DATE: December 16, 2025
TO: Mayor and City Council
FROM: City Manager
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Disposition and Development Agreement with Bay Area Community Services for the Transfer of Two Parcels on Depot Road with APNs 439-0070-006-01 and 439-0070-006-02; and Finding that the Action is Exempt from Environmental Review
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RECOMMENDATION
Recommendation
That the City Council adopts a resolution (Attachment II) authorizing the City Manager to negotiate and execute a Disposition and Development Agreement with Bay Area Community Services for the transfer of two parcels on Depot Road with APNs 439-0070-006-01 and 439-0070-006-02; and finding that the action is exempt from environmental review.
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SUMMARY
Since 2022, Bay Area Community Services (BACS) has planned to develop and operate a mental health rehabilitation center (MHRC) in Hayward. The original plan was for BACS to acquire and renovate the former St. Regis retirement center, with a portion of the site dedicated to the MHRC. After acquiring the Regis property, BACS determined that it was not suitable for an MHRC as proposed and approved by their state funding. In 2023, BACS and the City identified a possible solution to this issue by swapping the MHRC with the Hayward Navigation Center (HNC), located at 3788 Depot Road.
This report seeks City Council authorization for the City Manager to negotiate and execute a Disposition and Development Agreement with BACS for the transfer of the parcels on Depot Road, one of which is currently being used for the HNC and the other is across the street from the HNC site. The purchase price is $1.65 Million and will be paid in installments over no more than five years, with at least $500,000 in the first year and up to an additional $28,000 towards closing costs.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Exhibit A to Resolution