City Council Staff Report Page 1 of 4 October 28, 2025
Agenda Item No. 5.1
DATE: October 28, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Authorizing the Dedication of City-Owned Land as Right-of-Way, Landscape Easement, and Public Utility Easement for Phase (Segment) 2 of the Quarry Lakes Parkway (East West Connector) Project, City Project No. 18-04, and Authorizing the City Manager to Accept Such a Dedication
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution authorizing the dedication of city-owned land as right-of-way, landscape easement, and public utility easement for Phase (Segment) 2 of the Quarry Lakes Parkway (East West Connector) Project, City project No. 18-04, authorizing the City Manager to accept such a dedication and to execute the documents necessary to affect the purpose and intent of the resolution, in a form approved by the City Attorney.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal C, Strategy 2: Facilitate the buildout of the greater Station District Area through the construction of Quarry Lakes Parkway, completion of the pedestrian rail crossing, and implementation of the recommendations of the Southern Alameda County Regional Rail Integration Study to make the Station District a passenger rail hub served by ACE.
Goal C, Strategy 18: Facilitate the development of entitlements and closing on the sale of the Gateway property to generate revenue to fund the construction of Phases 3 and 4 of the Quarry Lakes Parkway.
BACKGROUND
Quarry Lakes Parkway, Phase (Segment) 2
The Quarry Lakes Parkway project was previously known as the East West Connector, which traversed Fremont and Union City from Mission Boulevard to I-880 and was sponsored and managed by Caltrans (Route 84 Corridor) and various Alameda County transportation agencies (East West Connector Project), most recently by Alameda County Transportation Commission (Alameda CTC). On March 22, 2018, Alameda CTC Agenda Item No. 5.1
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approved the request from the City of Union City to be the project sponsor of the former East West Connector Project. As the project sponsor, Union City assumed responsibility for the design, right-of-way certification, and construction. On February 12, 2019, the City Council adopted Resolution No. 5444-19, which authorized renaming the East West Connector Project to the Quarry Lakes Parkway Project. This was done to reflect the roadway’s updated purpose as a local, multimodal corridor.
To better manage the project, the City broke it into segments, or phases, including Phase (Segment) 1: 7th Street Connection (7th Street to Mission Boulevard); Phase (Segment) 2: Gateway Connection (Old Alameda Creek to Alvarado-Niles Road); Phase (Segment) 3: 11th Street Connection (11th Street to 7th Street); Phase (Segment) 4: Alvarado-Niles Connection & Grade Separations (BART and Oakland Subdivision); and Phase (Segment) 5: Paseo Padre Parkway & Bike Trail Connection (Paseo Padre Parkway in Fremont to Old Alameda Creek in Union City).
Alameda CTC approved the allocation of $4.2 million of 1986 Measure B funds for the design of Quarry Lakes Parkway, Phases (Segments) 1 and 2 on November 20, 2020 (Alameda CTC Resolution No. 20-013). Union City then adopted Resolution No. 5841- 21, authorizing the execution of the Alameda CTC Project Funding Agreement (PFA) No.
A22-0053 on October 12, 2021. The City enlisted Mark Thomas & Company, Inc. to begin Preliminary Engineering (30% Final Design) for Phases 1 and 2 of the Quarry Lakes Parkway Project in January 2022, focusing on redesigning the Parkway to meet the National Association of City Transportation Officials (NACTO) and Caltrans Complete Streets Policies.
Work on the 65% Final Design of Phase (Segment) 2 began in early 2023 and was completed by October 2024. On May 22, 2025, Alameda CTC approved amending PFA No. A22-0053 increasing the grant funding by $3,995,000 to complete the final design of Phase (Segment) 2. The amended PFA and final design funding were accepted by the City Council on June 24, 2025 (Resolution No. 2025-087). The contract for Mark Thomas & Company, Inc. was subsequently amended to deliver 100% Plans, Specifications, and Estimates (PS&E) of Quarry Lakes Parkway, Phase (Segment) 2 on July 8, 2025 (Resolution No. 2025-097).
Caltrans Gateway Site
The excess Route 84 properties, or Gateway Site, is a 36-acre parcel roughly bound by Osprey Drive, Alvarado-Niles Road, the Fremont city limit, and Old Alameda Creek. The site encompasses the right-of-way required for Quarry Lakes Parkway, Phase 2, including Quarry Lakes Parkway and Quarry Lakes Drive. The City Council adopted Resolution 5546-19 on July 9, 2019, which authorized the acquisition of the Gateway Site from Caltrans. A Purchase and Sale Agreement between Caltrans and Union City was executed on August 16, 2019, and is included as Exhibit A. The California Transportation Commission (CTC) authorized conveyance of the Caltrans property to the City of Union City at its June 24, 2021, meeting, Tab 81, Ref# 2.4d(3). The Director’s Grant Deed transferring ownership of the site from Caltrans to the City is included as Exhibit B.
The City is required to pay Caltrans the land cost payment received for the purchase of the developable portion of the property, which may not be less than Caltrans’s appraised Agenda Item No. 5.1
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land value of $86,184,000. The land cost paid to Caltrans will be deposited into a Local Alternative Transportation Improvement Program (LATIP) account and distributed to LATIP projects as approved by the CTC on December 30, 2009. The balance and revenue estimates for the LATIP projects were updated on May 18, 2023. Over $58 million of the LATIP is earmarked for projects that constitute the former East West Connector, including Decoto Complete Streets in Fremont ($16,400,000) and Quarry Lakes Parkway in Union City ($41,814,000).
Pursuant to the Surplus Lands Act, the City issued a Notice of Availability of approximately
25.4 acres of the Gateway Site to qualified housing developers on June 28, 2021. City Ventures Homebuilding, LLC, the developer that built “The Sugarmill” on Union City Boulevard, submitted a statement of interest, proposing to pay Union City $90 million for the property. City Council adopted Resolution 5874-21 approving an Exclusive Negotiating Agreement with City Ventures Homebuilding, LLC for the sale and development of a portion of the Gateway Site on December 14, 2021. On May 13, 2025, the City Council authorized the extension of the agreement to June 7, 2026, to continue good faith negotiations on a Property Sale Agreement between the City and the developer.
The Exclusive Negotiating Agreement is nonbinding but is intended to provide time for the parties to negotiate a binding agreement. It also identifies the framework for the product type, density range, and amenities proposed for development, including the development of 400 to 535 residential units, with 25 percent of the units affordable to accommodate low-income households, pursuant to the State of California Surplus Lands Act requirements. The developer is also required to comply with certain preservation requirements for the Peterson Farmhouse Site, included in the Caltrans Office of Historical Resources Studies PRC Review, October 9, 2020, DD; 034410-01-01.
DISCUSSION
Quarry Lakes Parkway Phase (Segment) 2 is the segment of the future multimodal corridor located between Alvarado-Niles Road and Old Alameda Creek, and crosses through the former Caltrans Gateway site. Phase (Segment) 2 provides roadway improvements independent of the other phases of the Quarry Lakes Parkway corridor by realigning Quarry Lakes Drive closer to Old Alameda Creek, constructing a new Quarry Lakes Parkway, and modifying Alvarado-Niles Road to improve traffic flow and circulation.
Phase (Segment) 2 also addresses other current transportation needs by constructing Complete Streets components, including a 20-foot-wide Class I multi-use trail, wider sidewalks, Class II buffered bike lanes, and new signalized intersections at Quarry Lakes Drive and Alvarado-Niles Road. These improvements will provide improved facilities for cyclists, pedestrians, and transit, and will better connect residents to the Union City BART Intermodal Station, regional parks, shopping, schools, and neighborhoods.
Final design of Phase (Segment) 2 of the Quarry Lakes Parkway project is currently underway, including detailed design for Phase (Segment) 2 and preparation of final plans, specifications, and estimates (PS&E), including updating engineering/technical reports to serve as the basis for construction contract documents. To complete Final Design of Phase (Segment) 2 of the Quarry Lakes Parkway project, the proposed Quarry Lakes Parkway and realigned Quarry Lakes Drive are required to be defined as a “public road” right-of-way, along with an adjacent 10-foot combined landscape easement and public utility easement. A portion of the Caltrans site is also needed for additional “public road” Agenda Item No. 5.1
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right-of-way improvements along Alvarado-Niles Road and Osprey Drive.
A map of the right-of-way and easement requirements is attached as Exhibit C. The plat and legal description of the land to be dedicated as right-of-way for the roadway is attached as Exhibit D. The plat and legal description of the land to be dedicated as landscape easement and public utility easement is attached as Exhibit E.
The proposed action is critical for two key reasons. First, the proposed “public road” rightof-way for the proposed Quarry Lakes Parkway and the realigned Quarry Lakes Drive, followed by the abandonment of the existing Quarry Lakes Drive, is required for utility companies to design new utilities within Quarry Lakes Parkway, and the relocation of the existing utilities within the existing Quarry Lakes Drive to the realigned Quarry Lakes Drive. Therefore, the timely review and approval of designs by public utilities is critical to completing the Phase (Segment) 2 final design by the summer of 2026.
Secondly, the establishment of the right-of-way, landscape, and public utility easements sets the boundaries of the Caltrans site available for residential development. With the right-of-way boundaries and easements established, City staff will be able to continue negotiations on the terms of a Property Sale Agreement with City Ventures and coordinate with the developer on preliminary site mapping.
FISCAL IMPACT
There is no fiscal impact to the City from dedicating and accepting this land for right-ofway, landscape, and public utility easements.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the dedication of city-owned land as right-of-way, landscape easement, and public utility easement for Phase (Segment) 2 of the Quarry Lakes Parkway (East West Connector) Project, City project No. 18-04, authorizing the City Manager to accept such a dedication and to execute the documents necessary to affect the purpose and intent of this Resolution, in a form approved by the City Attorney.
Prepared by: Jonathan Segarra, Management Analyst II
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Draft Resolution
2. Exhibit A: Caltrans Purchase and Sale Agreement
3. Exhibit B: Directors Grant Deed
4. Exhibit C: Right-of-Way Requirement Map
5. Exhibit D: Plat and Legal Description of Right-of-Way
6. Exhibit E: Plat and Legal Description for Landscape and Public Utility Easements