential construction in 2024
17 Sutter Health
Moving forward with purchase of 100 and 200 Linus Pauling Drive Anticipating outpatient medical office/imaging/blood draw and additional parking 18 New Businesses
Learn & Play Montessori
Dynamite Donuts
KS Indian Grocery
KS Brows
19 Coming Soon!
Tandoori Pizza (lease under negotiation at The Exchange) *Tommy’s BBQ
(lease signed at Creekside Center)
*eligible for Hercules Business Attraction grant program 20 Thank you!
Hercules City Council
01/23/2024