City Council
October 20, 2026
AGENDA REPORT
TO: Elizabeth A. Lake FROM: Liam Garland
Interim City Administrator Director, Oakland Public
Works
SUBJECT: Accept HUD Community Project
Funding Grant for Brooklyn Plaza
DATE: September 28, 2026
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends City Council Adopt a Resolution
(1) Authorizing The City Administrator To Apply For, Accept, And Appropriate Grant Funds From The U.S. Department Of Housing And Urban Development’s (HUD) Community Project Funding For The Brooklyn Plaza Project In The Amount Of $250,000.00;
(2) Authorizing The City Administrator To Enter Into A Grant Agreement, Or Similar Agreement, With Zarsion-OHP I, LLC In An Amount Not To Exceed $250,000; And (3) Adopting Appropriate California Environmental Quality Act (CEQA) Findings
EXECUTIVE SUMMARY
Approval of the proposed resolution will enable the City of Oakland (City) to apply for, accept and appropriate funds from the U.S. Housing and Urban Development (HUD) Community Project Funding (CPF) program for the Brooklyn Plaza Phase 2 project, part of the Brooklyn Basin development project, a housing and community benefit project.
In early 2025, the Mayor’s Office applied for Congressionally Directed Spending through the federal budget for the Brooklyn Basin Blight Removal and Shoreline Improvements project.
Supported by Representative Lateefah Simon, Senator Alex Padilla and Senator Adam Schiff, the City was awarded $250,000 in the Fiscal Year (FY) 2026 Consolidated Appropriations Act to support the work of Oakland-based Zarsion Oakland Harbor Partners 1, LLC (ZOHP), the developer of the Brooklyn Basin development project to: 1) clean up a blighted section of the Oakland Estuary; 2) raise and stabilize a deteriorated shoreline; and 3) provide bay trail improvements, as part of their larger scope of work.
Elizabeth Lake (Oct 8, 2026 16:28:35 PDT) Elizabeth Lake Oct 8, 2026 Elizabeth A. Lake, Interim City Administrator
Subject: Accept HUD Community Project Funding Grant for Brooklyn Plaza Date: September 28, 2026 Page 2
City Council
October 20, 2026
REASON FOR URGENCY The City is required to enter into a grant agreement no later than October 2026 and therefore it is necessary this item is taken directly for full Council’s approval on October 20, 2026.
BACKGROUND / LEGISLATIVE HISTORY
ZOHP is required to complete four parks as part of the overall larger Brooklyn Basin development project that includes housing, commercial space, new waterfront parks and open space. The development encompasses a 64-acre site that adjoins the Oakland Estuary to the south, the Embarcadero and the I-880 freeway to the north, 9th Avenue to the east and Fallon Street to the west. Brooklyn Plaza is one of the new parks to be completed.
Brooklyn Basin Planned Unit Development (PUD) Brief History The City Council originally approved the Brooklyn Basin Planned Unit Development (PUD), associated land use entitlements, and Development Agreement in 2006. The approved project included the construction of up to 3,100 residential units, 200,000 square feet of ground-floor commercial space, a minimum of 3,950 parking spaces, 32.17 acres of parks and public open space, and restoration to existing wetlands area.
Approximately 1,231 market rate housing units and 465 affordable units have been constructed (for a total of 1,696 housing units) and 10 acres of open space are completed. Phase One of the Project has been fully constructed, and Phase Two is in development. The first public park, Township Commons, is open and operational.
In 2023, City Council approved amendments to the Brooklyn Basin land use entitlements to allow for construction of up to 3,700 residential units throughout the existing development parcels in the Brooklyn Basin PUD, an increase of 600 units over the original entitlements.
More recently, due to uncertainty in the housing market and overall development within the City of Oakland, the developer has been struggling to secure funding to deliver the entirety of the Brooklyn Basin development project.
There are a total of four (4) parks that have been approved for this master development. The parks and open spaces approved under the original planning entitlements include 32 acres of additional open space for the City of Oakland. The first park, Township Commons, has been constructed and dedicated to the City as a public park and is approximately 10 acres in size.
The four Brooklyn Basin parks that would contribute to the City’s overall park inventory are as follows:
Township Commons (formerly known as Shoreline Park) – 9.74 acres Brooklyn Plaza (formerly known as Gateway Plaza) – 3.20 acres Mahew Park (formerly known as Channel Park) – 5.36
Sii Tka Park (formerly known as South Park) – 2.25 acres Elizabeth A. Lake, Interim City Administrator
Subject: Accept HUD Community Project Funding Grant for Brooklyn Plaza Date: September 28, 2026 Page 3
City Council
October 20, 2026
ANALYSIS AND POLICY ALTERNATIVES
Adoption of this resolution implements passthrough of HUD funds as required by the Congressional earmark by providing necessary funding to ZOHP for blight cleanup in the Oakland Estuary and to raise and stabilize a deteriorated portion of the shoreline and provide new waterfront open space in Oakland.
RELATED PLANNING EFFORTS
This agenda item is a routine item and does not relate to any specific Oakland strategic planning efforts. However, the grant project is reflective of the City’s 2023 passage of the updated Housing and Safety Elements and creation of a new Environmental Justice Element, as part of Phase 1 of the General Plan Update
FISCAL IMPACT
This HUD pass through grant for the Brooklyn Plaza project within the Brooklyn Basin development project will require City Council appropriation of $250,000. This is a one-time appropriation in FY2026-27, or upon completion of the grant agreement.
Upon grant work completion, City will pay ZOHP for the grant scope work up to the $250,000 grant award amount and seek reimbursement for the expenses from HUD. There is no net cost to the City. The grant will be appropriated to the following funding code in the table below.
Table 1: Funding Code
Fund
Source Organization Account Project Program Amount
2105 – HUDEDI Grants 30123 –
Grant
Support
Team
54919 –
Services:
Miscellaneous
Contracts
TBD AD01 -
Administration
$250,000
PUBLIC OUTREACH / INTEREST
No outreach was deemed necessary for the proposed action beyond the standard City Council agenda noticing procedures because funding is legislatively directed.
COORDINATION
The Office of the City Attorney, the Budget Office, Planning & Building Department, and Economic and Workforce Development Department have reviewed this report.
RACE AND EQUITY
Elizabeth A. Lake, Interim City Administrator
Subject: Accept HUD Community Project Funding Grant for Brooklyn Plaza Date: September 28, 2026 Page 4
City Council
October 20, 2026
In 2023, the City adopted updated Housing and Safety Elements and created a new Environmental Justice Element, as part of Phase 1 of the General Plan Update. The guiding principle of the General Plan Update is to further the City’s mission to “integrate, on` a Citywide basis, the principle of ‘fair and just’ in all the City does in order to achieve equitable opportunities for all people and communities.” In service of that mission, each of the new and updated General Plan Elements was supported by a thorough racial equity impact analysis to guide its development. Both the Safety and Environmental Justice Elements prioritize policies to reduce the risks and harmful impacts to the city’s most vulnerable and frontline communities face, whether the risks are from daily exposure to pollution or from structural disasters. The Housing Element includes racially equitable housing policies that protect tenants, address patterns of segregation by fostering inclusive neighborhoods, and provides housing options for Oaklanders of all incomes, prioritizing preservation and production for those with the greatest need.
EJ-7.1 Complete Neighborhoods. Promote “Complete neighborhoods” – where residents have safe and convenient access to goods and services on a daily or regular basis – that address unique neighborhood needs, and support physical activity, including walking, bicycling, active transportation, recreation, and active play.
Analysis: The Brooklyn Basin Project is a large, neighborhood-scale master development that in itself is it’s own neighborhood with its own zoning district. This mixed-use residential development includes commercial spaces, parks and open spaces and creates vibrancy and opportunity for Oaklanders to live, work, and play along the City’s waterfront.
EJ- 7.2 Accessible Neighborhoods. Encourage active modes of transportation and transit accessibility by supporting neighborhoods that provide access to a range of daily goods, services, and recreational resources within comfortable walking or biking distance. Encourage transit providers to prioritize, establish and maintain routes to jobs, shopping schools, parks and healthcare facilities that are convenient to EJ Communities.
Analysis: The Brooklyn Basin project includes a shuttle that provides transport for Oakland residents from Brooklyn Basin to Lake Merrit BART, 19th Street Station BART, 12 Street BART and Jack London Square. In addition, AC Transit now provides bus service to the neighborhood with a bus stop located at 8th Avenue and Clinton Lane. Furthermore, onsite bike share is also provided by Lyft Urban Solutions by the historic 9th Avenue Terminal building on site.
EJ-7.8 Park Distribution. As part of park planning efforts, prioritize development of new parks in EJ Communities that are underserved, as identified in Figure EJ-26.
Analysis: The Brooklyn Basin project includes the delivery of four (4) new parks for the City. The first of the four, Township Commons, has been constructed and dedicated to the City as a public park for all Oaklanders. Three more parks are underway for delivery and will also be dedicated to the City once construction has been complete. The grant funding requested, as noted in this staff report, would help support that effort.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Elizabeth A. Lake, Interim City Administrator
Subject: Accept HUD Community Project Funding Grant for Brooklyn Plaza Date: September 28, 2026 Page 5
City Council
October 20, 2026
The Brooklyn Basin Project was subject to environmental review subject to State law requirements under the California Environmental Quality Act (CEQA). The original Brooklyn Basin Environmental Impact Report (EIR) was originally approved and certified in 2009. Since then, subsequent addenda and supplemental EIRs to the original Brooklyn Basin EIR have been certified by the City as the project was modified throughout the years. The request before the Council relies on the original Brooklyn Basin Project EIR and all subsequent addenda and supplemental EIRs and is thus, compliant with requirements mandated by the State under CEQA. No additional environmental review is required to pursue and allow additional grant funding for the project. All certified environmental review documents relating to the Brooklyn Basin Project (formerly Oak-to-Ninth Avenue Project) are available on the City’s website via the link below:
https://www.oaklandca.gov/Planning-Building/Major-Development-Projects/Brooklyn-BasinMixed-Use-Development/Brooklyn-Basin-CEQA-Review
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends City Council Adopt a Resolution
(1) Authorizing The City Administrator To Apply For, Accept, And Appropriate Grant Funds From The U.S. Department Of Housing And Urban Development’s (HUD) Community Project Funding For The Brooklyn Plaza Project In The Amount Of $250,000.00; (2) Authorizing The City Administrator To Enter Into A Grant Agreement, Or Similar Agreement, With Zarsion-OHP I, LLC In An Amount Not To Exceed $250,000; And (3) Adopting Appropriate California Environmental Quality Act (CEQA) Findings For questions regarding this report, please contact TOM MORGAN, ACTING ASSISTANT DIRECTOR, BUREAU OF ADMINISTRATION (BOA), at 510-238-7953.
Respectfully submitted,
LIAM GARLAND
Director, Oakland Public Works
Prepared by: Tom Morgan,
Acting Assistant Director, BOA