DATE: June 4, 2024
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute the Eighth Amendment to the Purchase and Sale Agreement with Caltrans for Transfer and Development of State Highway 238 Bypass Properties that Extends the Deadline for the City to Dispose of the Properties by Five Years from 2027 to 2032
RECOMMENDATION
That Council adopt the following resolution:
1. A resolution authorizing the City Manager to execute the Eighth Amendment to the Purchase and Sale Agreement with Caltrans for the transfer and development of State Highway 238 Bypass Project properties and finding the project is consistent with prior California Environmental Quality Act (CEQA) determinations.
SUMMARY
After abandoning the State Route 238 Bypass Project in the 1970’s, Caltrans began selling parcels that had previously been acquired for the planned freeway. In order to ensure that future development of the State Route 238 parcels located in Hayward align with the City’s land use policies and overall vision, the City negotiated a Purchase and Sale Agreement (PSA) with Caltrans in 2016 to manage the disposition and development of former right of way for the now defunct 238 Bypass. The City-controlled State Route 238 properties are divided into ten “parcel groups.”
The PSA, as amended, currently requires that the City dispose of the properties by January 20, 2027. In light of the current real estate market challenges (e.g. higher interest rates and construction costs) City staff and Caltrans staff have acknowledged that the deadline for the City to dispose of all of the parcel groups should be extended. An amendment extending that deadline has been prepared for the City Council’s consideration.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution