RESOLUTION NO. 2026-XXX
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
WHEREAS, 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. The parcels were formerly secured by the California Department of Transportation (“Caltrans”) for the realignment of the Historic Route 84 Corridor. The Alameda County Transportation Authority – predecessor to the Alameda County Transportation Commission (“Alameda CTC”) – took over the project in 2003 and renamed it the East-West Connector; and WHEREAS, on March 22, 2018, the Alameda CTC approved the request from the City of Union City to be the project sponsor for the remaining phases of the I-880 to Mission Boulevard/East West Connector Project and to update the project description eligible for the remaining commitment from the 1986 Measure B Transportation Expenditure Plan to reflect the name change to “Quarry Lakes Parkway Project”; and WHEREAS, 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; and
WHEREAS, on July 9, 2019, the City Council adopted Resolution No. 5546-19, which authorized the City Manager to negotiate and execute a Purchase and Sale Agreement (“PSA”) with Caltrans for the purchase of certain Route 84 Excess Properties referred to as the Gateway Site. That executed Purchase and Sale Agreement is attached as Exhibit B; and
WHEREAS, on Section 1.3, Term of Sale of the Purchase and Sale Agreement states that the full Purchase Price is due and payable by the City of Union City to Caltrans at a date no later than six (6) years following the approval of the Purchase and Sale Agreement by the California Transportation Commission (“CTC”); and WHEREAS, on June 23, 2021, the CTC approved Item 2.4d. (3), which approved the conveyance of certain Route 84 Excess Properties referred to as the Gateway Site to the City of Union City, making the full deposit of Purchase Price due on June 23, 2027.
On July 29, 2021, the City received the recorded Director’s Deed Grant transferring the Route 84 Excess Properties to the City of Union City; and WHEREAS, the City of Union City is required to pay Caltrans the land cost payment received for the purchase of the real estate property, which may not be less than Caltrans’ appraised 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. Proceeds from the sale of the Caltrans parcels will fund the LATIP, of which $41.8 million is for the Quarry Lakes Parkway project; and
Resolution No. 2026-XXX
Approve Second Amendment to Caltrans PSA
WHEREAS, pursuant to the Surplus Lands Act, the City issued a Notice of Availability of approximately 25.4 acres of the Gateway Site for sale to qualified housing developers on June 28, 2021. City Ventures Homebuilding, LLC submitted a statement of interest by the deadline, proposing to pay Union City $90 million for the property; and WHEREAS, the City Council adopted Resolution 5874-21 approving an Exclusive Negotiating Rights Agreement (“ENA”) with City Ventures Homebuilding, LLC for the sale and development of a portion of the Gateway property on December 14, 2021. The term of that ENA has been extended several times, and most recently on April 28, 2026, when the City Council authorized the extension of the agreement to June 7, 2027, to continue good faith negotiations on a Property Sale Agreement between the City and the developer; and
WHEREAS, the extensions were also needed to ensure the City and its project team could progress toward the design and construction of Quarry Lakes Parkway, Phase (Segment) 2, which is the segment of the future multimodal corridor located between Alvarado-Niles Road and Old Alameda Creek and crosses through the Gateway Site.
Phase 2 includes realigning Quarry Lakes Drive closer to Old Alameda Creek, constructing new Quarry Lakes Parkway and modifying Alvarado-Niles Road; and WHEREAS, the final design of Quarry Lakes Parkway Phase 2 will set the boundaries of the Gateway Site available for residential development, which is required to negotiate the terms of a Property Sale Agreement with City Ventures Homebuilding, LLC; and
WHEREAS, the final design of Quarry Lakes Parkway, Phase 2 has experienced delays due to engineering challenges, design complexities, extended coordination with funding agencies, and prolonged coordination with the regulatory agencies and other jurisdictions on stormwater treatment and environmental mitigation strategies, among other key challenges; and
WHEREAS, in late 2025, as it became apparent that the term of the Purchase and Sale Agreement would not provide enough time to complete roadway construction, nor provide the City and developer with adequate time to complete the land sale transaction, the City and its consultant contacted Caltrans staff to begin discussions on extending the term of sale identified in the Purchase and Sale Agreement. By late June 2026, the City and Caltrans staff mutually agreed on the terms of the Amendment; and WHEREAS, 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; and
Resolution No. 2026-XXX
Approve Second Amendment to Caltrans PSA
WHEREAS, 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 property purchase price due to Caltrans; and
WHEREAS, the City has correctly updated the proposed amendment to the Second Amendment (Exhibit A) of the Purchase and Sale Agreement between the City of Union City and Caltrans for the Route 84 Excess Properties; and WHEREAS, the Second Amendment extends the Term of Sale by six (6) years, requiring the full deposit of the purchase price of the Route 84 excess properties to be due to the California Department of Transportation on June 23, 2033; and defines the fair market value for the Route 84 Excess Properties as the Caltrans appraised land value of $86,184,000; and
WHEREAS, except as provided in the Second Amendment, all other terms and conditions of the Purchase and Sale Agreement shall remain in full force and effect.
Resolution No. 2026-XXX
Approve Second Amendment to Caltrans PSA
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to execute the Second Amendment to the Purchase and Sale Agreement (Exhibit A) with the California Department of Transportation for the Route 84 Excess Properties, in a form approved by the City Attorney; and
BE IT FURTHER RESOLVED, that once adopted, this Resolution will supersede Resolution No. 2026-113, adopted by the City Council on July 14, 2026.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on July 28, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:
THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
Attachments:
1. Exhibit A - Draft Second Amendment to the Purchase and Sale Agreement with Caltrans
2. Exhibit B - Purchase and Sale Agreement for the Route 84 Excess Properties
3. Exhibit C - First Amendment to the Purchase and Sale Agreement with Caltrans