City Council Staff Report Page 1 of 13 October 28, 2025 Agenda Item No. 4.1
DATE: October 28, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: 1) Adopt a Resolution Authorizing the City Manager to Execute the First Amendment to the Disposition, Development and Loan Agreement between the City and MidPen Housing Corporation, and adopting findings in Connection with Such Amendment; 2) Adopt a Resolution Amending the FY 2025-2026 Budget in Accordance with the Disposition, Development and Loan Agreement between the City and MidPen Housing Corporation for the Lazuli Landing Project; 3) Hold the Tax Equity and Fiscal Responsibility (TEFRA) Public Hearing; 4) Adopt a Resolution Approving a Plan of Finance of the California Municipal Finance Authority to Issue and Reissue Revenue Bonds for a Qualified Residential Rental Project for the Benefit of MP Lazuli Landing Associates, L.P., and Certain Other Matters Relating Thereto; and 5) Adopt a Resolution Approving Final Parcel Map 11004 for the Lazuli Landing Development by the MidPen Housing Corporation ((APNs: 486-3-29, 486-3-28, 486-3-30, 486-3-35, 486-3-34-3, 4896-3-34-4)
EXECUTIVE SUMMARY
This staff report will provide general background and updates on the Lazuli Landing project (Section 1), followed by three sections addressing the items before the City Council. Section 2 will cover amendments to the Disposition, Development, and Loan Agreement (DDLA), related documents, and related budget allocations. Section 3 will address the bonds used to finance the project under the Tax Equity and Fiscal Responsibility Act (TEFRA). Section 4 will be on the Final Parcel Map.
Staff recommends that the City Council take the following actions:
1. Adopt a Resolution Authorizing the City Manager to Execute an Amendment to the Disposition and Development Loan Agreement between the City and MidPen Housing Corporation and Adopting Findings in Connection with Such Amendment (Attachments 1 and 2); and
2. Adopt a Resolution Amending the FY 2025-2026 Budget in Accordance with the Disposition, Development, and Loan Agreement Between the City and MidPen Housing Corporation for the Lazuli Landing Project (Attachment 3); and Agenda Item No. 4.1
City Council Staff Report Page 2 of 13 October 28, 2025
3. Hold the TEFRA Public Hearing; and
4. Adopt a Resolution Approving a Plan of Finance of the California Municipal Finance Authority to Issue and Reissue Revenue Bonds for a Qualified Residential Rental Project for the Benefit of MP Lazuli Landing Associates, L.P., and Certain Other Matters Relating Thereto (Attachment 4); and
5. Adopt a Resolution approving Final Parcel Map 11004 for the Lazuli Landing Development by the MidPen Housing Corporation (Attachments 5 and 6).
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal C, Strategy 5: Promote housing development for all income levels in the community by implementing the Housing Element, updating the zoning ordinance to include objective standards for new multi-family residential development to streamline the review of applications for housing developments, and other measures.
SECTION 1 – GENERAL BACKGROUND AND UPDATES
Project History
In 2018, the City issued a Request for Proposals, inviting non-profit affordable housing organizations to submit proposals to develop affordable housing on a vacant City-owned property bounded by Mission Boulevard, D Street, 2nd Street, and E Street. MidPen Housing Corporation (MidPen) was selected by the City Council, and the project, Lazuli Landing, was approved on July 28, 2020. Lazuli Landing will provide 80 affordable units for extremely low-, very low-, and low-income households and one manager’s unit, along with about 6,300 square feet of ground floor space that the City will use to provide services by one or a combination of the City’s Youth and Family Services (YFS) Division and possibly other social service providers.
Between 2019 and 2021, the Lazuli Landing project received approval for several applications, including:
o General Plan Amendment to Corridor Mixed Use Commercial (Included in the 2040 General Plan approved by the City Council on December 10, 2019) • Draft Initial Study/Mitigated Negative Declaration, Zoning Text Amendment to create Corridor Mixed Use Commercial and Zoning Map Amendment (2020) MidPen-ISMND-RTC-Addendum
• Site Development Review, Use Permit, and Tentative Parcel Map (2020) (see Figure 1 for rendering of Mission Boulevard frontage as amended) • Disposition, Development and Loan Agreement (DDLA) and other regulatory agreements (2020)
• Authorization to apply for and receive an Affordable Housing Sustainable Communities (AHSC) grant (2021)
Agenda Item No. 4.1
City Council Staff Report Page 3 of 13 October 28, 2025 Figure 1: Mission Boulevard Rendering
The project is funded by a variety of City, County, State, and other sources. The funding has evolved following the City Council’s approval in 2020. The Lazuli Landing project did not receive an Infrastructure Infill Grant award due to the program's high oversubscription, but did receive an Affordable Housing and Sustainable Communities (AHSC) award in 2022. The project received approval for tax-exempt bonds and tax credits in April 2025. The changes in the financing plan are shown in Table 1, comparing the 2020, 2021, and 2025 plans.
Due to increases in costs and shifts in funding, MidPen has requested additional funding from the City. See the discussion in the DDLA section of this staff report regarding the staff recommendation for an additional $456,351 to increase the amount of Union City’s Loans and Grants from $6,834,924 to $7,291,275 and proposed shifts in the sources of these funds. The sources of Union City’s contributions include Alameda County Measure A1 Base City Housing In-Lieu Funds, former Redevelopment Agency (RDA) bond funding, RDA tax increment funds, land sale proceeds, below-market ground lease, and Capital Improvement Program (CIP) funds, as shown in Table 2.
Table 1: Lazuli Landing Financing Plan
Funding Source 7/28/2020
Proposal
5/25/2021
Proposal at time
of AHSC Grant
Application
2025 Financing
Plan
Comments
Alameda County A1
Regional Bond
Allocation
$4,453,899 $4,453,899 $4,453,899
Alameda County A1
Union City Bond
Allocation
$8,787,121 $8,787,121 $8,787,121
Union City Housing
Funds Loan $5,034,924 $5,034,924 $4,355,613
2025 Housing
Successor Agency
Grant
$1,135,662
MidPen submitted a
request to the City for
additional funding to
cover increased
costs; an additional
$456,351 is
proposed, along with
a shift of RDA bond
proceeds to a grant;
see additional
discussion in the
DDLA section below.
Agenda Item No. 4.1
City Council Staff Report Page 4 of 13 October 28, 2025 City Grant for Centro
and YFS Offices $1,800,000 $1,800,000 $1,800,000
Housing Trust
Silicon Valley
(HTSV) Permanent
Loan serviced
through net
operating income
$3,574,000 $5,035,266 $2,887,000
HTSV is providing
$2.8M during
construction, and the
loan will then roll
over to the
"Permanent Loan
serviced through net
operating income"
upon completion of
construction.
Infill Infrastructure
Grant $5,034,216 $3,793,115 Not awarded MidPen applied, but was unsuccessful AHSC Grant $16,406,261 $16,400,000 $13,500,000 See comments below
Federal Home Loan
Bank of San
Francisco Affordable
Housing Program
$800,000 $800,000 $2,000,000
MP Lazuli Landing
Associates, L P
equity generated
from 4% Tax Credits
and leveraged
Investor proceeds
$29,691,913 $34,499,063 $41,055,423
MidPen Housing
Corporation
Equity/Deferred
Developer Fee
$8,064,486 $235,258 $9,703,227
State Department of
Development
Services
$1,500,000
Funding award was
received to provide
supportive services for
intellectually/
developmentally
disabled (I/DD)
persons for the 20%
AMI units in the
project.
Total $83,646,820 $80,838,646 $91,177,945
The City Council adopted Resolution 5760-21 on May 25, 2021, which authorized the City Manager to execute an implementation agreement with MidPen and facilitate the submittal of the AHSC grant application. The AHSC grant was awarded on February 26, 2022, in Round 6 of the California Department of Housing and Community Development (HCD) AHSC Program. The AHSC grant not only provides $13.5 million for the housing project but also provides $7,623,592 for transportation improvements, including $200,000 to the City for pedestrian improvements in the Decoto Neighborhood, $800,000 to the City for bicycle facility improvements on Decoto Road between 11th Street and Mission Boulevard, and the remainder of $6,623,592 to BART for BART improvements. The City committed to providing $1,159,427 in matching funds for the construction of pedestrian and bicycle transportation improvements. The AHSC guidelines require that these improvements be constructed by November 30, 2027. These projects, once determined, will be included in the next update to the Capital Improvement Program for City Council review as part of the FY 2026-2027 budget update process.
Agenda Item No. 4.1
City Council Staff Report Page 5 of 13 October 28, 2025 MidPen has been actively pursuing funding for the project since the approvals in 2020.
To make the project more competitive for funding opportunities, including tax credits and tax-exempt bonds, adjustments were made to reduce the total development cost and the cost per unit. These changes have been reviewed and approved at the staff level as generally consistent with the original approvals. A summary of the changes includes:
• Removal of exterior stairs – The exterior stairs along Mission Boulevard and Second Street leading to the podium level were removed. The wall of the Second Street plaza, which will be more visible with the stairs removed, will host a mural. • Building height – Building height was reduced by 2'-2", taken from Floor 1. The upper levels remained as is.
• Reduced parking – The second level of the parking garage and associated access ramp from Floor 1 to Floor 2 parking were removed. This portion of the garage has been left open to the sky. This reduced the parking count from 121 to 105, with 96 stalls for the apartments and nine stalls for YFS use. (Note that pursuant to State law, parking requirements within one-half mile of a major transit stop cannot be enforced through normal land use requirements.) • Parking garage entry and exit – The parking garage entry and exit on E Street was eliminated. The garage entry and exit on D Street was retained. • Removal of select exterior metal architectural elements - The Juliette balconies were removed.
• Removal of dropped ceilings - The dropped ceilings in the interior first-floor residential common spaces and first-floor commercial spaces were removed. • Change storefront to vinyl windows – Exterior windows located along Mission Boulevard were changed from storefront to vinyl.
As part of modifications to improve the project's tax credit and tax-exempt bond scores, some residential amenities were consolidated to the ground floor. The second-floor afterschool program room was eliminated, leaving the landscaped podium courtyard as an amenity space. A larger centralized laundry room, bicycle storage room, and community room are included on the ground floor.
Community Outreach
In addition to the required publication of the TEFRA hearing notice at least seven (7) days prior to the City Council TEFRA hearing on October 28, 2025, staff provided a courtesy notice to the surrounding neighborhood advising them of the October 28, 2025 City Council meeting and the opportunity to hear the status update provided on the Lazuli Landing project, the City Council’s consideration of minor amendments to the DDLA, the holding of the TEFRA Public Hearing, and the approval of the Final Parcel Map.
MidPen has indicated that, prior to the start of construction, they will communicate with the adjacent neighbors. MidPen will also include information about the project on its website, including how to apply for the affordable housing units, as units become available. Project completion is estimated for mid-2027. Of the 81 units, 67 units will have a live/work preference for households in Union City at varying affordability levels.
Alameda County approved the City’s live/work preference and will prioritize households that live or work in Union City at the time of lease up. There was an additional request for a preference for former residents of Union City, but Alameda County could not approve it as part of the Lazuli Landing project because it conflicted with County Measure A1 Agenda Item No. 4.1
City Council Staff Report Page 6 of 13 October 28, 2025 Implementation Policies.
SECTION 2 - AMENDMENTS TO THE DISPOSITION, DEVELOPMENT, AND LOAN
AGREEMENT
Background
The Disposition, Development and Loan Agreement (DDLA) approved by the City Council on July 28, 2020 describes the City obligations for leasing property to MidPen Housing to construct the project, loans and grants the City will provide to construct the project, affordability restrictions MidPen must provide, and terms for MidPen to provide office space for City services (planned at the time to be Centro de Servicios (CDS) and/or Youth and Family Services (YFS)). As a result of an additional recent review by CDS and YFS, it has been determined that the space will be used only by YFS.
The City will retain ownership of the land and lease the property to MidPen at the rate of $1 per year for a 99-year lease term. MidPen will lease the office space to the City at the rate of $1 per year.
The DDLA, as approved in 2020, includes City funding assistance, including:
• $5,034,924 loan that will be available to fund construction costs and will roll over into a permanent loan
• $1.8 million grant to construct offices to be used by the City • $8,787,121 comprising City Base commitment of Alameda County A-1 bond funds A Summary Report was prepared in 2020 pursuant to Section 33433 of the California Health and Safety Code describing the terms of the proposed ground lease.
Discussion
The proposed amendments to the DDLA and related documents are discussed below and contained in Exhibit A (Attachment 2) to the attached Resolution (Attachment 1).
City Loan and City Grant Amounts. As mentioned in the Background section, despite adjustments to the design, the project still requires additional funds due to increased construction costs. MidPen has requested additional funds from the City. City staff assessed the need for funds and the various City funds available, and recommended adding $456,351, bringing the total amount of City loans and grants from $6,834,924 in 2020 to $7,291,275 in 2025, as shown in Table 2.
In addition, staff recommends some shifts in the sources of City funds for the City loan and changing the $1.1M in Housing Bond proceeds from a portion of the loan to become a grant. This will allow the City to utilize additional RDA funds that are available and appropriate for this project (because it is in a former redevelopment project area) and retain affordable housing in-lieu fees that are less restricted for other projects and uses.
Agenda Item No. 4.1
City Council Staff Report Page 6 of 13 October 28, 2025 Agenda Item No. 4.1
City Council Staff Report Page 7 of 13 October 28, 2025 Table 2: Lazuli Landing Sources of City Funds
Sources of
Funds
2020 Financing Plan 2025 Financing Plan
City Housing
Funds loan
$5,034,924
Sources:
• $2,434,924 - Housing inlieu Fees & sale
proceeds
• $1.1M - 2010 Housing
Bond Proceeds Issued in
2015
• $1.5M - RDA Housing
Tax Increment Funds
$4,355,613 (new amount)
Sources:
• $1,850,399 - Housing Inlieu Fees & sale proceeds
already expended for
predevelopment use
(Fund 233)
• $2,505,214 - RDA
Housing Tax Increment
Funds (Fund 201) to
replace Housing in-lieu
Fees & sale proceeds
and additional funds for
development
2025 Housing
Successor
Agency Grant
None • $1,135,662 - 2010
Housing Bond Proceeds
Issued in 2015 (Fund 275)
City grant to
construct offices
$1.8M from CIP developer fees $1.8 M from CIP developer fees (including the fees paid by
MidPen) (Fund 411)
Total $6,834,924 $7,291,275
(Net addition of $456,351 to
2020 Financing Plan)
Staff recommend adoption of the attached Resolution (Attachment 3) amending the FY 2025-2026 budget as shown in Table 2, consistent with the amendment to the DDLA.
The following paragraphs describe the DDLA Exhibits that are being amended (B, C, E, F, and H). DDLA Exhibits A, D, G, I, and J are not being amended.
Revised Schedule of Performance (Exhibit B-1 to the DDLA Amendment). The Revised Schedule notes the items that have already been completed and includes revised dates corresponding to tax credit funding requirements.
Revised Scope of Development (Exhibit C-1 to the DDLA Amendment). Some minor changes to the scope of development include:
• Parking. A reduction in the number of parking stalls from 121 to 105 has been included in the project because the upper parking level was eliminated to reduce costs (see Table 3). This reduced the residential parking ratio from 1.3 stalls/unit to 1.185 stalls/unit. The number of parking stalls allocated to the City’s use remains at nine stalls. Because the site is within one-half mile of a major transit stop, parking requirements cannot be enforced under normal land-use regulations.
Agenda Item No. 4.1
City Council Staff Report Page 7 of 13 October 28, 2025 Agenda Item No. 4.1
City Council Staff Report Page 8 of 13 October 28, 2025 Table 3: Parking Provided
Number of Units 2020: Number of
Stalls Provided
2025: Number of
Stalls Provided
1 bedroom 21 21 Parking spaces
will be assigned in
the order of the
waitlist and to
households with a
vehicle.
2 bedroom 37 37 Parking spaces
will be assigned in
the order of the
waitlist and to
households with a
vehicle.
3 bedroom 23 46 46
Visitor, staff, and
Disabled Parking
Spaces
8 8
YFS/CDS 9 9
Total 81 121 105
• Residential Amenities. As part of modifications to improve the project's tax credit score, some residential amenities were consolidated to the ground floor. The second-floor after-school program room was eliminated, leaving the landscaped podium courtyard as an amenity space. A large central laundry room, a bicycle storage room, and a community room are included on the ground floor.
Revised Financing Plan (Exhibit E-1 to the DDLA Amendment). As noted in Table 1 above, the funding has changed due to the unsuccessful Infrastructure Infill Grant application and new funding from the State Department of Development Services for $1.5 million. Staff notes that this funding adjustment requires a shift in the preferences for the 20% of Area Median Income (AMI) units to be for persons with intellectual/developmental disabilities (I/DD) rather than a homeless preference. This request was approved by the City Manager pursuant to Section 6.2 of the DDLA, which states, “Developer may request changes to the mix of affordable units if necessary to obtain competitive sources of financing for the Development.” Any such changes shall be subject to the approval of the City Manager, which approval shall not be unreasonably withheld or delayed.” MidPen has also noted that prioritizing I/DD households referred by the Regional Center of East Bay (RCEB) for these 20% of AMI units will provide access to funding for supportive services to support these households.
Revised Promissory Note (Exhibit F-1 to the DDLA Amendment). The revised amount of the City Loan is reflected in the Revised Promissory Note.
Revised Regulatory Agreement (Exhibit H-1 to the DDLA Amendment). The project will continue to be one hundred percent (100%) affordable units with some minor adjustments to the affordability levels and the targeting of the 20% of AMI units. The Regulatory Agreement attached to the original DDLA restricted the sixteen (16) 20% of AMI units and twenty-three (23) of the Very Low-Income Units (up to 50% of AMI), in other Agenda Item No. 4.1
City Council Staff Report Page 9 of 13 October 28, 2025 words, 39 of the 80 affordable units, even though other agreements with the County and State will restrict most or all of the remaining units. The Revised Regulatory Agreement restricts all 80 affordable units for the 99-year term of the Agreement.
The number of AMI units has been increased from 16 to 17 due to the change in funding.
Another significant change is the elimination of the six (6) units at 80% of AMI and adding a new category of 30% of AMI. Changes to the affordability restrictions were necessary to be more competitive for financing, including tax credit and tax-exempt bond financing. The previous and currently proposed affordability restrictions are shown in Tables 4 and 5.
Table 4: 2020 Affordability Restrictions
Unit Size Extremely
Low-Income
Units (20% of
AMI)
Very LowIncome
Units (40%
of AMI
Very LowIncome
Units (50%
of AMI
LowIncome
Units (60%
of AMI)
LowIncome
Units (80%
of AMI)
Total
Units
1-Bedroom 13 3 2 2 1 21
2-Bedroom 3 10 10 11 2 36
3-Bedroom 5 6 9 3 23
Unrestricted
Manager’s
Unit
1 Total Units 16 18 18 22 6 81
Table 5: 2025 Affordability Restrictions
Extremely
Low-Income
Units (20% of
AMI)
Extremely
Low-Income
Units (30% of
AMI)
Very LowIncome
Units (40%
of AMI)
Very LowIncome
Units (50%
of AMI)
LowIncome
Units (60%
of AMI)
Total
Units
1-Bedroom 14 2 5 21
2-Bedroom 3 1 9 19 4 36
3-Bedroom 3 2 11 7 23
Unrestricted
Manager’s Unit
1 Total Units 17 4 13 35 11 81
The Regulatory Agreement also includes a City live/work preference for 67 units. As part of the County Measure A1 funding award, Lazuli Landing has approval to have 67 units with a City live-or-work preference first (County live-or-work preference second). If there are insufficient applicants currently living in Union City for any of the 67 units, a household presently residing in Alameda County would have a higher position on the lottery waitlist than a household that does not live in Alameda County. The remaining 13 units have a County live-or-work preference. The 13 units with a County live or work preference would be layered with 13 of the 17 I/DD set-aside units, and the remaining 4 I/DD set-aside units would be layered with the City live or work preference, which would be a subset of the 67 City live or work preference units.
Agenda Item No. 4.1
City Council Staff Report Page 10 of 13 October 28, 2025 The Regional Center of the East Bay (RCEB), which will be referring I/DD households, has informed MidPen that it serves 738 current I/DD clients who are also Union City Residents and potential applicants for these units at Lazuli Landing. Table 6 shows how the City and County Live/Work Preferences are allocated by income level.
Table 6: City and County Live/Work Preferences
Extremely
Low-Income
Units (20% of
AMI) + I/DD
Set-aside
Extremely
Low-Income
Units (30% of
AMI)
Very LowIncome
Units (40%
of AMI)
Very LowIncome
Units (50%
of AMI)
LowIncome
Units (60%
of AMI)
Total
Units
City Preference 4 4 13 35 11 67
County
Preference
13 13
Unrestricted
Manager Unit
1 Total Units 17 4 13 35 11 81
FISCAL IMPACT
All new developments, including this project, will generate additional revenue for the City through a one-time fee payment. New residential development is required to pay impact fees to offset the City's costs for providing services, including police, fire, and parks.
Additional standard citywide fees apply to this project, including a traffic signalization fee, a General Plan Cost Recovery Fee, plan check and inspection fees, building permit fees, grading permit fees, and final parcel map review fees.
The City will be providing a $1.8 million grant to the project to construct offices for YFS and improvements for the City offices from the CIP developer fees, a loan comprised of $4,355,613 in housing in-lieu fees and RDA tax increment funds, and a 2025 Housing Successor Agency Grant of $1,135,662 from housing bond proceeds.
More details on the fiscal impacts to the City are contained in the Summary Report Pursuant to Section 33433 of the California Health and Safety Code, prepared in 2020.
As discussed above, the City’s prior commitment to provide matching funds for the AHSC Grant for transportation improvements will enable the City to benefit from the AHSC funds allocated to pedestrian and bicycle improvements.
SECTION 3 – BOND FINANCING PURSUANT TO TEFRA
Background
TEFRA provides a mechanism for affordable housing developments to obtain financing from tax-exempt bonds. The Borrower (MidPen) requested that the California Municipal Finance Authority (CMFA) serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $48,000,000 (the “Bonds”) of tax-exempt revenue bonds.
The proceeds of the Bonds will be used to finance and refinance the acquisition, Agenda Item No. 4.1
City Council Staff Report Page 11 of 13 October 28, 2025 construction, development, and equipping of an 81-unit qualified residential rental project (the “Project”) to be owned and operated by the Borrower (MidPen) and located on a Cityowned site bounded by Mission Boulevard, D Street, 2nd Street, and E Street within the City.
In order for the Bonds to qualify as tax-exempt bonds, the City must conduct a public hearing (the “TEFRA Hearing”) that provides members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for financing the Project. Prior to a TEFRA Hearing, reasonable notice must be provided to the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.
The CMFA was created on January 1, 2004, pursuant to a joint exercise of powers agreement to promote economic, cultural, and community development by financing economic development and charitable activities throughout California. To date, over 350 municipalities have joined CMFA.
The CMFA was formed to assist local governments, non-profit organizations, and businesses in issuing taxable and tax-exempt bonds to improve the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.
Discussion
The TEFRA Public Hearing is an opportunity for members of the public to speak or submit written comments regarding the proposal to issue the bonds. A notice of the public hearing was published in a newspaper of general circulation (The Argus) at least seven (7) days before the hearing in conformance with state law requirements. There is no obligation on the part of City staff to respond to any specific comments on the bond issue. Following the public hearing, the City Council is asked to adopt a resolution approving the issuance of the bonds by the CMFA (Attachment 4).
Fiscal Impact
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, or moral obligation, liability, or responsibility for the Project or the repayment of the Bonds used to finance the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers stating that the Bonds are not obligations of the City or the State of California, but are to be paid solely from funds provided by the Borrower.
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit debt issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates another portion to the Foundation for the support of local charities. With respect to the City of Union City, it is expected that a portion of the issuance fee attributable to the City will be granted by the CMFA to the City's general fund. Such a grant may be used for any lawful purpose of the City.
Agenda Item No. 4.1
City Council Staff Report Page 12 of 13 October 28, 2025 SECTION 4 - FINAL PARCEL MAP
Background
At its meeting of July 28, 2020, the City Council adopted Resolution 5631-20 approving the project, including Tentative Parcel Map TPM 11004 to combine several underlying parcels into a single 1.65-acre parcel to develop 81 affordable apartments and 6,319 square feet of office space, which is to be leased to the City for City services.
Following the July 28, 2020, approval, the project encountered delays, and, pursuant to the Municipal Code, the tentative parcel map would have expired if the final map had not been recorded within 2 years.
However, the Subdivision Map Act allows a developer to apply to the City Council for an extension of a tentative map before its expiration. At its meeting of August 9, 2022, the City Council approved MidPen’s application for a 5-year extension until September 26, 2027, by adoption of Resolution 5988-22.
Discussion
The 1.65-acre city-owned property, which will be leased to the developer, is bounded by Mission Boulevard, D Street, 2nd Street, and E Street. It includes several small Cityowned parcels that are being combined through the parcel map to enable development on a single parcel.
In addition to the 81 affordable apartments and 6,319 square feet of office space, which will be leased to the City for city services, the project will include undergrounding the existing overhead power poles on D Street and E Street. Wheelchair ramps will also be upgraded to meet current standards. New landscaping, lighting, and stormwater treatment facilities will also be installed.
To meet fire flow requirements, a new fire hydrant water line will also be extended from across the Mission Boulevard/Whipple Road intersection to the site.
The developer provided improvement plans and the engineer’s estimate for the site work, which were reviewed and approved by the Public Works Department.
The developer has presented Final Parcel Map 11004 (Attachment 6), which is in substantial compliance with Tentative Parcel Map 11004. Staff recommends adoption of the attached Resolution approving Final Parcel Map 11004 (Attachment 5).
Fiscal Impact
The developer will pay all Public Works Departments’ fees associated with the development, which are summarized as follows:
1. Final Parcel Map Fee - $7,168
2. Plan Check & Inspection Fee - $141,464
3. Traffic Signalization Fee - $141,592
4. Grading Permit Fee - $3,048
Agenda Item No. 4.1
City Council Staff Report Page 13 of 13 October 28, 2025
5. Technology Fee (2% of grading permit fee) - $61
Total Fees (Items 1 – 5) = $293,333
6. Grading Permit Bond - $27,587 (Refundable)
7. Encroachment Permit Fees – Will be collected for any work in the public right-ofway and determined at the time of issuance of one or more permits and based on the time required of the inspector.
RECOMMENDATION
Staff recommend that the City Council take the following actions:
1. Adopt a Resolution Authorizing the City Manager to Execute the First Amendment to the Disposition, Development and Loan Agreement between the City and MidPen Housing Corporation and adopting findings in Connection with Such Amendment (Attachments 1 and 2); and
2. Adopt a Resolution Amending the FY 2025-2026 Budget in Accordance with the Disposition, Development, and Loan Agreement between the City and MidPen Housing Corporation for the Lazuli Landing Project (Attachment 3); and
3. Hold the TEFRA Public Hearing; and
4. Adopt a Resolution Approving a Plan of Finance of the California Municipal Finance Authority to Issue and Reissue Revenue Bonds for a Qualified Residential Rental Project for the Benefit of MP Lazuli Landing Associates, L.P., and Certain Other Matters Relating Thereto (Attachment 4); and
5. Adopt a Resolution Approving Final Parcel Map 11004 for the Lazuli Landing Development by the MidPen Housing Corporation (APNs: 486-3-29, 486-3-28, 486-3-30, 486-3-35, 486-3-34-3, 4896-3-34-4) (Attachments 5 and 6).
Prepared by
Leslie Carmichael, Consulting Planner
Francisco Gomez Jr., Housing and Community Development Manager Farooq Azim, City Engineer
Submitted by
Carmela Campbell, Economic and Community Development Director Attachments:
1. Draft Resolution Approving and Authorizing First Amendment to DDLA
2. Exhibit A - First Amendment to DDLA
3. Draft Resolution Amending the FY 2025-2026 Budget
4. Draft Resolution Approving a Plan of Finance by CMFA to Issue and Reissue Bonds
5. Draft Resolution Approving Final Parcel Map 11004
6. Exhibit A - Final Parcel Map 11004