City Council Staff Report Page 1 of 3 July 28, 2026
Staff Report
Agenda Item No. 4.9
DATE: July 28, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute the Second Amendment to the Purchase and Sale Agreement with the California Department of Transportation (Caltrans) for the Route 84 Excess Properties
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the Second Amendment to the Purchase and Sale Agreement (Exhibit A) between the City of Union City and the California Department of Transportation for the Route 84 Excess Properties, in a form approved by the City Attorney.
Once adopted, the proposed resolution will supersede Resolution No. 2026-113, adopted by the City Council on July 14, 2026, which incorrectly identified the proposed amendment as the First Amendment to the Purchase and Sale Agreement.
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
The former State-owned Route 84 Excess Properties, or Gateway site, is a 36-acre collection of parcels roughly bound by Osprey Drive, Alvarado-Niles Road, the Fremont city limit, and Old Alameda Creek. On July 9, 2019, the City Council adopted Resolution 5546-19, authorizing the City to acquire the Gateway site from Caltrans. A Purchase and Agenda Item No. 4.9
City Council Staff Report Page 2 of 3 July 28, 2026
Sale Agreement (“PSA”) between Caltrans and Union City was executed on August 16, 2019, and is included as Exhibit B. The California Transportation Commission (“CTC”) authorized the conveyance of the former Route 84 Excess Properties to the City of Union City at its June 24, 2021 meeting (Tab 81, Ref# 2.4d(3)).
On July 14, 2026, the City Council adopted Resolution No. 2026-113, authorizing the City to execute a first amendment to the PSA to extend the term of sale by six (6) years, thereby making the purchase price of the Route 84 Excess Properties due to Caltrans on or before June 23, 2033. The amendment also defined the fair market value of the Route 84 Excess Properties as the 2021 Caltrans-appraised land value of $86,184,000.
After Resolution No. 2026-113 was adopted, City and Caltrans staff discovered a first amendment to the PSA that the City and Caltrans previously executed on February 26, 2021. That First Amendment (Exhibit C) updated Section 2.1 of the agreement only to require one appraisal to determine the land’s fair market value and property purchase price due to Caltrans.
DISCUSSION
City staff has updated the proposed amendment to the Second Amendment to the Purchase and Sale Agreement (Exhibit A) between the City of Union City and the California Department of Transportation for the Route 84 Excess Properties. The recommended action provides the correct authorization for the City Manager to execute the Second Amendment, which is substantively identical to the amendment considered by the City Council on July 14. Significantly, it extends the term of sale by six (6) years, thereby making the full deposit of the Route 84 Excess Properties' purchase price due to Caltrans by June 23, 2033. The amendment also defines the fair market value of the Route 84 Excess Properties as the 2021 Caltrans-appraised land value of $86,184,000.
FISCAL IMPACT
There is no fiscal impact to the City for approving this Second Amendment to the Purchase and Sale Agreement with Caltrans.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the Second Amendment to the Purchase and Sale Agreement with the California Department of Transportation (Caltrans) for the Route 84 Excess Properties.
Agenda Item No. 4.9
City Council Staff Report Page 3 of 3 July 28, 2026
Prepared by: Jonathan Segarra, Management Analyst II
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Draft Resolution
2. Exhibit A - Draft Second Amendment to the Purchase and Sale Agreement with Caltrans
3. Exhibit B - Purchase and Sale Agreement for the Route 84 Excess Properties
4. Exhibit C - First Amendment to the Purchase and Sale Agreement with Caltrans