Gateway Property Notice of Availability

June 28, 2021

To All Interested Parties:

 RE: Notice of Availability/Offer to Sell Surplus Property

 As required by Government Code Section 54220 of the State of California, the City of Union City (the “City”) is providing notification that the City intends to sell the surplus property listed in Attachment A. 

 In accordance with Government Code Section 54222, you have sixty (60) days from the date this offer was sent via certified mail or electronic mail to notify the City of your interest in acquiring the property. However, this offer shall not obligate the City to sell the property to you. Instead, the City would enter into at least ninety (90) days of negotiations with you pursuant to Government Code Section 54223. If no agreement is reached on sales price and terms, or lease terms, the City may market the property to the general public. 

 As required by Government Code Section 54227, if the City receives more than one letter of interest during this 60 day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.

 In the event your agency or company is interested in purchasing the property, you must notify the City in writing within sixty (60) days of the date this notice was sent via certified mail or electronic mail. Notice of your interest in acquiring the property shall be delivered to Mark Evanoff, Deputy City Manager, at 34009 Alvarado-Nile Road Union City, CA 94587 or marke@unioncity.org. You may also direct your questions to marke@unioncity.org or by calling 510) 675-5345.

 Entities proposing to submit a letter of interest are advised to review the requirements set forth in the Surplus Land Act (Government Code Section 54220-54234).

 Additional information about the surplus property is included in Attachment A. 

 


ATTACHMENT A

 

NOTICE OF AVAILABILITY OF SURPLUS LAND IN THE CITY OF UNION CITY 

Pursuant to California Government Code Section 54220 et seq.

 

 

Pursuant to the provisions of Government Code Section 54220 et seq. (the “Act”), the City of Union City (“City”) hereby notifies those entities designated in Section 54222 of the Act of the availability of the following City owned property for the purposes authorized in the Act:  

 

 

25 (+/-) ACRES OF UNDEVELOPED LAND

 

APPROXIMATELY 0.5 MILES FROM UNION CITY BART STATION

 

WRITTEN NOTICES OF INTEREST ARE DUE WITHIN SIXTY DAYS TO:

Mark Evanoff, Deputy City Manager

City of Union City

34009 Alvarado-Niles Road, Union City, CA 94587

marke@unioncity.org (510) 675-5345


The City of Union City is preparing to sell approximately 25.4 acres (1,107,295 square feet) of undeveloped land located approximately one-half mile from the Union City BART Station (the “Property”). The minimum purchase price is $86,184,000.  

The Property is located within an approximately 36.2-acre site formerly owned by Caltrans (the “Larger Site”).  The Larger Site is bounded by Osprey Drive, Alvarado-Niles Road, Fremont city limits, and Old Alameda Creek.

487,872 square feet of the Larger Site are reserved for the planned Quarry Lake Parkway, a wetlands mitigation/riparian area, and other open space uses. The planned Quarry Lakes Parkway is a new transportation corridor that will provide a second point of access to the Union City BART Station and include a four-lane parkway, and Class One and Class Four bicycle paths that connect to regional parks. The Quarry Lakes Parkway will be located immediately to the north of the Property. The Quarry Lakes Parkway will include a joint trench that will provide all utilities: sewage, water, telecommunications, electricity, and natural gas.  The developer of the Property will be able to access the utilities at the relocated Quarry Lakes Drive.

The California Transportation Commission conveyed the Larger Site to Union City at its June 24, 2021 meeting.  The appraised value of the Larger Site is $86,184,000.00.  The City is required to pay Caltrans the appraised value of the Larger Site. Accordingly, the party that purchases the Property from Union City is also expected to pay the City for the entire appraised value of the Larger Site. The City is not in a position to subsidize the purchase of the Property or any development thereon, nor is the City able to allow the purchaser to delay payment for the Property.

The Property is currently designated as “Residential” in the City’s General Plan. The portion of the property that will be conveyed currently allows residential densities of 17 to 30 units per acre on a portion of the property and 10 to 17 units per acre on the remaining portions of the property.  The Special Areas Element of the recently adopted General Plan includes a section focused on the Station District and a subsection focused on the Property, which includes policies that address new development. The Property is included in the City’s current Housing Element, but please note that the land use configuration was updated in 2018 to reflect the densities listed above after the Housing Element was approved. The City’s preference is that the portion of the Property being conveyed be developed with a minimum of 300 units, which is consistent with the latest Housing Element development assumptions and includes a variety of multi-family housing types. The City is open to reconfiguring the boundaries of the existing land use designations on the Property to accommodate a specific proposal and potentially increasing existing residential densities to facilitate a more compact, efficient development that provides additional area for residential amenities. Any proposed development must also comply with the City’s Affordable Housing Ordinance, Union City Municipal Code Chapter 18.33. 

A Specific Plan is being prepared for the City’s Station District area and includes the Property.  The City recently concluded an Alternatives process which included a robust public outreach component. This feedback will inform preparation of the Plan contents. For more information regarding the Specific Plan process and the feedback received, visit www.unioncity.org/SD. The draft Specific Plan and accompanying EIR is anticipated to be brought before the decision makers in early 2022.

Caltrans has completed a Historic Resource Compliance Report for the Property. Consistent with that report, Caltrans is obligating the City to require any future developer of the Property to utilize  approximate 0.5 acres of land located within the Historic Resource Boundary (shown on Page 5 of the report) as a public park and to preserve as many contributing features as possible. The developer will also be required to install panels in the future park that describe the Peterson House and the agricultural history of the area.

If interested in purchasing or leasing the land for an authorized purpose under the Act, you must notify the City in writing of your interest in purchasing or leasing the land within 60 days of the date this Notice of Availability has been sent.  Written notices expressing interest must be sent to, and must be received by, Mark Evanoff within the 60-day period at the address listed above.  Delivery by email or regular mail is acceptable.

Although not required prior to the end of the 60-day period to submit a notice of interest, all interested parties will be expected to eventually submit a formal statement of proposal so that the City may evaluate the proposals and negotiate with interested parties pursuant to Government Code Section 54223. Interested parties are encouraged to submit their statement of proposals simultaneously with their notice of interest. The City’s expectations for those proposals is at the end of this Notice of Availability.

The City will negotiate with interested parties in accordance with the requirements of the Act. The City anticipates selecting a preferred entity and entering into an Exclusive Negotiating Agreement (ENA) with that entity. During the term of the ENA, the parties will negotiate a Disposition and Development Agreement to govern the sale and development of the Property and complete any necessary CEQA review.  

TECHNICAL AND LEGAL DOCUMENTS

Property Legal and Regulatory Documents

Property Condition Disclosures

Caltrans Land Conveyance Documents to City of Union City

Station District Existing and Planned Improvements

 

Cultural Resources Disclosure

Quarry Lakes Parkway


STAFF TECHNCIAL CONTACTS:

General Plan, Zoning, Specific Plan, Entitlement Process

Carmela Campbell, Economic and Community Development Director

carmealc@unioncity.org; (510) 675-5316

Parcel Map, Engineering, Soil Report, Drainage

Farooq Azim, City Engineer

farooqa@unioncity.org; (510) 675-5368

Quarry Lakes Parkway

Marilou Ayupan, Public Works Director

mariloua@unioncity.org; (510) 675-5301

General Questions Notice of Availability Surplus Land:

Mark Evanoff, Deputy City Manager

marke@unioncity.org; (510) 675-5345


VIRTUAL OVERVIEW MEETING OF THE PROJECT

An online virtual meeting will be held with interested applicants and City staff on Wednesday, July 14, 2:30 to 3:30 on Zoom:

Join Zoom Meeting

https://unioncity-org.zoom.us/j/8472100396?pwd=VkYvZjJhQzhPSWFYMlZQUFMrMStaUT09

Meeting ID:982 2107 5957

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WRITTEN NOTICES OF INTERST ARE DUE WITHIN (60) DAYS

AUGUST 30, 2021

TO:

 

Mark Evanoff

Deputy City Manager, City of Union City

34009 Alvarado-Niles Road, Union City, CA 94587

marke@unioncity.org (510) 675-5345

Although not required prior to the end of the 60-day period to submit a notice of interest, all interested parties will be expected to eventually submit a formal statement of proposal so that the City may evaluate the proposals and negotiate with interested parties pursuant to Government Code Section 54223. Interested parties are encouraged to submit their statement of proposals simultaneously with their notice of interest. The City’s expectations for those proposals is at the end of this Notice of Availability.

STATEMENTS OF PROPOSALS

The City requests one (1) copy on a USB Flash Drive. The Statement of Proposal should satisfy the following, as applicable: 

Elements to Include in a Statement of Proposal: 

  • Site layout to scale including block configuration, general building envelopes, park improvements, and any proposed circulation improvements.
  • Describe the number of proposed units, product type, range of densities and average density, number of affordable units, level of affordability, bedroom count, and number and type of market-rate housing.
  • Describe how parking will be accommodated: number of parking spaces per unit, number of guest parking spaces, and type of parking: at-grade, structured, tandem, and size of parking space. 
  • Describe park and other public amenities that will be provided as part of the project.
  • In a separate, confidential memo, describe the source of funding to pay the appraised value, projected timeframe for seeking entitlements, projected timeframe for constructing the project, and the source of funding for constructing the project. 
  • Project Manager who will have direct daily oversight in negotiations with Union City, project financing, project entitlements and project construction; include a brief biography of the Project Manager and the hours per week the individual will devote to the project.
  • All members of project team and specific responsibilities of each team member; summary bios of team members; and percent of each team members work schedule will be devoted to the project. 
  • List of development projects, project density, and photos of projects managed by key team members, include at least five reference names and contact information for city or county employees who assisted with entitling the project and building staff inspections. 
  • Contact information for a minimum three parties who assisted in financing the projects listed.
  • Identify all market-rate, affordable, or mixed income housing development projects that entities submitting the proposal have been involved in during the last 10 years.  Include contact information of all parties involved in the projects.
  • Provide examples and identify team member experience related to historic resource preservation and adaptive reuse.  
  • The proposal must show how project complies with the requirements included in the Caltrans Historic Resources Compliance Report and the project proforma must identify the cost and funding source for complying with these mitigations.