Newark City Council
December 11, 2025

I. Planned Development (PD) Plan
Pursuant to Newark Municipal Code Chapter 17.12.60, the City finds as follows:

A. The proposed development is consistent with the general plan and any applicable specific plan, including the density and intensity limitations that apply. The proposed planned development plan is consistent with the goals and policies of the Newark General Plan and the Areas 3 and 4 Specific Plan, as amended. The project site is currently designated Low Density Residential, which is intended primarily for single-family residential development on lots greater than 5,000 square feet, with a maximum allowable density of less than 8.7 units per net acre. The Areas 3 and 4 Specific Plan further refines this designation by establishing four single-family lot sizes ranging from 3,150 to 4,800 square feet. The Mowry Village Project proposes 196 market-rate single-family detached homes across three lot types—45' x 75' (3,375 sf), 45' x 80' (3,600 sf), and 50' x 80' (4,000 sf)—all of which are consistent with the Specific Plan’s development framework and support a mix of housing options. The PD Overlay District allows the zoning standards to be adjusted to be consistent with the development standards of the Area 3 & 4 Specific Plan.

In addition, the Project includes a 31-unit below-market-rate multifamily building located on Parcel H, which proposes a density of 36.1 dwelling units per acre. Due to the exceeded density limits of Low Density Residential, the Project includes a General Plan Amendment to apply a higher-density land use designation to Parcel H. With this amendment, the Project is consistent with applicable General Plan density and intensity standards, and it advances the City’s goals of producing a range of housing types, including affordable units, in planned growth areas as outlined in the General Plan and Areas 3 and 4 Specific Plan.

This finding can be made in the affirmative.

B. Adequate transportation facilities and public services exist or will be provided in accord with the conditions of development plan approval, to serve the proposed development; and the approval of the proposed development will not result in a reduction of traffic levels of service or public services so as to be a detriment to public health, safety, or welfare. Adequate transportation facilities and public services currently exist or will be provided through conditions of approval to support the proposed Mowry Village Project. The Project has been evaluated through an Environmental Impact Report (EIR), including a transportation impact analysis that assessed vehicle trips, intersection performance, and vehicle miles traveled (VMT) in accordance with CEQA and City standards. While the Project would result in a significant and unavoidable impact related to VMT, mitigation measures, including transportation demand management strategies and regional fee programs, will be implemented. No intersection or roadway segment is projected to operate below acceptable levels of service as a result of the Project.

The Project will also dedicate 1.21 acres of right-of-way for the widening of Mowry Avenue and will construct internal private streets to City standards. Water, sewer, storm drainage, solid waste, and emergency response services are available and can be extended to the site as part of the subdivision improvements. The City’s service providers have reviewed the Project and confirmed the adequacy of infrastructure and capacity. Accordingly, the proposed development will not result in a reduction EXHIBIT B: Findings of Determination

of traffic performance or public services so as to be detrimental to public health, safety, or welfare.

This finding can be made in the affirmative.

C. The proposed development will not have a substantial adverse effect on surrounding land uses and will be compatible with the existing and planned land use character of the surrounding area. The proposed planned development plan will not have a substantial adverse effect on surrounding land uses and is compatible with both existing and planned land use character in the area. The project site is located within the Area 3 and 4 Specific Plan, which was adopted to guide the phased development of up to 1,260 residential units. While Subareas A, B, and C were originally intended to accommodate the full buildout, environmental constraints in Subareas B and C have limited the amount of developable land. The proposed project reassigns residential units to a disturbed, previously developed 29.1-acre site in Subarea D, thereby preserving sensitive wetlands and supporting the overall residential vision of the Specific Plan. The lot sizes, architecture, and site layout are consistent with the character and standards of existing residential neighborhoods within Areas 3 and 4, including The Sanctuary and Sanctuary West projects, ensuring land use compatibility and cohesive neighborhood development. The remaining acreage in Subarea D retains the capacity for future recreational use consistent with the Specific Plan framework.

This finding can be made in the affirmative.

D. The development generally complies with applicable adopted design guidelines. The proposed development generally complies with the adopted design guidelines for Areas 3 and 4 Specific Plan. The project includes three lot sizes that fall within the ranges identified in the Specific Plan’s land use and design framework and are consistent with the overall lot patterns established in nearby residential developments such as The Sanctuary and Sanctuary West. The architectural styles incorporate varied rooflines, recessed garages, articulated façades, and high-quality materials that reflect the Specific Plan’s objectives for visual interest, neighborhood cohesion, and pedestrian orientation. Landscaping, lighting, and fencing elements have been designed to align with the area’s established character, ensuring that the project contributes to a cohesive and high-quality residential environment.

This finding can be made in the affirmative.

E. The proposed development is demonstratively superior to the development that could occur under the standards applicable to the underlying base district, and will achieve superior community design, environmental preservation and/or substantial public benefit. The proposed planned development plan is demonstratively superior to what could occur under the standards of the base RS6000 zoning district and achieves superior community design and environmental preservation. The project introduces a thoughtfully designed neighborhood that integrates smaller lot sizes, private streets, passive recreation pedestrian paths, and approximately 4.89 acres of common open space, which exceeds what would typically be required under the base zoning. Additionally, by locating the project on a previously developed industrial site, the project facilitates the removal of a legal nonconforming auto dismantling use and avoids development in wetland-constrained portions of Subareas B and C. This approach advances the Specific Plan’s residential goals while preserving sensitive environmental resources. Although Subarea D was originally identified for recreational use, approximately 70 acres remain available for future public amenities, and the project provides longterm community benefits that would not be realized under conventional zoning or recreational reserve.

EXHIBIT B: Findings of Determination

This finding can be made in the affirmative.

II. Zoning Map Amendment
Pursuant to Newark Municipal Code section 17.39.080, the City finds as follows:

A. The amendment is consistent with the General Plan. The Project requires a Zoning Map Amendment to change the zoning of the project site from Park (PK) to RS-6000 (Single-Family Residential) and with a Planned Development (PD) overlay district. The proposed RS-6000 zoning is consistent with the site’s General Plan designation of Low Density Residential, which allows for single-family development at a density of less than 8.7 units per net acre. The PD overlay enables implementation of a Planned Development Plan that ensures tailored standards for lot sizes, setbacks, and design elements, consistent with the goals of the Areas 3 and 4 Specific Plan. The project also requires a Zoning Map Amendment to change the .84 acre (Parcel H) to Residential High Density to allow the 36.1 du/ac density needed for the affordable housing building. The RH zoning change would allow up to 60 du/ac, which would be consistent with the General Plan amendments. The zoning amendments support applicable General Plan policies including LU-1.1 (Balance of Land Uses), LU-1.2 (Growth Focus Areas), LU-1.10 (Vacant and Underutilized Sites), and LU-7.1 (Area 3 and 4 Development) by enabling the productive reuse of a formerly industrial site for housing development in a planned growth area. Therefore, the Zoning Map Amendment is consistent with the General Plan.

This finding can be made in the affirmative.

B. Any change in district boundaries is necessary to achieve the balance of land uses desired by the city, consistent with the general plan, and to increase the inventory of land within a given zoning district. The Zoning Map Amendment reflects a shift from a recreational land use designation that is no longer feasible to one that supports much-needed residential development. The existing PK zoning was intended to support recreational facilities such as a golf course, but due to environmental constraints elsewhere in the Specific Plan area and the infeasibility of constructing a large-scale recreational use on the subject site, it is appropriate to rezone the site for residential use.

The change allows for the reallocation of residential units from environmentally constrained areas (Subareas B and C) to an infill site (Subarea D) that is already disturbed, previously developed, and well-served by infrastructure. This adjustment increases the supply of land available for residential use and helps implement the City’s housing goals in a balanced and environmentally responsible manner.

This finding can be made in the affirmative.

C. The amendment will promote the growth of the city in an orderly manner and to promote and protect the public health, safety, peace, comfort, and general welfare. The Zoning Map Amendment and accompanying Planned Development Plan will guide the orderly development of the site through the application of customized development standards that promote high-quality architecture, pedestrian connectivity, and integration of open space. The proposed development removes a heavy industrial use that is incompatible with surrounding neighborhoods and replaces it with a well-planned residential community, enhancing the character of the area while preserving sensitive wetland areas elsewhere in the Specific Plan boundary. The zoning change ensures consistency with the General Plan and Areas 3 and 4 Specific Plan, supports environmental preservation, and promotes public health, safety, and welfare by eliminating incompatible land uses, EXHIBIT B: Findings of Determination

remediating the site, and providing new housing consistent with the City’s long-term vision.

This finding can be made in the affirmative.

Mowry Village Project
Planning Commission Public Hearing
Agenda Background
Project Overview
Overview of Environmental Impact Analysis
Public Comments on the Draft EIR
Entitlement Analysis
Recommendation
Mowry Village Project
Planning Commission Public Hearing
Applicant: The Mowry Project Owner LLC
Request: Building 196 Single Family Homes and 31 Affordable Housing Units Location: 7400 and 7550 Mowry Avenue
Entitlements: General Plan, Specific Plan, Rezone, Planned Development, Design Review, Vesting Tentative Map, Alternate Means of Compliance and Acceptance of the FEIR
Background- Location
Located on Mowry Ave
Consists of three parcels
Vacant 9.5 Acre Parcel
Existing Pick N’Pull Business
Total Site 29.1 Acres
Background- Existing Business
Pick
N’Pull
Approx. 19 Acres
Auto-dismantling Yard
Annexed in 1979 from City of Fremont
CUP Renewed in 1985
CUP expires in 2034 or when the
Stevenson Blvd overpass is constructed
Nonconforming Use
Background
• General Plan 2007
• Adopted 1992
Background- Area 3 & 4 Specific Plan
Adopted in 2010
Development Capacity 1,260 Units
Sub Areas A-D Development Areas
Sub Area A: Sanctuary Village (386)
Sub Area B & C: Sanctuary West (469)
Remaining Capacity: 405 Units
Background - General Plan and Zoning
Low Density Residential
Project Overview - Proposal
Project:
• Project site is 29 acres
• 196 SF Executive Style Homes
• 31 BMR units for very low and
low-income households
• 4.89 acres in private open space
• Infrastructure Improvements to
Mowry Avenue
Project Overview – Typical Lot Size
Plan Type Lot Size Home Size Units
1 3,375 2,274 69
2 3,600 2,741 61
3 4,000 2,902 66
196
Infrastructure- New Street Section
Utilities
Water
• Traverses City Property
• Satisfies ACWD
Requirements
• Requires City Easement
• Requires City
Compensation
Sewer
• Main on Mowry
Emergency Access Route
CEQA
Overview of Environmental Impact Report (EIR) by Stantec • Anna Radonich, Principal Planner
• Trevor Macenski, Senior Principal
• Jennifer Webster, Environmental Planner
General Plan
Compliance
• Per Resolution A, Exhibit 7 findings
can be made in support of the project,
including:
• Policy LU-1.1
• Policy LU-1.10
• Policy LU-7.1
General Plan
Designation of Low Density Residential
Amendment is needed for .84 acre lot
to allow BMR unit density of 36 du/ac
Parcel H will be amended to High
Density Residential
Zoning
Zoning Designation
Current Designation of Park
Zoning Amendment to Residential
Single Family with PD Overlay and
Residential High Density
Parcel H will be amended to Residential
High Density
Compliance
• SF Homes are permitted in RS
district and PD Overlay
• PD Overlay to will comply with
Amended Area 3 & 4 Specific
Plan
• Affordable Housing site complies
with RH zoning district and
qualifies for density waivers
General Plan and Zoning
Design Review
Siting Standards & Architectural
Design Guidelines
• One and two-story
homes
• Varied massing
• Porch/Entry Ways
• Efficient size lots
• Executive Homes
Design Review – SF Homes
Proposed
• Six architectural styles
• Varied Roof Lines
• Front-Facing Homes
• Recessed Garages
• Consistent with Specific
Plan
Design Review – Affordable Housing
Building
Design Review – Affordable Housing
Building
Density Bonus Incentives/Waivers
Waivers
Standard Requirement Proposed
Lot Depth 100 80
Building Height 35* 38
Front Setback 15 10
Steet Side Yard 15 8
Unit Open
Space
200 0
Parking .25 .13
Affordable Housing Building and Lot
• Project qualifies for waivers due to 15 % project
units being BMR
• Unlimited waivers of development standards
that would have the effect of physically
precluding the construction of the development
allowed
• Waivers are based on the most stringent
development standard of either RH or Specific
Plan
Affordable Housing
Program
Developers pay an impact fee or may
provide on-site affordable subject to
City Council approval
The developer is requesting to provide
31 affordable units in-lieu of paying the
impact fee
Resolution recommending that City
Council approve the alternative means
of compliance
Affordable Housing Agreement
Principal Terms of Agreement
• Establish the total affordable unit count
and income category distribution
• Set the deed-restricted affordable
duration (55 years)
• Newark local preference and various
other terms for the affordable building
operations
• Deed restricted property
• Affordable Housing Manage approval
subject to City Manager
• Units to be constructed concurrently with
market-rate units
Affordable Housing Building
BMR Units
31 Units
10 Very Low (>50% AMI) & 20 LowIncome Households (>80% AMI) BMR Units shall be the same as
typical units provided in the project
UNITS BED/BATH SIZE #
1-Bed 1/1 545 14
2-Bed 2/1 920 8
3-Bed 3/1 1143 8
Manager 1/1 545 1
Total 31
Affordable Housing Min. and Max. Rents
• HUD and the California
Department of Housing
and Community
Development publish
annual rent and income
limits for BMR units.
• Rent limits include a utility
allowance (e.g. water, gas,
electrical, etc.)
Unit Size Very Low-Income
(30-50% AMI)
Low-Income
(50-80% AMI)
1-Bedroom $889 – 1,498 $1,498 – 2,398
2-Bedroom $1,079 – 1,798 $1,798 – 2,878
3-Bedroom $1,246 – 2,077 $2,077 – 3,324
Alameda County 2026 Rent Limits
Affordable Housing Schedule of Performance
Milestone Deadline
Developer deposits Housing Impact Fee into
escrow
Prior to issuance of building permit for each
market rate unit
Developer starts grading and installation of
utilities and infrastructure for affordable housing
August 31, 2027
Developer obtains building permit for Affordable
Housing Development
Earlier of the issuance of the 65th market
rate building permit, or June 30, 2031
Commencement of construction of the
Affordable Housing Development
Earlier of the (i) issuance of the 75th
building permit for market rate homes, or
(ii) July 30, 2031
Completion of construction of the Affordable
Housing Development
Earlier of (i) two years after commence of
construction, or (ii) July 30, 2033.

Vesting Tentative Map
• Vesting Tentative Tract Map
• Combines 3 into 197 lots
• Private Roads Internally
• Expansion of Mowry Ave
ROW
• Complies with City
standards for subdivisions
Recommendation
Staff recommends that the Planning Commission recommend to the City Council the following:
• A Resolution recommending that the City Council approve Certification of the Final Environmental Impact Report (FEIR), A Statement of Overriding Considerations, and the Mitigation Monitoring and Reporting Program.
• A Resolution recommending that the City Council approve the following:
a. Amendment to General Plan Land Use Diagram
b. Amendment to the Area 3 & 4 Specific Plan
c. Amendment to the City’s Official Zoning Map
d. Planned Development Overlay District
e. Design Review
f. Alternate Means of Compliance
g. Density Bonus Waivers
h. Vesting Tentative Map #8517
Public Comments
• Bay Area Council (October 6, 2025)
• Newark Chamber of Commerce (October 13, 2025)
• YIMBY Law (November 17, 2025)
• Regional Center of the East Bay (November 17,
2025)
• Additional Comment Letters Received Today- See
Memo
Questions
Public comments can be sent to
[email protected]
Or
City Hall
37101 Newark Boulevard
Newark, CA 94560
Mowry Village Project
CEQA Analysis
What is an EIR & CEQA?
• EIR = Environmental Impact Report
• CEQA = California Environmental Quality Act
• An informational document designed to inform the public and decision-makers about potential environmental
impacts of a project
• A problem-solving document that identifies ways to avoid or lessen impacts:
• Mitigation Measures
• Alternatives
• Environmental impacts are just one of the factors
considered by the decision-makers when deciding
whether to approve a project
EIR Purpose
• INFORM decision-makers and public of the
proposed project’s potential physical
environmental effects
• ENGAGE the public in the environmental review
process
• DISCLOSE potential impacts of the proposed
project on the physical environment
• AVOID and/or REDUCE potential impacts of the
proposed project through mitigation measures
and/or alternatives
Steps in the EIR Process
NOP
• Develop Project Description and NOP
• 30 Day Public Review
(November 30, 2021 - January 3, 2022)
• Public Scoping Meeting
(December 14, 2021)
Project
DEIR
• Admin Draft EIR
• Public Draft EIR
• 45 Day Public Comment Period
(August 2, 2023 – September 18, 2023)
• PC Meeting (August 22, 2023)
Project
FEIR
• Admin Draft Response to Comments
• MMRP
• Public Draft FEIR
• 10 Day Public Review
• FEIR Certification Hearing and Project
Approval
(November 19, 2025 and
December 11, 2025)
Topics Addressed in the EIR
• Aesthetics
• Agricultural and Forestry
Resources
• Air Quality
• Biological Resources
• Cultural Resources
• Energy
• Geology and Soils
• Greenhouse Gas Emissions
• Hazards and Hazardous
Materials
• Hydrology and Water Quality
• Land Use and Planning
• Mineral Resources
• Noise
• Population and Housing
• Public Services
• Recreation
• Transportation
• Tribal Cultural Resources
• Utilities and Service
Systems
• Wildfire
Draft EIR Summary of Impacts
Resource Level of Significance
Aesthetics Less Than Significant Impact
Agricultural and Forestry Resources No Impact
Air Quality Less Than Significant Impact with Mitigation Biological Resources Less Than Significant Impact with Mitigation Cultural Resources Less Than Significant Impact with Mitigation Energy Less Than Significant Impact
Geology and Soils Less Than Significant Impact with Mitigation Greenhouse Gas Emissions Less Than Significant Impact
Hazards and Hazardous Materials Less Than Significant Impact with Mitigation Hydrology and Water Quality Less Than Significant Impact with Mitigation Land Use and Planning Less Than Significant Impact
Mineral Resources No Impact
Noise Less Than Significant Impact with Mitigation
Population and Housing Less Than Significant Impact
Public Services Less Than Significant Impact
Recreation Less Than Significant Impact
Transportation Significant and Unavoidable Impact
Tribal Cultural Resources Less Than Significant Impact with Mitigation Utilities and Service Systems Less Than Significant Impact Significant and Unavoidable
Impacts
• A significant and unavoidable impact is defined as
an impact that cannot be reduced to below the
threshold level given reasonably available and
feasible mitigation measures
• The Mowry Village Project EIR identified one
significant and unavoidable impact related to
Transportation: Vehicle Miles Traveled (VMT)
Under 2020 and 2040 conditions, the average VMT per resident for the proposed project would be 44 and 47 percent higher, respectively, than the citywide average minus 15 percent (19.4 miles and 17.4 miles), which is the threshold of significance.

Therefore, the proposed project would have a significant impact on VMT as it would exceed existing citywide VMT per capita minus 15 percent.

What is Considered in a
Cumulative Analysis?
• Under CEQA Guidelines, cumulative impacts refer to
two or more individual effects which, when
considered together, are considerable or which
compound or increase other environmental impacts
◦ The cumulative impact from a single or several separate projects is the change in the environment which results from the incremental impact of the project when added to other closely related past, present, and reasonably
foreseeable probable future projects. Cumulative
impacts can result from individually minor but
collectively significant projects taking place over a period of time
• With exception of VMT, the project, in conjunction with related projects, would not have a cumulatively
considerable impact on environmental resources.

Project Alternatives
CEQA requires that alternatives to a proposed project
have the potential to avoid or substantially lessen one or more significant effects of the project.
• The Mowry Village Project EIR identified one significant and unavoidable impact related to Transportation: Vehicle Miles Traveled (VMT)
Alternatives Considered and
Rejected
• Alternative Location Alternative
(there are no undeveloped sites within city limits large enough to accommodate a similar sized project near transit)
• Restoration Alternative
(development of the site as park, open space, or recreational use would not meet project objectives)
• Small Project Alternative
(7 single-family units or 16 low-rise multi-family units would generate less than 110 trips per day (LTS VMT), would not meet project objectives and would underutilize the land) Alternatives Considered in
Draft EIR
• No Project Alternative
◦ No development would occur
• Multi-family Residential Alternative
◦ 405 multi-family residential units
• Reduced Density Alternative
◦ 64 single-family detached units
• 100 Percent Affordable Housing Alternative
◦ 405 multi-family residential units, similar to Multi-family Residential Alternative
◦ 100 percent affordable housing
Public Review and Final EIR
• The Draft EIR was circulated for a 45-day public
review between August 2, 2023, and September
18, 2023.
• Following the 45-Day Public Comment Period on
the Draft EIR, a Final EIR was prepared.
• A Final EIR is comprised of:
◦ Written responses to comments received on Draft
EIR
◦ Errata - Revisions to Draft EIR
Comments Received on the
Draft EIR
A total of 75 comment letters and over 700
comments were received on the Draft EIR.

A number of comments received on the Draft EIR
focused on five main topics:
• Preserve and Restore Wetlands/Baylands
• General Sea Level Rise
• Flood Zone
• Prime Wildlife Habitat
• Contribute to Affordable Housing
Alternatives Considered in
Final EIR
• Partially Affordable Housing Alternative
◦ 196 single-family detached units
◦ 30 multi-family residential units
◦ 1 manager unit
Project Alternatives
Impacts Comparison
Notes:

NI = No Impact
LTS = Less than Significant Impact
LTS/M = Less than Significant Impact with Mitigation
SU = Significant and Unavoidable
< = Less impact than the proposed project
= = Equivalent impact to the proposed project
> = Greater impact than the proposed project
Environmentally Superior
Alternative
• None of the alternatives considered would eliminate
the significant and unavoidable impact to VMT
• The Reduced Density Alternative is identified as
Environmentally Superior Alternative
◦ Would achieve all Project Objectives
◦ Would not result in greater impacts than the proposed project

MEMORANDUM
To: Steve Jones, Integral Communities
From: Jason Moody and Megan Gregory, Economic and Planning Systems, Inc.

Subject: Draft Newark Fiscal Impact Analysis for the Mowry Village Project; EPS #232010
Date: April 3, 2025
This memorandum provides a fiscal impact analysis of 196 single family residential units and 31 affordable multifamily units proposed for development on a 29-acre parcel located at 7400 Mowry Avenue in Newark (hereafter “Mowry Village Project”). The developer, Integral Communities, retained Economic & Planning Systems, Inc. (EPS) to prepare this analysis to provide the City of Newark with information on the effect of the proposed development on its annual General Fund budget.

The objective of the analysis is to determine whether the proposed project will generate adequate City General Fund revenues to cover the cost of providing ongoing services to new residents. In addition to considering the General Fund impact of the Mowry Village Project by itself, the analysis considers the fiscal impact of the existing use, a commercial establishment that sells used auto parts (Pick-n-Pull), to provide a point of comparison.

EPS has relied on standard and widely accepted methodologies and relatively conservative assumptions for conducting this fiscal impact analysis. Key analytical inputs used include project specific information provided by the applicant, City budget documents, and EPS professional expertise. EPS has not conducted an independent audit of the City’s budget, contacted service-providing City departments, or conducted detailed market analysis.

The actual fiscal effects of both the Mowry Village Project and the existing use will depend on a variety of factors that cannot be predicted with certainty. These include, without limitation, market conditions and business cycle considerations, future changes in federal or State tax and funding policies, local budget considerations, including changes in tax or fee rates or the efficiency of various City departments in providing services, and other external factors.

It is important to note that net fiscal impacts estimated in this analysis (annual budget surpluses or deficits) are simply indicators of fiscal performance; they do Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 2 Summary of Findings not mean that the City will automatically have surplus revenues or deficits, because it must have a balanced budget each year. Persistent shortfalls shown in a fiscal analysis may indicate the need to reduce service levels or identify additional revenue sources; persistent surpluses will provide resources to reduce liabilities, such as deferred maintenance, or to improve service levels.

Summary of Findings
Table 1 summarizes the estimate fiscal impact of (1) the Mowry Village Project, (2) a baseline scenario where the existing business (Pick-n-Pull) continues to operate in the space, and (3) the difference between the proposed development and baseline. All results are expressed in constant 2025 dollars. The results are annual at buildout and do not include any Development Impact Fee revenues the City may receive from the project. The key findings are further described below.

Table 1: Summary of Estimated Annual Net Fiscal Impacts

1. The Mowry Village Project is expected to generate approximately $142,300 per year more in net fiscal benefits to Newark’s General Fund budget than the City would likely receive under baseline conditions.

Based on an EPS fiscal analysis, the development of 196 single family units and 31 affordable multifamily units on a 29-acre site on the Newark waterfront is estimated to have a significantly more favorable impact on the City’s General Fund budget than the existing used auto parts center (Pick-nPull). While both land uses likely provide net General Fund benefits, the additional tax and related revenues expected from the Mowry Village Project far out-weigh the cost of providing additional public services, such as public safety and general government. Meanwhile, the EPS analysis finds that the existing auto-parts business likely provides only a minimal net positive General Fund benefit.

Revenue /
Expense Category
Fiscal Impact
at Project
Buildout
Fiscal Impact of
Current Use1
Net Fiscal
Impact of
Project
General Fund Revenues $803,900 $66,700 $737,200
General Fund Expenditures $603,200 $8,300 $594,900
Net Impact on General Fund $200,700 $58,400 $142,300
1) Assumes existing business (Pick-n-Pull) continues to operate without any changes a b = a - b
Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 3 Summary of Findings

2. The increase in property values from development of the Mowry Village Project is estimated to represent by far the most significant source of new City General Fund revenues.

Property tax revenue from the Mowry Village Project is based on the increase in assessed value from the sales of 196 new residential units, estimated to achieve average price points of about $1.52 million per unit. In addition to receiving approximately 15.8 percent of the 1 percent base property tax levied on property, Newark’s General Fund will also benefit from an increase property transfer taxes and State distribution of Property Tax in Lieu of Vehicle License Fees. All told the Mowry Village Project is projected to generate approximately $640,000 new General Fund revenue attributable to increased property values. This compares to about $28,000 per year accruing to the City’s General Fund from the current use.

3. New sale tax revenues resulting from local retail spending by new residents are expected to represent the second largest revenue source from the Mowry Village Project.

Given the projected sales prices of the new single-family homes at Mowry Village, the residents are projected to be relatively affluent, with average household incomes at about $332,000. Based on standard assumptions about the percentage of income typically spent on taxable retail goods and services, and assuming a 50 percent capture of these sales in Newark, EPS estimates the City’s General Fund will receive about $72,000 per year in additional sales taxes. By comparison, EPS estimates that the current Pick-n-Pull generates approximately $37,000 in annual sales tax revenue to the City (while EPS does not have access to actual sales tax data for this establishment, an estimate was derived based on information from similar business types and included an additional increment for employee spending).

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 4 Fiscal Impact on General Fund Fiscal Impact on General Fund
This section describes the methodology and key assumptions used to estimate the fiscal impacts of the proposed Mowry Village project and existing uses on site.

As described, Integral Communities is proposing to build 196 single family residential units and 31 affordable multifamily units on a 29-acre site located on Mowry Avenue in Newark. The project would replace the existing Pick-n-Pull, a 12,445 square foot commercial establishment that sells used auto parts.

A variety of revenues and costs included in this fiscal analysis are based on the anticipated “service population,” a measure that incorporates relative impacts of both residents and employees. Based on analysis of resident population, employment, and commute patterns, EPS estimates that fiscal impact of one resident is equivalent to approximately 2.4 employees, as further detailed in Appendix Table A-1. Based on these equivalencies, Table 2 estimates the on-site service population for both the Mowry Village Project and existing uses.

Table 2: Development Program and Service Population

Existing
Development
Proposed
Project
Net
New
Employment
Retail 500 SF / Employee 25 -25
Total 25 0 -25
Residents
Market Rate Single Family 3.01 Residents / Household 591 591 Below Market Rate Multifamily 2.67 Residents / Household 83 83 Total 0 674 674
Project Service
Population (2) 0.42 Employee Service
Burden Weight 11 674 663
Source: U.S. Census Data; Economic & Planning Systems, Inc. (1) The average number of people per household can vary based on product type. EPS assumptions for single- (2) Service Population is calculated by adding total residential population and 42% of employees.

Worker Density Assumptions1
Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 5 Fiscal Impact on General Fund General Fund Revenues
New General Fund tax proceeds attributable to the proposed Mowry Village will include sales tax, property tax, property tax in lieu of vehicle license fee (VLF), property transfer tax, transient occupancy tax, utility user tax, and franchise fees.

Table 3 provides a summary of the Newark 2024-2025 General Fund Revenues Budget, and a description of method utilized to estimate project revenue for each relevant revenue source.

Table 3: FY2024-25 Revenue Budget Summary and Fiscal Impact Estimating Factors Property Tax Revenue
Property tax revenue estimates are based on the estimated assessed value of the proposed project which will be determined based on their sales prices. The proposed project envisions 196 single family residences, on lots ranging from 3,375 to 4,000 square feet and a 3-story multifamily building with 31 affordable rental units. Based on market data provided by The Gregory Group, a third-party housing market data specialist, and documented in Appendix Table A-2. EPS

Item FY2024-2025 Factors Applied to
Total Estimate Project Revenue

General Property Tax $26,260,000 15.8%
of base property tax rate
(1%)
Property Tax in Lieu of VLF $7,479,000 2.1% of Citywide Assessed Value Sales Tax $15,926,000 0.95% of estimated taxable sales
1/2 Cent Sales Tax $7,430,000 0.5% of estimated taxable sales Transient Occupancy Tax $5,239,000 10% of hotel revenue Utility Tax $4,459,000 3.25% of utility bills
Franchise Fees $5,072,000 $87.08 per service population Business License $1,537,000 - not estimated
Property Transfer Tax $186,000 $0.55 per $1,000 in value Licenses & Permits $3,790,000 - not estimated
Use of Money & Property $3,999,000 - not estimated
Intergovernmental $6,434,000 - not estimated
Charges for Services $2,245,000 - not estimated
Fines & Forfeitures $515,000 - not estimated
Other Financing Sources $151,000 - not estimated
Total Revenues $90,722,000

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 6 Fiscal Impact on General Fund estimates that the project will achieve an average sale price of approximately $1.52 million per unit.

Based on the Mowry Village Project proposed development program, EPS estimates the project’s assessed value at about $298 million at buildout, as shown in Table 4. The City levies a 1 percent property tax rate, with approximately 15.8 percent of those funds going to the City of Newark General Fund.

Property Tax in Lieu of VLF
In 2004, the State of California adjusted the method for sharing VLF with local jurisdictions. Recent State budget changes replaced VLF with property tax, which grows proportionately with increases in the assessed value of the City. The proposed project will add about 2.04 percent to the current assessed value in Newark (assuming no other assessed value growth for simplification purposes) and will generate the same increased percentage in in-lieu VLF revenues.

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 7 Fiscal Impact on General Fund Table 4: Property Tax Revenue
Property Transfer Tax
The project will generate real estate transfer tax revenue associated with future turnover in ownership. This analysis assumes the ownership of each home is likely to turn over approximately every 10 years, at an annual turnover rate of 10 Land Use
Total
at Buildout
Assessed Value Estimate1
Single-Family Unit (For-Sale) $1,520,000 per Unit $297,920,000 Below Market Rate (Rental)2
$0
Total Assessed Value $297,920,000
Property Tax 1.0%
Base Property
Tax Rate $2,979,200
Newark General Fund Revenue3

15.8%
Allocation to
Newark General
Fund
$469,816
Property Tax In Lieu of VLF
Existing Citywide Property Tax in Lieu of VLF $7,479,000 Citywide Assessed Value4$14,595,510,278
Project Net Assessed Value Increase52.04%
Property Tax In Lieu of VLF Revenue6$152,660
(1) Based on new home construction data from the Gregory Group (4) FY2023-2024 value based on secured assessed value from Alameda County's Annual Assessor's Report. (6) Calculated by multiplying existing property tax in lieu of VLF by project net assessed value increase.

Sources: Alameda County Assessor's Office.
(3) Tax allocation rate reflects the share of the 1% base property tax allocated to the City of Newark, after the City's ERAF shift. Rate reflects the factors for the Tax Rate Areas of the Project site, 11-007 and 11-040. Factors are provided by the County Auditor.

Assumption / Factor
(5) Calculated by dividing the new assessed value by citywide assessed value.

Tax Exempt
(2) Below Market Rate units are assumed to be operated by a nonprofit affordable housing developer, and therefore tax exempt.

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 8 Fiscal Impact on General Fund percent. This analysis assumes the affordable multifamily building will turnover once every 20 years, a turnover rate of 5 percent. City General Fund receives $0.55 per $1,000 of the property value as property transfer tax, as shown in Table 5.

Table 5: Property Transfer Tax Revenue
Retail Sales Tax Revenue
The Mowry Village project is expected to generate retail sales tax revenue from new residents’ household spending within the city. This fiscal analysis estimates the retail spending pattern of households using data from the U.S. Bureau of Labor Statistics Consumer Expenditure Survey. Spending patterns reflect household consumer behavior by specified levels of annual income. This analysis uses projected home prices to estimate household income, and then identifies taxable retail expenditures from total household spending. EPS estimates that market rate households within the Mowry Village project are likely to spend approximately 14 percent of gross household income on taxable retail purchases, and below market rate households are likely to spend approximately 27 percent of their gross household income on taxable retail purchases. This analysis assumes that 50 percent of household taxable retail spending will be captured within the City of Newark.

Land Use
Annual Total
at Buildout
Property Value
Single Family Unit (For-Sale)1$1,520,000 per Unit $297,920,000 Multifamily Unit (For Rent)2$244,000 per Unit $7,564,000 Average Annual Turnover
Single Family Unit (For-Sale) 10.0% per Unit $29,792,000 Multifamily Unit (For Rent) 5.0% per Unit $378,200
Total $30,170,200
Property Transfer Tax Revenue $0.55 per $1,000 in value $16,594 (2) Estimate based on HCD income limits in Alameda County.

Assumption / Factor
(1) EPS assumption based on comparable sales in neighborhood. In-depth market study not prepared.

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 9 Fiscal Impact on General Fund Table 6: Sales Tax Estimate
Transient Occupancy Tax
Hotels and motels remit a 10 percent transient occupancy tax (TOT) to the City of Newark. Additional residential development will likely generate additional visitor days to the city, generating additional TOT. EPS assumes a rate of 1 visitor day per resident, and that 75 percent of those visiting Newark residents, stay in Newark. EPS estimates the project to generate approximately 505 hotel nights annually, and over $75,000 in additional hotel revenue, as seen in Table 7.

Item
Factor/
Estimate
Project Households Retail Purchases in Newark
Estimated Annual Household Income (Market Rate Units)133% of income is Housing Costs $332,000 Estimated Annual Household Income (Below Market Rate Units)2$71,148 Market Rate Household Taxable Retail Spending314% percent of income $47,602 Below Market Rate Household Taxable Retail Spending327% percent of income $19,388 Weighted Average Household Retail Spending $43,749
Household Retail Spending in Newark4
50% of retail expenditures $21,874
Project Households 227
Net New Taxable Retail Sales Captured in Newark $4,965,493 Total Sales Tax Revenue 0.95% of taxable sales $47,172
Total 1/2 Cent Sales Tax Revenue 0.5% of taxable sales $24,827 (3) Based on Bureau of Labor Statistics Consumer Expenditure Survey for respective income groups.

Sources: State Board of Equalization, ICSC Research Survey, U.S. Bureau of Labor Statistics Assumptions
(1) Income estimate relies on typical mortgage financing and the assumption that housing costs represent 33 percent of gross household income.
(4) Assume 50 percent of taxable retail spending by Newark residents is captured by the retailers within the City.

Based on 2024 HCD Income Limits
(2) Reflects estimated average household income based on affordability levels provided by Project Sponsor.

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 10 Fiscal Impact on General Fund Table 7: Transient Occupancy Tax Revenue
Other Taxes and Revenues
The City of Newark collects tax revenue on utility charges for services provided in the City. Additional residents will expand the use of utilities in the City. This analysis assumes a monthly utility cost of $300 per household. Franchise fee revenue reflects an average derived from City budget documents (see Table 3) and is calculated based on service population. Table 8 presents utility user tax and franchise fee revenue estimates for the project.

Item
Annual Total
at Buildout
Annual Visitor Days Generated from
Development 1 per resident 674
Newark Hotel Visitor Capture 75% of visitors 505
Annual Hotel Room Revenues1
$150 Average Daily Rate $75,781
General Fund TOT Revenue 10% of revenue $7,578
(1) Average Daily Rate based on EPS estimate of typical hotel rate within the City of Newark.

Assumption / Factor
Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 11 Fiscal Impact on General Fund Table 8: Other Taxes and Revenues

General Fund Expenditures
This fiscal analysis estimates the costs attributable to population growth by characterizing how expenses will change for each City department. For some departments, population growth in the City will not dramatically alter operations.

For example, administrative functions in the City are not likely to scale up significantly to accommodate new projects. Alternatively, departments that provide services directly to residents and businesses likely will increase their operations and costs to accommodate new populations.

The fiscal analysis model relies on categorization of the likely budgetary response to population and employment growth for each department. The anticipated response to growth is expressed for fiscal modeling purposes in terms of “fixed expenses” and “variable expenses” within the department budget.

The fixed expenses are the portion of a City department’s budget which is not affected by population and employment growth. Even a department which is anticipated to grow largely in step with the City’s service population likely would have some fixed cost. For example, in most cases each department has only one director position, which is a fixed expense for the department. While the department may increase staffing to accommodate growth, the department will not add another director.

Item
Annual Total
at Buildout
Utility Users Tax
Total Residential Population 227 Households
Monthly Utility Cost $300 per household per month
Annual Total $817,200
Utility Users Tax Revenue 3.25% of utility bill $26,559 Franchise Fees
Service Population 674 service pop.

Annual Allocation $87.08 per service population
Franchise Fee Revenue $58,659
Estimating Factor
(1) Based on EPS professional assumption. Actual number will vary depending on specific housing attributes (e.g., solar, air conditioning, etc.)
Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 12 Fiscal Impact on General Fund The variable expenses of a department are those that do increase with growth. As the City grows, increased demand for services requires some departments to scale up operations to meet new demand. The portion of a department’s budget that scales up is identified as the variable share of the budget.

EPS uses a per-capita cost approach to estimate department costs attributable to new residents. The variable portion of each department budget is used to determine the per-capita cost, as shown in Table 9. Then, to determine the new General Fund expenditures generated by the proposed project, the per-capita factors are multiplied by the projected increase in service population or population, as appropriate. Fire and Transfers expenditures are not estimated because the project is not expected to generate new ongoing costs to these service providers.

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 13 Fiscal Impact on General Fund Table 9: FY 2024-2025 Expenditure Budget Summary and Fiscal Impact Estimating Factors Item
City General
Fund Expenses
(FY2024-2025)
Percent
Variable 1
Annual
Variable
Expenses
Per Capita
General Fund
Expense
Project
Population/
Service
Population
Annual
Total at
Buildout
General
Government2
$12,174,000 10% $1,217,400 58,245 Service Pop. $21 674 $14,079 Police $29,690,000 90% $26,721,000 58,245 Service Pop. $459 674 $309,034 Fire Services3
$14,470,000 75% $10,852,500 58,245 Service Pop. $186 674 $125,512 Development Fund $8,396,000 20% $1,679,200 58,245 Service Pop. $29 674 $19,420 Recreation Fund $6,570,000 75% $4,927,500 46,635 Population $106 674 $71,174 Maintenance Cost
Center $7,381,000 75% $5,535,750 58,245 Service Pop. $95 674 $64,022 Transfers $4,818,000 N/A N/A N/A N/A N/A N/A N/A
Total Expenditures $83,499,000 $603,242
(1) Percentage of costs that are population-dependent, as opposed to fixed costs or costs recovered through fees or charges. (2) Includes Administration, Administrative Services, and Council and Commissions. (3) Alameda County Fire Department provides fire servies for the City of Newark by contract.

Sources: City of Newark FY2024-2025 Operating Budget Expenses Estimating Factors
Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 14 Fiscal Impact on General Fund Net Fiscal Impact of Proposed Project Versus Existing
Conditions
As noted above, EPS has evaluated the net fiscal impact of both the proposed Mowry Village project and a baseline scenario that assumes the current use continues as is. While it is unclear whether or for how long the Pick-n-Pull will continue to operate if Mowry Village is not developed, the fiscal impact of this existing condition is provided as a point of comparison. The difference between the fiscal impact of Mowry Village and the existing use represents a conservative estimate of the net impact of the proposed development on the City’s annual budget. For example, any fiscal loss from displacing the Pick-n-Pull would be less than the amount estimated herein if (1) it relocated to another location in the City or (2) it was to go out of business even if the Mowry project did not move forward.

Table 10 summarizes the estimated net impact of the Mowry Village project itself on the City of Newark’s General Fund based on the methodology described above. As shown, the project is expected to generate approximately $803,900 in General Fund revenues compared to $603,200 in public service costs, for an annual net fiscal impact of $200,700.

Table 10 Summary of Fiscal Impact Analysis - Mowry Village at Buildout (2025$) Item Annual Fiscal Impact
General Fund Revenues
Property Tax $469,800
Property Tax in Lieu of VLF $152,700
Property Transfer Tax $16,600
Sales Tax (excl. business-to-business sales) $47,200
1/2 Cent Sales Tax $24,800
Transient Occupancy Tax $7,600
Utility User Tax $26,600
Franchise Fees $58,700
Total Revenues $803,900
General Fund Expenditures
General Government $14,100
Police $309,000
Fire Services $125,500
Development Fund $19,400
Recreation Fund $71,200
Maintenance Cost Center $64,000
Total Expenditures $603,200
Net Impact on General Fund $200,700
Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 15 Fiscal Impact on General Fund The net fiscal impact of the existing Pick-n-Pull is estimated using similar methodology as applied to the Mowery Village Project. With a few exceptions, most of the calculations are based on the estimate service population associated with the existing use, as calculated in Table 3. However, both property and sales tax revenues are estimated separately, as described below:
 Property Tax: Based on Alameda County Assessor’s Office, the assessed value of the existing parcels is approximately $12.6 million, which after applying the 1 percent Base Property Tax Rate and the 15.8 percent allocation to the City General fund, results in an estimated $19,800 in annual property tax revenue for the City of Newark.
 Sales Tax: Sales and operating data was not available from the existing Pick-nPull. EPS relied on professional assumptions derived from examples of similar business types to estimate the number of employees (25), the sales per square foot ($200), and annual employee retail spending ($60,000). Using these assumptions, EPS estimated $2.5 million in taxable retail sales, which results in approximately $24,200 in general sales tax revenue, and $12,700 in revenue from the ½ Cent Sales Tax.

Table 11 summarized the fiscal impact of the existing Pick-n-Pull based on the methodology described above. As shown, the existing business provides a positive fiscal impact to the City’s General Fund of about $58,000, with sales tax being the primary revenue generator.

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 16 Fiscal Impact on General Fund Table 11: Summary of Fiscal Impact Analysis – Existing Use (2025$) Table 12 compares the net fiscal impact of the Mowry Village Project with the existing use to derive a conservative estimate of the overall effect of the development on the City’s General Fund budget. As shown, the net increase in General Fund revenues from the project at buildout is estimated at roughly $737,200 more annually than the existing use on the site. The net increase in General Fund expenditures associated with the project is estimated at approximately $594,500 more per year than the existing use. Net fiscal impacts for the project are estimated to be $142,700 annually.

Item
Annual Fiscal
Impact
Amount Description
General Fund Revenues
Sales Tax (excl. business-to-business sales) $24,200
1/2 Cent Sales Tax $12,700
Property Tax $19,800 15.6% of base property tax rate (1%) Property Tax in Lieu of VLF $7,900 2.5% of Citywide Assessed Value Property Transfer Tax $0 - Not Estimated
Utility User Tax $1,100 3.25% of utility bills
Franchise Fees $1,000 $74.74 per service population
Total Revenues $66,700
General Fund Expenditures
General Government $200 $18.19 per service population
Police $5,000 $426.57 per service population
Fire Services $2,000 $156.44 per service population
Development Fund $300 $26.47 per service population
Recreation Fund $0 $91.36 per resident
Maintenance Cost Center $1,000 $80.81 per service population Total Expenditures $8,700
Net Impact on General Fund $58,000
$200
per square foot (0.95% for general
sales tax and 0.5% for 1/2 Cent
Sales Tax.)
Estimating Factors
Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 17 Fiscal Impact on General Fund Table 12: Net Fiscal Impact Summary
Revenue /
Expense Category
Fiscal Impact
at Project
Buildout
Fiscal Impact of
Current Use1
Net Fiscal
Impact of
Project
General Fund Revenues $803,900 $66,700 $737,200
General Fund Expenditures $603,200 $8,700 $594,500
Net Impact on General Fund $200,700 $58,000 $142,700
1) Assumes existing business (Pick-n-Pull) continues to operate without any changes a b = a - b
Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 18 Fiscal Impact on General Fund Appendix A:

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 19 Fiscal Impact on General Fund Table A-1: Newark Population Assumptions
Item Weight2 Weighted Average
Employment Status of Newark Residents1
Not in Labor Force 20,605 44% 100% 44.2%
Employed in the City 1,889 4% 50% 2.0%
Employed Outside of the City 24,141 52% 67% 34.7%
Total Residents 46,635 80.9%
Residence Status of Newark Employees
Live in the City 1,889 7% 50% 3.4%
Live Outside the City 25,596 93% 33% 30.7%
Total Jobs 27,485 34.2%
Employee to Resident Equivalency Factor4
(34.5% / 73.2%) 42.2%
Service Population Calculation
Amount Attributable to Residents (@ 100%) 46,635
Amount Attributable to Employees (@ 42.2%) 11,610
Total Service Population 58,245
(2) Represents EPS estimate of how various types of residents and employees relate to each other in terms of demand for City service (4) Equals weighted average of residents divided by weighted average of employees Sources: OntheMap LEHD and State of California Department of Finance Existing
(3) The number of residents who are employed in the City and the number of employees in the City who are residents arethe same, representing the same group of individuals. This group is reflected both in the Total Residents and the Total Jobs to demonstrate the composition of the totals, with their weighting split evenly between the resident and employee groups. (1) Distribution and Total jobs based on data from U.S. Census (OntheMap 2022). Total residents based on 2024 estimates provided by DOF in table E-5.

Memorandum : Newark Fiscal Impact Analysis for the Mowry Village Project Economic & Planning Systems, Inc. 20 Fiscal Impact on General Fund Table A-2: Newark New Home Prices – Gregory Group
Project Name Developer Units Planned Open Date Average Size (sf) Average Price/sf Average Price Beacon Lennar 120 1/15/2023 2,376 $641.15 $1,523,380
Vista Lennar 72 3/15/2023 2,385 $583.65 $1,392,000
Bungalows Lennar 100 9/26/2020 2,741 $558.03 $1,529,547 Villas Lennar 137 9/26/2020 2,360 $612.24 $1,444,880
Cottages Lennar 72 9/26/2020 2,080 $673.74 $1,401,380
Dover at Compass Bay Trumark 53 8/29/2020 2,523 $620.79 $1,566,250 Pomegranate DR Horton 21 10/15/2021 2,777 $666.19 $1,850,000 Camilia DR Horton 85 3/1/2019 3,653 $462.17 $1,688,323
Skylark LandSea Homes 108 5/1/2019 3,356 $466.83 $1,566,667 Weighted Average Home Price $578 $1,522,658
4040 Civic Center Drive, Suite 200
San Rafael, CA 94903
Office: 415.785.2025
www.NHAadvisors.com

MEMORANDUM
Date: September 22, 2025
To: Angela Ysui, Deputy Economic Development Director
From: Craig Hill, Managing Principal
RE: City of Newark Fiscal Analysis Peer Review – Mowry Village Project Background
NHA Advisors, LLC (”NHA”) has been engaged by the City of Newark (the “City”) to provide a peer review of the Fiscal Impact Analysis (“FIA”) prepared by Economic & Planning Systems (EPS) for the proposed Mowry Village residential development (the “Project”). The Project will replace the existing Pick-n-Pull facility with 196 single-family homes and 31 affordable multifamily units. EPS’s analysis compares the net General Fund impact of the proposed Project to the continuation of existing site use. This review evaluates the reasonableness of the methodology, identifies areas for clarification or adjustment, and confirms whether the Project results in a net fiscal benefit to the City.

Summary of EPS Findings
EPS concludes that:
• Total General Fund revenues from Project at buildout: $803,900 • Total General Fund expenditures from Project at buildout: $603,200 • Net fiscal benefit of the Project: $200,700 per year
• Existing Net fiscal benefit from current property use (Pick-n-Pull): $58,000 per year • Incremental net fiscal impact of project over existing use: $142,700 per year EPS employs a service population approach and uses per capita cost and revenue factors derived from Newark’s FY 2024–25 budget. Revenue estimates include property tax, sales tax, utility user tax, TOT, and franchise fees.

Peer Review Observations

1. Methodology and Structure
EPS employs a standard and defensible fiscal impact methodology consistent with the best industry practices. The use of a service population framework and average per capita revenue/expenditure factors is appropriate for a project of this scale.

CITY OF NEWARK FISCAL ANALYSIS PEER REVIEW – MOWRY VILLAGE PROJECT SEPTEMBER 22, 2025 PAGE 2

2. Revenue Assumptions – Validations and Adjustments
Item EPS Assumption NHA Observations NHA Notes
Property Tax 15.8% of 1% AV,
$298M value No issues noted
Valid and consistent with
County apportionment
rates.

Sales Tax 0.95% base +

0.5% local tax No issues noted
Methodology and
capture assumptions are
reasonable.

TOT 10% tax rate Newark’s actual TOT is 14%
EPS should revise to
reflect correct rate;
minor upward
adjustment.

Hotel ADR $150/night City estimates rate is likely
closer to $125
EPS should adjust for
more conservative
estimate.

UUT $300/month per
home
May be high given typical
utility use in new homes
Recommend revisiting
UUT assumptions to
better align with
benchmarks.

Franchise Fees $87.08 per
service pop
Concern this may be
overstated depending on
how fees are collected
Clarify account-based vs.
household-based fee
structure.

CUP Fee (Existing) Not included in
EPS analysis
Pick-n-Pull pays
$150,000/year CUP,
potentially CPI-adjusted
Should be acknowledged
as part of baseline fiscal
impact.

3. Expenditure Assumptions
• EPS uses per capita costs based on current departmental budgets and service classifications (fixed vs. variable)
• This refinement would provide a more nuanced view of long-term fiscal obligations CITY OF NEWARK FISCAL ANALYSIS PEER REVIEW – MOWRY VILLAGE PROJECT SEPTEMBER 22, 2025 PAGE 3
Conclusion
NHA calculates impact (when adjusting for TOT rate, Hotel ADR and the existing CUP fee of:

Project Benefit
$ 803,900 GF Revenues
$ 603,200 FD Expenditures
$ 200,700 Net Benefit based on EPS Analysis
Revenue Adjustments
$ (150,000) Pick 'N Pull CUP Fee
$ 1,268 Increase in TOT
$ 51,968 Net Benefit of Project
Despite some revenue assumptions that may slightly overstate benefits and cost estimates that may modestly understate future liabilities, the EPS analysis is fundamentally sound.

EPS should revise or annotate the following for transparency:
• Increase TOT rate to 14% and reduce ADR to ~$125
• Re-examine UUT and franchise fee assumptions
• Acknowledge the $150,000/year CUP fee in baseline scenario City of Newark | Newark Planning Commission
Chair Lori Bogisich | Vice Chair John Becker | Planning Commissioners: Jeff Aguilar, Bill Fitts, & Darshpal Dhillon

CITY OF NEWARK
Planning Commission
City Hall, City Council Chambers
37101 Newark Boulevard, Newark, CA 94560 | (510) 578-4330 | E-mail: [email protected]

MINUTES
Wednesday, November 19, 2025
7:00 P.M.

A. ROLL CALL
Chair Bogisich called the meeting to order at 7:01 pm. All members of the Planning Commission were present: Chair Bogisich, Vice Chair Becker, and Commissioners Aguilar, Fitts, and Dhillon.

B. MINUTES
B1. Approval of Minutes of the regular Planning Commission meeting of October 28, 2025.

MOTION APPROVED
Chair Bogisich requested a motion. Vice Chair Becker moved, and Commissioner Fitts seconded, to approve the Minutes of the regular Planning Commission meeting on October 28, 2025. The motion passed unanimously – 5 AYES.

C. WRITTEN COMMUNICATIONS
Chair Bogisich then moved on to Item C, Written Communication, and in response, Community Development Director (CDD) Steven Turner explained that several public communications about that evening’s public hearing item had been received over the past 24 hours. He noted that copies of the submissions had been placed at the Commissioners’ seats and were also available to the public. In addition, he stated that there were no other written communications to share.

City of Newark Planning Commission Agenda November 19, 2025 D. ORAL COMMUNICATIONS
Members of the public are invited to address the Planning Commission on any item not listed on the agenda. Public Comments are generally limited to 5 minutes per speaker. Please note that State law prohibits the Commission from acting on non-agenda items.

None.

E. PUBLIC HEARINGS
E.1. Hearing to consider resolutions recommending that the City Council of the City of Newark approve: (1) Revision of the Area 3 and 4 Specific Plan, (2) Revision of the General Plan land use for a .84 acre portion of project site from Low Density Residential to High Density Residential, (3) Rezone project site from Park to Residential Low Density, (28.37 Acre) and Residential High Density (.84 Acre), (4) Establishing a Planned Development Overlay District, (5) Design Review, (6) Vesting Tentative Map (8517), (7) Alternate Means of Compliance, (8) Density Bonus, and (9) certifying the Final Environmental Impact Report (SCN 2021110436) for the Mowry Village residential subdivision project generally located at 7400 & 7550 Mowry Avenue, consisting of APN’s 537-0850-001-11, 537-0850-001-13, and 537-0850-002-00. (RESOLUTIONS)
Deputy Community Development Director (DCDD) Art Interiano introduced the project, explaining that he would begin with background information and an overview before passing the presentation to the City’s environmental consultants for their PowerPoint presentation. He noted that staff would then return to present the entitlement analysis and final recommendation.

He explained that the item before the Commission was the Mowry Village project, submitted by Mowry Project Owner LLC. The proposal includes 196 single-family homes, with 31 units designated as affordable for very low- and low-income households. The project site, located at 7400 and 7550 Mowry Avenue, holds several related entitlements, including General Plan amendments, Specific Plan amendments, a rezoning, a planned development, design review, a vesting tentative map, an alternate means of compliance request, and acceptance of the environmental analysis.

City of Newark Planning Commission Agenda November 19, 2025 DCDD Interiano described the site as consisting of three parcels at the dead-end of Mowry Avenue, including a 9.5-acre vacant parcel and the existing Pick & Pull auto dismantling yard. The entire project area spans 29.1 acres, with the Pick & Pull site occupying approximately 19 acres. He stated that the business was annexed into the City from Fremont in 1979, after which Newark renewed its business license, and a Conditional Use Permit (CUP) was issued to authorize the use. The CUP remains valid until 2034 or until the completion of the Stevenson overpass related to the Sanctuary West project. Since auto dismantling is no longer allowed under current zoning, the site functions as a legal nonconforming use.

He then provided historical context, noting that this area was one of six identified for future development in the City’s 1992 General Plan, referred to at the time as the “General Plan 2007.” It was incorporated into a Specific Plan adopted in 2010, which established a development capacity of 1,260 units across Subareas A through D. Subarea A, the Sanctuary project at Cherry and Stevenson, is fully built, while Subareas B and C are part of the approved Sanctuary West project. The Mowry Village site is located within Subarea D. Across all subareas, approximately 405 units remain available within the Specific Plan’s capacity.

Regarding land use designations, DCDD Interiano mentioned that the site is currently zoned as Park, while the General Plan designates it as Low Density Residential, creating a conflict between the zoning and the General Plan.

He outlined the proposed development: a 29-acre neighborhood with 196 executive-style homes, including 31 affordable units, 4.89 acres of private open space, and infrastructure upgrades along Mowry Avenue. He summarized the lot and home sizes for the three product types.
• Plan 1: lots about 3,375 sq. ft., homes around 2,274 sq. ft., totaling 69 units. • Plan 2: lots approximately 3,600 sq. ft., homes around 2,741 sq. ft., totaling 61 units.
• Plan 3: lots roughly 4,000 sq. ft., homes about 2,902 sq. ft., totaling 66 units.

Those combine to give the project’s total of 196 single-family units.

He then reviewed the proposed improvements to Mowry Avenue, which included a seven-foot sidewalk, a four-foot landscape strip, buffered bike lanes on both sides,

City of Newark Planning Commission Agenda November 19, 2025 twelve-foot travel lanes, and a landscaped median. He explained that the water main serving the project would run alongside the railroad tracks from the Alameda Flood Control Channel to Mowry Avenue, crossing City-owned property. Because of this easement requirement, the applicant would pay the City $440,000 as part of a proposed agreement. The sewer line would be installed beneath Mowry.

He also discussed previous talks about emergency access during a train derailment or other blockages. Police and fire services could reach the neighborhood via an emergency route starting at Central Avenue, crossing the Cargill operations area, then following the flood control channel and railroad corridor before connecting to Mowry and entering the project site.

Concluding his project overview, DCDD Interiano introduced the City’s environmental consultants from Stantec—Principal Planner Anna, along with team members Trevor and Jennifer—and handed the presentation over to them to discuss the CEQA analysis.

Principal Planner Anna Radonich from Stantec presented the environmental analysis for the project. She explained that Stantec prepared the Environmental Impact Report (EIR) for the project and began by describing the purpose of CEQA, the California Environmental Quality Act, which applies because the project requires discretionary approval. She described the EIR as a problem-solving tool designed to inform decisionmakers, engage the public, disclose potential impacts, and help mitigate or avoid those impacts whenever possible. She pointed out that the CEQA process offers several opportunities for public input, including a 30-day scoping period after the Notice of Preparation (NOP), a 45-day public review for the Draft EIR, and opportunities for comments during public hearings, such as that evening.

She summarized the EIR process, recalling that the NOP was released in 2021 and included a public scoping meeting. The Draft EIR was circulated for public review in 2023, with a public meeting held in August of that year. She noted a correction on the slide indicating “November 12,” clarifying that the evening’s hearing was scheduled for November 19, with City Council review set for December 11. She pointed out that each of the orange markers on her PowerPoint timeline represented a point at which the public could provide comments.

City of Newark Planning Commission Agenda November 19, 2025 Ms. Radonich explained that all resource areas were included in the comprehensive analysis of the EIR, totaling 20, in accordance with Appendix G of the CEQA Guidelines.

She summarized the findings, noting that several categories were deemed insignificant, had no impact, and others were less significant with mitigation. One impact, however, remained significant and unavoidable: Transportation, specifically related to Vehicle Miles Traveled (VMT).

She discussed the cumulative analysis, explaining that CEQA requires assessing combined impacts when multiple projects contribute to a similar effect. She stated that, aside from VMT, all cumulative impacts were found to be less than significant for this project; however, VMT remained cumulatively substantial.

Ms. Radonich then described the alternatives analysis. Because the project has a significant, unavoidable impact, CEQA requires the EIR to consider alternatives that could mitigate or reduce that impact. She explained that three alternatives were considered but eliminated from further review: an alternative location, a restoration alternative, and a reduced-size “small project” alternative. Four alternatives were fully analyzed in the Draft EIR: the No Project Alternative, a multifamily residential alternative, a reduced density alternative, and a 100% affordable housing alternative.

She noted that after the public review of the Draft EIR, all comments were compiled and addressed in the Final EIR, which includes both written responses and an errata section documenting revisions made in response to those comments. She summarized the main topics raised in the public comments: wetland preservation and restoration, sea-level rise and flood zone concerns, wildlife habitat, and affordable housing.

During the preparation of the Final EIR, a fifth alternative, the project currently being considered, was added and analyzed: 196 single-family detached units, 30 multifamily units, and one manager’s unit. She clarified that this explains the difference between the 31 units mentioned in the staff report and the more detailed breakdown provided in the EIR.

Ms. Radonich then explained the comparison chart in the Final EIR, which evaluates each alternative against the proposed project across all resource categories and shows whether impacts would be reduced, increased, or stay the same. CEQA also requires identifying an environmentally superior alternative, and she stated that the reduced-

City of Newark Planning Commission Agenda November 19, 2025 density alternative meets this requirement. Although none of the alternatives would eliminate the significant and unavoidable VMT impact, the reduced-density alternative would meet all project objectives without causing greater impacts than the proposed project. She then wrapped up her presentation.

Following Ms. Radonich’s presentation, DCDD Interiano continued the staff report and reviewed the entitlement analysis for the proposed 196-unit project, which includes 31 affordable units. He explained that the General Plan designates the site as Low Density Residential, but the current zoning is Park, requiring a rezoning to align with the plan. He also noted that one General Plan amendment is necessary: a 0.84-acre parcel, known as Parcel H, must be redesignated as High Density Residential to support the affordable housing component, allowing for a development density of 36 dwelling units per acre, which exceeds the current designation’s limit.

He summarized the project’s findings on General Plan consistency in Resolution A, highlighting three key policies:
• LU 1.1 promotes a balanced mix of uses, enabling residents to live close to workplaces, services, schools, and recreation.
• LU 1.10, which promotes developing vacant and underused sites for their highest and best use; and
• LU 7.1, which encourages residential and recreational development in the Southwest Newark area, including Areas 3 and 4.

Regarding zoning, he stated that the site must be rezoned from Park to Residential SingleFamily (RS) with a Planned Development (PD) overlay, and to Residential High Density (RH) for the affordable housing parcel. The PD overlay is needed to align with the Specific Plan, which features smaller lot sizes and different design standards from those of RS zoning. He provided a visual comparison of the current zoning and the proposed changes, emphasizing the affordable parcel located on the lower left of the map.

He stated that the project complies with the Specific Plan’s site standards and architectural guidelines, which include one- and two-story homes, varied massing, prominent porches and entries, and efficiently sized lots. He noted that the six proposed architectural styles feature diverse rooflines, street-oriented designs, and recessed garages, all of which align with the plan. He added that the affordable building will be a

City of Newark Planning Commission Agenda November 19, 2025 three-story farmhouse-style structure, approximately 38 feet tall, with 30 affordable units, one manager’s unit, open space, and on-site office space.

DCDD Interiano then discussed the project’s eligibility for density bonus concessions and waivers, explaining that providing 15% of the units as affordable allows the developer to request relief from certain development standards. The requested waivers include lot depth, building height, front setback, street side yard, open space, and parking requirements. These reductions are necessary to construct affordable buildings that are consistent with RH zoning and the Specific Plan.

For the affordable housing program, he explained that the developer plans to provide onsite units instead of paying the City’s affordable housing impact fee. The 31 deedrestricted units would benefit very low- and low-income households, with restrictions in place for 55 years. He added that the project would include a local preference for Newark residents who live or work in the City, and the affordable housing manager would need to be approved by the City. Importantly, all affordable units must be built simultaneously with the market-rate homes, a requirement reinforced by the project’s schedule.

He then summarized the unit mix, which includes one-, two-, and three-bedroom units ranging from 545 to 1,143 square feet. He also referenced estimated rent limits for very low- and low-income households based on current AMI levels. He reiterated that the performance schedule ensures the 31 affordable units are delivered simultaneously with the market-rate units, allowing residents to be housed without delay.

Upon reviewing the subdivision map, he observed that the Vesting Tentative Map would convert the three existing parcels into 197 lots, add private internal roads, and widen the Mowry Avenue right-of-way. The map meets subdivision ordinance requirements. DCDD Interiano then presented Staff’s recommendation.

Staff’s recommendation: Staff requests that the Planning Commission recommend approval by the City Council of two resolutions. The first resolution would certify the Final Environmental Impact Report, adopt a Statement of Overriding Considerations, and approve the Mitigation Monitoring and Reporting Program. The second would approve the project entitlements, including the General Plan amendment, Specific Plan amendment, zoning map amendment, Planned Development Overlay District, Design

City of Newark Planning Commission Agenda November 19, 2025 Review, Alternate Means of Compliance, Density Bonus waivers, and the Vesting Tentative Map.

He concluded by noting that additional written communications had been received as of the previous day and were summarized in a memo provided to the Planning Commission.

Additional public comments received earlier that day were distributed on the dais, with copies also available for the public. He stated that staff members were available to answer any questions about the project or the CEQA process.

Chair Bogisich then explained the public comment process, telling members of the public who wanted to speak to submit a speaker card to staff. She then opened the floor to questions or comments from the Planning Commission.

DCDD Interiano noted that the applicant prepared a presentation, which was uploaded and ready to be shown.

Chair Bogisich confirmed the Commission would proceed with the applicant’s presentation.

Evan Knapp, a partner at Integral Communities, introduced himself and thanked Staff for their efforts during the five-year planning period. He mentioned that members of his team, including representatives from Helix, CBG, and Magical Bridge, were available to answer any questions. Mr. Knapp outlined the partnership between Integral Communities and Lennar Homes, highlighting their focus on transforming challenging sites into vibrant communities. He pointed out that Lennar, the second-largest homebuilder in the U.S., has extensive experience in developing high-quality neighborhoods. He also emphasized that their joint efforts have resulted in approximately 1,400 homes in Newark, with a total adjusted sales price of $1.5 billion, generating significant tax revenue and fostering wellfunctioning communities.

Mr. Knapp explained that the project site mainly consists of the existing Pick & Pull auto dismantling yard, with a smaller vacant area, and confirmed that the site is neither a wetland nor habitat for endangered species, as verified by the Army Corps of Engineers.

He stated that the company plans to invest $10 million to clean up existing contamination under an approved cleanup order with the Alameda County Water District. He

City of Newark Planning Commission Agenda November 19, 2025 emphasized that without redevelopment, the site would continue operating as a dismantling yard indefinitely.

He summarized the project as 196 single-family detached market-rate homes, including 31 affordable units, one of which is a manager's unit, and a 3,000-square-foot community meeting room for all residents. All homes would be all-electric, each featuring a two-car garage and driveway. Lot sizes range from 3,300 to 4,000 square feet, offering nine home models across three series to meet various family needs. He pointed out that the affordable building is located on the lower-left parcel of the site, closest to the Silliman Center and public transportation, and it blends seamlessly into the community through consistent street and park improvements.

Mr. Knapp highlighted the project’s partnership with the Magical Bridge Foundation to provide housing and amenities for residents with intellectual and developmental disabilities, a first in Newark. He described “Max’s Option,” a flexible space in the homes that can serve as a sensory room or a separate unit with a kitchenette and private entrance, designed to allow residents to age in place.

He also assessed the project’s financial benefits, including approximately $7 million from park fees, an additional $1.3 million in voluntary community contributions, annual property tax revenue of $645,000 with a net positive fiscal impact of $333,000, and an estimated $166,000 in extra retail spending. School impact fees are expected to total $3 million, supporting local businesses.

Addressing community concerns, Mr. Knapp stated that the site is not at risk from sea level rise, referencing a recent City study. The project would raise Mowry Avenue by 1–3 feet and the site by 2 feet. It would also upgrade the railroad crossing to meet CPUC standards, improve connectivity, and create multiple emergency vehicle access routes.

He dismissed additional misconceptions by clarifying that the site is not a wetland, contains no endangered species, and that its redevelopment offers an opportunity to clean up the polluted property, which the current operator is not required to remediate.

Mr. Knapp concluded by summarizing the extensive community engagement that has taken place since 2020, including meetings with over 50 stakeholders, outreach to 200 community groups, open houses, and the creation of a project website. He highlighted

City of Newark Planning Commission Agenda November 19, 2025 that between 2023 and 2025, the focus was on refining the project to address community feedback and adding unique amenities. He concluded his presentation with a quote from Governor Gavin Newsom about the importance of affordable local housing and introduced Vince Fletcher to continue the presentation.

Vince Fletcher, also a project partner, presented a video showing the current conditions at the Pick & Pull site. He described the site as an auto junkyard with over 2,000 vehicles at any given time and emphasized that it is a damaged area with the potential to become a vibrant residential community. He clarified that the site is not a wetland, noting that the soil is thick clay and that the property was used for farming from the early 1900s until the 1960s, before being converted into an auto dismantling yard for the past 55 years.

Mr. Fletcher explained that the site contains contaminants from automotive fluids, including benzene, diesel, oil, brake fluid, transmission fluid, and antifreeze, and that the estimated cleanup cost is between $7 million and $10 million. He noted that existing detention basins are man-made and maintained to filter impurities and heavy metals from the yard, and that these basins would be reconfigured to serve as storm drain detention basins to meet the project’s C3 stormwater requirements.

He also discussed issues on Mowry Avenue, which currently faces illegal dumping of trash and soil that intrudes into travel lanes. The project plans to widen the roadway to 54 feet curb-to-curb, and upgrade the railroad crossing with larger crossing arms and pedestrian gates. Mr. Fletcher described the train traffic at the crossing as consisting of seven to twelve cars moving quickly at a time. He also mentioned that, even if Mowry Avenue is blocked, there are alternative routes available via a dirt road to Stevenson or through a City flood control easement along the Cargill property, both about one mile from the site.

He concluded by reiterating that the project represents a significant opportunity to convert a deteriorated area into a community asset and offered to answer any questions from the Planning Commission.

After the presentations, Chair Bogisich requested clarification about the remediation of contaminated soil.

City of Newark Planning Commission Agenda November 19, 2025 Vince Fletcher explained that the top 18 inches of soil would be removed from the Pick & Pull site and taken offsite, and that the existing detention basins would be excavated and reconfigured as stormwater detention basins to meet residential standards.

Vice Chair Becker asked about neighboring properties, including the Cargill salt ponds.

Mr. Fletcher clarified that the project only includes property owned by Pick & Pull. Later, Mr. Evan Knapp confirmed that the Cargill site is an agricultural mining operation, not a wetland.

Commissioner Aguilar asked about the contamination cleanup process and oversight.

Mr. Fletcher described ongoing soil testing under the supervision of the Alameda County Water District (ACWD), with continuous monitoring to ensure compliance with residential standards.

DCDD Interiano added that the City participates in the process after ACWD and the Regional Water Board approve it, allowing building permits and grading to proceed.

Commissioner Fitts inquired about Lennar’s past experience with redeveloping contaminated sites.

Mr. Knapp confirmed that Lennar successfully remediated a clay manufacturing site as part of the Dumbarton TOD project, implementing cleanup under an approved order and then developing housing, noting that densities there were higher than those proposed at Mowry Village.

Commissioner Dhillon requested clarification about emergency vehicle access, especially concerning the Central Avenue and Stevenson ramps.

Mr. Knapp explained that the primary emergency access route is Mowry Avenue, which the Alameda County Fire Department has approved. The second and third emergency routes pass through the Cargill property and cross Stevenson via the Sanctuary West project, depending on when the overpass is built. He confirmed that Mowry Village will have two entrances from Mowry Avenue.

Chair Bogisich and the Commissioners had no further questions at that time. She then thanked the Commission for their questions and Evan Knapp for the presentation. Chair

City of Newark Planning Commission Agenda November 19, 2025 Bogisich then opened the floor to public comments, noting that nineteen members of the public were signed up to speak. She explained that each speaker would have three minutes and that she would call three people at a time, with the final group consisting of four speakers. She then began calling the participants.

Kelly Stough, Vice President of Land Development for Lennar in the Bay Area, expressed her gratitude to Staff for their help in reaching this stage of the project and shared her enthusiasm for developing another vibrant community in Newark. She emphasized her decade of experience in the City, including work on the Dumbarton TOD, and praised the collaborative efforts that have led to thriving neighborhoods.

Peter Hellmann, a home builder and developer from Walnut Creek with nearly fifty years of experience, highlighted the opportunity to transform the contaminated Pick & Pull site into 196 single-family homes. He pointed out that such housing options are becoming increasingly rare in the Bay Area and praised the inclusion of 30 affordable units for very low- and low-income households. Mr. Hellmann urged the Commission to approve the project, viewing it as a significant step toward meeting the region’s housing needs.

Louis Mirante, Senior Vice President of Public Policy for the Bay Area Council, spoke in support of the project on behalf of the Council, citing the region’s serious housing shortage. He highlighted the project’s potential to help Newark meet its RHNA requirements and ease price pressures in the local housing market. Mr. Mirante emphasized that the project would create new opportunities for homeownership, especially for first-time buyers, and align with state and regional affordability goals.

Chintan Shah, a Newark resident since 2016, spoke against the project. He expressed concerns about traffic impacts, noting that the development would add over 2,000 daily trips, worsening congestion at the Mowry-Cedar intersection and nearby streets. He pointed out safety hazards for children and pedestrians, mentioning speeding issues that have already been documented on nearby streets. Mr. Shah urged the Commission to oppose the project, stressing that the community could not handle the additional traffic.

Stephen Cassidy, President of the Newark Chamber of Commerce, spoke in support of the project. Representing the Chamber’s board of directors, he emphasized the benefits of redeveloping the existing auto dismantler, remediating contaminated soil, and providing new housing. Mr. Cassidy highlighted the project’s potential to boost the local

City of Newark Planning Commission Agenda November 19, 2025 economy, improve infrastructure, expand affordable and market-rate housing, and help Newark meet its RHNA goals, while also fostering long-term economic growth and increasing property values.

Cheryl Patel, speaking on behalf of Baykeeper, expressed opposition due to environmental and public health concerns. She pointed out the dangers of methane and hydrogen sulfide gases from petroleum contamination at the Pick & Pull site, especially when mixed with groundwater and flooding. Ms. Patel emphasized that even with cleanup efforts, residual contaminants could still pose a threat to future residents, and she urged the Commission to reconsider approving the Final Environmental Impact Report in its current form.

Liz Ames, a board director experienced in regional housing and transit planning, spoke out against the proposal. She expressed concerns that the development was too lowdensity and not aligned with transit objectives, arguing that high-density housing should be located near train stations and major bus corridors. Ms. Ames also emphasized the risks of sea level rise, storm surges, and flooding, urging the Commission to preserve the area as a wetland to absorb future water impacts and advising against development in vulnerable shoreline zones.

Olenka Villareal, founder of the Magical Bridge Foundation, voiced strong support for the project. She highlighted the benefits of replacing the contaminated Pick & Pull site with clean, modern housing, including 196 family homes and 31 affordable units. Ms. Villareal emphasized the innovative “Max’s Option” homes for residents with intellectual and developmental disabilities, as well as the construction of a fully inclusive Magical Bridge playground. She noted that the environmental review identified only one unavoidable impact related to traffic and emphasized that the main environmental benefit was the remediation of a long-polluting site.

Nick Valencia, a lifelong Newark resident, also backed the project. He shared his personal experience of living and working in Newark and the challenges younger residents face in affording homes in the area. Mr. Valencia highlighted the importance of keeping local talent, reducing commuting, and supporting the City’s middle-class population. He praised the developers for their track record and dedication to the community, expressing

City of Newark Planning Commission Agenda November 19, 2025 optimism that the project would strengthen neighborhood unity and provide quality housing for future residents.

Dixie Lira Baus, Real Estate Director at Eden Housing, expressed her support. She highlighted her organization’s experience in developing affordable housing and emphasized the importance of incorporating affordable units into market-rate communities. Ms. Baus noted that she has collaborated closely with Integral Communities on best practices for community integration and site placement, ensuring access to city services and supporting housing for individuals with intellectual disabilities. She shared her enthusiasm for participating in the Mowry Village project and providing vital affordable housing solutions.

Precious Sumagaysay, a student at Newark Memorial High School, spoke out against the project. She shared her personal connection to the local open spaces and voiced concerns about potential flash flooding and environmental impacts. Representing her peers in the Newark Memorial Environment Club, she highlighted that the youth of Newark feel their safety and future are at risk. Ms. Sumagaysay urged the Commission to prioritize protections against pollution and flooding, and to consider the long-term effects of the development on the community.

Nicolas Melendez, a student at Newark Memorial High School and secretary of the school’s Environmental Club, spoke out against the project. He voiced serious concerns about Newark’s marshland, highlighting the potential impacts on local wildlife, flooding, and the release of harmful chemicals if the development were to proceed. Mr. Melendez stressed that he and his fellow students are actively working to protect their community and urged the Commission to reconsider the project for the sake of Newark’s environmental future.

Yoo-Yoo Yeh, a Newark resident for ten years and local organizer for Urban Forest Friends, spoke against the project. She argued that, although housing is needed, Mowry Village is not the right location because of unsafe roads and flooding risks. She suggested that the Newpark Place development would be a safer and more appropriate alternative for new housing.

Laura Walsh, policy manager at the nonprofit Save the Bay, also opposed the project.

Drawing on her experience with sea level rise and wetland restoration, she noted that the

City of Newark Planning Commission Agenda November 19, 2025 site is highly vulnerable to flooding and that building there could create an island effect, potentially pushing water into nearby neighborhoods. She emphasized that the site presents a rare opportunity for wetland restoration, which could help protect the City from tidal energy and floodwaters. She noted that remediation could occur without new development.

Raul Penaloza, vice president of the Newark Memorial High School Environment Club, spoke on behalf of his club and their “Save Newark’s Wetlands” campaign. He described the club’s extensive advocacy efforts, including petitions, social media outreach, and educational events. He emphasized the importance of protecting Newark’s tidal marshes for future generations and urged the Commission to reconsider the project to preserve the City’s environmental legacy.

Victorina Arvelo, representing Greenbelt Alliance, spoke out against the project, emphasizing that it does not qualify as true infill development. She highlighted the environmental risks, including flooding, toxic chemicals, and potential damage to critical infrastructure, noting that the site is expected to be semi-permanently flooded within 25 years. She urged the Commission to prioritize long-term resilience and equity for residents instead of creating future liabilities.

Jana Sokale, a longtime Newark resident and member of the Citizens Committee to Complete the Refuge, also opposed the project. She emphasized the vulnerability of Newark homes to sea level rise and storm surge, stressing that the site could be restored and used for carbon sequestration instead of new housing. She called on the Commission to honor prior commitments to open space and protect the City’s environmental future.

Ahmer Khan, a board member of the Newark Chamber of Commerce and an environmentalist, supported the project. He argued that the site is a contaminated dump and that building housing there would provide affordable, centrally located homes. While acknowledging potential long-term sea level rise, he expressed confidence in technological solutions and emphasized the need for housing and local employment opportunities.

Francis Mendoza, a naturalist and vice chair of the East Bay Regional Park District Park Advisory Committee, opposed the project. He highlighted the site’s historical and ecological significance, including its wetlands, endangered species, and migratory birds.

City of Newark Planning Commission Agenda November 19, 2025 He criticized claims that the area isn’t prone to flooding and raised concerns about limited emergency access and potential environmental hazards, noting that other locations are available for housing development.

Chair Bogisich thanked the community members for attending and sharing their views, noting it was encouraging to see active participation, whether in support of or in opposition to the project. She then closed the public comment period and returned the discussion to the Commission for questions or comments.

Commissioner Aguilar inquired about the affordable housing component, noting that the project includes 30 to 31 units, with one being a manager’s unit. He asked what steps the City takes to ensure the developer follows through, especially if the builder fails to construct the affordable housing.

Michael Coulom, Housing Policy & Program Manager, stated that Exhibit E of the Affordable Housing Agreement outlines a schedule of performance tied to the overall development milestones. He clarified that if the developer fails to deliver the affordable housing, the City has the right to intervene and collect not only the housing impact fee but also an additional $3.5 million, beginning with the issuance of the 75th market-rate building permit. This amount, along with the impact fee, is intended to fund 30 affordable housing units elsewhere and compensate the City for lost opportunity costs.

Commissioner Aguilar acknowledged this mechanism as a positive incentive, emphasizing that it marks a shift from the historic practice of paying in-lieu fees and guarantees that affordable units are delivered alongside market-rate homes.

Chair Bogisich then invited the Commission to ask some additional questions.

Vice Chair Becker asked Staff for clarification about the Planning Commission’s duty to review the Environmental Impact Report (EIR) for the project.

CDD Steven Turner confirmed that the Commission’s role is to assess whether the EIR meets the necessary criteria and to recommend actions to the City Council, which has the final authority. This includes evaluating the certification of the EIR and adopting a statement of overriding considerations.

City of Newark Planning Commission Agenda November 19, 2025 Vice Chair Becker then shared his reflections. He noted the complexity and uncertainty surrounding sea level rise projections but emphasized that his evaluation would be based on the materials presented to the Commission. He praised the civility of the public discussion and thanked all speakers for sharing their views.

Vice Chair Becker discussed his long-term involvement with the project, noting that staff and developer collaboration addressed many of his initial concerns. He highlighted specific elements such as the inclusion of affordable housing, improvements to roads and bike lanes, cleanup of the Pick & Pull site, the potential for a quiet zone at the railroad crossing, and emergency access upgrades. He also praised the addition of Magical Bridge Park, which offers inclusive play options for children with special needs.

Vice Chair Becker emphasized the thoroughness of the EIR and the extensive public outreach over the past four years, acknowledging the efforts of both the consulting firm and the developer in addressing community concerns. He concluded by stating that, after reviewing the project details and public input, he would support the project.

Commissioner Fitts expressed support for the project, noting a connection to the successful redevelopment in West Newark, where a toxic industrial site was cleaned up and turned into homes. He pointed out that the Mowry Village site, now a long-standing auto wrecking yard, offers a similar opportunity for cleanup and provides much-needed housing, including affordable units. Commissioner Fitts mentioned that most previous concerns, such as emergency access, had been addressed, and he reaffirmed his support.

Commissioner Aguilar expressed appreciation for public participation, especially from students at Newark Memorial High School. He acknowledged concerns raised about wetlands, sea level rise, and traffic, noting that these issues have been considered throughout the review process. Commissioner Aguilar emphasized that the project aligns with the City’s General Plan, replaces an auto dismantling yard, and provides multiple infrastructure improvements, including road widening, sidewalks, bike lanes, and pedestrian access. He also highlighted enhancements to the railroad crossing, which could potentially create a quiet zone. Considering the affordable housing provisions and ongoing environmental oversight, Commissioner Aguilar concluded that the project offers a reasonable path forward and expressed his support.

City of Newark Planning Commission Agenda November 19, 2025 Motion: Chair Bogisich called for a motion to recommend that the City Council approve Item E1 for Mowry Village. Vice Chair Becker moved to approve both resolutions as outlined in the staff report. Commissioner Aguilar sought clarification, asking if the motion included both the CEQA document and the resolutions. Vice Chair Becker confirmed that the motion included Resolution A and Resolution B. Commissioner Aguilar seconded the motion. The motion passed unanimously – 5 AYES.

F. STAFF REPORTS
None
G. COMMISSION MATTERS
G.1 Report on City Council actions.

CDD Turner thanked the Commissioners and reported that there were no specific items to discuss at that time. He mentioned, however, that he would send a report to the Planning Commissioners later in the week regarding the City Council’s recent adoption of new strategic objectives for the upcoming year. He highlighted that the objectives reflect the Council’s priorities for the community, including affordable housing, financial stability, and recreation opportunities. CDD Turner emphasized that the report would provide valuable guidance to both Staff and the community about the Council’s future direction.

He concluded by noting that there was nothing else to report.

H. PLANNING COMMISSIONER COMMENTS
Chair Bogisich shared upcoming community event announcements. She mentioned that on Saturday, November 29, there will be an event supporting local small businesses at the Civic Center Plaza in the Library Community Room, with free refreshments and family activities. She also reminded attendees about the annual tree lighting scheduled for December 5 from 5:30 to 7:30 p.m., which will feature crafts, hot cocoa, a toy drive, and the tree lighting ceremony at 7:00 p.m.

I. ADJOURNMENT
Chair Bogisich adjourned the meeting at 9:05 p.m.

Item  F. 1.

DATE 12/11/2025
TO Honorable Mayor and City Council Members
FROM Jessennia Taimani, Recreation and Community Services Supervisor I
SUBJECT    Waive full reading and introduce by title only an ordinance adding Chapter 12.36, Art in Public Places and Private Development, and an ordinance adding Chapter 2.14, Public Art Committee, to the Newark Municipal Code; and adopt a resolution adopting the Public Art Guidelines to Implement Chapter 12.36, "Public Art In Public Places and Private Development"
SUMMARY AND RECOMMENDATION
Staff has incorporated City Council direction from the October 23, 2025, meeting into the proposed ordinances adding Chapter 12.36, Art in Public Places and Private Development, and Chapter 2.14, Public Art Committee to the Newark Municipal Code.

The revisions address affordable housing flexibility, committee composition, and student member terms. Staff recommends that the City Council waive the full reading and introduce by title only the proposed ordinances adding Chapter 12.36, Art in Public Places and Private Development, to Title 12 of the Newark Municipal Code and Chapter 2.14, Public Art Committee, to Title 2 of the Newark Municipal Code.

BACKGROUND
On October 23, 2025, staff presented proposed ordinances to the City Council to support the implementation of the City’s updated Public Art Master Plan adopted in June 2024 (see attached staff report). The presentation included two new chapters to the Newark Municipal Code:

Chapter 12.36, Art in Public Places and Private Development, establishes updated requirements for public art contributions associated with private development; and
Chapter 2.14, Public Art Committee, establishes the structure, duties, and appointment process for a new advisory body to guide implementation of the program.

At that meeting, the City Council considered the proposed ordinances and directed staff to return with revisions. Specifically, the Council requested that staff:

Provide additional flexibility for developments that include affordable housing; Establish a limited term for the high school student representative on the Public Art Committee;
Art Committee;
Explore expanding the Committee from five to seven members; Include the mentioned letter of support from the Newark Chamber of Commerce; and
Provide guidelines for implementing the Art in Public Places and Private Development program.

Since the October 23, 2025, presentation, staff have reviewed the City Council’s feedback, coordinated with various City staff and departments, and incorporated the requested changes into both proposed chapters. The proposed ordinances have been revised and are now being returned to the City Council for reintroduction and consideration.

DISCUSSION/ANALYSIS
Following City Council direction, staff have incorporated the requested revisions into the proposed ordinances, as outlined below.  Revised ordinances are attached including versions with redlines showing relevant updates.

Affordable Housing Exemption:

At the October 23 meeting, the City Council requested modifications to the proposed ordinance to expand flexibility for affordable housing projects under Chapter 12.36. In response, the proposed ordinance now clarifies that the exemption applies to the portion of a residential project that consists of dwelling units that are restricted to very low, low or moderate income households. This change reflects the Council’s direction to support the development of affordable housing while maintaining the public art requirement for the market-rate components of projects.

Limited Term for High School Committee Members:

The proposed ordinance now establishes a Newark Memorial High School Committee Member designated as an advisory non-voting member serving a one-year term, with eligibility for reappointment subject to Mayoral appointment and City Council confirmation. This position would not be required for the Committee to reach quorum.

Although non-voting, the student representative will receive all meeting materials and actively participate in discussions, ensuring continued youth engagement in the City’s public art program. This structure acknowledges the changing availability and priorities of high school students while creating an ongoing pipeline of student voices and perspectives within the committee’s work.

Committee Composition of 5 Voting Members plus 1 Non-Voting Student Member:

Revisions to Chapter 2.14 now establish a five-member committee and one advisory non-voting member of the committee that must be a Newark Memorial High School student representative. The five voting positions may be filled by individuals representing arts-focused nonprofit organizations, art curators, public art or design professionals, art educators, or community members with an interest in the arts. This structure balances diverse expertise and community representation while maintaining clear quorum requirements and manageable meeting operations. Consideration was given to expanding the committee to seven members. While this could be accommodated, staff have observed in other committees that larger bodies can create scheduling challenges due to broader availability conflicts. This has, at times, resulted in difficulty reaching quorum and delays in conducting business. For these reasons, staff recommend maintaining a five-member voting body with a separate non-voting advisory student member, as this structure is more manageable and supports consistent meeting attendance.

Letter of Support from the Newark Chamber of Commerce:

On October 21, 2025, Stephen Cassidy, CEO of the Newark Chamber of Commerce, submitted a letter on behalf of the Chamber’s Board of Directors expressing full support for the proposed ordinances. The Chamber highlighted the benefits of the “1% for Art” program in enriching Newark’s cultural identity and enhancing the quality of public spaces. In response to the City Council’s request, this letter has been included as an attachment to the staff report.

Implementation Guidelines for Art in Public Places and Private Development:

In response to the City Council’s request for greater clarity regarding program implementation, staff have developed Guidelines for Art in Public Places and Private Development. These guidelines outline the process, standards, and expectations for both on-site public art installations and in-lieu fee contributions. These guidelines will serve as an administrative tool to support ordinance implementation and will be updated periodically as best practices evolve. The guidelines have been included as Exhibit A to the resolution attached to this staff report. Also attached is a sample Art in Public Places and Private Development Application Form, which applicants will use in either paper or electronic form to notify the City of their proposed selection.

Chapter 12.36, Public Art in Public Places and Private Development Ordinance:

Updates were made to the ordinance based on City Council feedback regarding affordable housing, along with other minor edits, as shown in the attached redlined Chapter 12.36, Public Art in Public Places and Private Development Ordinance.

Chapter 2.14, Public Art Committee Ordinance:

Updates were made to the ordinance based on City Council feedback regarding the student term and committee composition, along with other minor edits, as shown in the attached redlined Chapter 2.14, Public Art Committee Ordinance. Meeting frequency was also revised to reflect a minimum of two meetings per year rather than a maximum of once per month. This revised language supports the committee meeting more frequently than twice per year and also acknowledges it could potentially meet more than once per month in order to meet process timeframes established in the proposed guidelines.

FISCAL IMPACT
There is no fiscal impact associated with this action. Costs associated with implementation of the Public Art Program will be limited to the amount of in lieu contributions collected per the new ordinance and the current Art in Public Places fund balance. As required, appropriations will be brought to the City Council for approval as individual projects are defined.

REVIEW AND APPROVAL
Prepared by - Jessennia Taimani, Recreation and Community Services Supervisor I Prepared by - Nicholas Cuevas, Recreation and Community Services Director Reviewed by - Lenka Hovorka, Assistant City Manager
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Newark Chamber of Commerce Letter of Support
Resolution for Public Art Guidelines
Exhibit A - Guidelines for Implementation of Art in Public Places and Private Development Ordinance
Sample Application Form - Art in Public Places and Private Development Ordinance - Chapter 2.14 Public Art Committee
Redline Reference Chapter 2.14 Public Art Committee
Ordinance - Chapter 12.36 Art in Public Places
Redline Reference Chapter 12.36 Art in Public Places
Presentation - Public Art Master Plan Revised Ordinance Introductions October 23, 2025 City Council Meeting Staff Report
October 21, 2025
Hon. Michael K. Hannon & City Council Via Email
City of Newark
37101 Newark Blvd
Newark, CA 94560
Subject: Support for Arts Ordinances
Dear Mayor Hannon and City Council members,
On behalf of the Board of Directors of the Newark Chamber of Commerce, I am pleased to express the Chamber’s full support for the proposed ordinances adding Chapter

12.36, Art in Public Places and Private Development, and Chapter 2.14, Public Art Committee, to the Newark Municipal Code (Item F.2 on the October 23, 2025, City Council agenda).

The Chamber appreciates the opportunity provided by City staff to review and discuss the proposed “1% for the Arts” program in advance of Thursday’s meeting. This outreach allowed the Chamber Board to carefully consider and unanimously endorse the initiative.

The Newark Chamber of Commerce strongly supports the continued investment in public art throughout our community. Public art enriches civic life—fostering community pride, encouraging creativity, and helping to define Newark’s distinct identity within the Tri-City area.

Vibrant public art installations enhance the sense of place, celebrate Newark’s cultural diversity, and make our city more welcoming to residents, businesses, and visitors alike. 2 Expanding public art is an important step toward improving the quality of life in Newark and strengthening our local economy.

Very Truly Yours,
Stephen Cassidy
President/Chief Executive Officer
Newark Chamber of Commerce
E: [email protected]
M: 510-414-2145
O: 510-578-4500
Newark Chamber of Commerce
Mailing Address:
34972 Newark Blvd., No. 322.

Newark, CA 94560
www.newark-chamber.com
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK ADOPTING THE PUBLIC ART GUIDELINES TO
IMPLEMENT CHAPTER 12.36, “PUBLIC ART IN PUBLIC
PLACES AND PRIVATE DEVELOPMENT”
WHEREAS, in 2024 the City Council adopted the Public Art Master Plan to guide the development, administration, and long-term stewardship of a vibrant and inspiring public art program in the City of Newark; and
WHEREAS, staff presented the proposed ordinance to the City Council on October 23, 2025, outlining requirements for qualifying private development projects to either install on-site public art or contribute to the Art in Public Places Fund to ensure public art is provided and maintained throughout the community; and
WHEREAS, implementation of these requirements necessitates clear, consistent, and transparent administrative procedures for applicants, staff, and the Public Art Committee; and WHEREAS, the “Public Art in Public Places and Private Development Guidelines” establish these procedures, including determining applicability, identifying compliance options, submitting and reviewing Public Art Plans, and defining installation, documentation, and other responsibilities consistent with the Public Art Master Plan, including steps for appeals of the Public Art Committee decisions to City Council; and
WHEREAS, adoption of the Guidelines provides a uniform framework for administering Newark Municipal Code Chapter 12.36.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby adopts the “Public Art in Public Places and Private Development Guidelines,” attached hereto as Exhibit A, as the administrative procedures for carrying out the requirements of Chapter 12.36.

BE IT FURTHER RESOLVED that the City Manager, or designee, is authorized to administer the Guidelines and make non-substantive updates as needed to maintain consistency with Chapter 12.36, the Public Art Master Plan, and standard administrative practices.

BE IT FURTHER RESOLVED that the City Manager, or designee, is authorized to take all actions necessary to effectuate the intent of this Resolution.

EXHIBIT A

GUIDELINES FOR IMPLEMENTATION OF ART IN PUBLIC PLACES AND PRIVATE DEVELOPMENT ORDINANCE I. INTRODUCTION
Newark Municipal Code, Chapter 12.36, Art in Public Places and Private Development requires that eligible projects include public art with a minimum value of 1% of the construction cost or pay an in-lieu contribution of 1% to the City’s Art in Public Places Fund. This requirement supports the City’s vision that all residents and visitors in Newark experience public art as part of their daily lives, throughout all neighborhoods, celebrating the City’s history, people, natural environment, and culture.

II. PURPOSE OF GUIDELINES
The purpose of  these Guidelines is  to  set  forth  the  specific  requirements  for  the production of public art pursuant  to Chapter 12.36. In general, these Guidelines:

A. Outline the process for determining applicability and selecting a compliance method under Chapter 12.36; B. Provide clear direction for the preparation, review, and approval of Public Art Plans; C. Ensure the efficient and consistent application of public art requirements; D. Support opportunities for qualified artists to contribute to Newark’s built environment; E. Ensure that artwork is designed, constructed, and installed in a manner that meets professional standards and is suitable for long-term maintenance; and
F. Promote the placement of public art in locations that are publicly visible, accessible, and distributed equitably throughout the City.

III. DEFINITIONS
For the purposes of these Guidelines and consistent with Chapter 12.36, the following terms shall have the meanings set forth below:

A. “Applicant” means any individual, firm, partnership, association, joint venture, corporation, or other entity that applies  for  a  planning  permit  or  building  permit  for  a  project  subject  to  the  Art  in  Public  Places  and  Private Development Ordinance.

B. “Art  in  Public  Places  Fund”  means  a  dedicated  City  fund  established  to  receive  in-lieu  contributions  made pursuant to Chapter 12.36. Monies in the Fund shall be used solely for the acquisition, fabrication, installation, and maintenance of public art, and for program administration.

C. “Artist” means a practitioner of the creative arts, generally recognized as such by critics and peers, with a body of work that may include commissions, exhibitions, sales, publications, and collections. For the purposes of these guidelines,  “artist”  shall  not  include:  (i)  persons  primarily  working  in  the  professional  fields  of  architecture, engineering, design or landscaping; (ii) an employee or relative of the development project architect, landscape architect, engineer or project manager; (iii) any person with a business interest in the development project or with  respect  to individuals or entities serving as project architects, landscape architects, engineers or project managers; or (iv) a relative of or anyone with a financial interest with respect to an individual or entity serving on an art selection panel for the development project.

D. “Artwork” means an original creation by an Artist that is permanently affixed to a publicly accessible location and aligns with the goals of the Public Art Masterplan. Artwork may include, but is not limited to, sculpture, painting, mural, mosaic,  relief,  bas-relief,  glasswork,  or  integrated  design  elements  approved  as  public  art.  Functional design  features  whose  primary  purpose  is  utilitarian  (e.g.,  benches,  lighting,  signage)  do  not  qualify  unless designed by an artist as a distinct artwork.

E. “Construction  Valuation”  means  the  total  value  of  all  construction  work,  including  labor  and  materials,  as determined by the City’s Building Official for the purpose of calculating building permit fees. Valuation will be determined during the building permit submittal process to ensure an accurate valuation for the 1% public art requirement.

F.  “In-Lieu Contribution” means the payment of an amount equal to one percent (1%) of the total construction valuation, submitted to the City in place of providing artwork on-site.

G. “Alterations  or  Tenant  Improvement”  means  any  non-residential  rehabilitation,  renovation,  remodeling,  or improvement of an existing building that requires the issuance of a building permit by the City of Newark with a construction valuation of $500,000 or greater.

H. “Public Art Committee” means the committee appointed by the Mayor and confirmed by City Council pursuant to Chapter 2.14 of the Newark Municipal Code.

I. “Publicly  Accessible  Location”  means  an  area  that  is  visible  and  accessible  to  the  general  public  without restriction during regular business or daylight hours, such as building entries, plazas, courtyards, or other exterior spaces.

J. “Public Art Staff” means City staff designated  to administer  the Art in Public Places and Private Development Program.

K. “Public Art Plaque” means a well-integrated interpretive element that identifies the artwork and artist, provides program or artwork context, and enhances public engagement.  Additional requirements can be found in Chapter

12.36.060, On-Site Public Art, Item G.

IV. APPLICABILITY
The provisions of Chapter 12.36 apply to all construction or alteration except as set forth below. a. This Chapter does not apply to residential alterations. b. This Chapter does not apply to residential projects in which one hundred percent (100%) of the dwelling units are restricted to very low, low, or moderate income households (as defined in this Code) or the portion of a marketrate project designated for affordable housing. c. This Chapter does not apply  to alterations with a construction cost of less  than  five hundred  thousand dollars ($500,000.00).
d. This Chapter does not apply to projects that have received entitlements or been deemed complete by written notification from City staff prior to the effective date of this ordinance. If this Chapter does not apply to a project for these reasons, such project must comply with City Council Resolution No. 6582.

V. APPLICATION AND REVIEW
If  the  proposed  project  is  subject  to  the  Art  in  Public  Places  and  Private  Development Ordinance,  the  applicant  shall complete  and  submit  the  Art  in  Public  Places  and  Private  Development  Application  Form  (or  equivalent  electronic submission) concurrently with the planning application to the City. Tenant improvements that do not require a Planning Permit shall identify their method of compliance with Chapter 12.36 at the time of Building Permit application submittal.

This form requires the applicant to indicate the selected method of compliance, either:

A. Installation of on-site public art equal to one percent (1%) of the total construction valuation, or B. In-Lieu Contribution equal to one percent (1%) of the total construction valuation.

Staff  will  review  the  Art  in  Public  Places  and  Private  Development  Application  Form  for  completeness  and  confirm applicability under Chapter 12.36. A copy of the application will be provided to Public Art Staff, who will guide applicants selecting Option A above through the process of submitting and receiving approval of the Public Art Plan.

VI. APPLICANT COORDINATION MEETING
Within three (3) business days of receiving the application, Public Art staff will contact the applicant to confirm receipt, acknowledge the selected method for fulfilling the public art requirement, and offer an optional coordination meeting to provide additional guidance.

When providing on-site public art:

The meeting will  review  the  requirements of Chapter 12.36, including applicable procedures,  timelines, and  submittal standards.

When providing in-lieu contribution:

The meeting will review the requirements of providing the In-Lieu contribution prior to the issuance of the Certificate of Occupancy, as per Chapter 12.36.070.B.

VII. PUBLIC ART REVIEW PROCESS
The public art review process is structured into three (3) sequential steps:

1. Art in Public Places and Private Development Application Submittal At  the  time  of  application  submittal,  the  applicant  shall  identify  the  general  location  intended  for  the  public artwork on the proposed plans included in the planning application. For tenant improvements that do not require Planning  review,  the applicant  shall  identify  the  intended  public art  location  on  the  plans  submitted with  the Building Permit application. This preliminary identification ensures that an appropriate and publicly visible space is reserved for future installation. Art selection and design details are not required at this stage.

2. Public Art Plan Submittal
Following planning (or building permit, as applicable) permit approval, the applicant shall initiate working with a qualified artist and develop a Public Art Plan. The Public Art Plan must be submitted to the Public Art Staff prior to the issuance of the Building Permit to ensure the proposed artwork meets the requirements of Chapter 12.36 and the Guidelines.

Public Art Plan submittals to Public Art Staff should be provided in an easily accessible format, such as a PDF, and submitted electronically  through  the  permit  portal. Additional  submittal  details will  be  shared with applicants during the application coordination meeting process.

The Public Art Plan shall include the following items to be considered a complete submittal:

1. Artist qualifications and contact information;

2. A description and visual representation of the proposed artwork;

3. Site plan showing artwork placement;

4. A cost breakdown;

5. An installation schedule; and

6. A maintenance and conservation plan.

The applicant is responsible for ensuring that all information submitted with the Public Art Plan is complete and accurate  to  the best of  their knowledge. Any missing or incomplete information may delay  the overall  review process.

3. Review and Approval
Each Public Art Plan must be approved by the City’s Public Art Committee.  The Committee will review and evaluate the plan for completeness and compliance with Chapter 12.36 and the Public Art Master Plan, and approve or deny the plan at a public meeting within twenty (20) business days of complete submittal. The applicant or a representative is required to attend the public meeting.

Approvals are contingent upon submittal of written proof of an executed contractual agreement to commission or purchase and install approved artwork on the development site within 60 days or prior to the building signoff, whichever comes first.

Information on new projects subject to review, approval, and appeal will be posted on the City website.

VIII. PUBLIC ART COMMITTEE DECISION APPEALS PROCESS
The following process shall be followed for any appeal regarding a decision to approve or deny a Public Art Plan by the Public Art Committee.

Appeals may be filed by the applicant, by the owner of the subject property, or by any other person aggrieved by a decision related to the selected artwork, selected artist, or approved site location. Appeals of the Public Art Committee decisions must be submitted to the City Council by writing to the City Clerk within fourteen (14) calendar days of the date of the decision. In the event an appeal period ends on a Saturday, Sunday, or any other day the city is closed, the appeal period shall  end  at  the  close  of  business  on  the  next  consecutive  business  day.  The  appeal  shall  identify  the  decision  being appealed and shall clearly and concisely state the reasons for the appeal. The appeal shall be accompanied by the required fee as listed in the City of Newark’s Master Fee Schedule.

The timely filing of an appeal shall stay all proceedings in the matter appealed, including, but not limited to, the issuance of city permits. The appeal for consideration (hearing) by the City Council shall be scheduled within forty-five days of the date the appeal is filed. Notice of the hearing shall be given to the applicant and party filing the appeal and any other interested person who has  filed with  the city clerk a written request  for such notice. When reviewing any decision on appeal,  the  City  Council  shall  use  the  same  standards  for  decision-making  required  for  the  original  decision. The  City Council may affirm, reverse, modify, or remand the decision to the Public Art Committee for further consideration. An action to grant an appeal requires a majority vote of the City Council. The City Council’s decision is final.

Following the appeals process, regardless of the outcome, Public Art staff will contact the applicant to inform them of the City Council’s decision and outline any steps required to comply with that decision related to the installation of public art.

VIX. Completion of Implementation of Art in Public Places and Private Development Requirements An  applicant  shall  be  deemed  to  have  satisfied  all  public  art  requirements  for  their  project  upon  completion  of  the following:

Applicant providing an In-Lieu Contribution equal to one percent (1%) of the total construction valuation:

The requirement is deemed complete when payment has been processed.

Applicant providing the Installation of on-site public art equal to one percent (1%) of the total construction valuation:

The requirement is deemed complete upon final building sign-off. 510.578.4412 [email protected] www.newarkca.gov facebook.com/newarkrec City of Newark – ATTACHMENT B2
Recreation & Community Services Department
Art in Public Places Program
7401 Enterprise Drive
Newark, CA 94560
Art in Public Places and Private Development Application Form (to be completed by Applicant and submitted concurrently with planning application or building permit application, if no planning required)
The Art in Public Places and Private Development Ordinance applies to all new residential developments, new non-residential construction, and non-residential alterations or tenant improvements exceeding $500,000 and all market-rate components of multi-use projects, meaning any part of the development not designated as affordable housing.

Chapter 12.36 requires applicants to comply with either of the following options: Installing on-site public art equal to one percent (1%) of the total construction valuation or making an In-Lieu Contribution equal to one percent (1%) of the total construction valuation.

The final construction valuation will be confirmed at the time of the Building Permit application. Should the final valuation submitted by the applicant be higher or lower than the valuation used during the planning application, the 1% Public Art requirement will be adjusted accordingly based on the valuation determined by the Chief Building Official.
1% of Estimated Construction Valuation: $______________________________________________ Please choose one of the following options:

Placement of original Public Art on site In-Lieu Contribution to Art in Public Places Fund Applicant Signature: _____________________ Date: ____________________________ APPLICANT: PROJECT ADDRESS:

ADDRESS: ESTIMATED CONSTRUCTION VALUATION:

PHONE: EMAIL:

FOR CITY USE ONLY
PROJECT NUMBER: DATE RECEIVED: APPROVED BY:

ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWARK ADDING CHAPTER 2.14, “PUBLIC ART COMMITTEE”,

TO THE NEWARK MUNICIPAL CODE
WHEREAS, in 2024 the City Council adopted the Public Art Master Plan update to develop, administer and maintain a vibrant and inspiring public art program in the City of Newark; and WHEREAS, the City Council has adopted a public art requirement for private development projects in the City of Newark to provide public art on site or, alternatively, contribute to a public art fund so that public art can be established elsewhere in the community, and to ensure that public art is present and sustained throughout the community; and WHEREAS, the City council is authorized to establish boards, commissions and committees of the City; and
WHEREAS, the City Council desires to formally establish the Public Art Committee as an independent City Committee advising the City on matters pertaining to public art.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWARK DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The above recitals (“Recitals”) are true and correct and made a part of this Ordinance.

SECTION 2. CEQA. The City Council independently finds and determines that this action is exempt from further California Environmental Quality Act (CEQA) environmental review pursuant to CEQA Guidelines sections 15060(c)(2) (no direct or reasonably foreseeable indirect physical change in the environment).

SECTION 3. Newark Municipal Code Chapter 2.14. Chapter 2.14 “Public Art Committee,” of the Newark Municipal Code is hereby added to read as displayed in Exhibit A, incorporated and made a part of this Ordinance.

SECTION 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION 5. Publication and effective date. Within fifteen (15) days from and after adoption, this Ordinance shall be published once in a newspaper of general circulation printed and published in Alameda County and circulated in the City of Newark, in accordance with California Government Code Section 36933. This Ordinance shall take effect thirty (30) days after its adoption.

EXHIBIT A
Chapter 2.14 PUBLIC ART COMMITTEE

2.14.010 Created; Purpose.

There is created a committee to consist of five members, which shall constitute a quorum, and one non-voting advisory member, which shall be designated as the Public Art Committee of the City of Newark. The Committee is to support the provision of visual public art in the City.

2.14.020 Membership; Appointment; Term of Office.

A. The Committee shall consist of five (5) members, constituting a quorum and meeting the qualifications identified in Section 2.14.030.

B. The Committee shall also consist of one (1) non-voting advisory member who shall be a Newark Memorial High School student meeting the qualifications identified in Section

2.14.040.

C. The Mayor shall appoint members to the Committee, subject to approval of the City Council.

D. In making appointments, the City Council shall consider the following categories:
1) Active members of a City-based, art focused, registered nonprofit organization, entity or facility.
2) Persons with experience in the public art field as either an artist, installer, or designer, including any person with professional credentials and work experience as exhibiting or performing artists, contemporary museum and gallery art curators, arts management professionals, arts educators, or design professionals such as architects, landscape architects, and urban planners.
3) Members of the general public, including students and community members with a passion for art.

2.14.030 Qualifications.

Members of the Committee shall have demonstrated, through community service or business experiences, a strong commitment to and knowledge of the artistic, aesthetic, and cultural quality of life in Newark, and will appreciate the role the arts can play in the cultural development and economic vitality of the community. In addition, the non-voting advisory member must be a Newark Memorial High School Student.

2.14.040 Terms of Office.

The terms of office of the voting members of the Committee shall be for four years; provided, however, that of the five members first appointed two shall be appointed for the term of two years, and three for the term of four years. The term of office for the non-voting advisory member of the Committee shall be one year. All Committee members, including the non-voting member, may be considered for reappointment by the Mayor subject to City Council approval.

2.14.050 Removal From Office; Vacancies.

A. Any appointed members of the Committee may be removed either by the Mayor, subject to the approval of the City Council, or by a majority vote of the City Council. Any time a Committee member has unexcused absences during a consecutive six-month period in excess of three meetings, their seat shall be automatically vacated. The following shall constitute valid excuses for failing to attend a meeting: 1. serious illness and/or injury of the Committee and/or their immediate family; 2. death in the family; 3. employment conditions requiring travel outside the Bay Area, evening meetings, etc.; 4. lack of transportation to the meeting; 5. previously scheduled vacation or travel.

B. Any vacancies among the appointed members shall be filled by appointment by the Mayor, subject to approval of the City Council, for the unexpired portion of the term.

2.14.060 Organization.

As soon as practicable following the termination of the term of office of any Committee member, the Public Art Committee shall organize, by electing from its members a Chairman and Vice Chairman to serve at the pleasure of the Committee. A secretary shall be designated for the recording of minutes of the Committee and to keep a record of its resolutions, proceedings and transactions. The secretary may be, but need not be, a member of the Committee and shall serve at the pleasure of the Committee.

2.14.070 Meetings.

The Committee shall fix the times and places of regular meetings of the Committee, which shall be held a minimum of twice per year. All meetings of the Committee shall be open to the public.

2.14.080 Powers and Duties.

The Public Art Committee shall have the following duties and responsibilities:

A. The powers and duties conferred and imposed upon the Public Art Committee by Chapter

12.36 of this code and the City Council approved Guidelines.

B. In accordance with City Council-approved guidelines, conducting public art proposal processes (such as requests for proposals, reviewing and acting on artist/artwork selection panel for public art fund projects,) for City-sponsored projects requiring public art installations.

C. Establishing and approving the Public Art Program mission and curatorial and programmatic goals, policies, and guidelines and developing and updating a Public Art Workplan outlining specific public art projects, locations, and budgets.

D. Reviewing and approving recommendations for maintenance and conservation of artwork, deaccession of artwork, and acceptance of artwork gifts and loans, in accordance with each respective policy.

E. Encouraging and promoting art programs and activities within the City.

F. Making recommendations to the City Council regarding local visual and performing art needs, activities and programs.

G. Receiving and gathering input from the community on issues relevant to art policies.

H. Enhancing community awareness of art resources.

I. Performing such other functions and render such other reports and recommendations as may be directed by the City Council.

J. Exercising only the powers herein above enumerated or as otherwise designated by the City Council.

ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWARK ADDING CHAPTER 2.14, “PUBLIC ART COMMITTEE”,

TO THE NEWARK MUNICIPAL CODE
WHEREAS, in 2024 the City Council adopted the Public Art Master Plan update to develop, administer and maintain a vibrant and inspiring public art program in the City of Newark; and WHEREAS, the City Council has adopted a public art requirement for private development projects in the City of Newark to provide public art on site or, alternatively, contribute to a public art fund so that public art can be established elsewhere in the community, and to ensure that public art is present and sustained throughout the community; and WHEREAS, the City council is authorized to establish boards, commissions and committees of the City; and
WHEREAS, the City Council desires to formally establish the Public Art Committee as an independent City Committee advising the City on matters pertaining to public art.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWARK DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The above recitals (“Recitals”) are true and correct and made a part of this Ordinance.

SECTION 2. CEQA. The City Council independently finds and determines that this action is exempt from further California Environmental Quality Act (CEQA) environmental review pursuant to CEQA Guidelines sections 15060(c)(2) (no direct or reasonably foreseeable indirect physical change in the environment).

SECTION 3. Newark Municipal Code Chapter 2.14. Chapter 2.14 “Public Art Committee,” of the Newark Municipal Code is hereby added to read as displayed in Exhibit A, incorporated and made a part of this Ordinance.

SECTION 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION 5. Publication and effective date. Within fifteen (15) days from and after adoption, this Ordinance shall be published once in a newspaper of general circulation printed and published in Alameda County and circulated in the City of Newark, in accordance with California Government Code Section 36933. This Ordinance shall take effect thirty (30) days after its adoption.

EXHIBIT A
Chapter 2.14 PUBLIC ART COMMITTEE

2.14.010 Created; Purpose.

There is created a committee to consist of five members, which shall constitute a quorum, and one non-voting advisory member, which shall be designated as the Public Art Committee of the City of Newark. The Committee is to support the provision of visual public art in the City.

2.14.020 Membership; Appointment; Term of Office.

A. The Committee shall consist of five (5) members, constituting a quorum and meeting the qualifications identified in Section 2.14.030.

B. The Committee shall also consist of one (1) non-voting advisory member who shall be a Newark Memorial High School student meeting the qualifications identified in Section

2.14.040.

C. The Mayor shall appoint members to the Committee, subject to approval of the City Council.

D. In making appointments, the City Council shall consider the following categories:
1) Active members of a City-based, art focused, registered nonprofit organization, entity or facility.
2) Persons with experience in the public art field as either an artist, installer, or designer, including any person with professional credentials and work experience as exhibiting or performing artists, contemporary museum and gallery art curators, arts management professionals, arts educators, or design professionals such as architects, landscape architects, and urban planners.
3) Members of the general public, including students and community members with a passion for art.

2.14.030 Qualifications.

Members of the Committee shall have demonstrated, through community service or business experiences, a strong commitment to and knowledge of the artistic, aesthetic, and cultural quality of life in Newark, and will appreciate the role the arts can play in the cultural development and economic vitality of the community. In addition, the non-voting advisory member must be a Newark Memorial High School Student.

2.14.040 Terms of Office.

The terms of office of the voting members of the Committee shall be for four years; provided, however, that of the five members first appointed two shall be appointed for the term of two years, and three for the term of four years. The term of office for the non-voting advisory member of the Committee shall be one year. All Committee members, including the non-voting member, may be considered for reappointment by the Mayor subject to City Council approval.

2.14.050 Removal From Office; Vacancies.

A. Any appointed members of the Committee may be removed either by the Mayor, subject to the approval of the City Council, or by a majority vote of the City Council. Any time a Committee member has unexcused absences during a consecutive six-month period in excess of three meetings, their seat shall be automatically vacated. The following shall constitute valid excuses for failing to attend a meeting: 1. serious illness and/or injury of the Committee and/or their immediate family; 2. death in the family; 3. employment conditions requiring travel outside the Bay Area, evening meetings, etc.; 4. lack of transportation to the meeting; 5. previously scheduled vacation or travel.

B. Any vacancies among the appointed members shall be filled by appointment by the Mayor, subject to approval of the City Council, for the unexpired portion of the term.

2.14.060 Organization.

As soon as practicable following the termination of the term of office of any Committee member, the Public Art Committee shall organize, by electing from its members a Chairman and Vice Chairman to serve at the pleasure of the Committee. A secretary shall be designated for the recording of minutes of the Committee and to keep a record of its resolutions, proceedings and transactions. The secretary may be, but need not be, a member of the Committee and shall serve at the pleasure of the Committee.

2.14.070 Meetings.

The Committee shall fix the times and places of regular meetings of the Committee, which shall not be more frequent than once each month held a minimum of twice per year. All meetings of the Committee shall be open to the public.

2.14.080 Powers and Duties.

The Public Art Committee shall have the following duties and responsibilities:

A. The powers and duties conferred and imposed upon the Public Art Committee by Chapter

12.36 of this code and the City Council approved Guidelines.

B. In accordance with City Council-approved guidelines, conducting public art proposal processes (such as requests for proposals, reviewing and acting on artist/artwork selection panel for public art fund projects,) for City-sponsored projects requiring public art installations.

C. Establishing and approving the Public Art Program mission and curatorial and programmatic goals, policies, and guidelines and developing and updating a Public Art Workplan outlining specific public art projects, locations, and budgets.

D. Reviewing and approving recommendations for maintenance and conservation of artwork, deaccession of artwork, and acceptance of artwork gifts and loans, in accordance with each respective policy.

E. Encouraging and promoting art programs and activities within the City.

F. Making recommendations to the City Council regarding local visual and performing art needs, activities and programs.

G. Receiving and gathering input from the community on issues relevant to art policies.

H. Enhancing community awareness of art resources.

I. Performing such other functions and render such other reports and recommendations as may be directed by the City Council.

J. Exercising only the powers herein above enumerated or as otherwise designated by the City Council.

ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWARK
ADDING CHAPTER 12.36, “PUBLIC ART IN PUBLIC PLACES AND PRIVATE DEVELOPMENT”, TO THE NEWARK MUNICIPAL CODE
WHEREAS, in 2024 the City Council adopted the Public Art Master Plan update to develop, administer and maintain a vibrant and inspiring public art program in the City of Newark; and WHEREAS, the City Council finds and declares that Public Art provides the following benefits to the community:
a. Public art contributes to the public's understanding, enjoyment and experience of cultural diversity, and helps to attract and anchor a large and diverse creative sector, enriching the City's cultural identity which is a key component of the City's economic vitality.
b. The incorporation of public art into private and public development will create a unique sense of community as well as public identity and enhance the visual and aesthetic quality of such developments.
c. The incorporation of public art in private and public development is in the public interest and enhances the economic sustainability of artists and arts organizations as a key to the vitality of the City of Newark. d. The provision of public art supports and implements General Plan policies to use public art that is accessible or visible to the public and conveniently or prominently situated in public places and new developments to commemorate Newark's cultural diversity.
e. Artistic assets should be included in private development projects, especially major gateways into Newark and along major arterials because gateways make an important first impression and can define a city's image for residents, businesses, and visitors.
f. Artistic resources foster economic development and tourism, revitalize urban areas, increase real property values, and improve the overall business climate by creating a more desirable community within which to live and work. g. The provision of public art supports and implements the City of Newark Public Art Master Plan goals to:
i. Provide diverse and engaging public art throughout Newark. ii. Commission community-focused art in publicly accessible places. iii. Integrate public art into all qualified municipal capital construction projects.
iv. Celebrate Newark’s cultural diversity through public art. v. Connect and build the artist community in Newark.
vi. Provide ongoing financial and administrative support for public art. vii. Maintain and expand the City’s collection of public art; and WHEREAS, the City Council finds that to ensure that public art is present and sustained throughout the community, it is necessary to require that private development projects in the City of Newark provide public art on site or, alternatively, contribute to a public art fund so that public art can be established elsewhere in the community; and
WHEREAS, the City has broad authority, under its general police power, to regulate the development and use of real property within its jurisdiction to promote the public welfare.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWARK DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals.

The above recitals (“Recitals”) are true and correct and made a part of this Ordinance.

SECTION 2. CEQA. The City Council independently finds and determines that this action· is exempt from further California Environmental Quality Act (CEQA) environmental review pursuant to CEQA Guidelines sections 15060(c)(2) (no direct or reasonably foreseeable indirect physical change in the environment), 15061 (b)(3) (no significant effect on the environment), and 15183 (projects consistent with a community plan, general plan, or zoning), each of which provides a separate and independent basis for CEQA clearance and when viewed collectively provide an overall basis for CEQA clearance.

SECTION 3. Newark Municipal Code Chapter 12.36

Chapter 12.36 “Public Art In Public Places And Private Development,” of the Newark Municipal Code is hereby added to read as displayed in Exhibit A, incorporated and made a part of this Ordinance.

SECTION 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION 5. Publication and effective date. Within fifteen (15) days from and after adoption, this Ordinance shall be published once in a newspaper of general circulation printed and published in Alameda County and circulated in the City of Newark, in accordance with California Government Code Section 36933. This Ordinance shall take effect thirty (30) days after its adoption.

Exhibit A

Title 12 - STREETS, SIDEWALKS, AND PUBLIC PLACES
Chapter 12.36 PUBLIC ART IN PUBLIC PLACES AND PRIVATE DEVELOPMENT

12.36.010 Purpose.

The purpose of this Chapter is to implement Goals LU-4-9 and LU-4-D of the City of Newark’s General Plan to use public art that is accessible or visible to the public and conveniently or prominently situated in public places and new developments to commemorate Newark's cultural diversity, and goals of the Public Art Master plan update adopted by the City of Newark in 2024.

The City Council finds and declares:
a. Public art contributes to the public's understanding, enjoyment and experience of cultural diversity, and helps to attract and anchor a large and diverse creative sector, enriching the City's cultural identity which is a key component of the City's economic vitality. b. The incorporation of public art into private and public development will create a unique sense of community as well as public identity and enhance the visual and aesthetic quality of such developments.
c. The incorporation of public art in private and public development is in the public interest and enhances the economic sustainability of artists and arts organizations as a key to the vitality of the City of Newark.
d. The provision of public art supports and implements General Plan policies to use public art that is accessible or visible to the public and conveniently or prominently situated in public places and new developments to commemorate Newark's cultural diversity. e. Artistic assets should be included in private development projects, especially major gateways into Newark and along major arterials because gateways make an important first impression and can define a city's image for residents, businesses, and visitors. f. Artistic resources foster economic development and tourism, revitalize urban areas, increase real property values, and improve the overall business climate by creating a more desirable community within which to live and work.
g. The provision of public art supports and implements the City of Newark Public Art Master Plan goals to:
i. Provide diverse and engaging public art throughout Newark. ii. Commission community-focused art in publicly accessible places. iii.

Integrate public art into all qualified municipal capital construction projects. iv.

Celebrate Newark’s cultural diversity through public art. v. Connect and build the artist community in Newark.
vi. Provide ongoing financial and administrative support for public art. vii. Maintain and expand the City’s collection of public art.

12.36.020 Definitions.

As used in this Chapter, the following terms shall have the following meanings:
“Alteration” means the rehabilitation, renovation, remodeling or improvement of an existing building that requires the issuance of a building permit by the City of Newark. “Construction” means the new construction (in whole or in part) of a building that requires the issuance of a building permit by the City of Newark. “Construction Cost “means the total value of the project as determined by the Chief Building Official and indicated on the building application submitted to the City in order to obtain a building permit, or permits, for the project. Building permit applications shall include, but not be limited to, all grading, building, plumbing, mechanical, and electrical permit applications for the project.

12.36.030 Applicability.

The provisions of this Chapter apply to all construction or alteration except as set forth below. a. This Chapter does not apply to residential alterations. b. This Chapter does not apply to the portion of a residential projects consisting of dwelling units that are restricted to very low, low or moderate income households (as defined in this Code).
c. This Chapter does not apply to alterations with a construction cost of less than five hundred thousand dollars ($500,000.00).
d. This Chapter does not apply to projects that have received entitlements or been deemed complete by written notification from City staff prior to the effective date of this ordinance. If this Chapter does not apply to a project for these reasons, such project must comply with City Council Resolution No. 6582.

12.36.040 Public Art Requirement.
a. For any project subject to this Chapter, public art must be provided as described in Section

12.36.060 or an equivalent payment must be made to the public art fund as provided in Section 12.36.070.
b. Except as provided elsewhere in this Chapter, the public art requirement applies for each incidence where construction or alteration occurs. No exemptions or credits for previously installed public art or previous payments to the public art fund will apply.

12.36.050 Guidelines for Implementation of this Chapter.

The City Council has established guidelines for implementation of this Chapter.

12.36.060 On-Site Public Art.
a. Anyone seeking to satisfy the public art requirement by placing art on a project site must comply with this section.
b. Except as provided below, construction or alteration projects must provide art with a value equal to at least one percent (1%) of the construction cost. The value of the public art includes the cost of the development, acquisition, and installation of the public art, the administrative costs associated with creating and installing the art, and any costs charged for the administration of this Chapter.
c. Public art may include sculpture, murals, photography and original works of graphic art, earthworks, fiber works, waterworks, neon, glass, mosaics, or any combination of forms of media, furnishing or fixtures permanently affixed to the building or its grounds, or a combination thereof, and may include architectural features of the building or elements of landscape design.
i. Public art may also include any other artwork determined by the Public Art Committee, or City Council on appeal, to satisfy the intent of this section. ii.

The creator of public art shall be a practitioner in the visual arts who is not a member of the project engineering, architecture or landscape architecture firm. d. The public art must be located (1) in areas on the site clearly visible from the public street or sidewalk, or (2) in publicly accessible outdoor areas, or (3) on adjacent public property (subject to the approval of any relevant public agency), or (4) in a publicly accessible area such as a hotel lobby. Public art must be displayed in a manner that will enhance its enjoyment by the general public.
e. Written proof to the City of a contractual agreement to commission (or purchase) and to install the requested artwork on the development site must be provided at the time of filing the building permit application.
f. The public art must be installed prior to the issuance of the first certificate of occupancy unless the Community Development Director concludes that it is not feasible to install the public art within this time frame and adequate assurance (which the Director may require to be in the form of a letter of credit or bond) is provided that the public art will be installed in a timely manner, in which case the Community Development Director may extend the time for installation.
g. Each piece of art shall provide an approved identification plaque or monument which shall be placed near the artwork.

12.36.070 Contribution to Public Art Fund.
a. Any person subject to this Chapter may choose to make a payment to the City's public art fund that is equivalent to the valuation required for providing art as set forth in Section

12.36.060. When the value of the public art would be fifty thousand dollars ($50,000.00) or less, it is encouraged, but not required, that a payment be made to the public art fund. b. Public art payments must be made prior to the issuance of a certificate of occupancy.

12.36.080 Use of Public Art Fund.

The City of Newark Public Art Fund must be used to further City-owned art or City-sponsored exhibitions that are accessible to the public. The fund must be used exclusively to (1) prepare sites for works of art, (2) acquire and install works of art, (3) maintain works of art, (4) support the exhibition of art, and (5) fund administrative costs associated with the public art program.

The Public Art Committee shall recommend utilization of monies in the public art fund.

12.36.090 Appeal of Public Art Committee Decision.

The appeals process will be pursuant to the City Council approved Public Art Guidelines.

12.36.100 Maintenance and Removal of Works of Art.
a. The owner of the real property on which public art is located must maintain the public art installed pursuant to this Chapter, or cause to be maintained, in good condition the on-site artwork continuously after its installation and shall perform necessary maintenance thereto to the satisfaction of the City. No work of art may be removed unless a replacement work of public art is approved pursuant to this Chapter.
b. Should the property owner wish to remove the on-site artwork, the City must be notified in advance. The property owner shall replace the on-site artwork with on-site artwork of equal or greater value, and consistent with the California Preservation of Works of Art Act and the Federal Visual Artists' Rights Act and any other relevant law. c. The City reserves the right to inspect the artwork at any time to ensure it is being maintained as required pursuant to this section.

12.36.110 Waiver.

The City Council, at its discretion, may waive, wholly or partially, the requirements of this Chapter and approve alternative methods of compliance with this Chapter if the applicant demonstrates, and the City Council finds, that such alternative methods meet the purposes of this Chapter.

12.36.120 Violations.

In addition to other fines or penalties provided by State or municipal law, the City may revoke or suspend any permit granted to any developer and/or owner who violates the provisions of this Chapter.

ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWARK ADDING CHAPTER 12.36, “PUBLIC ART IN PUBLIC PLACES AND PRIVATE DEVELOPMENT”,

TO THE NEWARK MUNICIPAL CODE
WHEREAS, in 2024 the City Council adopted the Public Art Master Plan update to develop, administer and maintain a vibrant and inspiring public art program in the City of Newark; and WHEREAS, the City Council finds and declares that Public Art provides the following benefits to the community:
a. Public art contributes to the public's understanding, enjoyment and experience of cultural diversity, and helps to attract and anchor a large and diverse creative sector, enriching the City's cultural identity which is a key component of the City's economic vitality.
b. The incorporation of public art into private and public development will create a unique sense of community as well as public identity and enhance the visual and aesthetic quality of such developments.
c. The incorporation of public art in private and public development is in the public interest and enhances the economic sustainability of artists and arts organizations as a key to the vitality of the City of Newark. d. The provision of public art supports and implements General Plan policies to use public art that is accessible or visible to the public and conveniently or prominently situated in public places and new developments to commemorate Newark's cultural diversity.
e. Artistic assets should be included in private development projects, especially major gateways into Newark and along major arterials because gateways make an important first impression and can define a city's image for residents, businesses, and visitors.
f. Artistic resources foster economic development and tourism, revitalize urban areas, increase real property values, and improve the overall business climate by creating a more desirable community within which to live and work. g. The provision of public art supports and implements the City of Newark Public Art Master Plan goals to:
i. Provide diverse and engaging public art throughout Newark. ii. Commission community-focused art in publicly accessible places. iii. Integrate public art into all qualified municipal capital construction projects.
iv. Celebrate Newark’s cultural diversity through public art. v. Connect and build the artist community in Newark.
vi. Provide ongoing financial and administrative support for public art. vii. Maintain and expand the City’s collection of public art; and WHEREAS, the City Council finds that to ensure that public art is present and sustained throughout the community, it is necessary to require that private development projects in the City of Newark provide public art on site or, alternatively, contribute to a public art fund so that public art can be established elsewhere in the community; and
WHEREAS, the City has broad authority, under its general police power, to regulate the development and use of real property within its jurisdiction to promote the public welfare.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWARK DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals.

The above recitals (“Recitals”) are true and correct and made a part of this Ordinance.

SECTION 2. CEQA. The City Council independently finds and determines that this action· is exempt from further California Environmental Quality Act (CEQA) environmental review pursuant to CEQA Guidelines sections 15060(c)(2) (no direct or reasonably foreseeable indirect physical change in the environment), 15061 (b)(3) (no significant effect on the environment), and 15183 (projects consistent with a community plan, general plan, or zoning), each of which provides a separate and independent basis for CEQA clearance and when viewed collectively provide an overall basis for CEQA clearance.

SECTION 3. Newark Municipal Code Chapter 12.36

Chapter 12.36 “Public Art In Public Places And Private Development,” of the Newark Municipal Code is hereby added to read as displayed in Exhibit A, incorporated and made a part of this Ordinance.

SECTION 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION 5. Publication and effective date. Within fifteen (15) days from and after adoption, this Ordinance shall be published once in a newspaper of general circulation printed and published in Alameda County and circulated in the City of Newark, in accordance with California Government Code Section 36933. This Ordinance shall take effect thirty (30) days after its adoption.

Exhibit A

Title 12 - STREETS, SIDEWALKS, AND PUBLIC PLACES
Chapter 12.36 PUBLIC ART IN PUBLIC PLACES AND PRIVATE DEVELOPMENT

12.36.010 Purpose.

The purpose of this Chapter is to implement Goals LU-4-9 and LU-4-D of the City of Newark’s General Plan to use public art that is accessible or visible to the public and conveniently or prominently situated in public places and new developments to commemorate Newark's cultural diversity, and goals of the Public Art Master plan update adopted by the City of Newark in 2024.

The City Council finds and declares:
a. Public art contributes to the public's understanding, enjoyment and experience of cultural diversity, and helps to attract and anchor a large and diverse creative sector, enriching the City's cultural identity which is a key component of the City's economic vitality. b. The incorporation of public art into private and public development will create a unique sense of community as well as public identity and enhance the visual and aesthetic quality of such developments.
c. The incorporation of public art in private and public development is in the public interest and enhances the economic sustainability of artists and arts organizations as a key to the vitality of the City of Newark.
d. The provision of public art supports and implements General Plan policies to use public art that is accessible or visible to the public and conveniently or prominently situated in public places and new developments to commemorate Newark's cultural diversity. e. Artistic assets should be included in private development projects, especially major gateways into Newark and along major arterials because gateways make an important first impression and can define a city's image for residents, businesses, and visitors. f. Artistic resources foster economic development and tourism, revitalize urban areas, increase real property values, and improve the overall business climate by creating a more desirable community within which to live and work.
g. The provision of public art supports and implements the City of Newark Public Art Master Plan goals to:
i. Provide diverse and engaging public art throughout Newark. ii. Commission community-focused art in publicly accessible places. iii.

Integrate public art into all qualified municipal capital construction projects. iv.

Celebrate Newark’s cultural diversity through public art. v. Connect and build the artist community in Newark.
vi. Provide ongoing financial and administrative support for public art. vii. Maintain and expand the City’s collection of public art.

12.36.020 Definitions.

As used in this Chapter, the following terms shall have the following meanings:
“Alteration” means the rehabilitation, renovation, remodeling or improvement of an existing building that requires the issuance of a building permit by the City of Newark. “Construction” means the new construction (in whole or in part) of a building that requires the issuance of a building permit by the City of Newark. “Construction Cost “means the total value of the project as determined by the Chief Building Official and indicated on the building application submitted to the City in order to obtain a building permit, or permits, for the project. Building permit applications shall include, but not be limited to, all grading, building, plumbing, mechanical, and electrical permit applications for the project.

12.36.030 Applicability.

The provisions of this Chapter apply to all construction or alteration except as set forth below. a. This Chapter does not apply to residential alterations. b. This Chapter does not apply to the portion of a residential projects in which one hundred percent (100%) of the consisting of dwelling units that are restricted to very low, low or moderate income households (as defined in this Code).
c. This Chapter does not apply to alterations with a construction cost of less than five hundred thousand dollars ($500,000.00).
d. This Chapter does not apply to projects that have received entitlements or been deemed complete by written notification from City staff prior to the effective date of this ordinance. If this Chapter does not apply to a project for these reasons, such project must comply with City Council Resolution No. 6582.

12.36.040 Public Art Requirement.
a. For any project subject to this Chapter, public art must be provided as described in Section

12.36.060 or an equivalent payment must be made to the public art fund as provided in Section 12.36.070.
b. Except as provided elsewhere in this Chapter, the public art requirement applies for each incidence where construction or alteration occurs. No exemptions or credits for previously installed public art or previous payments to the public art fund will apply.

12.36.050 Guidelines for Implementation of this Chapter.

The City Council may has established guidelines for implementation of this Chapter.

12.36.060 On-Site Public Art.
a. Anyone seeking to satisfy the public art requirement by placing art on a project site must comply with this section.
b. Except as provided below, construction or alteration projects must provide art with a value equal to at least one percent (1%) of the construction cost. The value of the public art includes the cost of the development, acquisition, and installation of the public art, the administrative costs associated with creating and installing the art, and any costs charged for the administration of this Chapter.
c. Public art may include sculpture, murals, photography and original works of graphic art, earthworks, fiber works, waterworks, neon, glass, mosaics, or any combination of forms of media, furnishing or fixtures permanently affixed to the building or its grounds, or a combination thereof, and may include architectural features of the building or elements of landscape design.
i. Public art may also include any other artwork determined by the Public Art Committee, or City Council on appeal, to satisfy the intent of this section. ii.

The creator of public art shall be a practitioner in the visual arts who is not a member of the project engineering, architecture or landscape architecture firm. d. The public art must be located (1) in areas on the site clearly visible from the public street or sidewalk, or (2) in publicly accessible outdoor areas, or (3) on adjacent public property (subject to the approval of any relevant public agency), or (4) in a publicly accessible area such as a hotel lobby. Public art must be displayed in a manner that will enhance its enjoyment by the general public.
e. Written proof to the City of a contractual agreement to commission (or purchase) and to install the requested artwork on the development site must be provided at the time of filing the building permit application.
f. The public art must be installed prior to the issuance of the first certificate of occupancy unless the Community Development Director concludes that it is not feasible to install the public art within this time frame and adequate assurance (which the Director may require to be in the form of a letter of credit or bond) is provided that the public art will be installed in a timely manner, in which case the Community Development Director may extend the time for installation.
f.g. Each piece of art shall provide an approved identification plaque or monument which shall be placed near the artwork.

12.36.070 Contribution to Public Art Fund.
a. Any person subject to this Chapter may choose to make a payment to the City's public art fund that is equivalent to the valuation required for providing art as set forth in Section

12.36.060. When the value of the public art would be fifty thousand dollars ($50,000.00) or less, it is encouraged, but not required, that a payment be made to the public art fund. b. Public art payments must be made prior to the issuance of a certificate of occupancy.

15.6012.36.080 Use of Public Art Fund.

The City of Newark Public Art Fund must be used to further City-owned art or City-sponsored exhibitions that are accessible to the public. The fund must be used exclusively to (1) prepare sites for works of art, (2) acquire and install works of art, (3) maintain works of art, (4) support the exhibition of art, and (5) fund administrative costs associated with the public art program.

The Public Art Committee shall recommend utilization of monies in the public art fund.

12.36.090 Appeal of Public Art Committee Decision.

A final decision by the Public Art Committee on the selection of public art, the artist or the site location may be appealed to the City Council within ten (10) days of the decision. The City Council may refer the matter back to the Public Art Committee for further consideration, ormay reverse, affirm or modify the Public Art Committee decision. The City Council's findings and decision on the appeal are final.The appeals process will be pursuant to the City Council approved Public Art Guidelines.

12.36.100 Maintenance and Removal of Works of Art.
a. The owner of the real property on which public art is located must maintain the public art installed pursuant to this Chapter, or cause to be maintained, in good condition the on-site artwork continuously after its installation and shall perform necessary maintenance thereto to the satisfaction of the City. No work of art may be removed unless a replacement work of public art is approved pursuant to this Chapter.
b. Should the property owner wish to remove the on-site artwork, the City must be notified in advance. The property owner shall replace the on-site artwork with on-site artwork of equal or greater value, and consistent with the California Preservation of Works of Art Act and the Federal Visual Artists' Rights Act and any other relevant law. c. The City reserves the right to inspect the artwork at any time to ensure it is being maintained as required pursuant to this section.

12.36.110 Waiver.

The City Council, at its discretion, may waive, wholly or partially, the requirements of this Chapter and approve alternative methods of compliance with this Chapter if the applicant demonstrates, and the City Council finds, that such alternative methods meet the purposes of this Chapter.

12.36.120 Violations.

In addition to other fines or penalties provided by State or municipal law, the City may revoke or suspend any permit granted to any developer and/or owner who violates the provisions of this Chapter.

It is our mission to serve and partner with our community to continually enhance the quality of life of everyone in Newark. 1 Public Art Master Plan
Revised Ordinance Introductions
December 11, 2025 | City Council Meeting
2 Revised Ordinance Introductions Recap
• Chapter 12.36 - Art in Public Places and Private Development, establishes updated requirements for public art contributions associated with private development; and
• Chapter 2.14 - Public Art Committee, establishes the structure, duties, and appointment process for a new advisory body to guide implementation of the program.
3 Chapter 12.36 Public Art in Public Places and Private Development Ordinance Affordable Housing Applicability
This Chapter does not apply to residential projects in
which one hundred percent (100%) of the dwelling units
are restricted to very low, low or moderate-income
households (as defined in this Code) or the portion of a market-rate project designated for affordable housing.
4 Chapter 2.14 Public Art Committee
Newark Memorial High School Student
• Non-voting committee member
• One year term
Committee Composition
• 6 Public Art Committee Members
• 5 Voting
• 1 Non-voting (NMHS Student)
Committee Meeting Frequency
• Minimum of twice per year
5 Letter of Support Newark Chamber of Commerce
On October 21, 2025, Stephen Cassidy, CEO of
the Newark Chamber of Commerce, submitted a
letter on behalf of the Chamber’s Board of
Directors expressing full support for the
proposed ordinances. The Chamber highlighted
the benefits of the “1% for Art” program in
enriching Newark’s cultural identity and
enhancing the quality of public spaces.

Letter of Support
6 Implementation Guidelines for Public Places and Private Development In response to the City Council’s request for greater clarity regarding program implementation, staff have developed Guidelines for Art in Public Places and Private Development to accompany Chapter 12.36.

These guidelines:
• Explain When Requirements Apply
• Define Compliance Options
• Guide Applicants Through the Process
• Ensure Consistent and Efficient Review
• Support High-Quality Artwork
• Promote Public Access & Equity
• Clarify Roles & Definitions
• Outline Appeal Procedures
Staff Recommendation
7 • Waive the full reading and introduce by title only a revised ordinance adding Chapter 2.14, Public Art
Committee, to Title 2 of the Newark Municipal Code.
• Waive the full reading and introduce by title only a
revised ordinance adding Chapter 12.36, Art in Public
Places and Private Development, to Title 12 of the
Newark Municipal Code.
• Adopt a resolution approving the Guidelines for
Implementation of Art in Public Places and Private
Development Ordinance.

Thank you!
Questions
It is our mission to serve and partner with our community to continually enhance the quality of life of everyone in Newark. 8 Item F.2.

DATE 10/23/2025
TO Honorable Mayor and City Council Members
FROM Jessennia Taimani, Recreation and Community Services Supervisor I SUBJECT Waive full reading and introduce by title only an ordinance adding Chapter 12.36, Art in Public Places and Private Development and an ordinance adding Chapter 2.14, Public Art Committee, to the Newark Municipal Code

SUMMARY AND RECOMMENDATION
Newark’s Public Art Master Plan update (Plan) outlines a vision and several strategic initiatives to establish a vibrant and sustainable public art program that will enrich the City’s cultural landscape and benefit the Newark community. Staff continue to implement several of these initiatives and now seek City Council action on two essential recommendations of the Plan:

1. Adopting an ordinance establishing an art in public places requirement to replace the City's existing impact fee; and

2. Adopting an ordinance establishing a Public Art Committee to guide implementation of the Plan.

Staff recommends that the City Council waive the full reading and introduce by title only an ordinance adding Chapter 12.36, Art in Public Places and Private Development, to Title 12 of the Newark Municipal Code and and an ordinance adding Chapter 2.14, Public Art Committee, to Title 2 of the Newark Municipal Code.

BACKGROUND
In 1992, the City Council adopted resolutions related to Art in Public Places and Private Development, including the establishment of associated fees. Resolution No. 6582 (attached) established a policy for the implementation of Art in Public Places and Private Development, requiring the development of a Master Plan to guide the expenditures of the fees collected.

Public art fees apply to new residential units and to commercial/industrial buildings and additions that add over 10,000 square feet of new or expanded space or that are located along major arterials as indicated in the General Plan. Resolution No. 6583 (attached) established the nexus for the Art in Public Places development fee, and resolution No. 6584 (attached) established the Art in Public Places fees as follows:

Current Art in Public Places Fees
Residential ( excluding affordable
housing) $ 270 / unit
Retail $0.26 / square foot
Office $0.38 / square foot
Light Manufacturing Warehouse $0.21 / square foot
Hi -Tech $0.41 / square foot
The City Council approved Newark’s first Public Art Master Plan in 2001 to guide the use of these funds. Over the past two decades, Newark has experienced significant change, and many of the projects identified in the 2001 Public Art Master Plan have become outdated or are no longer feasible. As a result, an update was needed to reflect changes in the community.

Additionally, best practices in the public art field have evolved, further reinforcing the need for an update.

In November 2022, the City Council authorized an agreement with Gail M. Goldman Associates and Art Builds Community to update the 2001 plan. The update process involved comprehensive industry research and robust community engagement.

Findings from this process informed the themes, vision, goals, and recommendations of the Public Art Master Plan update, which was adopted by City Council on June 13, 2024 (attached).

The Plan update was organized into five recurring themes with specific recommendations in each:

1. Identity and Civic Pride: Use public art to set Newark apart from surrounding communities.

2. Accessibility and Public Education: Place high-quality art throughout Newark, ensuring that it is fully accessible to the public.

3. Local Artists: Support and increase the visibility of local artists and creative entrepreneurs.

4. Administration and Collection Management: Promote the implementation of the Public Art Master Plan.

5. Funding: Ensure that the Public Art Fund has sufficient dollars to support public art and other arts initiatives.

The consultant team worked closely with staff and the community to develop the following Vision, Goals, and Guiding Principles:

Vision: All residents and visitors in Newark experience public art as part of their daily lives and throughout all neighborhoods, celebrating the City’s history, people, natural environment, and culture.

Goals: The City of Newark adopted the Public Art Master Plan May 2024 update as the guiding document for all public art and public art programming proposed for City property and the public realm in general.

Provide diverse and engaging public art throughout Newark Commission community-focused art in publicly accessible places Integrate public art into qualified municipal construction projects Celebrate Newark’s cultural diversity through public art Connect and build the artist community in Newark
Provide ongoing financial and administrative support for public art Maintain and expand the City’s collection of public art Guiding Principles: Public art in Newark has the power to:

Express Newark’s identity throughout the built environment.

Elevate the role of artist and the creative process play in connecting people and place.

Provide equitable access to a diversity of artists and artistic experiences.

Encourage multi-disciplinary collaboration in the public and private sectors to create vibrant public spaces.

Celebrate the communities’ cultural assets, highlighting the unique character of Newark’s neighborhood, honoring their histories, and preserving quality of place.

The Public Art Master Plan May 2024 Update outlines a variety of recommendations to support the vision, goals, and guiding principles. The recommendations are meant to guide the City Council, staff and the future Public Art Committee with the flexibility to develop, implement and manage projects that are within the resources available.

Since adoption, progress has been made on several of the Plan's recommendations. Public art has been incorporated into a number of City activities, such as the 2024 State of the City event, as well as included in large-scale Capital Improvement Plan projects currently in design including the Old Town Streetscape Improvements.

DISCUSSION/ANALYSIS
Two key priorities were identified in the updated Plan: (1) creating an Art in Public Places Ordinance, and (2) establishing a Public Art Committee (PAC) to provide oversight, transparency, and strategic direction. The proposed ordinances advance two critical implementation steps recommended in the Public Art Master Plan update. Together, these actions will provide the infrastructure needed to support a dynamic public art program that celebrates Newark's identity, fosters civic pride, and invests in cultural assets that serve all community members.

Chapter 12.36 Art in Public Places and Private Development The City's current public art requirement is based on fees adopted in 1992 as described above. While these fees helped implement some elements of the original Public Art Master Plan developed in 2001, the existing fee structure is outdated and no longer supports the City's goals and vision for a robust and sustainable public art program. The fee structure is now over three decades old as annual adjustments based on changes in the regional Construction Cost Index that were recommended to occur were not applied, further widening the gap between what was collected and what could have been generated.

Updating to a modernized Art in Public Places Ordinance will align Newark with regional practices and ensure that public art investment keeps pace with the scale of new development. Staff recommends a 1% public art contribution based on construction value (including development, acquisition, installation, and administrative expenses) with an option of either contributing art or paying an in-lieu fee. Exemptions from the contribution include projects that are 100% affordable housing, residential alterations, and (non-residential) tenant improvements under $500,000. Projects that have received their entitlements or been deemed complete by written notification from City staff prior to the effective date of the proposed Ordinance will be subject to the Art in Public Places and Private Development Policy fees adopted by City Council Resolution No. 6584 (attached).

Over the span of more than two decades, the City’s current fee structure has generated approximately $2 million in public art funding. As explained below, although actual revenues will vary based on future development activity, modernizing the program has the potential to generate several hundred thousand dollars annually in sustainable funding to support Newark’s public art program, consistent with the goals of the Public Art Master Plan.

To ensure public benefit, on-site public art installed by the developer must be located in areas that are publicly visible or accessible. Public art must be created by professional artists and may include murals, sculptures, integrated landscape features, or other media that contribute to the public experience. Artists must be independent of the project's architectural or engineering teams.

To address the limitations discussed and ensure all major sectors contribute proportionally, the proposed ordinance includes two key updates:

1. It formalizes the existing public art requirement by codifying it in the Newark Municipal Code as opposed to merely stating the requirement in a resolution; and

2. It modernizes the fee structure, shifting from a flat square footage-based fee to a percentage-based model tied to construction valuation.

Under the proposed ordinance, developers would have the flexibility to either integrate public art directly into their projects, valued at 1% of construction, or pay an equivalent in-lieu fee into the City’s Public Art Fund. Contributions would be encouraged, but not required, when the calculated art value is $50,000 or less. This ensures that public art is consistently funded while giving developers the option to select the approach that best aligns with their project.

Residential Impacts (Affordable Housing, Single Family, and Multi-Family) Under the proposed ordinance, 100% affordable housing projects will remain exempt from a public art requirement. This exemption ensures that limited funding for these developments can be fully directed toward construction, essential services, and keeping housing costs low for residents.

The proposed ordinance would continue to apply to all new residential developments. To illustrate the limitations of the current fee structure, staff analyzed single-family development activity from Fiscal Year 2023-24. Under the existing flat art fee of $270 per unit, the City collected approximately nearly $29,900 across 107 homes in the Bayside subdivision, less than

0.1% of the construction valuation. By contrast, applying a 1% public art requirement would have generated over $378,000 in art installation or fees.

Staff also reviewed a large multi-family development permitted in Fiscal Year 2023-24, consisting of senior housing, with a construction valuation of $35,357,000. Under the current resolution, this project was exempt from the public art fee because it qualified as affordable housing (and would remain exempt under the proposed ordinance). Development-related fees collected for this project totaled $2,826,443.18. For illustration purposes only, if the project had not been considered affordable housing, the application of the proposed 1% public art requirement would have generated approximately $335,570 in public art funding or art installation. This example underscores both the value of maintaining exemptions for affordable housing and the proportional scale of the 1% art requirement.

Under the proposed ordinance, updating the art requirement to a contribution equal to 1% of the project construction value, ensures that public art investment keeps pace with the scale of Newark’s future growth. Below is a table of other Alameda County cities' public art fees for residential projects.

Alameda County Cities' Public Art Requirements - Residential Projects City Public Art Installation
Cost
Public Art In-Lieu Fee or
Mandatory Fee Applicability/Notes
Alameda 1% of development cost 1% of development cost Applies to development with 5 or more units Albany 1.75% of development
cost 1.75% of development cost A single family home as primary residence exempt Berkeley 1.75% of construction
cost 0.8% of construction cost Applies to development with 5 or more units Dublin 0.5% of building valuation 0.5% of building valuation Applies to development with 20 or more units Emeryville 0.5% of development cost 0.5% of development cost Applies to development with 20 or more units Fremont Option if over 100,000 sq.
ft. $0.80 per sq. ft. Optional outside of four designated ArtZones/Districts Hayward N/A N/A *
Livermore N/A 0.33% of construction cost Applies to rehabilitation projects adding 25% or more square footage
Oakland N/A 0.5% Applies to development with 20 or more units Piedmont N/A N/A N/A
Pleasanton N/A N/A Developers encouraged to voluntarily include public art
San Leandro N/A N/A **
Union City 1% of permit valuation 1% of permit valuation Applies to development with 8 or more units *Hayward City Council recently reviewed an informational item exploring the creation of a public art fee. City Council expressed support for the concept, and directed staff to conduct further analysis and develop a fee structure recommendation.
**San Leandro City Council recently discussed proposed implementation of a public art requirement. The item was referred to a rules committee for additional analysis and is expected to return to the City Council for consideration.

Non-residential Impacts (Retail, Office, Light Manufacturing Warehouse, Hi-Tech) Under the proposed ordinance, all qualifying new non-residential construction and major alterations must meet the public art requirement by either installing on-site public art or making an equivalent in-lieu contribution to the City's Public Art Fund.

Tenant improvements would remain exempt if they fall below $500,000.

Staff reviewed tenant improvement activity under the current program. During Fiscal Year 2023-24, 18 permits for tenant improvements were issued with a combined job valuation of over $90 million. These projects generated approximately $3.6 million in other development-related fees. However, public art fees were not assessed, as tenant improvement projects, even large-scale ones, are currently excluded from contributing under the existing model. If the 1% art requirement had been applied to the 18 tenant improvement permits issued in Fiscal Year 2023-24, Newark could have collected approximately $906,000 in additional public art installation or funding in a single fiscal year.

Similar to residential projects, large commercial or industrial projects would also generate proportional contributions under the 1% art requirement model, ensuring investment in public art keeps pace with Newark’s broader economic growth. Below is a table of other Alameda County cities' public art requirements for non-residential projects. All costs and fees shown apply to new construction. Applicability to tenant improvements or minimum requirements for new construction applicability are noted.

Alameda County Cities' Public Art Requirements - Non-residential Projects City Public Art Installation
Cost
Public Art In-Lieu Fee
or Mandatory Fee Applicability/Notes
Alameda 1% of development cost 1% of development cost Projects over $250,000 Albany 1.75% of development
cost

1.75% of development
cost
Development over $300,000; excludes projects exempt
from design review
Berkeley 1.75% of construction
cost 0.8% of construction cost Applies to building additions exceeding 10,000 sq. ft.

Dublin 0.5% of development
cost

0.5% if 50,000 sq. ft. or
greater 0.45% if under
50,000 sq. ft.

New developments only
Emeryville 1% of development cost 1% of development cost Projects over $300,000 Fremont Option if over 100,000
sq. ft. $0.80 per sq. ft. Optional outside of four designated Art Zones/Districts Hayward N/A N/A *
Livermore N/A 0.33% of construction
cost
Applies to rehabilitation projects adding 25% or more sq. footage
Oakland N/A 1% Applies to buildings with 2,000 sq. ft. or more of new floor area
Piedmont N/A N/A N/A
Pleasanton N/A N/A Developers encouraged to voluntarily include public art San Leandro N/A N/A **
Union City 1% of permit valuation 1% of permit valuation Developments over $250,000 *Hayward City Council recently reviewed an informational item exploring the creation of a public art fee. City Council expressed support for the concept, and directed staff to conduct further analysis and develop a fee structure recommendation.
**San Leandro City Council recently discussed proposed implementation of a public art requirement. The item was referred to a rules committee for additional analysis and is expected to return to the City Council for consideration.

Use of the Art in Public Places Fund
The proposed ordinance formally establishes that public art in-lieu contributions made in accordance with Chapter 12.36 be deposited into the Art in Public Places Fund. Per section 12.36.080 of the proposed ordinance, monies deposited into the Fund must be used exclusively for City-owned public art or City-sponsored exhibitions that are accessible to the public.

Eligible uses include:

Preparing sites for the installation of public art
Acquiring and installing new public artworks
Conserving and maintaining existing artworks
Supporting public art exhibitions
Covering administrative costs related to program implementation Chapter 2.14 Public Art Committee
Recommendation D.3 of the updated Public Art Master Plan identifies the need to establish a formal Public Art Committee (PAC) to support the implementation of the City's Public Art Program. To fulfill this recommendation, staff propose adding Chapter 2.14, "Public Art Committee," to the Newark Municipal Code which is attached to this staff report for City Council consideration. This chapter would formally establish a committee of up to five members appointed by the Mayor and confirmed by the City Council. Members may include representatives of art-focused nonprofits, art curators, professionals in public art or design fields, art educators, Newark Memorial High School students and community members with a passion for the arts; a range of backgrounds is ideal. The terms of office of the PAC members shall be for four years, except for the initial appointments, in which two members would be appointed to two-year terms. The PAC would promote and advise on art policies and programs and determine art installations, ensuring public access to diverse opportunities. PAC members would serve as ambassadors, educators, and advocates for the arts.

The PAC would convene on an as-needed basis and no less than two times per calendar year. In general, the duties of the PAC would include:

Establish and approve the Public Art Program mission and curatorial and programmatic goals, policies, and guidelines Review and act on recommendations for Public Art Fund projects Review and approve recommendations for maintenance and conservation of artwork, deaccession of artwork, and acceptance of artwork gifts and loans, in accordance with City policies currently under staff development Develop and update a Public Art Workplan outlining specific public art projects, locations, and budgets identified in the Public Art Master Plan and in accordance with the proposed ordinance Serve as the key advocacy body for the City's Public Art Program Advise and assist the City Council on matters pertaining to public art, as may be referred by the Council Establishing the PAC will create a consistent and community-centered mechanism for shaping public art policy, reviewing and determining projects, and advocating for the City's long-term arts vision.

Next Steps
Should City Council approve staff's recommendation, a second reading of the ordinances will be planned for the November 13, 2025 City Council meeting. The ordinances will be effective 30 days following City Council approval in November. During the 30-day waiting period, applications for Public Art Committee membership would be widely advertised and accepted, and staff would begin revising forms and procedures and preparing outreach materials regarding the updated public art requirement. The appointment of Public Art Committee Members would likely occur in February 2026 and the inaugural meeting of the Public Art Committee would be anticipated in March or April 2026.

The ordinances include provisions related to the creation of City Council approved Guidelines that further define the role and function of the Public Art Committee. Staff intends to prepare draft Guidelines for City Council review and approval prior to the effective date of the ordinances.

FISCAL IMPACT
Costs associated with implementation of the Public Art Program will be limited to the amount of in lieu fees collected per the new Ordinance and the current Art in Public Places fund balance. When required, appropriations will be brought to City Council for approval as individual projects are defined.

REVIEW AND APPROVAL
Prepared by - Jessennia Taimani, Recreation and Community Services Supervisor I Nicholas Cuevas, Recreation and Community Services Director Roya Gonzalez, Strategic Initiatives Manager
Lenka Hovorka, Assistant City Manager
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Presentation
2001 Public Art Master Plan
Resolution 6282: Adopting a Policy for Proving Art in Public Places and Private Development Resolution 6583: Establishing Nexus for Development Fees Resolution 6584: Amending the Schedule of Fees, 1992-93 Public Art Master Plan May 2024 update
Proposed Chapter 2.14 Public Art Committee
Proposed Chapter 12.36 Public Art in Public Places and Private Development Item  H. 1.

DATE 12/11/2025
TO Honorable Mayor and City Council Members
FROM Neetu Salwan, City Clerk
SUBJECT    Motion appointing Vice Mayor and adoption of resolution authorizing the execution of financial documents
During the latter part of the calendar year, the City Council reorganizes by appointing one of its members to serve as Vice Mayor. The Vice Mayor performs the duties of the Mayor during the Mayor's absence. Staff recommends that the City Council select a member of the City Council to serve as Vice Mayor for a one-year term and until a successor is selected.

After the Vice Mayor has been selected, a resolution authorizing the Vice Mayor to sign and endorse checks, warrants, and other instruments will need to be approved by the City Council.

It is recommended that the City Council:  (1) by motion, appoint one of its members as Vice Mayor; and (2) by resolution, authorize the signing and endorsing of checks, warrants, and other instruments.

Attachments
Resolution - Authorization to sign and endorse financial documents RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING SIGNING AND ENDORSING

CHECKS, WARRANTS, AND OTHER INSTRUMENTS
WHEREAS, the City of Newark maintains checking accounts with U.S. Bank and Fremont Bank as the depositories of the City’s funds; and WHEREAS, checks or warrants withdrawing funds requires City signatories.

NOW, THEREFORE, BE IT RESOLVED that checks or warrants withdrawing funds from the financial institutions identified above must have signatures of any two of the following positions: Mayor; Vice Mayor; City Manager; Treasurer; or Assistant City Manager. Each such official shall be duly elected or appointed as stipulated in the Newark Municipal Code and a record of such appointment or election shall be maintained in the office of the City Clerk.

BE IT FURTHER RESOLVED that U.S. Bank and Fremont Bank are authorized to honor and pay all the checks and warrants to the City of Newark, signed as provided herein, whether or not payable to the person or persons signing them; and that checks, warrants, drafts, bills of exchange and other evidence of indebtedness may be endorsed and deposited to the account of the City of Newark, by and of the foregoing or any other employee or agent of the City of Newark, and may be endorsed in writing or by stamp, with or without the designation of the person so endorsing.

BE IT FURTHER RESOLVED that the Check Writing Devices signature impression of the above signatories shall be deemed their manual signatures for the purposes specified in this resolution.

BE IT FURTHER RESOLVED that this Resolution supersedes all prior resolutions regarding this subject matter.

Item  H. 2.

DATE 12/11/2025
TO Honorable Mayor and City Council Members
FROM Neetu Salwan, City Clerk
SUBJECT    Adopt a resolution confirming the Mayor's appointments to various agencies, boards, commissions, and committees
On a yearly basis, the Mayor appoints City Council Members to various agencies, boards, commissions, and committees. Mayor Hannon is the City’s representative on the Housing Commission of the Housing Authority of the County of Alameda (Housing Authority). This is not listed because the Alameda County Board of Supervisors is the appointing authority. The Tri-City Elder Coalition / Senior Action Plan has been removed from the appointment list after operating as a nonprofit for five years, closing in July 2025.

The current appointments are listed for reference in the table below.

Alameda County Fire Advisory Committee Council Members Little and Catancio – delegate and alternate
Alameda County Library Advisory
Commission
Council Members Grindall and Little –
delegate and alternate
Alameda County Transportation
Commission
Mayor Hannon and Council Member
Grindall – delegate and alternate
Alameda County Waste Management
Authority Board (Stopwaste.org)
Council Member Jorgens and Mayor
Hannon –delegate and alternate
Association of Bay Area Governments
(ABAG)
Mayor Hannon and Council Member
Grindall – delegate and alternate
Ava Community Energy Authority Board
of Directors
Council Members Catancio and Jorgens –
delegate and alternate
Community Development Advisory
Committee
Mayor Hannon and Council Member
Grindall – delegates
Newark City Council – Newark Board of
Education Liaison Committee
Mayor Hannon and Council Member
Jorgens – delegates
Senior Advisory Committee Mayor Hannon delegate and chairperson Southern Alameda County Geographic
Information System Authority
Council Member Catancio and Mayor
Hannon – delegate and alternate
The Mayor will announce his appointments during the City Council meeting. It is recommended that the City Council, by resolution, confirm the appointments to the various agencies, boards, commissions, and committees.

Attachments
Resolution - Council Assignments
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK CONFIRMING THE MAYOR’S APPOINTMENTS
TO VARIOUS AGENCIES, BOARDS, COMMISSIONS, AND

COMMITTEES
WHEREAS, the Mayor of the City of Newark has appointed representatives to the following agencies, boards, commissions, and committees:

Alameda County Fire Advisory Committee Delegate: _____________________ Alternate: _____________________
Alameda County Library Advisory
Commission
Delegate: _____________________
Alternate: _____________________
Alameda County Transportation Commission Delegate: _____________________ Alternate: _____________________
Alameda County Waste Management
Authority Board (Stopwaste.org)
Delegate: _____________________
Alternate: _____________________
Association of Bay Area Governments
(ABAG)
Delegate: _____________________
Alternate: _____________________
Ava Community Energy Authority Board of
Directors
Delegate: _____________________
Alternate: _____________________
Community Development Advisory
Committee
Delegate: _____________________
Delegate: _____________________
Newark City Council – Newark Board of
Education Liaison Committee
Delegate: _____________________
Delegate: _____________________
Alternate: _____________________
Senior Advisory Committee Delegate and Chairperson: ____________________ Southern Alameda County Geographic
Information System Authority
Delegate: _____________________
Alternate: _____________________
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby approves the Mayor’s appointments.

Item  H. 3.

DATE 12/11/2025
TO Honorable Mayor and City Council Members
FROM Neetu Salwan, City Clerk
SUBJECT    Adopt a resolution approving the reappointment of John Becker to the Planning Commission for a four-year term.

The Planning Commission is responsible for reviewing and acting upon certain planning applications and for making recommendations to the City Council on land use issues. The Commission plays a critical role in the City’s long-range planning efforts and development review process. The Planning Commission consists of five members who must be residents of the City and at least eighteen years of age.

Commissioner John Becker was appointed to the Planning Commission for a term scheduled to expire on December 31, 2025. Commissioner Becker has expressed interest in continuing his service and has requested reappointment to a new four-year term.

Per Newark Municipal Code Chapter 2.12, Planning Commissioners are appointed by the Mayor, with the approval of the City Council, for a four-year term.

It is recommended that the City Council adopt a resolution approving the Mayor’s reappointment of John Becker to the Planning Commission for a four-year term beginning January 1, 2026, and expiring December 31, 2029.

Attachments
Resolution - Reappointment of PC John Becker
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING THE REAPPOINTMENT OF JOHN

BECKER TO THE PLANNING COMMISSION
WHEREAS, the appointment of John Becker to the Planning Commission will expire on December 31, 2025; and
WHEREAS, John Becker has requested reappointment; and
WHEREAS, the Mayor of the City of Newark has reappointed John Becker to the Planning Commission for a term expiring December 31, 2029.

NOW, THEREFORE, BE IT RESOLVED that said appointment is hereby approved by the City Council of the City of Newark.