Council Budget and Finance Committee - Regular Meeting

Okay. We'll call this. So

Oh, so hold on a second before you get there. So welcome, everyone. This is council budget finance committee. Today is March, Wednesday, 03/19/2025. It is 05:31PM, and I'd like to call the meeting to order. Hey.

We have Malcolm ready. We're not gonna come over.

Just I think you Just need Yeah.

We can go start with the you know? Sorry about that. Mayor Mark Arias?

Present.

Is there any other

Council members.

Oh, and then. That's right. Yes. And council member, Dorser?

Present.

Phone number, Here. And

and then everyone is here.

So what?

Perfect. Okay. Moving on to public comment. This is reserved for anyone, in the room or online that can, have a comment on something that is on the agenda or not on the agenda. Is there anybody in the room that would like to make a public comment? Seeing none, is there anybody online? Yeah. I don't think they're great. Seeing none, I'd like to close public comment and then, move on to, approval of minutes. Moved. Moved by councilor Bonilla. I'll second. Just wanna

comment around page two or three. This council member would like discussion around vacancy savings and what it is utilized for. I just, wanna know the comment is about, our protocol around how those vacancy savings get spent. That's all. I'm happy with the

second item. Moved by council member Bonilla, seconded by council member Syrah. And if there are no objections, it will unanimously. Thank you. Moving on to our first item, which is or our second item, which is the city's real estate update is an oral report by public works and utilities, mister O'Meary.

Thank you, mister O'Meary, and good evening, everyone. When Justin asked me to look into sitting on properties, that was a nice little exercise. I went through the city halls. When you look at the records, the city halls hundreds of parcels, more than 500, but 80% of the street right away and not visible. So the other 10% or so are occupied, so the part stations, city halls.

Some of them, a handful are open space parcels. Again, not usable. So the remaining about 59 parcels are all others, including 22 Caltrans parcel group parcels. Now we don't have 22 parcel groups, but each parcel group has many parcels. The cost parcel group five has 10 individual parcels, so that makes up the 59.

Yes. There are also a few parcels that are owned by utilities. For instance, fifteen years ago or so, during similar times, the city manager at the time wanted to sell two of the parcels. And I just didn't want to let them go, so water paid for those parcels, and we purchased them. We are not legal entities, but there is a resolution that says city paid money, water paid money, and purchased those those properties.

So we have them. So excluding all of those and combining properties that are adjacent to one another, we have 19 properties of different sizes that are city owned, general fund owned, and available to you to do whatever it is that you want to do. So the largest one is about 5.8 acres, and that's the old City Center. So the old Centennial Hall plus the city center plus the existing parking structure adds up to 5.8 acres. The city Center and the Centennial Hall properties that are vacant right now add up to about three point something acres.

Then the next one right after that is our three parts of Mission Boulevard just south of Pinedale. Those properties were purchased about fifteen years ago or so by redevelopment agencies. So the successor agency now owns them. That's about there. Also, just after Jackson, when you

Oh, I know point there. I know it's Okay.

And it is right after point there. That's one acre, and it has frontage on Mission Boulevard, and it is right for any kind of commercial development. Then right after that, size wise, is CMA. There are three parcels there. Right now, it's used for parking by Oh, yes. Same. And such. Yeah. So those three parcels also you own, and that is about 8¢ of Medicare. So about 35,000 or so.

And I have pictures if you wanted to see the picture. But right after that, size wise, three quarters of an acre is the existing navigation center. So that parcel at the corner of White Southern Depot is three quarters of an acre. And then there are three parcels on D Street, South of or or I should say West Of Grant when we extended D Street to connect to Wynter West Wynter. So there are three parcels there that are available also.

And that is that those parcels together are about half acre. That's the

That's D Street in West 12?

No. That that's East East on D Street, just West of Grant. Oh, okay. That's what it's yeah. So then the other parcel that's similar size is Is

that the the empty I'm sorry. But is that the empty parcel that's right here in the at the end of Watkins?

No. You can't see them because there is a

Oh, okay. Okay. Alright.

Yeah. I think you're talking about the one next to by the Togos. Is that your Oh, across the street

from the tire From the tire company right here at the end of the street. Okay.

Right.

But, that's not it. Yeah.

That's probably the only Yeah.

I assume.

I think there's, like, a five story development. It's gonna go there soon.

Yeah. It was supposed to be subdivided to 11 lots many years ago that didn't go through. Now there is a new development. Yes. Or

So

So then after that, you have Main Main Street at Hazel. That's the building within the community garden. So if you wanted to do something with that, that's about half acre. And then you have something at Mission Boulevard in Sycamore. Mhmm.

That's about four tenths of an acre at Depot Road at White Sun. The other side of Navigation center is a small strip that is about a quarter of an acre. But because of the shape not gonna be usable, so you have that. And then Central Boulevard, Lindbergh Court, there used to be a parcel that was owned by someone that had all kinds of issues and lost that that land. That parcel of city ended up with it.

So we own that. And everything below that is our small parcels, 10 small parcels going from 5,000 square feet to 35 square feet, and that's what we own. That's what the city is.

So the the the look. So on Mission in Sycamore Yes. That's that's the old old South Barbecue. Was that that that's the lot across the street from that across the street from the from the plunge? Yes. Yeah. So we so we own that right there? Yeah. Okay.

Let let let me see if I'm telling you this correctly. You you're interested in motion and second.

K.

I'm seeing

it's on.

Sycamore. Oh, that's high level. Yeah.

Yeah. That's a nice

Yeah. And that's that little bar. Yeah. And that that's the Hawaiian.

Oh, so we own that.

I didn't know that. That's interesting.

Oh, I'm sorry. Okay. So sometimes it is problems issues that when we were doing mission phase one, we ended up purchasing the property because they had some encroachment. They they didn't get some encroachment into the right of way, and removing the encroachment would render the house not usable, sold into their. Last year and and I'll I'll pick this. Last year,

I last year, I was approached by a a realtor, and he was interested in buying a a very, very small slice Uh-huh. A little sliver. Remember that email? I I I I don't know where I forget it was over off of West Winston somewhere. It I forget exactly what the location was, but it was, like, this little small slice of land.

Yes. Like, a quarter. And it was and I and I think the guy wanted to buy it just to complete sort of his land sort of contiguous kinda landmass. Yeah. And I I have to look it up. I forget where it was. I don't know if it

so it was I don't remember on top of my head that location. Was a strip of land that would formally be used for a now closed underpass under some bank tracks into a school. And there were people basically ordering there, doing doing various things. Mhmm. And he wanted to put up a that's to keep to keep people out of there, keep people off the road tracks, etcetera.

And I I I can look in my email to see but there was there was some challenge with trying to figure out sort of whether the county that owned it. Yeah. Do you need to say, like, they don't did, whether it was a school district that owned it. I mean, he kept coming to the city, and we were able to figure out not us, but

we don't know who, you know, support the direction. Why is it? Okay. Okay.

Good.

Thanks. Okay. Got it. So thank you for the this information. I I think, it's helpful to know where the opportunities exist. I'm kind of curious about, you know, what our plan is around this. Talked a bit in the past around having someone that specializes in land development. Could we need a real property manager or as, you know, public real estate manager for this for the city to help us leverage these resources? Because these empty lots, I used to live right up the hill from the Sycamore Mission location. I and I was always wondering why would anyone develop this. I mean, that can help activate that part

of Mission as another part of a commercial corridor.

Yeah. How do we how do we activate these is the first question I I'd say. Like, as a city, what do we need to have in place to be able to leverage all these empty lots and and make them an asset for the community? And then the second question I have is just your philosophy around leasing versus selling. I I recognize that, you know, some buyers and developers prefer to own the land itself. I'm a little bit more reluctant to give up public land, but, you know, brokers some very, you know, generous lease deal that allows us to keep the land similar to how we had theater, for example. Yeah. So that we're still able to activate the community, but often not lose valuable resource.

More or less like the properties at the airport, which we do not sell. Mhmm. We lease for fifty years for. Yeah.

You can. Is there is there an inclination to not to do that, or is it totally a possibility in using that culture doing that?

I can say, my opinion is it depends on the property and the use. Right? I think there are some where it makes sense to hold on to

Mhmm.

Whether whether it's to be developed or simply to use or whatever whatever purposes that that the the person, you know, wants to Yeah. Person or business wants to. It kinda depends on, similarly, the the intent for the time. You know, if it's a if it's a year long, you know, clearly, would make it because the the least makes sense. Yeah.

And and potentially longer. Yeah. But if it's something that you know, especially if there's a tremendous community benefit to, it it only pencils for whoever to develop it to purchase the land and be able to develop it and then what sell it or rent it or use it or whatever. You know, they I think it's my my response is there is no one Yeah. Sort of fits all.

But Okay.

Like, we're we're certainly open to either with the with the the, you know, focus on both community benefit and what makes this.

It. Because, you know, we're in a environment right now where the hard cost need to go up. We're looking at the cost plan That's those rising. If we were able to bring that down through aggressively seeing if we say, look. We'll offer, you know, a $1 a year, 50 moving. It's just we want this activated. We want full time sales tax in this building. Right? Like, could be a competitive advantage at the track development as well. I mean, I wouldn't imagine anything being a one year lease for a land deal like that. I would imagine being, you know, a one year lease. So I just wanted to express my interest in really kinda having you know, in the same way we talk about what is our compensation philosophy, what is our land lease versus selling philosophy, being very clear on that, because I I just feel interested in having to

give something public to the

to the private market. And then just my second question is, what what is the practice of us having that kind of strategy look like with a property manager, land use manager? I mean, what what would the role be called, and, what would be the effective strategy for us to actually, like, you know, aggressively start to activate these spaces and engage with the market around it?

Yeah. So we we we have a real property manager Mhmm. On our in our title and pay plan. We recruited for this. We've attempted multiple times. Most recently, I think the '24. We had a random interview as you can see. The the candidates that we attracted were and and and not not surprisingly after the fact, unfortunately. Mhmm. We're more into managing proper I see.

And our intent was, sure, there will be a portion of that, but, really, we want somebody who's gonna go off aggressively markets of our like, it's specifically the city center from Mhmm. Right, to to get a developer to come in and do something with that plan. You know? Prevent what if they're going on and also provide some resources to the city too. You know? And and some of these others that

are wrong with Yeah. In

that. Since that time, you know, like I said, the interviews, we realized we need to sort of at least get a working title Yeah. So that we're able to attract someone who has more of a marketing background. Yeah. You know, the folks that were that we interviewed were more looking to manage Yeah. Properties that you rentals, you know, residential type things. We have since worked on the the job description a bit. The consultant that we've used thinks the the pay is appropriate Okay. For market. But really trying to find a way to attract those other, you know, people that we're Yeah.

So we just adjust the job description. Right. We're requirements that

we We struggled to get there's no commissions Yeah. Meeting. Yep. And so that's kind of been the holdup. It was on the the agenda for last it was last week.

Oh, so the changes already been submitted. We have to approve them now.

We we need the commission to Okay. To expire the list, that we Have before.

On the

previous candidates. We've been, Yeah. Fine.

I know. I know. Okay. Well, thank you. But that we're already in the process of making progress towards that. I'm excited to see who we're able to, eventually work through. Thank you. That was my question.

That was pretty much mine too. I just wanted to know, like, what our real estate strategy was. Because was thinking some of these properties might be right to sell, develop, or lease. You know? So I just was wondering, you know, if if there would be a way. And I guess the first step is to get this person on board, but maybe to get, like, a disposition for each of the properties. Right? Because then as as I was looking at some of these locations, I'm like, they're even, like, right for affordable. It's like because, like, it's right off of Mission and the, you know, lot size seems, you know, big enough and with the with the fees, but I'm not sure that that would make the most sense. So, like, I just wanted to kind of see what the overall strategy was and what the disposition would be.

You know, maybe a few dispositions and then a recommended and then council could have some discussions around pros and cons related to that. So that starts with form what we think would be the best way of, you know, leveraging or using this product.

We can definitely have some internal conversations and come back. Have we

have we sort of overlaid the and I'm sure they still exist. The catalyst sites, you know, that sort of a few years ago designated, you know, areas of the city. I don't know. Was, like, nine or seven different catalysts. Have we done it, like, sort of have there an overlay of where these parcels are located in relation?

Top five have Where

is the capitals? So about I don't know. Fixed up, not 15.

It was a it was a while.

It was a while ago when when we were when we were trying to identify areas of the city to focus on economic development, development, and other activity, we identified nine areas of the city that we would just basically focus attention, resources, you know, align planning, you know, other stuff. And and that's what we did. And the catalyst sites please don't test me, but I think it was, like, Mission Boulevard Mhmm. Industrial admission around the the Industrial Crescent somewhere, and I think there was some in, like, Hesperian and industrial something anyway, but I guess so that's that's what was the talent sites. And the the the objective or the point was is that we just really were trying to focus on those sites.

Some of the some projects actually got built out, like the housing development, the old Ford site that built. The front side did not. Mhmm. And then, of course, we had some, we had some there was controversy controversy on some sites over density and over, the old, like, the old Chevrolet or the old the old Dodge. But, anyway, my point is is that after looking at all of these, have we is there an overlap? Yeah. And and I guess so the other question would be, are we even are we even tracking the catalyst sites? Are we still focused on

My guess is probably not. Yeah. Because I I I'm not familiar with it. Yeah. That doesn't mean I haven't heard it. That doesn't mean someone in the city isn't. Yeah. I think it'd be probably something to bring up to Paul and see if it, you know, if the if the buzzword is about with him. And, certainly, I would imagine whether he calls them catalyst catalyst sites, he probably has something similar, and whether it's same sites or not, I imagine some of them have changed, over time. But I would imagine we could look at, you know, sort of do an overlay of where he thinks that the best opportunities for, you know, to to activate a site, be and try to figure out how to get that going.

Because I'll tell you, the the site that as as I'm looking at the

list, I had no idea what

it was. That sycamore in Mhmm. Mission Boulevard. Mhmm. I mean, that little that little square, that little Yeah. It's it's literally a little postage stamp.

I mean, you could probably put something

45 stories and

It's already, like, a line of shopping in size. I mean, it really revitalized that part. Yeah.

But Oh, who was Okay.

I also wanted to mention to you that a few years ago when we were extending white salt, there was an opportunity to realign white salt to make it easier to move from breakwater into white salt. So that realignment caused about one acre of land to be surplus land, and we own that. So that is a good parcel of land, white cell. But next door, there is a development. There are three warehouses.

The developer is proposing right now in very preliminary stages to demolish those and construct one large warehouse. So this part of this 1.1 acre is right for them to add to their development. By doing so, they'll have a frontage of white salt and breakwater. We did much better for them. So they might be interested in this, but we still have the right of way that we have to come to you, vacate, and take some other actions.

I have a water line there. We'll have to be relocated, but that can be done by, you know, by the contract for a few $100,000. The value of this parcel could be in the millions of dollars, $3,000,000 or so. So that's the first parcel that we can look at because there is this development that is in the making right now that might be interested to want to improve the

Sold. I thought I thought thought

I curious for that man. I mean, would we be a surplus land stack for that, or is it done differently?

So No. We have to go through Okay. But, you know, this parcel is not an appropriate location.

Yeah. Oh, I I agree. I was just kinda I mean, that sounds like the highest best use for the industrial park. I wouldn't wanna throw somebody in there Okay. And make them surrounded by a warehouse. It's just to go.

Oh. Let me get the thing. Yeah. I'm just anyway. Alright.

Okay. That's it? No other questions?

Yes. Thank you. Thank you. Thank you. Okay. We'll move it on to Hayward Economic Development Corporation update.

This is for our requirements tonight.

Is there any

I will, you know, not get too far into the details of you know, we when the city decided to purchase the cinema place, the corner of the Foothill, when we became aware that the current property owners had put it up for auction, we formed the Hayward Economic Development Corporation to be able to use as a as a tool to complete that purchase. You know, we we out did a whole articles of incorporation, did all of the legal work, etcetera, so that we were able to complete that the transactions and purchase the the Cinema Place Theater the buildings surrounding the cinema there. We've we've had it since August 2024 when the between kind of the transaction took place. So I've been working to fill any vacant spaces that we have, renegotiate any leases that that come up with our our current leaseholders, and then rehabbing the the facilities down there that that that be rehabbing, whether it be inside the suite or outside of the company, etcetera. You know, it has certainly created presented challenges that I don't think any of us expected.

And from time to time, whether, you know, not having been managing these types of facility It has been a bit challenging. It had some costs that we that we would not have necessarily foreseen when it came to starting up the corporation and then, you know, the corporation running the cinema place. But really happy to to say we've got one vacant suite there in the cinema working to fill that. We've had some inquiries. At this point, we we haven't had what we felt was the right fit for for multiple reasons.

One, we had someone who was interested, we didn't think it'd be a great use. Another sort of similar in that we didn't think it's a great use, but they also wanted, too much of the way it's benefit to entice them. And so we we we, held on to the the suite by looking to activate it, in in the form of having our our animal control there in the suite to try to draw some people down downtown to, you know, look at the the animals, but also to to draw them downtown to go to the cinema, to go to restaurants, etcetera, all the shops that are down downtown. So I'm working continuing to work with the property management company to make sure that we are doing everything we can to maintain and attract businesses to to that to the facility. We are you know, we talked a bit about doing an RFP to consider uses for the the property.

Still looking to do that. We don't necessarily have to so it's a bit of problem. We wouldn't do that, but I think we will get more into that. We have we have a lease with the current theater operator through 10/31/2026. So having a an RFP sorry. Having a you know, this this assessment done today would essentially sit in our hands for the next, you know, sixteen months and and

make it stale between now and

when we could actually engage, with whomever it is that we we feel like would be the best part moving forward, which, you know, there's there's nothing that will tell that would indicate to us at this point. It may not be, you know, that it may not be the the current. So looking forward to to kicking that work off, hoping to have a real property manager on on board to sort of influence that a bit more with with some extra expertise. But, you know, really just trying to make sure that we are certainly making making our money and making sure that we are doing that, but also providing, you know, traction downtown, and trying to get draw people downtown. You know, we know we struggle with foot traffic in the area.

We'd like to, to increase that. I think we'll get some of that, with the events from the know, and the control, folks. And also, you know, just trying to, trying to be as creative as we can, and working with that. Both the businesses there, and then the as well. So that's that's essentially what I've got for you. I'm gonna answer any questions, that you all may have.

Okay. I'm sorry. I just wanted to know, is there an opportunity for us sort of do a retrospective on our decision around the cinema place? Because I know that we all wanna believe that that was the right decision to make. But, I mean, just kind of knowing the issues that are kind of happening there, hearing kind of some of the challenges that we've experienced, you know, with movie theater at least up in about, you know, less than two years. Just kind of thinking about, you know? And and then I know that that's also sitting in our research, you know, kind of just all of it, I'm just wondering, like, is there gonna be an opportunity to do a retrospective just even for our own learning to say if we were in this situation again, would we have made the same decision?

I I think there is an opportunity for that, certainly. What I would recommend is we do that around a year or so after

we purchased it and we held it for a year.

Whether we wanna do it, you know, something one year anniversary or sixteen months or what you know, whatever it is. But I think having an idea of what it's gonna look and feel like and operate after all the startup and the sort of the the hiccups and those sorts of things, I think, would be give us a better idea of what reality would look like versus, like you know, if you ask me two months in, I'm like, this is the worst. It's awful. Every day, my time's, you know, sucked up by it. But as we kind of continue to get a little further away from transaction, understanding a little bit more, figuring out, you know, with PG and E, how to work with our you know, all these partners, it it's gotten a bit easier.

And I think it

may you know, I think we would our our vision of it would maybe a little bit clearer, good, better, and different. Right? And and, you know, I think we will have the opportunity to to look at how we how we proceed with things. Certainly, we still own the asset, and so that's that that always gives us the upper well, the the economic development corporation owns the asset. So there's always gonna be an opportunity if we decide, oh, so the price.

Mhmm. You know, there were there were, it's my understanding there were there were multiple suitors who were interested in in, bidding on the auction, and that still may be the case, you know, if we were to enter into the same the same type of process and see where we go from there if that were the the decision that council were to make. And and maybe we do we have like, the the study of what we think the highest uses and the immediate benefit would would say, don't even think about some of this. But I think having it for a little bit longer, having some of that work done will allow for us to sort of have eyes wide open when we when we take a look at it.

Right. Because, like, you know, when when you talked about sort of, like, the reality of what's possible there, it's like I've heard so many different visions of what we think we wanna do with it, but I'm not even sure if any of that is, like, practical. Is it gonna pencil? You know, we all have, like, these ideas. Like, let's make it this art setting. Let's do this other thing. Let's run out. It's like but, like, what's the reality of that? And then also, at what point, you know, do and maybe it's it's just a year point. Maybe it's two year point.

But at what point do we come back and evaluate? Does it make sense to hold on to this deal, or does it make sense to do something different with it? Because and I and I appreciate the work of the Hayward Economic Development Export. But I'm just also wondering, is is that the distance you want to continue to So those are my here. So thank you

for the update. Thanks. Yeah. I'm open to a retrospective.

I think I'd wanna give us a

bit more time like you're suggesting. I think what we have been able to, as a council or as the board of the HEVC, done to imagine what creativity around something like this looks like. I mean, once this property is cheated off, we're looking at a profitable asset in the city. And I think the value of a retrospective would be how do we do this better next time? How do we make sure we have a strategy around strategic acquisitions and how to leverage them and lease them up quickly?

Because this to me is a revenue generation engine and an investment in public ownership of property. What I don't like currently with way we structure our decision making, and I'm giving us breathing room because it's all new, is, you know, the community's input into highest and best use for these properties. I think it's a great idea that animal control is coming in there, but there are other folks that are interested, and we might have a vision as, elected representatives around what we'd like to see our downtown look like. And that's kind of what excites me about this this building is rather than only letting the market decide what ends up being downtown, you know, what tool do we have to be slightly below market rate rent or, you know, other kinds of government subsidies to help so our vision of a thriving downtown and the kinds of resources that are missing in that location because it's very central. I'm sure we've all heard the complaint.

There's not enough family friendly activities. Right? So we have an opportunity to say, well, we can stomach, you know, making a little bit less off of this one unit to have that attraction downtown, and animal control is an example of that. Right? So I am curious how we start to build in you know, we have GAD board meetings sometimes. We have the housing authority meeting sometimes. Maybe we don't need a fully separate meeting. I Well, guess it's a different body, but how you know, do we need to implement that kind of decision making structure where once a quarter, we meet as the board of AGDC to approve a handful of leases or make some policy decisions on what the should be, including a report on, the retrospective at some point too. Right? Like, I just felt like we've made this purchase, and then we haven't had any input into what we wanna do with it.

And so that's where I can agree with the councilor or just to feel like what are we is this the business we wanna be in? I just don't wanna come to that conclusion too quickly until we've had a chance to interact with it or or imagine what I see it as a real I see it as a real opportunity for creativity. So, yeah, otherwise, I think overall, the RFP makes a lot of sense. Definitely don't wanna have an empty cinema by the 2026. And I am curious. The parking lot behind the theater is the property management company we've hired is absent. Right? Are they responsible for managing that parking lot too, or that's our responsibility?

That's our responsibility. It's a it's the successor agency that owns it. So we we do some of the work, you know, our facilities team. If there's something that they that there's a repair that we can't handle, we Yeah. Out.

Okay. Got it. Just a just a note on the theater tour or the theater parking lots adjacent to the theater. I've had some conversation with business owners. I know the 3rd Floor of the parking structure sometimes is gated off or not used.

There is some desire to have that be employee parking for the businesses that are operating off of B Street so that frees up customer parking on the Main strip so people aren't just parked there all day. And this also, you know, talk leads into maybe a larger conversation around our overall parking strategy, enforcement strategy. But a suggestion I don't know how you would structure this. Just throw out example model is maybe we partner with the chamber or these different businesses help fund what security part of the 3rd Floor to monitor employee parking on the 3rd Floor of that structure so their cars don't get broken into, and we can reserve the park for customers downtown. It's like a economic stimulus. I just wanted to throw that out there as some feedback I got. Otherwise, thank you for this report. I'm excited for us to keep, imagining how to leverage this resource.

Thank you. Just backing up a little bit, to to the thought of the the board having some influence on

Mhmm.

Suites, thinking it would, you know, certainly bringing bringing in line at least probably a couple of times a year. I mean, obviously, we're gonna get in some free something like that. So if you're gonna if it doesn't make sense every quarter, but but bringing in in sort of setting Yeah. Here's here's our philosophy. And here's if we have, you know, suites that are available that we're having a tough time

Yeah.

Filling, or we want to attract this specific type of business. I think it will also help, Paul and his team to focus in, hey. This is the site. We can get you. Yeah. And then we can also say, hey. We're we're willing to we want this type of

Yeah.

Business or attraction so much that we're willing to give this $50,000. Yeah. Whatever it is. To to sort of influence those those decisions and provide the property manager with some some guidance. And, you know, I think having them in the room for that conversation, so will speak more expertly on,

you know, what are

the challenges? They may see that, you know, as an as a as an expert in the area, say, oh, this is gonna be a problem for you, and here's what you gotta do. Yeah. That sort of thing, I think, would be very useful too. So it says we continue to to venture in waters.

That makes sense. Quarterly may even be too much too. Maybe it's just on a as to the basis. Right? We have someone who's really interested. We wanna have this decision finalized by the AGDC board. So I would defer to whatever felt appropriate there. I mean, it would be good

to kinda meet where at least initially or at least twice a year so we can get this plan developed so we don't feel like there's some sort of vision behind this. Yeah.

I'm with you there. Yeah. Those are my comments. Thank you.

So I just you know, I just wanna sort of state the obvious and and sort of as a as a for historical note, I know, for your benefit and even for doctor Albers' benefit. You know, we bought this we bought this building, this site, because, at the very beginning, we the the the original owners were having troubles. We restructured, the agreement, for them to be there. And without telling us, they went around, and they went to auction the building without telling us. And, we were not happy with that.

I was not happy with that. The city manager was not happy with that. Then the city manager, Kevin McAfee. And, and and and, actually, some of the, the business tenants were not happy because they didn't know what was happening, what was going on. And so one of the fears we had was the building would be sold because it was being auctioned.

And the fact that nobody had told us, we were concerned that it would go to, you know, some random land, you know, investment firm, and then they would you know, what would become of that site would be what every other building in downtown looks like is empty, and it would just becomes blighted, you know, site. So we, you know, decided to to just slide out by the building, because we did not want it to go empty, and we had all these great ideas. I mean, you know, we had all these great ideas. And, you know, and and I think we we really were banking on being the model the city being the model landlord commercial landlord where we can really have have this stuff. Yeah.

So with that said and I'm, you know, I'm not saying it was right or wrong or otherwise. You know, it that's sort of the the sort of the historical note. Yeah. Over the last year, you know, I I don't know, how I I just haven't gotten the feel and and I know last year was it was a big year. Right?

We were in transition all last year, and I and and I didn't get a sense that there was a concerted, you know, drive, you know, and, you know, to get that building activated to get the building, you know, you know, to sort of work on it. And then, and then there was, of course, there were some rumors that some business won't close. So I say all of that because, you know, now that we have, I I guess, a a a general manager or

or a

manager Something like that.

K. What?

That we have a a manager for that site, I guess the question I have is, is that individual is that individual, like, really, really you know, not only focused, but, you know, are they really enthusiastic about the charge of this building? And, you know, because I guess I guess what I'm trying to get at is if we're the only ones excited about this and staff, is it You know, I don't want I

don't I

don't wanna be the other one up there, you know, leading this charge when you know, you know? And I don't and I'm not saying that staff doesn't wanna do it because, you know, they wanna oppose us. I'm just saying if this is just not what they're in they're not into, let's just agree to, you know, let's just agree to that and just move on. You know? If if this is something that, you know, we don't wanna mess with, I'm good with that.

But whatever we do next, I really, really wanna be careful to not let that building go vacant. Mhmm. That's the I mean, that is the largest economic development site in the downtown, and that was our fear that that would go empty, boarded up, and and so forth. Yeah. The other thing the other thing that we sort of envisioned, and I you know, it's a sort of riff off of what council member Seyrup had brought up, is that I don't know what the con I don't know what the state of the state of the leases are of all the tenants in the building.

I don't know if they're upside down or they're having troubles or or whatever. But this was perhaps an opportunity for us to go in and and be that model landlord, figure out a way to make them successful, figure out a way to keep them open, keep it, you know, and and keep it activated. And, you know, and and and really be smart, you know, about this. I I you know, I don't know if I'm divulging too much here, but, you know, I was called by a downtown business who wanted to move across the street to the that corner site. And, you know, and I was sort of disappointed that that that was even sort of an option, you know, and it was because that was the main corner of that site, and and, you know, I just didn't think that that was the best highest use of a modern looking building, you know, on that on that corner.

But, anyways, I guess I'm sort of rattling on here. So I guess what I wanna say is whatever we do, I think we need to be honest with ourselves. Right? I have to go back to it, you know, what both of you said. Be honest with ourselves.

And, you know, and and and staff needs to be honest with us. I mean, if this you know, if, you know, you know and I'm not throwing anyone under the bus. I'm not you know, I I don't wanna say I'm doing this or not. But, you know, if it you know, if this isn't a top priority of economic development, it's not the top priority of the city manager's office, it's not the top priority of public or of development services. If it is not a top priority, downtown is a top priority.

I mean I mean, for us, it's a top priority. But, I mean, if this isn't gonna be, like if if if we're not gonna work on this enthusiastically and really be motivated about this, I don't wanna keep pushing this. You know? But, I mean, I'm not frustrated. I'm not mad or nothing. It's just, you know, this site is just so important. I mean, I it's it is that's why we bought it. We bought it because it was just too important to lose or to go empty, not to lose, to go empty. Right? That's that's my concern.

No. I think we all share that. We all share a similar concern. I think, one, I will make a point, it's not empty. We're not.

Yeah.

Absolutely. Which is fantastic. Absolutely. We'd like to have it. New attractions, I say business, new attractions to draw people downtown, get them get them out to that side as well as the surrounding businesses. I think we are, you know, just over six months in in this this Yeah. This this piece. And I think we have a real opportunity to we we will hit that fork in the road soon. And we may be at that fork, and we we need to decide. Keep it.

We go all in. We find the right partner to for them to go all in, we go all out. Right? And I I don't there are other you know, there could be other prompts. But don't wanna I don't wanna but certainly getting someone on staff that that has that level of expertise that can work with the property manager, inform counsel on high excuses, and and have that, to to really give counsel the best ideas of this is great.

This is bad. These are the these are the the drawbacks of it. Let's make some decisions. Let's let's devote some resources and, you know, come up with resources by setting. We're gonna we wanna do this in this suite, and here's what we'll we'll put. Towards it. I think we we have a real opportunity to do that in the in the coming months. It's very

I just I can't believe it's been six months. It it seems like forever. Yeah. It's like Been two years. It's like it's been too

It feels like it's been long transaction for a very long time. Yeah. Know. I I agree wholeheartedly. Yeah.

Yeah. And and and and then and, actually and in staff's defense, I mean, I don't want like I said, I'm not I'm I'm not doing some. In in in staff's defense, in economic development, I think the last report we got in economic development, it was, like, 90% full or or I mean, it's you know, I mean, if you see it It's revenue positive. Yeah. Yeah. And, I mean so I just, you know, you know, I just I just see that corner, you know, anyways.

Hi. Well, we've we've we've heard you, and

I appreciate the conversation or the deliberation. I think we have an opportunity as I'm understanding the original intent and the spirit behind behind the acquisition. That's came very loud and clear. And I also understand the the sense of urgency given the perceived vacancy. I appreciate the staff is willing to continue managing the asset Yeah.

Into and what I've heard very loud and clear, but there's the opportunity to get into facilitating the process of the, Hayward Economic Development meeting because we are required to have meetings. We're required for you to let's say, cancel out the board members who take this, action in that corporation, and we have to report. So there's there's a couple of steps that we haven't experienced them yet, but they're they're coming to you. I also had a meeting. Dustin and I met this morning with the downtown down downtown Hayward Improvement District, and the same questions came up.

And and, you know, I would say, mister mayor, that your priorities, the priorities of the city council are our priorities. And so it's not a an apathy or or lack of willingness or or enthusiasm. It's just managing different moving pieces, and it has a timeline.

You mean all of our priorities?

You mean all

of our

There's There's a a timeline. Timeline in And the past. We're we're shifting here. We have an opportunity with me integrating to the city. And so this conversation, this deliberation really helped me to understand. Just this morning, I was asking Dustin, what was your original intent for the acquisition? But but it's we we hear you.

Yeah. And, you know, because I'm hearing you know, I mean, I hear, you know I mean, I I hear all the, you know, birds chirping on on on B Street about, you know, increasing, you know, foot traffic and, you know, you know, in getting you know, turning more people out. You know, B Street is is sort of, you know, it's flattening in terms of its level of engagement for of sort of people coming out and turning out. And, you know, my response is always, you know, we just need patience. You know? Spring is coming. In fact, spring is tomorrow. You know? And more more and more people are gonna come out. I mean, the street parties I mean, there's there's you know?

But, you know, I I get it. You know, restaurants and other stores are open twelve months, not just, you know Sure. Eight months. I get that. And and I know that that their that their issues are really real and, you know,

so Can you find me through a shameless plug in the public meeting? Spring is coming. Mhmm. So we're going to be seeing a lot of cats, a lot of kittens.

Mhmm. And

there's gonna be a lot of kittens in Hayward. Yeah. And we will be bringing them to downtown for the families to enjoy, to see, to pet, to play. It will be in the Main Floor of the of the cin cinema plaza or cinema cinema cinema place, and it will be a destination point. That's the goal and the intent and an attraction. Makes sense. Mhmm.

I was at Stanford Mall the other day, a couple weekends ago. They have a storefront. I had a took a picture of it. They have a storefront of all cats.

They are

kicking them up.

Oh, they're kicking them

out? Are

are they really? Yeah. Oh my god. Anyway, I just and they were charging 30 doll $20 a half hour. $30 for forty forty five minutes, and there was a line.

Oh, shit.

And they're in the window.

We can make

a cat count.

Oh my god. Oh my god. I couldn't believe it.

I just wanna make one quick comment. To me, the the the opportunity is to build an engine. Right? When you hear the term eminent domain, everyone tenses up. People freak out. They get ready to sue the city. But with the revenue that we generate, if we're making 600,000 a year at the current vacancy level and we assume some slight increase, that means we're gonna have enough capital to the development corporation to make offers on other vacant or underutilized buildings in the downtown or across the city on a regular basis, whether that's every three or four years we have the capital to maybe explore a new acquisition to activate it. So I really see this as building an engine that allows us to expand the city's portfolio and set our own around economic development and activation. And that's it's gonna take time. Right?

We're talking about a project that requires to pay off the building over the first ten years before we start to see that that level of agency, at the city level. But that's that's what I at least my interest was in acquiring this building is not a lot of organizations have $8,000,000 of capital and can't make a purchase like this and leverage it in the way that the city can. So I just wanted to share that longer term vision because I it requires a certain level of commitment, and I I don't want us to get, worried right off in the offset before we can realize or materialize that, Vishen.

Yeah. And and with that said, I also and and forgive me for my own lack of, articulation, but I also I don't want staff to feel, that, you know, that I that I I feel that you're not motivated and you're not like, this is not a topic. I I under I I know it is. You know, it's it's I just I guess I I say it. It's just to kind of follow-up on what councilor Brunia was saying talked about. It was just, you know, if we're gonna do this, let's do it. Mhmm. Right? And if if, you know and if the council's gonna be the only ones pushing this for the visioning and all that, just let us know. And then, you know, we'll then let's just be honest with ourselves and just

Yeah. And that's my point too. It's like, you know, I know that we have this vision, but we really need to talk about the practicality of it in this again, insulate, given, you know, five years to ten years. But, I mean, we should be able to forecast and, you know, understand where the market is going to determine. Do we keep investing in this, or do we dump it just like we'd make any other personal investment? Yeah. Once they dump

or more.

Not dump.

I know what you mean. Look at the distance. Or if that suit, the needs of downtown in the community. Okay.

Okay. Anything else from this? Moving on to item number by the way, that was a big. Moving on to item number four, which is review and approve, 2025 agenda 2020.

So we'll have a budget in hand prior to the April 15, and I'll ask.

Probably the twenty fifth. Twenty fifth. April, we're and you have the. Right? April? Yep.

April 25. April? Okay.

So just a clarifying question then. When we see proposed budget discussion, what does that entail if we don't have a budget in hand yet?

So that's where they you're gonna bring the updated five year forecast in front of you.

So the planning needs to bring

the revenue projections and expense projections

to the bottom line, and we will discussion, then five year

model. Okay. Thank you. Which obviously is not

the full developer budget. Yeah.

Yeah. Okay.

Okay. I don't have any other questions. Well, how are we there? So we move on to committee member and staff announcements. I'll look forward to the the the the recap exhibit. Are we gonna have a sign? Is there gonna be, like, a sign in the front? Neon sign that says Cat Cat Corner?

Frankie's Corner.

Frankie's Corner? Was it six was

it not corner successful last time? Did people, like, show up? Did people adopt it? So how

is that?

Like, I guess.

I don't know. I know before.

We haven't done it at this location. I I know they've done adoption events, but not it's in a place where we're at. But I think when they generally, when they do adopt events, they tend to have pretty Good turnout. Good turnout. Yeah. Those set up at Farmer's Market. They even it's like, you know, the homework is is down wanting to adopt a cat or or dog. You know? So yeah.

I'm still looking at, you know, what I saw in Stanford. I thought it was the funniest thing. No. Okay.

To make a note.

If there are no other business, meeting adjourned. Thank you. Thank very much. Thank you very much.