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File #: 22-372    Version: 1 Name: Shoreline Entitlements
Type: Staff Report Status: Agenda Ready
In control: Planning Commission and Board of Zoning Adjustments
Meeting Date: 6/2/2022 Final action:
Enactment date: Enactment #:
Title: PLNs 21-0020, 21-0021, 22-0008; Consideration of a Development Agreement, Planned Development Project, and Site Plan Review for the private elements of the Monarch Bay Shoreline Development - a public-private partnership between the City of San Leandro (City) and Monarch Bay LLC (Developer) that includes a 285-unit multi-family apartment complex, 144 single-family homes, 62 townhomes, a hotel with attached restaurant, a restaurant/banquet facility, a market/caf?, and related site improvements. The Monarch Bay Shoreline area is bounded by Marina Blvd to the north, the San Francisco Bay to the west, and Fairway Drive to the south. Assessor's Parcel Numbers: 080G 0900 001 08, 080G 0900 004 01, 079A 0475 009 04, 079A 0590 001 05, 079A 0590 001 07, 079A 0590 002 00, 079A 0590 003 00, and 079A 0590 004 00; Monarch Bay LLC (applicant) and City of San Leandro (owner)
Attachments: 1. Att 1 - Shoreline Project Summaries, 2. Att 2 - Public Private Partnership Summary, 3. Att 3 - Inclusionary Housing Plan, 4. Att 4 - Preliminary Bike and Ped Exhibit, 5. Att 5 - Preliminary Maintenance Exhibit, 6. Att 6 - Prelininary Sea Level Rise Exhibit, 7. Att 7 - Shoreline Environmental Review Overview
Related files: 22-373
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Title

PLNs 21-0020, 21-0021, 22-0008; Consideration of a Development Agreement, Planned Development Project, and Site Plan Review for the private elements of the Monarch Bay Shoreline Development - a public-private partnership between the City of San Leandro (City) and Monarch Bay LLC (Developer) that  includes a 285-unit multi-family apartment complex, 144 single-family homes, 62 townhomes, a hotel with attached restaurant, a restaurant/banquet facility, a market/café,  and related site improvements. The Monarch Bay Shoreline area is bounded by Marina Blvd to the north, the San Francisco Bay to the west, and Fairway Drive to the south. Assessor’s Parcel Numbers: 080G 0900 001 08, 080G 0900 004 01, 079A 0475 009 04, 079A 0590 001 05, 079A 0590 001 07, 079A 0590 002 00, 079A 0590 003 00, and 079A 0590 004 00; Monarch Bay LLC (applicant) and City of San Leandro (owner)

 

Staffreport

SUMMARY AND RECOMMENDATION

 

This item was continued from the May 19, 2022 Special Planning Commission/Board of Zoning Adjustments meeting.

 

Staff recommends that the Planning Commission 1) hold a public hearing and recommend the City Council determine that the proposed project was adequately analyzed pursuant to the California Environmental Quality Act (CEQA) by the Addendum to the Certified Final Environmental Impact Report.; and 2) recommend approval to the City Council on the matter of PLNs 21-0020, 21-0021, 22-0008 which includes a Development Agreement, Planned Development Project, and Site Plan Review for the private elements of the Monarch Bay Shoreline Development.

 

The Shoreline Development is a public-private partnership between the City of San Leandro (City) and Cal Coast Companies LLC, Inc. (Developer) to fulfill the community’s vision for a self-sustaining, high-quality, mixed-use development complemented by recreational amenities. The private elements under consideration include:

 

1.                     A 210-room hotel with an attached restaurant, a detached 16,024 square foot two-story restaurant/banquet facility, a 2,500 square foot market/café, and associated parking located north of Mulford Point Drive and west of Monarch Bay Drive; 

2.                     A 285-unit multi-family apartment complex with associated parking located south of Pescador Point Drive and west of Monarch Bay Drive; and

3.                     A “for-sale” development of 144 detached single-family homes and 62 townhomes located on approximately 16 gross acres east of Monarch Bay Drive, south of Marina Boulevard, and north of Fairway Drive; and

4.                     Related site improvements.

 

A Development Agreement was prepared to address further details of the project, including Developer and City responsibilities, phasing considerations, and fees. The Development Agreement (DA) builds on the Disposition and Development Agreement (DDA) with Cal Coast Companies LLC, Inc. that was approved by the City Council in February 2020.

 

Project Site

 

The Monarch Bay Shoreline area is bounded by Marina Blvd to the north, the San Francisco Bay to the west and Fairway Drive to the south and includes Assessor’s Parcel Numbers: 080G 0900 001 08, 080G 0900 004 01, 079A 0475 009 04, 079A 0590 001 05, 079A 0590 001 07, 079A 0590 002 00, 079A 0590 003 00, and 079A 0590 004 00. The Shoreline site is located south of East Bay Regional Park District’s Oyster Bay Regional Shoreline and is largely surrounded by single-family homes and multi-family residential units within the Mulford Gardens neighborhood. The site is located north of the City’s Marina Park and Par Course, the Tony Lema Golf Course (part of the larger Monarch Bay Golf Club), the Seagate residential community, and the Marina Faire neighborhood.

 

Public-Private Partnership

 

After more than a decade of community outreach and planning for the future of the Shoreline area, the City Council approved General Plan and Zoning Map Amendments and approved and entered into a DDA with Cal Coast Companies LLC, Inc. for the Shoreline Development on February 24, 2020, that includes:

 

                     New 210-room hotel with attached restaurant;

                     Two-story restaurant /banquet facility;

                     Up to 500 housing units;

                     Market/café;

                     Demolition within the Harbor Basin area and construction of a 9-acre community park on Mulford Point;

                     New Mulford-Marina Branch library;

                     Redesigned nine-hole golf course;

                     Reconstruction of Monarch Bay Drive, including a Class I bike facility; and

                     Related site improvements, including publicly accessible trails, landscaped areas, access drives, and parking lots throughout the project area.

 

Through the DDA, the City and Developer agreed to work diligently and in good faith toward appropriate planning entitlements for the private development components of the project and required that such entitlements be completed prior to sale or leasing of City properties.

 

To accommodate the proposed park and address deferred maintenance, the City will perform demolition within the Harbor Basin area to remove nonfunctional and dilapidated infrastructure and materials and ensure that the area is functional, safe, clean and environmentally sound.  Such demolition will be performed in a manner and scope as approved by the City Council and applicable public agencies.  Additionally, no changes to the existing Horatio’s restaurant and Marina Inn are included in the proposal.

 

Attachment 2 provides additional background on the public-private partnership.

 

PROPOSAL AND ANALYSIS

 

Cal Coast Companies LLC, Inc., as applicant, is requesting planning entitlements for the private elements of the Shoreline Development Project. The planning entitlements consist of Site Plan Review and Planned Development Project approval. As noted, a Development Agreement is proposed to address further details of the project, including Developer and City responsibilities, phasing considerations, and fees. The private elements under review consist of:

 

1.                     A 210-room hotel with an attached restaurant, a detached 16,024 square foot two-story restaurant/banquet facility, a 2,500 square foot market/café, and associated parking located north of Mulford Point Drive and west of Monarch Bay Drive; 

2.                     A 285-unit multi-family apartment complex with associated parking located south of Pescador Point Drive and west of Monarch Bay Drive; and

3.                     A “for-sale” development of 144 detached single-family homes and 62 townhomes located on approximately 16 gross acres east of Monarch Bay Drive, south of Marina Boulevard, and north of Fairway Drive; and

4.                     Related site improvements.

 

The Shoreline project area is currently comprised of the following:

                     Building coverage = 3%

                     Parking/vehicle circulation = 37%

                     Landscape/Hardscape = 60%

The proposal would result in the following configuration:

                     Building coverage = 16%

                     Parking/vehicle circulation = 19%

                     Landscape/Hardscape = 65%

 

Hotel, Restaurants, and Market

 

As shown in Attachment 1 and Exhibit D to the draft Resolution, the Monarch Bay Hotel, Restaurants, and Market will consist of three separate buildings: a hotel with an attached restaurant, a detached restaurant/ banquet facility, and a market/café with associated parking, landscaping, and outdoor seating and viewing areas. 

 

Hotel

 

The hotel is a proposed five-story 156,934 sf hotel building with 210 guest rooms. The hotel is proposed to have amenity spaces including a landscaped outdoor pool & spa and attached restaurant. Hotel amenities also include a bar, dining buffet, meeting rooms, fitness center, business center, outdoor seating, and a roof deck. The hotel design orients towards the San Francisco Bay with every room including a water view. The building was designed with transparency along the front and back elevations to allow for views through the lobby towards the Bay. A large, covered porte-cochere at the front entrance would span the drop-off zone and highlight the entry.

 

The hotel materials consist of light-colored stucco with score-lines, darker stucco façades that offer contrast, as well as durable wood-looking rainscreen panels to highlight the entrance, and vertical wood and metal fins as accents. Each room has a Juliet balcony that helps break up the massing of the building and add visual interest. The hotel entry provides vertical glass with metal panels to accentuate and indicate the lobby area. The restaurant within the hotel has an overhang at the restaurant entry to create a two-story expression. The proposed height of the hotel is 56’4” to the average roof, 61’ to the top of the parapet, and 66’4’ to the top of stair and elevator shaft (penthouse). Proposed heights over the required maximum of 50 feet are allowed with an approved Planned Development (PD) Permit.

 

Restaurant/Banquet

 

A detached approximately 16,000 sf two-story restaurant/banquet building is proposed to be located west of the hotel. The restaurant/banquet facility would consist of approximately 7,500 sf of restaurant space with outdoor seating on the first level and 7,500 sf of event/banquet space on the second level with an 835 sf third-floor roof deck. The building has been designed to complement the hotel and make use of ample windows to take advantage of the views of the San Francisco Bay. A condition of approval has been included for the rear elevation facing the parking lot to be further enhanced prior to building permit issuance.

 

Market

 

A detached approximately 2,500 sf one story commercial structure is proposed to accommodate a market, café, or other retail use with outdoor seating. The market would be in the parking area to serve hotel guests, residents, and visitors that are visiting the surrounding areas. Details about the market are included in Attachment 1 and plans are included in Exhibit D.

 

Parking and Site Improvements

 

The hotel, restaurants, and market will be located in the portion of the Shoreline area zoned CC(PD). The hotel will be located on an approximately 5.85-acre leased parcel and the restaurant/banquet facility and market will be on separate, smaller leased parcels. The proposed hotel, restaurants, and market development require a total of 434 automobile parking spaces per the CC District regulations. The applicant is planning to provide 455 spaces in two surface parking lots adjacent to the new development. The “West Parking Lot” will provide shared parking for the new City park. The project exceeds the minimum landscaping requirement of 30,302 sf and proposes 79,848 sf of landscaping with plant materials that have been selected for the project’s proximity to the bay, including plants that thrive in windy conditions and can handle soil which might be higher in alkalinity. Final review of landscaping and irrigation is required prior to permit issuance.

 

Multi-Family Housing

 

A 285-unit multi-family building is proposed to be located on a 6.37-acre site. Attachment 1 provides a summary and Exhibit E to the draft Resolution contains plans for the five-story structure that would include a mix of one- and two-bedroom units. The apartments will be located in a portion of the Shoreline area zoned RM-1800(PD) with a High Density Residential (RH) General Plan Land Use designation that allows for up to 50 dwelling units per acre (du/ac) with approval of a Planned Development (PD) Project. The residential amenity spaces for the apartment building include an outside pool on the first level and a club room and roof deck exterior space on the fifth floor that take advantage of the views of the Bay.

 

The apartment building has been designed with a series of massing breaks to de-emphasize the appearance of massing from all vantages. The materials will be a mix of stucco with score lines, wood-grain siding, and brick veneer. Glass and metal railing balconies will help provide visual interest and deep roof overhangs will help create a sense of depth and emphasize select portions of the building. The club room will feature a large span of glass with metal framing on two sides to highlight views of the bay. Together with the adjacent roof terrace, the club room will accommodate a mix of indoor/outdoor activities.  The main entry will be accentuated by a raised parapet and transparent glazing at the ground-level. Areas with horizontal siding are proposed throughout the design to break up the massing of the score-lined stucco. Sunshades are provided over vinyl window treatments throughout. Brick veneer is proposed to anchor the base of the building.

 

As noted above, the PD Project would allow for the density of the apartment project to be evaluated under the High Density Residential (RH) General Plan land use designation that allows for up to 50 du/ac. The proposed 285 units equates to 47.7 du/ac. As in the case of the hotel, the PD Project would allow for the apartment structure to exceed the RM1800 District height limit of 50-feet maximum.

 

The PD Project would also allow for a reduction in the amount of open space required in the RM1800 Zoning District. Approximately 57,000 square feet of open space would be required for the 285-unit project, which will provide approximately 40,526 square feet of common open space on site plus an additional 15,074 sf of private open space through the use of balconies. Private balconies must measure 60 square feet with a minimum dimension of six feet to count towards the 200 square foot open space requirement. The proposed balconies do not meet the code standards and are typically 5’ x 7’ with corner units measuring 5’ x 12’. The unique project location will offer future residents ample opportunity to access nearby open spaces, including Marina Park to the south, Oyster Bay Regional Park to the north, and the planned park and Bay Trail immediately adjacent to the private development.

 

The PD Project would also allow for a reduction in the amount of private storage for each unit. The RM1800 District standard is for 250 cubic feet of storage per unit. The project is proposing to provide 58 storage lockers that would be available to tenants seeking additional storage area.

 

Parking and Site Improvements

 

A five-story parking garage is proposed within the structure for tenants. The proposal includes 435 spaces (405 garage spaces and 30 at ground level surrounding the structure). Prior to permit issuance, the applicant and City will need to agree to a Traffic Demand Management (TDM) plan, which will help offset the reduced automobile parking. A total of 132 bicycle parking spaces are proposed, including 124 indoor bike racks and 8 outdoor spaces. Landscaping of the entire site, including a landscaped courtyard area, is proposed, consistent with the requirements of Zoning Code Section 2.04.360, which requires landscaping/planting for multi-family residential projects. Final landscape and irrigation plans will be required prior to permit issuance.

 

Single-Family / Townhomes

 

The proposed Monarch Bay Homes will be located on approximately 16 gross acres east of Monarch Bay Drive zoned RM-2000(PD) and will consist of 144 detached single-family homes and 62 townhome style condominiums. The new neighborhood will include two- and three-story single-family homes and three-story townhomes that utilize roof decks, where appropriate, to create varied form and provide for additional private open space. Attachment 1 contains a summary of the single-family and townhome project and plans are included as Exhibit F to the attached Resolution.

 

Conditions of approval have been included to require final design review prior to permit issuance, including requirements to enhance the architectural elevations facing the public way and to reduce plain stucco facades. Additionally, prior to permit issuance, the Engineering and Transportation Department requires further review of final details related to the layout of the homes, including providing adequate utility capacity, vehicular line of sight, stormwater treatment areas, circulation, trash management, and sea level rise mitigation.

 

Single-Family Homes

 

The proposed single-family neighborhood would consist of five distinct single-family home plans that are uniquely designed for their particular location on the site. The detached single-family homes would range from 3-4 bedrooms with 2.5-3 bathrooms. Plans 3 and 5, which are typically located along the edges of the site, have been designed to maximize views for future homeowners and to provide articulated elevations along the public-facing edges of the development. Plan 1 would typically be located along the internal street with the front door facing the street and Plans 2 and 4 provide variety for the future homebuyers and would add variety to the interior street scene within the development. The maximum height is 50 feet and the two-story homes will measure approximately 28 feet maximum in height.  However, Plans 1, 3 and 5 include an optional roof deck with an overall maximum height of 35 feet, with an eave at 30 feet above grade for ground ladder access by the Fire Department. Each of the five single-family floor plans will offer 2 or 3 exterior elevation options.

 

The architectural style of the single-family homes and townhomes is contemporary with clean lines and finishes, including stucco façades, with the introduction of stone veneer and cementitious siding to add variety and texture. As noted, further enhancements to the architecture will be reviewed prior to permit issuance.

 

The PD Project proposes setbacks  to fit the specific development and product type as follows:

Front - 4’ minimum, 5’ to garages

Side - 3’-6” minimum (7’ between homes)

Rear - 5’ minimum with typical yard spaces of 10’ x 20’

 

Townhomes

 

As shown in Attachment 1 and Exhibit F to the draft Resolution, the townhomes will offer three floor plans and occur in two building types - a 6 plex and an 8 plex with one cohesive style. Plan 3 is specifically designed to be located at the end of buildings along Monarch Bay Drive and features a 2nd floor deck and larger view windows.

 

The design of the townhomes is intended to be simple, yet bold, with a primarily stucco façade with vertical cementitious siding and metal railings. The required height for the townhomes is a maximum height of 40 feet. The overall height to the roof deck stair tower is approximately 43 feet and the typical parapet is 37 feet above grade and would require approval of a PD permit.

 

Development Agreement

 

The proposed Development Agreement between the City and Cal Coast Companies LLC, Inc. (the “Developer”) works to further implement the terms agreed to in the Disposition and Development Agreement (DDA), and provides further details related Developer and City obligations, particularly related to construction and implementation of the Project.

Development Agreements are authorized by State law and provide the City and Developer more certainty for the development moving forward.  Such agreements are often utilized for larger projects that are to be developed over time in phases. The Development Agreement provides the Developer vested rights to develop the project during the 10-year term of the Agreement, with the potential for a 5-year extension if the project is progressing and the Developer is in compliance with the Agreement and conditions of approval.

The Development Agreement details the scope, phasing and procedures for the Developer’s installation of public improvements, with the requirement that overall site preparation be performed during the first phase of the project. Such public improvements include the reconstruction of the Marina Golf Course, construction of park promenades located along the San Francisco Bay shoreline adjacent to the Developer’s hotel and apartment projects, relocation and restoration of the Wes McClure boat launch, reconstruction of a portion of Monarch Bay Drive, Mulford Point Drive and Pescador Point Drive, construction of a parking lot within Monarch Bay Park, and soil importation and site preparation for these projects.

The Development Agreement also outlines the base requirements and next steps for design and implementation of key measures to ensure that the project is sustainable for the long-term.  These include sea level rise mitigation, Transportation Demand Management planning, and development of a Community Facilities District to support the development of public infrastructure, ongoing maintenance and long-term capital and sea level rise investment.

Finally, the Development Agreement provides the framework for the cooperation between the City and Developer on their respective elements moving forward. As outlined in the DDA and Municipal Code, the Developer may receive impact fee credit for the public improvements.  Additionally, the City commits to coordinate construction of the park and other public elements with the Developer, and to support timely processing of future permits to support implementation of vested project approvals.

 

Off-Site Improvements

 

The Shoreline Development includes a number of off-site improvements and mitigation measures, including:

 

                     Reconstructing Monarch Bay Drive with Class I bike facilities - (see Attachment 4 for planned bicycle and pedestrian circulation);

                     Installing a traffic signal at Aurora Drive and Marina Boulevard;

                     Optimizing signals along Marina Boulevard;

                     Constructing portions of the Bay Trail adjacent to the Multi-Family and Hotel developments;

                     Construction of a new nine-hole golf course east of the Single-Family and Townhome development;

                     Upgrading/upsizing utilities in the vicinity, including the Neptune Lift Station (sewer); and

                     Significant investments in public art in the project area.

 

Sustainability

 

The project will support San Leandro’s goals of creating a greener, healthier, and more sustainable city by incorporating environmentally friendly materials and methods in both the design and construction. This will be accomplished by adhering to green building standards, incorporating sustainable building materials, providing roofs that reduce the heat-island effect, an innovative and on-site approach to treating stormwater runoff, using solar energy where possible, and including increased electrical load capacity to accommodate the expanding use of electric vehicles (EVs).

 

Sustainability highlights include the following:

 

                     Hotel and Apartments LEED Certified;

                     Solar photovoltaic (PV) panels on Single Family and Townhouse roofs; 

                     Multi-family building will be all electric to the extent feasible, including an electric HVAC system and Energy Star all-electric appliances (dishwashers, refrigerators, clothes washers, and dryers). The Developer is also researching microgrid and battery storage and will incorporate into the design if economically feasible;

                     All buildings must perform 15% better than 2019 Energy Codes, which require window efficacy; low energy lighting; lighting occupancy sensors; wall, floor and attic insulation; efficient heating and cooling systems; water heater requirements; VOC Emissions reduced for use of construction material; water conservation for landscaping and building use;

                     Construction Waste Diversion Recycling - 65% recycled; and

                     Use of reclaimed water for single-family/townhouse element landscaping, if feasible.

 

EV Infrastructure & Green Infrastructure

 

A minimum of 100% of the multi-family parking stalls are proposed to accommodate electric vehicle (EV) charging spaces. Forty percent (40%) of total parking spaces will be EV Ready and 60% would be EV Capable. For the shared parking area at the hotel, market, and restaurant/banquet facility, a minimum of 10 percent of the spaces will have EV Chargers and an additional 10% will be EV Capable. The EV spaces will be located adjacent to accessible parking spaces meeting the requirements of the California Building Code, Chapter11A, to allow use of the EV charger from the accessible parking space and that the EV space shall be located on an accessible route.

 

The project further supports the goal of a greener, healthier city via the enhancement of the public right of way, which will be accomplished by adding street trees and green spaces, and by providing much needed funding to enhance open spaces. Additionally, the landscaping in the Single Family/ Townhome area is planned to utilize recycled water (purple pipe).

 

Sea Level Rise

 

The private development projects and adjacent City park components are being designed to address projected sea level rise to the year 2070, which would entail raising the site several feet and planning for future adaption options. The proposed new buildings are all located outside of the 100’-wide San Francisco Bay Conservation and Development Commission (BCDC) jurisdictional boundary; however, the park and exterior portions of the private hotel, restaurants, and multi-family apartments will be subject to BCDC review. A Preliminary Sea Level Rise Exhibit is included as Attachment 6 that shows the planned minimum design elevations for the project. The exhibit shows a number of elevations for both the proposed development (Finish Floor) as well as proposed minimum elevations for the surrounding park and public areas. The site elevations are presented in two ways, representing two different benchmarks (see below).

 

1.                     NGVD 29: represents the benchmark used in the planning entitlement drawings

2.                     NAVD 88: represents the benchmark used by FEMA/BCDC

 

The proposed minimum elevations were determined by using the current FEMA base flood elevations and adding the 3.5 feet of 2070 projected sea level rise for high emissions based on the State of California Sea-Level Rise Guidance. Sea Level Rise is also addressed in the Development Agreement and Conditions of Approval. Additionally, the Community Facilities District for the Shoreline area is proposed to include bonding capacity for future sea level rise adaptation efforts.

 

Construction Practices

As required in the Conditions of Approval, during construction, numerous mitigations will be employed to minizine the impacts of construction to the environment and the community, including reduced emission trucks and machinery, dust control measures, air quality monitoring, noise reduction plans, and many other enhanced construction-related protocols, all managed by  on-site project manager who will be available to the public and efficiently deal with any related concerns.

 

Transportation Demand Management

 

As required by Mitigation Measure TRAF-2A and TRAF-2B.2, the applicant is working with a qualified traffic consultant to prepare a Transportation Demand Management (TDM) program. The Project is conditioned to provide a final TDM plan prior to building permit issuance, with a trip reduction goal of 10% for daily trips and 20% for peak-hour trips. Measures shall include, at minimum, a private shuttle that will be made available to all of the land uses within the Shoreline development and a mix of TDM measures that may include:

                     Carpooling (traditional, dynamic, Uber/Lyft pool)

                     Vanpooling (Enterprise/MTC, owner-operated)

                     Guaranteed Ride Home - provides commuters who regularly (twice a week) carpool, vanpool, bike, walk or take transit to work a free and reliable ride home when needed

                     Car Share program

                     Bike Share and/or Scooter Share Program

                     Bike Lockers

                     Bike Serving Stations

                     Expand Bikeway Network

                     Subsidized Transit Passes (Clipper Card)

                     Transit Improvements (bus stops, real-time info, integration with bikes)

                     Travel Information and Education, Rewards Programs and Incentives (trip planner flyers and web/apps, outreach, bike workshops, wayfinding)

                     Parking Cash Out

                     Preferential Parking for Carpool and Vanpool

                     Safe Routes to School Program (Garfield Elementary 0.5 miles away)

 

Additionally, several existing programs that provide TDM measures are currently offered by MTC, Alameda CTC, and the San Leandro Transportation Management Organization (LINKS shuttle).

 

Inclusionary Housing Plan

 

As shown in Attachment 3, the applicant has proposed an alternative means of compliance as allowed under the Inclusionary Housing Ordinance through a hybrid approach that provides needed market and moderate-income housing while replenishing the City’s Housing Trust Fund. The DDA between the City and Cal-Coast outlines the inclusionary requirements for the Shoreline Development which will also be reflected in the Development Agreement. For the owner units (single family and townhomes), Cal-Coast will construct 10%, or 21 total inclusionary units on site, out of a total of 206 units and pay a pro-rata housing in lieu fee of approximately $1 million for the remaining 5% set aside requirement. The proposed for-sale in lieu fee is $10 per gross square foot of residential floor area. Of the 21 inclusionary for sale units, 13 workforce income units and eight moderate income units will be provided. The workforce income housing units will be made available for families whose gross income does not exceed 135% of the Area Median Income. The moderate-income units will be made available for families whose gross income does not exceed 120% of the Area Median Income.

 

Per the DDA, Cal-Coast will also pay a housing in lieu fee based on $5 per rentable square feet instead of constructing on-site inclusionary units for the 285-unit multifamily rental development. The housing in lieu fee for the multifamily rental development is estimated to be approximately $1.2 million.

 

Cal-Coast will pay a total of approximately $2.2 million in housing in-lieu fees to the City’s Affordable Housing Trust Fund. Housing In Lieu Fees can then be leveraged to attract additional County, Regional, State, and Federal funds for future affordable housing projects.

 

Conclusion

 

The Shoreline Development meets the goals and vision for a comprehensive Shoreline master plan that has been envisioned since 2008 as a result of robust community outreach and planning efforts. The planning entitlements and Development Agreement phase is a significant milestone for the project. Next steps include further preparation of technical studies and permits prior to the start of on-site construction, as detailed in the Conditions of Approval (Exhibit G to the Resolution). The property sale and leases are anticipated to occur by the end of 2022.

 

The Planning Commission’s recommendation is tentatively scheduled for consideration by the City Council at 6:30pm on Monday, June 6, 2022.

GENERAL PLAN CONFORMANCE

The project is consistent with the General Plan’s goals, policies and objectives. The Tentative Map includes parcels with General Plan land use designations of Commercial Community District (Planned Development), Commercial Recreational District, Residential Multi-Family (22 DU/Acre) (Planned Development), and Residential Multi-Family (24 DU/Acre) (Planned Development). The purpose of these established land use designations is to provide for a mix of commercial, residential, and recreational activities in alignment with the proposed Shoreline Development. The pertinent General Plan goals, policies, and actions that apply to the Shoreline Development project include:

Goal LU-9. Reinforce the San Leandro Shoreline as a regional destination for dining, lodging, entertainment, and recreation, while creating a new waterfront neighborhood with housing, retail, and office uses.

 

Policy LU-9.1 Waterfront Enhancement. Enhance the San Leandro waterfront as a distinguished recreational shoreline and conservation area, with complementary activities that boost its appeal as a destination for San Leandro residents and visitors. Future development at the Shoreline should be compatible with the area's scenic and recreational qualities.

 

Policy LU-9.3. Public Amenities in Shoreline Development. Ensure that future development at the Shoreline includes complementary amenities that benefit San Leandro residents and current shoreline users, such as improved park space, restaurants, pedestrian and bicycle paths, and access to the Bay Trail.

 

Policy LU-9.4. Land Use Mix. Strive for a mix of land uses in the San Leandro Shoreline area that requires little or no City investment and results in a Shoreline that is financially self-supporting. Development should be phased in a manner that is consistent with this policy, and should maximize the extent to which commercial development funds public amenities and services.

 

ENVIRONMENTAL REVIEW

 

Attachment 7 contains a summary of the environmental review process for the Project. Pursuant to the California Environmental Quality Act (CEQA), on July 20, 2015, the City Council adopted Resolution No. 2015-125 certifying an EIR entitled, “San Leandro Shoreline Development Project EIR (SCH # 2013072011).” In conjunction with the certification of the Certified EIR, a Mitigation Monitoring and Report Program (MMRP) was adopted for the Project.

 

The Draft EIR (DEIR) was circulated for an extended public review period from December 9, 2014 to February 6, 2015. An updated Final EIR (FEIR) was presented to Planning Commission and City Council after a thorough review of the comments received on the DEIR. The DEIR examined the full range of potential environmental impacts based on the eighteen resource topic areas in Appendix G of the CEQA Guidelines, including but not limited to, the following environmental topics:

                     Aesthetics

                     Air Quality

                     Biological Resources

                     Geology, Soils and Seismicity

                     Greenhouse Gas Emissions

                     Hazards and Hazardous Materials

                     Hydrology and Water Quality

                     Land Use and Planning

                     Noise

                     Population and Housing

                     Public Services and Recreation

                     Transportation and Traffic

                     Utilities and Service Systems

 

The DEIR identified a number of impacts as less than significant or significant but mitigatable.  However, not all of the Project’s significant impacts can be avoided or reduced to less than significant and will remain significant and unavoidable, even after feasible mitigation. When the City Council certified the EIR for the Shoreline project, it also adopted a Statement of Overriding Considerations for these significant and unavoidable impacts. The significant and unavoidable impacts relate to greenhouse gas emissions, noise and traffic/transportation.

The Statement of Overriding Considerations noted that the City Council carefully considered each significant and unavoidable impact in reaching its decision to approve the Project and identified several benefits of the Project in reaching its decision, including but not limited to:

                     It will facilitate development of the underutilized Shoreline site, bringing to fruition nearly a decade of City and community planning for the site and area.

                     It improves an underdeveloped site with convenient freeway, street, bicycle, and pedestrian access, this would allow the City to implement its recently adopted Complete Streets program, improve access to the Bay Trail, and provide increased opportunities for local nonvehicular travel within and connecting to the site.

                     It provides a diversity of types of units to meet different types of housing needs and will contribute towards meeting the City’s RHNA need for above moderate housing.

                     It promotes economic growth, creates diverse new employment opportunities, expands the City's tax base and will stabilize the Shoreline Enterprise Fund, which is currently burdened with significant debt due to the costs of past dredging operations.

                     Development of the Project site will also provide construction employment opportunities.

A First Addendum to the 2015 Certified Final Environmental Impact Report for the updated San Leandro Shoreline Development Project was approved by the City Council on February 24, 2020 (SCH # 2013072011). A Second Addendum analyzing Vesting Tentative Tract Map 8633 was recommended by the Planning Commission on April 21, 2022 for City Council consideration on May 16, 2022.

 

Staff has reviewed the proposed project and analyzed it based upon Section 15162 of the CEQA Guidelines. Pursuant to CEQA and the CEQA Guidelines, the City of San Leandro completed a Third Addendum (Exhibit B to the draft Resolution) to the San Leandro Shoreline Development Project Final Environmental Impact Report (EIR). The Addendum concluded that the proposed project would not result in any new significant impacts or substantially increase the severity of any significant impacts identified in the Certified EIR. No new information of substantial importance was identified, and no new mitigation measures would be necessary to reduce significant impacts. No further environmental review is required for the proposed project.

 

PUBLIC OUTREACH

 

In December 2008, a Shoreline Citizens Advisory Committee (Shoreline CAC) was formed to advise the City Council and staff on the vision for the Shoreline development area. The Shoreline CAC fulfilled its mission and was disbanded in Spring 2011 when the City Council signed an Exclusive Negotiation Agreement with Cal-Coast Developers.  In 2012, the City Council Shoreline-Marina Committee approved a Shoreline Advisory Group to provide continuing community input to the City Council and staff on the comprehensive master plan for the Shoreline development area. 

 

To date, the redevelopment of the Shoreline site has been the subject of over 75 public meetings. Most recently, work sessions on the Shoreline Development were held at the Planning Commission on March 3, 2022 and at the City Council on March 14, 2022. The Planning Commission also held a noticed special public hearing on April 21, 2022 on the Vesting Tentative Tract Map for the west side of Monarch Bay Drive.

 

This item was publicly noticed, including a legal advertisement in the East Bay Times Daily Review newspaper, the posting of notices, and mailing notification to property owners within 500 feet of the subject property.

 

RECOMMENDATION

 

Staff recommends that the Planning Commission hold a public hearing and 1) recommend the City Council determine that the proposed project was adequately analyzed pursuant to the California Environmental Quality Act (CEQA) by the Addendum to the Certified Final Environmental Impact Report.; and 2) recommend approval to the City Council on the matter of PLNs 21-0020, 21-0021, 22-0008 which includes a Development Agreement, Planned Development Project, and Site Plan Review for the private elements of the Monarch Bay Shoreline Development based on the Recommended Findings of Fact and subject to the Recommended Conditions of Approval.

 

ATTACHMENTS

 

Attachment 1 - Project Summaries

Attachment 2 - Public-Private Partnership Background

Attachment 3 - Inclusionary Housing Plan

Attachment 4 - Preliminary Bicycle and Pedestrian Circulation Exhibit

Attachment 5 - Preliminary Maintenance Exhibit

Attachment 6 - Preliminary Sea Level Rise Exhibit

Attachment 7 - Environmental Review Overview

 

Resolution 2022-003

Exhibit A Recommended Findings of Fact and Determinations

Exhibit B Third CEQA Addendum

Exhibit C Development Agreement

Exhibit D Hotel, Restaurant and Market Plans

Exhibit E Multi-Family Plans

Exhibit F Single-Family and Townhome Plans

Exhibit G Recommended Conditions of Approval

 

 

PREPARED BY:

Avalon Schultz, AICP

Principal Planner, Community Development Department