STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of April 23, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Tim Rood, Community Development Director
SUBJECT: Metropolitan Transportation Commission Transit-Oriented Communities Policy – Discussion of Compliance Options RECOMMENDED ACTION:
Receive a report on the options to comply with the Metropolitan Transportation Commission (MTC) Transit-Oriented Communities (TOC) policy and provide staff with direction on which compliance policies the City would like to pursue or investigate further.
EXECUTIVE SUMMARY:
The Metropolitan Transportation Commission (MTC), in an effort to increase residential and commercial densities, prioritize transit, active transportation and shared mobility within transit-rich areas, and to support and create equitable transit-oriented communities, adopted a Transit-Oriented Communities (TOC) Policy in 2022. An attached guidance document prepared by MTC provides an overview of the program and the associated requirements (Attachment 4). The TOC Policy applies to properties within a half-mile of existing and planned stops and stations, including the Hercules Hub (see map, Attachment 2).
MTC has indicated that jurisdictions intending to be eligible for upcoming One Bay Area Grant (OBAG-4) funding in 2026 should aim to demonstrate compliance with the TOC Policy by the end of calendar year 2025. The City’s funding plan for the Hub includes approximately $2.3 million in anticipated funding from the OBAG Mobility Hub Program.
The TOC Policy provides a variety of pathways to comply with the adopted policy in various topic areas. All applicable TOC Policy options are included in this report and in a spreadsheet format (Attachment 3). Staff has evaluated potential pathways for compliance with this policy in an effort to ensure the City’s eligibility for future OBAG funding for the Hercules Hub.
Staff has requested clarification from MTC regarding the applicability of the TOC Policy to approved development projects such as the Bayfront, which is bound by its entitlements, the Waterfront District Master Plan standards, and the approved Parking Operations Agreement, which are recorded documents that run with the land and are thus binding upon the developer or their successor.
Community Development staff will be tasked with developing each of the chosen programs or ordinances and bringing them to the Council for adoption. Some programs require minimum funding commitments, and nearly all programs would significantly increase staff workload. At this time, staff requests Council’s direction on which of the available options should be pursued further.
BACKGROUND:
Properties within a half-mile radius of the planned Hercules Hub are located within the Metropolitan Transportation Commission’s Transit-Oriented Communities (TOC) Policy area, which seeks to support the region’s transit investments by creating communities around transit stations and along transit corridors. The TOC Policy is part of Plan Bay Area 2050, the region’s long-range plan for transportation, housing, the economy and the environment. Adopted in 2022, the TOC Policy establishes a range of potential zoning, station access, and anti-displacement policies and programs for areas around rail station areas and bus rapid transit stops.
Future One Bay Area Grant (OBAG) funding cycles (OBAG 4 and future opportunities) will consider funding revisions that prioritize investments in transit station areas that are subject to, and compliant with, MTC TOC policy. MTC may also consider compliance with the TOC Policy to evaluate applications for additional discretionary funding sources.
Agencies affected by the policy must choose their compliance path from the options for each topic that are applicable to their situation. Many of the options require specific funding commitments to qualify. Currently, the City does not have policies or programs that fulfill all of the TOC Policy requirements. Therefore, staff is working with MTC and its consultants to develop options for the Council to consider which will bring the City into compliance with the policy.
The TOC policy requirements consist of the following four elements:
Affordable housing production, preservation and protection, and stabilizing businesses to prevent displacement; Minimum residential and commercial office densities for new development; Parking management; and,
Transit station access.
Staff met virtually with ABAG's TOC Policy team and their consultants on January 29, 2024.
ANALYSIS:
To show compliance, the City of Hercules must demonstrate compliance with, or adopt, a set number of potential policies in each of the four (4) topic areas, for the half-mile station area around the Hub (see map, Attachment 2) at a minimum, or citywide if desired. A spreadsheet is provided (Attachment 3) with the options grouped by categories based on whether they are recommended (RECOMMEND); potentially feasible, but not recommended (POSSIBLE); or not applicable to Hercules (NOT APPLICABLE). Some policy pathways require a minimum 4-year funding commitment, as noted. TOC Policy language is shown in italics.
A. Affordable Housing Policy Options
The following policy options are related to Affordable Housing and are separated into three (3) categories: Production, Preservation, and Protection and Anti-Displacement. The City must select a minimum of two (2) options from each of the following Affordable Housing categories:
A.1. Production Policy Options (2 required):
RECOMMENDED PRODUCTION POLICIES
Public Land for Affordable Housing
Policies to prioritize the reuse of publicly owned land for affordable and mixed-income housing that go beyond existing State law, typically accompanied by prioritization of available funding for projects on these sites.
The Surplus Land Act is a state law that aims to increase the availability of real property in California for affordable housing development. It requires all public agencies to follow a process prior to the sale or lease of surplus property to make land first available for development of affordable housing. While the City does not own any land identified as surplus, there are public lands identified as housing sites in the City’s draft Housing Element, including the BART-owned Hercules Transit Center and Caltrans corporation yard on Willow Avenue. Local affordable housing funding, such as the approximately $5.3 million in Housing Asset Funds formerly administered by the Hercules Redevelopment Agency, could be prioritized for these sites.
Ministerial Approval
Grant ministerial approval of residential developments that include, at a minimum, 15% affordable units if projects have 11 or more units, or that exceed inclusionary or density bonus affordability requirements and do not exceed 0.5 parking spaces per unit.
Many state laws seek to increase development certainty and remove risk to developers by mandating approval at the staff level for qualifying housing projects, without a public hearing. This is known as “ministerial approval.” Currently, most housing projects in Hercules require a Design Review Permit, which is a discretionary permit reviewed at one or more public hearings by the Planning Commission, or the City Council upon appeal or call-up. Zoning ordinance amendments would be needed to extend ministerial approval to qualifying housing development projects.
Development Certainty and Streamlined Entitlement Process Include the vested rights and five hearing limit provisions for housing development projects currently outlined in SB 330, the Housing Crisis Act of 2019, without a sunset date.
As extended by SB 8 in 2021, the statewide SB 330 provisions currently expire on January 1, 2030. These laws were passed to address the current housing crisis in the state with three general aims: 1) increase residential unit development; 2) protect existing housing inventory; and, 3) expedite permit processing. Both SB 330 and SB 8 make numerous changes to existing legislation such as the Permit Streamlining Act and the Housing Accountability Act. To date, the City has not received any applications for SB 330 projects, but the Bayfront developer, Ledcor, has indicated their intention to apply under SB 330 for the next phase of the project on Blocks K-L-M-P-O.
Affordable Housing Funding
Dedicated local funding for production of deed-restricted affordable housing.
The Council’s decision to resume the role of Housing Successor Agency has made approximately $5.3 million in Housing Asset Funds available for supporting affordable housing developments. The City’s minimum four-year funding commitment is $1,400,000.
POSSIBLE PRODUCTION POLICIES
Inclusionary Zoning
Requires that 15% of the units in a new residential development project be deed-restricted and affordable to low-income households. A lower percentage may be adopted if it can be demonstrated by a satisfactory financial feasibility analysis that a 15% requirement is not feasible.
This policy pathway would essentially involve reactivating and modifying the City’s inclusionary housing ordinance, which was suspended in 2012 when the City did not assume the role of Housing Successor Agency to the Hercules Redevelopment Agency. Since then, affordable units have been provided either through development agreements for projects including the Bayfront and Hill Town, or voluntarily for Owl Ranch. The suspended inclusionary ordinance generally required 10% of units to be affordable, or 15% in redevelopment areas, and provided exceptions for payments in lieu of creating affordable units, off-site affordable units, or waivers approved by the City Council.
Affordable Housing Overlay Zones
Area-specific incentives, such as density bonuses and streamlined environmental review, for development projects that include at least 15% of units as deed-restricted affordable housing; exceeds any jurisdiction-wide inclusionary requirements or benefits from State density bonus.
As most of the undeveloped land within the Hub station area has already been entitled and environmentally cleared through the Waterfront District Master Plan, and state law already provides for significant incentives and streamlining for affordable housing developments, staff does not recommend developing additional area-specific incentives.
Public / Community Land Trusts
Investments or policies to expand the amount of land held by public- and non-profit entities such as co-operatives, community land trusts, and land banks with permanent affordability protections. The City’s four-year funding commitment is $1,400,000.
This option would involve partnering with a community land trust and could include acquiring and/or rehabilitating existing market-rate housing developments for conversion to affordable housing. The Northern California Land Trust is one such organization. Staff is not recommending this option due to the funding requirement, limited potential for acquisition/conversion, and staffing considerations.
A.2. Preservation Policy Options (2 required):
RECOMMENDED PRESERVATION POLICIES
Tenant/Community Opportunity to Purchase
Policies or programs that provide tenants or mission-driven nonprofits the right of first refusal to purchase a property at the market price when it is offered for sale, retaining existing residents and ensuring long-term affordability of the units by requiring resale restrictions to maintain affordability.
This option could be developed as a City ordinance. In the event that an existing rental housing development was offered for sale, tenants and nonprofits would have the first right of refusal to purchase at market rate.
Funding to Support Preservation Capacity
Dedicated local funding for capacity building or other material support for community land trusts (CLTs) or other community-based organizations (CBOs) engaged in affordable housing preservation.
This policy is allowed to be met through a coordinated County-wide or subregional effort. The Contra Costa County Planning Directors group will be discussing the possibility of multi-jurisdictional affordable housing programs and/or staffing assistance over the coming months.
POSSIBLE PRESERVATION POLICIES
Condominium Conversion Restrictions
Require that units converted to condominiums be replaced 1:1 with comparable rental units, unless purchased by current long-term tenants or converted to permanently affordable housing with protections for existing tenants.
After consulting with ABAG staff, City staff does not recommend this program, because the existing multifamily rental units within the Hub station area are either owned and managed as long-term workforce rental housing (The Exchange) or include long-term deed-restricted affordable rental units (The Grand) and appear unlikely to be converted into condominiums, making this policy pathway generally not applicable to Hercules.
Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities Policies, programs, or procedures designed to minimize the risk of displacement caused by substandard conditions including through local code enforcement activities.
This may include proactive rental inspection programs and assistance to landlords for property improvements in exchange for anti-displacement commitments. The City’s anticipated commitment is a minimum of $10,000 for low- or no-interest loans and/or grant programs for low-income homeowners. Program H1-4 in the City’s draft Sixth Cycle Housing Element commits the City to create and implement financial assistance programs for minor repairs, similar to the Home Emergency Repair Program the City provided during the redevelopment era.
However, staff does not recommend this option for the TOC Policy as it is generally inapplicable to the Hub station area, where future phases of approved development are on vacant land and will not cause displacement, as well as due to insufficient Code Enforcement capacity. With approximately 960 rental apartments and an additional 500 to 600 rental condominiums and single-family housing units in Hercules, proactive inspection of rental properties would not be feasible given the City’s limited Code Enforcement staffing (2 days per week).
Funding to Preserve Unsubsidized Affordable Housing
Public investments to preserve unsubsidized housing affordable to lower- or moderate-income residents (sometimes referred to as “naturally occurring affordable housing”) as permanently affordable.
The City’s four-year funding commitment is $600,000. Staff is not recommending this option due to the funding commitment and current lack of staffing to administer the program.
Public/Community Land Trusts
Investments or policies to expand the amount of land held by public- and non-profit entities such as co-operatives, community land trusts, and land banks with permanent affordability protections.
The City’s four-year funding commitment is $600,000. Staff is not recommending this option due to the funding commitment and current lack of staffing to administer the program.
NOT APPLICABLE PRESERVATION POLICIES
Single-Room Occupancy (SRO) Preservation
Limits the conversion of occupied SRO rental units to condominiums or other uses that could result in displacement of existing residents.
This is not applicable to the City of Hercules because there are no existing SRO rental units in Hercules.
Mobile Home Preservation
Policy or program to preserve mobile homes from conversion to other uses that may result in displacement of existing residents.
This is not applicable to the City of Hercules because the City does not have any mobile homes.
A.3. Protection & Anti-Displacement Policy Options (2 required):
RECOMMENDED PROTECTION & ANTI-DISPLACEMENT POLICIES
Staff recommends the Council consider selecting two of the following policies:
"Just Cause" Eviction
Defines the circumstances for evictions, such as nonpayment of rent, violation of lease terms, or permanent removal of a dwelling from the rental market, with provisions that are more protective of tenants than those established by AB 1482 AB 1482, or the California Tenant Protection Act of 2019, is a state law that went into effect in 2020 and requires landlords to have a "just cause" to terminate a tenancy and provides protections from evictions without cause.
AB 1482 applies to properties that are:
Older than 15 years
Contain at least 2 units
The owner does not occupy one of the units
Not regulated by local rent control laws
A local “just cause” eviction ordinance could go beyond State law by protecting additional classes of properties, such as those less than 15 years old. If the ordinance’s provisions were tied to State law and only the applicability was broader applicability, this policy pathway would be relatively straightforward to implement, although staff capacity to intervene in cases of alleged unjust eviction is limited.
No Net Loss and Right to Return to Demolished Homes
Include the no net loss provisions currently outlined in SB 330 without a sunset date. Require one-to-one replacement of units that applies the same or a deeper level of affordability, the same number of bedrooms and bathrooms, and comparable square footage to the units demolished. Provide displaced tenants with right of first refusal to rent new comparable units at the same rent as demolished units.
As extended by SB 8 in 2021, the statewide SB 330 tenant protection provisions currently expire on January 1, 2030. A local ordinance could mandate these provisions without a sunset date, although staff capacity to enforce these provisions is limited.
POSSIBLE PROTECTION & ANTI-DISPLACEMENT POLICIES
Tenant Relocation Assistance
Policy or program that provides relocation assistance (financial and/or other services) to tenants displaced through no fault of their own, with assistance exceeding that required under State law.
California state law imposed new requirements for tenant relocation assistance in 2024, including increased help for no-fault evictions, and mandatory relocation assistance for rent increases of 10% or more.
Cities are mandated to require relocation assistance from landlords when landlords:
Evict tenants to move in themselves or their immediate family; Demolish or substantially remodel rental units; or
Remove rental units permanently from the housing market.
Small landlords are exempt from paying relocation fees in some circumstances. But most investors and big landlords must provide financial aid when displacing tenants.
Relocation assistance is mandatory if rents go up by 10% or more for tenants living in a unit for over a year, and 15% or more for tenants in a unit for less than a year. The standard relocation assistance payment increased to $18,533, and the additional relocation assistance payment for qualifying households increased to $6,177, both effective January 1, 2024.
Given the budget and staffing challenges the City already faces in implementing these new state requirements, staff does not recommend imposing additional local requirements for tenant relocation assistance.
Legal Assistance for Tenants
Investments or programs that expand access to legal assistance for tenants threatened with displacement. This could range from a “right to counsel” to dedicated public funding for tenant legal assistance.
The City’s four-year funding commitment is $200,000. Similar to the above provisions, staff does not recommend creating a new local program to grant tenants additional legal assistance given the City’s budget and staffing limitations.
Foreclosure Assistance
Provide a dedicated funding source to support owner-occupied homeowners (up to 120% of Area Median Income (AMI)) at-risk of foreclosure, including direct financial assistance (e.g. mortgage assistance, property tax delinquency, HOA dues, etc.), foreclosure prevention counseling, legal assistance, and/or outreach.
The City’s four-year funding commitment is $300,000. Similar to the above provisions, staff does not recommend creating a new local program to grant tenants additional foreclosure assistance given the City’s budget and staffing limitations.
Rental Assistance Program
Provide a dedicated funding source and program for rental assistance to low-income households.
The City’s four-year funding commitment is $200,000. Similar to the above provisions, staff does not recommend creating a new local program to grant low-income households additional rental assistance given the City’s budget and staffing limitations.
Rent Stabilization
Restricts annual rent increases based upon a measure of inflation or other metric, with provisions exceeding those established by AB 1482.
The California Tenant Protection Act (AB 1482) is a state law that went into effect in 2020 and limits annual rent increases to 5% plus the local CPI (inflation rate), or 10%, whichever is lower. It also requires landlords to have a "just cause" to terminate a tenancy, and protects tenants from evictions without cause. The law applies to properties that are:
Older than 15 years
Contain at least 2 units
The owner does not occupy one of the units
Not regulated by local rent control laws
Similar to the above provisions, staff does not recommend creating a new local program to impose additional local restrictions on rent increases given the City’s budget and staffing limitations.
Preventing Displacement from Substandard Conditions and Associated Code Enforcement Activities Policies, programs, or procedures designed to minimize the risk of displacement caused by substandard conditions, including through local code enforcement activities. This may include, but not be limited to, proactive rental inspection programs, assistance to landlords for property improvements in exchange for anti-displacement commitments, and enhanced relocation assistance requirements for temporary displacement due to substandard conditions that pose an immediate threat to health and safety.
The City has one half-time code enforcement officer, who responded to 96 of 99 code enforcement complaints submitted by residents in 2023. The caseload has included very time-consuming and difficult cases, such as a commercial building fire, a difficult hoarder situation, three grow houses, and several instances of unpermitted alterations creating unsafe housing conditions.
Given current budget and staffing limitations, staff does not recommend creating additional policies, programs or procedures for code enforcement aimed at minimizing the risk of displacement. If the Council makes additional code enforcement capacity available in the future, some proactive inspection of rental housing would be desirable, as many of the City’s rental properties are aging and may have suffered from deferred maintenance.
Fair Housing Enforcement
Policy, program, or investments that support fair housing testing, compliance monitoring, and enforcement.
The City’s four-year funding commitment is $300,000. Similar to the above provisions, staff does not recommend creating a new local fair housing enforcement program given the City’s budget and staffing limitations.
Tenant Anti-Harassment Protections
Policy or program that grants tenants legal protection from unreasonable, abusive or coercive landlord behavior.
California’s fair housing laws prohibit housing providers (including their employees or agents) from discriminating against or harassing a tenant, resident, home seeker or applicant, or homeowner, because of a protected characteristic. The Fair Employment and Housing Act prohibits discrimination and harassment based on a person’s race, color, ancestry, national origin, religion, mental or physical disability, sex (including pregnancy), gender, sexual orientation, gender identity, gender expression, genetic information, marital status, familial status, source of income, or military or veteran status. In addition, the Unruh Civil Rights Act, which applies to business establishments, protects against housing discrimination related to age, citizenship, primary language, and immigration status, among other characteristics. California law also limits when, how, and to what extent housing providers can consider someone’s criminal history.
Similar to the above provisions, staff does not recommend creating a new local program to grant tenants additional legal protection given the strong protections in state law and the City’s budget and staffing limitations.
NOT APPLICABLE PROTECTION & ANTI-DISPLACEMENT POLICIES
Mobile Home Rent Stabilization
Restricts annual rent increases on mobile home residents based upon a measure of inflation or another metric.
This is not applicable to the City of Hercules because there are no mobile home parks in the City.
B. Commercial Protection and Stabilization
The following policy options are related to Commercial Protection and Stabilization. The City must select a minimum of one (1) option from the following category:
RECOMMENDED COMMERCIAL PROTECTION & STABILIZATION POLICIES Small Business Advocate Office
Provide a single point of contact for small business owners and/or a small business alliance.
Given the size of the City team, the Community Development Director is already the single point of contact for small business owners with questions.
With staff oversight from the City of Hercules, the nearest Small Business Development Center or SBC can be utilized to fulfill this requirement. The City already refers interested parties to the East Bay Small Business Development Center (SBDC), which offers no-cost, confidential advisory services and training for business owners and entrepreneurs. The East Bay SBDC advises owners on business planning, funding, marketing, finances and management. Special programs include a food service program aimed at restauranteurs, cottage food businesses, artisan and consumer packaged goods providers, food trucks, and mobile food businesses. Assistance is available in multiple languages.
POSSIBLE COMMERCIAL PROTECTION & STABILIZATION POLICIES Small Business and Non-Profit Overlay Zone
Establish boundaries designated for an overlay, triggering a set of protections and benefits should development impact small businesses (including public markets) or community-serving non-profits.
The existing businesses within the TOC Policy area are either in existing mixed-use buildings such as the Railroad Avenue townhomes and The Exchange, or are existing businesses in the North Shore Business Park. Neither type of business is likely to to be impacted by development, so staff does not recommend creating a new set of local protections and benefits for small businesses impacted by development.
Small Business and Non-Profit Preference Policy
Give priority and a right of first offer to local small businesses and/or community-serving non-profits when selecting a tenant for new market-rate commercial space.
The existing mixed-use buildings on the Hercules Waterfront, including Aventine and The Exchange, have had severe difficulties finding retail tenants willing to accept the asking rents and tenant improvement allowances. Many storefront spaces remain unleased after being on the market for years, even as the existing spaces in the City’s standalone retail centers have been repeatedly leased, with essentially no vacancies.
Thus, staff does not recommend imposing additional requirements on property owners to offer first refusal on market-rate commercial space to small businesses or community-serving non-profit organizations, which are unlikely to be able to pay the asking rents or finance the tenant improvements. .
Small Business and Non-Profit Financial Assistance Program Dedicated funding program for any impacted small business and community-serving non-profits.
Similar to the above, as there are no small businesses likely to be impacted by the continued build-out of the Bayfront development, staff does not recommend creating a new dedicated funding program for impacted small businesses and community-serving non-profits, given the City’s budget limitations.
C. Parking Management
The following policies are related to Parking Management. All of the following standards are required. The City is currently in compliance with some of the policies (IN COMPLIANCE) and compliance is still needed (NEEDED COMPLIANCE) in others.
IN COMPLIANCE WITH PARKING MANAGEMENT POLICIES
Allow Unbundled Parking
Hercules Municipal Code (HMC) Section 13-32.200(4) already allows off-site off-street parking and loading spaces through a recorded agreement or through approval of a parking exception.
Allow Shared Parking Between Different Land Uses
HMC Section 13-32.300(2) already allows shared parking between different land uses and requires calculations based upon individual uses except for Shopping Centers or through an Exception.
NEEDED COMPLIANCE WITH PARKING MANAGEMENT POLICIES
One (1) secure bicycle parking space per dwelling unit.
One (1) secure bicycle parking space per 5,000 sf of occupied office commercial.
The City has adopted by reference the 2022 California Green Building Code (CALGreen), which requires secure bicycle parking spaces equivalent to 5% of vehicle parking spaces. A 2023 state law (AB 2863, codified as Health and Safety Code Section 18944.19), requires that for the upcoming building code update cycle in 2025, the Department of Housing and Community Development shall research and develop, and may propose for adoption, mandatory building standards for short-term and long-term bicycle parking in multifamily residential buildings, hotels, and motels, using a method that is independent of the number of vehicle parking spaces.
Given this potential code amendment and the parking regulations put in place by the existing entitlements for the Bayfront development, staff does not recommend imposing additional local bicycle parking requirements.
New Residential Development:
Parking maximum of 1.5 spaces per unit or lower.
HMC Table 13-32.1 requires a minimum of 2.0 per unit and no maximum. Residential sites within the TOC Policy Area are also within the Waterfront District Master Plan (WDMP), requires a minimum 1 space per 1,500 sq. ft. of residential use, except for affordable or senior housing, for which no parking is required. The WDMP does not contain a parking maximum. Imposing a parking maximum would require amending the zoning ordinance and potentially also the WDMP.
The townhouse development which Ledcor is planning to submit for Blocks K-L-M-P-O would have 2 or more parking spaces per unit, plus some guest/public parking. The developer has indicated that in the Hercules market, particularly without rail or ferry service in place, the townhouse units would not be marketable with fewer than 2 spaces per unit.
Staff has asked the regional agencies to clarify the application of the TOC Policy to an approved and entitled development such as the Bayfront, which effectively locked its zoning standards in place at the time of approval through the Development Agreement. The Bayfront is also subject to a Parking Operations Agreement negotiated with the City to provide for sharing a portion of the development’s private parking with the public during certain hours once rail or ferry service begins at the Hercules Hub.
New Commercial Development:
Parking Maximum of 4.0 spaces per 1,000sf or lower.
For commercial development, the WDMP provides a minimum of 2 spaces per 1,000 square feet and a maximum of 3 spaces per 1,000 sq. ft., which complies with the TOC Policy. For other areas, HMC Table 13-32.1 provides minimum parking ratios for various commercial uses; however, the zoning code does not provide for a maximum parking ratio.
Local zoning amendments could establish a maximum commercial parking ratio for the affected portions of the North Shore Business Park within the TOC Policy Area.
D. Density Requirements for New Development
The following policies are related to density requirements for new development. The following applies to new development built within ½ mile of an existing or planned fixed-guideway transit stop or station (including the Hercules Hub). The following standards do not apply to parcels with existing dwellings.
Density Requirements for New Development (all required):
NEEDED COMPLIANCE WITH DENSITY POLICIES
Density for New Residential Development:
Or equivalent in Floor Area Ratio, or Form-Based development standards; excludes parcels currently occupied by homes.
Minimum Density – 25 units/net acre or higher
Maximum Density – 35 unite/net acre or higher
The existing Planned Commercial-Residential Mixed-Use (PC-R) zone allows a maximum of 40 du/ac but does not set a minimum density. The Historic Town Center (HTC) zoning district has a maximum allowable density of 17 du/ac and no minimum density. Local zoning amendments could change these requirements to comply with the TOC Polciy.
The WDMP includes standards for minimum and maximum building height, building placement and setbacks, which effectively regulate the building form and bulk but do not directly regulate density. The Bayfront developer has indicated that it is seeking to provide a minimum of 25 du/acre net density for the townhouse proposal for Blocks K-L-M-P-O.
Density for New Commercial Office:
For mixed-use projects that include a commercial office component, this figure shall not be less than the equivalent of the applicable allowed or permitted FAR standard.
Minimum Density – 1 FAR or higher
Maximum Density – 3 FAR or higher
The City’s existing codes do not comply with these provisions, which are generally incompatible with providing surface rather than structured parking. The existing Planned Commercial-Residential Mixed-Use (PC-R) zone includes an allowable FAR range of 0.2 to 4.0, with a typical 2.0 FAR (HMC Table 13-15.2). The Planned Office/Research & Development (PO/RD) zone includes an allowable FAR range of 0.25 to 1.00, with a typical 0.30 FAR (HMC Table 13-16.2). Local zoning amendments would be needed to implement these TOC Policy provisions for areas outside the Bayfront but within one half mile of the Hub.
The WDMP includes standards for minimum and maximum building height, required building placement, and setbacks, which effectively regulate the building form but do not directly regulate density or FAR. Although a detailed build-out analysis has not been undertaken, staff believes complying with the WDMP building placement, parking screening and minimum height requirements would likely yield an FAR at least 1.0.
Staff has requested clarification from MTC regarding the applicability of the TOC Policy to approved development projects such as the Bayfront, which is bound by its entitlements, the Waterfront District Master Plan standards and the approved Parking Operations Agreement, which are recorded documents that run with the land and are thus binding upon the developer or their successor.
ENVIRONMENTAL DETERMINATION
This informational report is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) – Common Sense Exemption in that the information provided and the request for direction would not facilitate new construction or other groundbreaking activities. It can be seen with certainty that there is no possibility that this informational report would result in either a direct physical change to the environment or a reasonably foreseeable indirect physical change to the environment. Further, none of the circumstances described in CEQA Guidelines Section 15300.2 applies.
FISCAL IMPACT OF RECOMMENDATION:
There are no direct fiscal impacts associated with this item. Failure to show compliance with the TOC Policy by the end of calendar year 2025 could make the City ineligible for future OBAG-4 grant funding.
ATTACHMENTS:
Attachment 1 – ½ Mile Map
Attachment 2 – TOC Policy Options - Spreadsheet
Attachment 3 – MTC TOC Policy Overview
Presentation
2 Date Page 1
See Gov. Code §§ 12925 & 12955 (definitions)