DATE: December 1, 2015
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Agreement for the Purchase and Sale of Real Property, located at Second Street and Walpert Street, between the City of Hayward and AMG & Associates, LLC
End
RECOMMENDATION
Recommendation
That Council approves the sale of certain real property located at Second Street and Walpert Street for a proposed development by AMG & Associates, LLC, and adopts the attached resolution (Attachment 1) authorizing the City Manager to negotiate and execute the Agreement for Purchase and Sale of Real Property evidencing such transaction.
BACKGROUND
During the 1960s and 1970s, the State of California (Caltrans) began acquiring properties in Hayward for the now cancelled Route 238 Bypass Project. In 1984, City Council authorized the purchase of three parcels along Second Street in connection with, and as part of the City’s contribution to the Route 238 Bypass Project. The three parcels included a total of 4.5 acres of vacant land. As the Route 238 Bypass project has been cancelled, Caltrans started disposing of their properties starting in 2013. AMG & Associates, LLC (AMG) has purchased the adjacent lots from Caltrans, and wishes to purchase the City’s parcels to be combined with theirs for development purposes.
DISCUSSION
Staff has reached a tentative agreement with AMG as shown in the attached draft Purchase and Sale Agreement (PSA). The agreement is contingent upon Council approval of their proposed Planned Development (PD) District rezoning application and associated tentative tract map.
The proposed project would result in the development of ninety-seven small lot, single-family homes on an approximately fifteen-acre site. The homes would be clustered on the northern and eastern portion of the site in order to maximize open space on the site and to avoid extensive grading near Ward Creek. The proposed project includes construction of improvements and amenities such as roadways, utilities, an eleven foot wide public trail, and an approximately 0.36-acre on-site park. The project will also install a new traffic signal at the Second and Walpert intersection to provide more improved pedestrian access for students crossing Second Street.
The site is currently vacant and is bordered by Second Street and Hayward High School to the north, Ward Creek to the south, and a mix of single and multi-family residential developments to the east and west. A City of Hayward pump station and two water storage tanks on Walpert Street are located adjacent to the site.
ECONOMIC IMPACT AND FISCAL IMPACT
The agreed upon purchase price is set at $180,000 per new lot constructed on the city parcels. There are a total of sixteen lots proposed within the City owned parcels. Therefore, the total purchase price of the City property will be $2.88 million. As the original intent for purchase of the City properties was to benefit street improvements, staff recommends the proceeds be deposited into the Street System Improvement Fund for future roadway improvement projects, such as partially funding the budget shortfall of the next phases of the Mission Blvd. Improvement projects.
PUBLIC CONTACT
The proposed development project will go through the standard public notice process, including a Planning Commission meeting, and a subsequent City Council meeting for the required approvals.
NEXT STEPS
Staff anticipates that the Initial Study and Mitigated Negative Declaration for the proposed development project will be released in December 2015. As noted above, this project requires rezoning to Planned Development District and approval of a Tentative Tract Map and Site Plan Review. Staff anticipates the project will go before the Planning Commission and City Council for approvals in early 2016.
Prepared by: Brian Spore, Surveyor
Staff contact
Recommended by: Morad Fakhrai, Director of Public Works
end
Approved by:
Fran David, City Manager
Attachments:
Attachment I Resolution
Attachment II Purchase and Sale Agreement
Attachment III Property Map