Council Economic Development Committee - Regular Meeting

Good evening. Good afternoon, everybody. It's Monday, 04/06/2026. It is 05:02PM. This is the council economic development committee, and I'd like to call a meeting order. And mister Castro, if you can please state roll. Mayor Sleuth. Present. Councilmember Anthony. Lindy Lee. Councilmember Bunia. Present. Next is public comment. This is reserved for anybody in the audience. I would like to make a public comment on something that is not on the agenda. Is there anyone in the audience that would like to make a public comment? Seeing that, I'd like to close public comment, and I'll move on to our next item, which is approval of minutes. K. Seven. Moved by council member Tonia junior, the second by mayor Salinas.

And if there are no objections, it will unanimously pass. Thank you. Moving on to action items and reports is item number two, which is development activity and selected property updates. This is a oral report, and I believe our our director our illustrious director of development services

I know. Will pick

this up.

It's quite an introduction.

Can we put that on the placard?

Can we

put that on the dais?

Fixing the character limitations.

The character illustrious.

Yes. Yes. The title

the the the actual title is long enough.

I don't

need to add anything. Okay.

Thank you very much for having me. Happy to be here to provide some updates on some projects. Attached to the report was our latest biannual progress report so that you can look at lots of projects. I'm gonna do do a few highlights on some other projects, some of which are in here, some of which are not in here based on some feedback that we've gotten from council, some interest in wanting to get some updates on some other projects. So I have some slides here I'm gonna go through.

No.

First slide. Have an application in currently time, but it's

We

get a request calendar

at

least some of the activity that we've had on that site. Is a drive time?

It's a national chain used auto dealer chain. Yeah. It's another it's

used used autos.

But they haven't really done anything with it, and so we got an an inquiry about chiropractor office. So don't know if any of that will happen or something totally different. We'll see. Don't have any current active

Is this the is the car oh, I'm sorry. Go ahead. No.

Go ahead.

Is the chiropractic office connected to Life West?

Actually, maybe.

Oh, okay. But

it's it was a while. I mean, it was near the end of last calendar year when we got the inquiry, and we haven't seen any activity since.

So Okay.

Next site is the U Haul site. So this is the one out on 92 Jackson. Keep watching that old building get more and more dilapidated and deteriorated. I think the last time I saw it, it was missing part of its roof and all kinds of things. It's really sad. But the state and federal permitting is still pending. Those requirements are still pending. As far as we know, we haven't received anything from them. Their building permits are really we currently have them. They're on hold.

We're just waiting to get the clearance from their state and federal permitting. And depending on timing, there may be they may need to do some other things related to, like, nesting birds depending on the timing of pulling the permit. But they're close, but we haven't gotten all of the clearances from state and feds yet. And then but they'll be ready to go as soon as soon as soon as they get all of their their approvals.

And it's a U Haul facility? It's gonna be

a U Haul facility that is going there. But this is what it will look like

instead of what you see. Office element too. Yeah. Not just not just U Haul storage, but

an office.

The corporate offices.

So what's the issue with the fence that would be opening for the corporate office?

Oh, the the the Fed permits? Oh, because of where it's located by the. It's right on the shoreline.

I see. I see. Yeah.

You know where that building is? It's that old one that's kind of falling down. The old Oliver from works. Oliver Saltworks building that you see when you're headed towards the bridge on 92.

Think the guide.

On the left side when you're headed towards, like, the bridge to go across to the other side. Yeah. Anyway, you'll notice it now when you drive that way. Okay. Hopefully, this one will move forward. Chalk it up. We got in the former Chalk it up where we had the fire there. So it is currently under construction. Last inspection that was made by our staff was early or late January. So January 20 was the last inspection.

They've recently deferred a submittal for elevator and some associated structural. And so that deferred submittal is currently under review. It's active. It's just kinda moving slowly. And I think EV has offered to assist with marketing spaces and any other help for them, but final uses are still to be determined.

When what's it gonna be?

Don't know.

Don't know. This is a show.

The big thing they're waiting on is PG and E.

So once that is completed, we're gonna

assist him with bringing in tenants.

Yeah.

We'll see.

Many units is it gonna be or how many spaces?

It's gonna really depend on the fence. So I I mean, I heard that it was gonna be sort of a like a playhouse, like a theater place? Or the where the

Once upon a time,

there were

there were many concepts

Nice.

Floated by the developers, such property owner. Yeah. Right now, I I would just call it a cold, dark shell that he's gonna deliver, and then we'll see where the market is in terms of the tracking to

the shirt. Okay. Alright.

Next site is the former Elephant Bar and Grill out at Southland Mall. So this is going to be Qpot. It's a new Korean hot pot restaurant. It permits for this were issued in November 2025, but they've not called for any inspections. And I was just out there, and it looks just like that. So not much activity. But there are permits, and they've been issued to do a new Korean hot pot restaurant.

I did see a truck with a dumpster, and they were dumping stuff.

So moving. Move. But slowly. Sure. But they're moving. And they have permits, so that's good. Next one is AgivaLife. So this is the the other dispensary in downtown going where the former Hayward Fisheries was. So in December '25, a one year extension was granted to them, and they must submit for and be issued building permits, or else we are going to revoke their cannabis retail dispensary permit. What is that deadline?

End of this calendar year. If they do not pull building permits and move forward, we're going to take action to revoke their dispensary permit, and then council can decide whether you want to find a third or put a pause and not find another or whatever you want to do. But it'll be a policy decision that will come back to council. But at this point, we gave them one last shot, one year, and they've not yet pulled permits. So we'll we'll see.

Clock is ticking. Maple and Maine, our favorite project that never seems to get off the ground. So this one is still facing financial challenges and delays associated with that. Prior to the Christmas closure, following a Mercury News article that we saw reporting that the applicant had defaulted on the property loan. Staff contacted Goel Investments, who is the entity that purchased the property from receivership to try to understand what was going on.

He said that he had been reached out by several developers interested in potentially taking over the project. He stated that despite the news coverage, the property was not being foreclosed on, and they remain committed to moving it forward. He indicated that the team is exploring creative financing options to advance the project. Let's see. Some of the things that we've that we have talked about concepts that he's floated to us before was converting it into a 100% affordable housing to improve competitiveness for state and federal funding, but they've only been preliminary discussions.

We've never received anything formal from him or anything like that. Project was originally entitled in June 2022, but because of other changes in the state legislature post COVID, it was granted additional extensions. The current project entitlements are valid through December, and that's it. And once those are gone, they will need to reapply or pull the actual permits that have been ready but haven't been paid for or picked up. Let's see what happens with that site.

The the potential the the people who potentially are gonna go and be in Maine, do they know about Maple and Maine?

I think so, but, you know, we're still working on things with that.

Yeah. Okay.

You know? I don't know.

No one's moving real quick, unfortunately, so it's kind of sad. We'll get to that one in about four slides. Next one is this funky little building at 71 West Tennyson.

The

site is currently part of our vacant property program, and we also have cases for illegal vending in this location, but we don't have any active development applications here.

That's where council member Bonilla bought bought his vacuum cleaner back in 1984.

Yeah. As

per heads. But, yeah, we don't have any active applications here. So this is the vacant building at 71 West Tennyson, council member Andrews. This is Hi. And missed the doughnuts. You were curious of this building. Yes. But we don't have any current applications. It is part of our vacant property program, and we have, you know, like I said, illegal vending cases at this location, but no active development.

So I just wanna just make an observation.

Yes.

That picture right there

Uh-huh.

That building looks absolutely impeccably clean.

Compared to what it really looks like, you can I'm sorry. You.

Is that a photoshopped picture or is was that picture taken in 1962?

I don't know when the picture was taken, but Okay. It does show, like, grand opening at Edna's Donuts, so it can't be that old. Right?

Okay. Because it doesn't look like that today.

Yes. No. It's probably worse.

So We have

no trucks or anything from the street vendors.

Yeah. So maybe a bit different if we took a picture today.

I like the record reflect that Ken Swimmer Andrews is in the mood. Okay.

The next one is the Mission Crossings frontage. So we don't have any active applications for use or redevelopment of the frontage. Code enforcement is continuing to work active case that we have to address the violation for all of the unpermitted parking on the frontage here. Since issuance of the notice of they do not. So since issuance of the notice of violation, code enforcement has also issued two administrative penalty and fee notices.

Recently, we were able to get in contact with the property owner, and they have been responsive. According to our code enforcement staff, they've been able to remove about half of the vehicles that were there and then are expected to clear the remaining remainder of the property by the middle of this month. We'll see if that happens. They did not have any permission to do anything on that front page.

Yeah. And then wasn't there some conversation this was a while ago. Wasn't there a conversation about turning this play like, activating this place into, like

Yes.

Like

because we are. Right? Yeah.

Like Uh-huh. What if it happened to that? Like

The property sold, and new owners don't wanna do Diddly.

Okay.

In a nutshell.

DIDLIE. That what Your I'm

professional assessment.

Assessment. They don't seem to want to invest in a property.

Okay.

In a way that would align, I believe, with council's priorities for the site. So maybe I should say that. I think, you know, there's probably things they would like to do. It's not exactly aligned, but I think what council would like to see your what the zoning would support.

Now the other thing too is I know some time ago, we had we defined these catalyst sites. Remember? Mhmm. We had does this fall under one of those yeah. That I thought okay. Alright.

It was on it forever. Yeah.

It was. And then they tell they developed We have, you know yeah. We had the hotel retail in front of it, and then that got bifurcated. We got the affordable units in the Mission Crossing's development, but then we didn't get anything on the

frontage nor activation. So I'm hearing this happens often where they'll say it's a hotel and then it turns into a residential service. How do you prevent something like that? Because I think LA is kinda going through the same thing where they say, oh, we're gonna do a studio, and, actually, there's no movies happening. We're gonna do residential. How do you prevent something like that from happening?

And, like, the base with All into the entitlement. They have

an entitled Yeah. Hotel owner. So any other development they would need, they would have to go back.

Yeah. With

the new entitlement. It's the debt settlement.

It's only controls they use, but, ultimately, the entitlement is what's gonna carry the damn plan.

There are a lot of state laws now are making are giving developers who are building housing the right to do a lot, do air, and take it with zoning, you know, to use concessions to waive zoning requirements. It's becoming harder to say that in residential, even on commercial, these housing problems. We have to look at it

But, apparently, Huntington Beach doesn't have that problem. I'm sorry. Did I say Huntington Beach?

They're just faulting the law. Yeah. We'd have to look at it on a case by case basis. What what provisions of the state law were they using to try to waiver, commercial loaning, or something like that?

Yeah. In fact, it was in it was in the news the other day. Even Half Moon Bay was What? Half Bay is is not positive, but stubborn. Anyways okay.

Next site is SkyWest. So I don't have a lot of detail on this other than to say that the ENA between the city and Montecito has since expired, and city staff is sort of reevaluating plans and future plans for the site. And so I don't have a lot unless there's anything else that city manager wants to add.

No. I mean, we're looking at the plans, and we presented a concept plan, and the council knows.

It's just We got a

lot of feedback, and so we've since kind of are revising that and likely to go out to the community again with our revisions to that plan soon. We'd have some mix of housing, undeveloped area for a buffer zone, safety zone, and then also some commercial property.

Okay. One second. Moment. Thanks.

I have a question about the airport in general. Okay.

I understand from the mall, it's very difficult to do anything

over certain height

restrictions. What's the tallest we can actually build at the mall? Because I know we

did we did a It's in multiple zones.

Okay.

So if you look at the airport, there are safety zones that go around the airport, and they vary. And they range from one to six. So Safety Zone 1, which tends to be the areas that are at either end of runways, is the most restrictive zone. And then they kind of branch out from that, two, three, four, five, and six. There are portions of the mall that are in some pretty restrictive zones.

And it's not only height, but it's density. So it's amount of people because you're trying not to put a bunch of people in harm's way should there be an accident with an airplane that doesn't make the runway. Right? And then there are other height limitations depending on which zone you're in in addition to the density. It also goes height limitations and concerns of the airport and the FAA go beyond even those safety zones They can be in other areas even in, say, our downtown and the use of cranes and other things and the height needing to file notices and information.

So things just the FAA is just very particular about their airspace, and it gets tricky. And so I know that, like, if you were to look at the Southland Mall, some of the things that we've looked at, like, when the like, I think it's the SEER site is probably in the most permissive zone. So, like, the SEER sites, like, in Safety Zone 6. There are still limitations in height and some density, but it's not as restrictive as, say, Zone 1 that's, like, right at the end of the runway. I don't know what it is.

Some of it does vary, but a lot of it is, like, these weird planes and angles and stuff in the airspace that the FAA kinda looks at and the airport looks at when they're looking at what somebody's looking to do. And so there are some limitations in in both height, but it's more so a density issue, more so than height.

Okay. Have you done a cost benefit analysis of the airport?

I have not done a cost benefit analysis of the airport.

Like, is it worth it?

Or Mhmm.

Is it impacting development where we're not getting enough economic activity because of the airport?

I think it's something we could look at. I mean, right now, the real estate market is so slow that I don't think I don't think that's causing what's going on right now. It's something that we could discuss and look at longer term once the real estate market gets better. But I think what's driving the slow market now is this it's a and the interest rates, inflation, there's other things. Okay.

And I was just wondering if we've done any kind of massing of where the height restriction is in the different levels, in different zones so we can actually advertise. This is how high you can actually build at the airport. And then are we looking at what other cities are doing with their malls? Because the malls are so different now. Like, I mean, there's DMP in a stall ratio versus actual stores. So I'm just trying to figure out how do how do we reactivate that area, especially because there's so much land there that and we're we're not we're we're not seeing the activity that we kinda wanna see, I guess, in

that area. We we don't have a bandwidth right now, but it is something to try to be proactive about thinking about that whole site, whether or not we could plan it in some way. Maybe if we did some planning of that site, we can look at, like, unconstrained and constrained based on FAA. Then we

could do some analysis on whether or that would create Yeah.

A better market for something if it were if it did get redeveloped some point.

So it is

something we don't have a balance right now to take that data project on, but it is something we've been talking about. Okay.

Next site, Urban Air. So this is the site for the Urban Air Adventure Park. Punch list fifth punch list was issued in early February. Applicant just resubmitted today. They had a really good meeting in early March with the outside plan checkers because there's some significant improvements that need to be made to the inside based on the change in occupancy.

And what we're finding is when you are taking spaces and you're changing the occupancy with your tenant improvement, it is really cost prohibitive, and I think a lot of applicants aren't aware of all of the costs that come along with those improvements. It triggers improvements for additional fixtures and bathrooms and exiting. And in a place like Urban Air, you've got large equipment that the children are going to be climbing on and gathering for parties and things like that. And so when you're converting a use from sort of a passive sort of retail use to a more intensive assembly use, it triggers a lot of requirements in the building and fire codes. So in this particular project, there was a lot of additional structural requirements that were needed to be made to the space for them, and they've been going back and forth on what they can do, what they can't do, what would be required.

But I think they've got a resolution on this. They recently submitted. I think that review should go well. Our hope is that we'll be issuing this permit at the end of this month.

Question. Is five punch list is that an average number we see for applicants like this?

It can be. I would think that on average, I think we I think most of our projects are three or less. So it's not typical. And I think as I shared with council before, we've implemented a new policy. So after when we're issuing the third punch list, we call a meeting with the developer. We go over everything. We make sure that we're all on the same page on what the outstanding requirements are. I think a lot of times, some developer or some plant reviewers maybe review comments faster, get it done. Because it's all online, you can see the comments that you gotten back. Right?

So when a project comes in and we route it to, like, eight different departments to review the plans, let's say fire finishes first, turns in their comments, the applicant goes in, sees fire's comments. They might resubmit before they've gotten all of the other department comments. Right? So they submit, and they think they've addressed fire's comments. But now buildings plan check comments come out, and they're like, oh, I gotta address those. So sometimes the applicant might be jumping the gun. Sometimes they're just not fully addressing everything. Sometimes in addressing something, maybe it triggers another requirement. So there can be a number of things, but that's what we've tried to institute sort of some procedures to keep that from happening. We're trying to keep it to three or less.

There are some that will go longer in this particular case like this one. I think this is done. I think we are at a point where this is gonna meet all of the requirements, and we should be good. There's, like, a couple of outstanding comments. And as far as I know, they've been working really closely with the outside plan reviewers that are doing plan checks. So I think we'll be good. And so comments are due on the April 20, and my guess is we'll be issuing the permit. Assuming everything looks good, they'll be they'll have a permit in hand by the end of this month to start building. I don't know what that means for opening dates. I don't know if they've shared that how long their construction schedule is or not. But

Yeah. The property owner has been asking me about this one, so a lot of eyes are on this one.

It just seems like a big you know, I'm just looking you know, I don't know. I've never been to an urban air, but it just seems like a big space, a lot of kids, a lot of people, and it just, like, these are those two doors going into there. And I'm just thinking, would they need more? I look at Costco, the big rolling door in the front. You know? You know, I don't know.

I'm not sure if exiting is as much of an issue as maybe some of the other things that were. Yeah.

Okay. Sure. Okay.

But it's good. I mean, it's moving. I mean, and we're working real closely with them, and and all of the team downstairs knows it's a high priority project. So we're focused on trying to keep it moving. Next one is the Main And B Street project. So the application or the team is still continues to move the project forward. The applicant has had to recapitalize and is currently working to secure some new funding. According to the project architect, the funding group has been identified and final signatures are in progress, though it's unclear whether the agreement has been fully executed. So I don't know. Once the funding is finalized, the project is expected to close be closed to permit issuance.

It has completed three review cycles, and we've gotten its initial plan check comments from the state for the modular components. And after the state approval is finaled, then they'll be able to start scheduling construction. They're also continuing to coordinate with the county on remaining environmental testing requirements for that site. There's still some contaminants that require some remediation and ongoing monitoring. Applicant is still hoping to begin construction this summer, and the team reports steady but slow progress. And those entitlements are valid through February '27. Hopefully, they'll have their permits pulled by then.

So it's still gonna be a six story building?

Yep. Still gonna look like that. And

then have we have we gotten any calls or review or pushback from any of the neighbors?

Not since its approval.

No? Nope. Maybe we'll hear

from them again once it starts coming up out of the ground.

It's But

we'll see.

We will probably.

I do know that I think it was miss Machado did reach out and talked with staff during the plan review and came to see the plans.

And I'm also I'm also referring to the guy across the street, Vic. Oh, no. The bistro.

No. Yeah. I didn't him.

He gave me an earful one day. But

I have

not heard from Vic.

They're gonna give us some vibes.

No. The shade. The shade. That right there, the corner of the building is the sun. And when the you know, right now,

the sun those issues with the other building?

That's a good great question.

I mean, I know it's been several years

since several year. Yeah. But but at the same time, you know, there you know, he had that also he had that big tree in front of his building, and that tree is no longer there. That's true. Anyways, it's it's anyways. K. Just okay.

Next one is 808. This is the former Ace Hardware. So that is currently under construction, ground floor retail, labor work units above. I've heard lovely things about the inside, and it it all looks really nice. I have not seen it, And I have no idea when he'll be done with all of that, but I know it

doesn't look like

a full with the with the plywood. But I think he's just trying to preserve the windows. He's trying not to have to have damage to those and have to replace them continually before he can open open.

So how many units are livable units will be?

It's a good question. There's, like is it eight? Eight. I think

it's, like, two on the bottom facing the parking lot and then six upstairs.

Yeah. Something like that. Eight units.

Nice.

So, I mean, the windows look really nice, and I think I mean, I personally, I thought he they were doing a great job trying to preserve a lot of the exterior and doing a lot of the work on the inside trying to preserve some of that.

Did get an update from the director Amiri on this property too that they have not received a water and sewer service notification from developer, and no fees have been paid. He has communicated with him about why they have to meet her separately and some of those other issues. Yeah. And then they've reviewed the provided comments on utility plans for the encroachment permit, I think, are trying to set up a meeting. So we still don't have an application yet. Yeah.

For for utilities? For utilities. Yes. Yeah. Yeah. I think they were waiting for the meter issue. But, I mean but, yeah, I mean, I can okay.

Yeah. So I think he's gonna reach out to him.

That's fine. Okay.

Next one is. So up at the Theater Building. So that's currently under construction. I've gotten peaks at some of

these cool murals that are going up

on the walls on the inside, but that's all I've been able to see are peaks through and above the the the paper. But final stages final stages of improvements, hoping to have this open sometime this summer.

Yeah. They're active on social medias. Yeah.

Yeah. I saw a little video clip of the clipboard.

So they look cool. Some cool murals inside, not to to Hayward, and so Yeah. It should be nice to have them when they finally Yeah.

I was a little I was a little worried at first, but after looking at the video, of course, I was a little bit happier. But, anyways, we'll keep hoping hopefully

Building a theater building. What we need.

Building a theater

What we need. And then the last one I have is this site, and we don't have any current applications. But it looks like it's being actively marketed, but no formal applications in on this site.

Assessment on this. If we're not getting any car dealerships move up car dealerships coming in, is it drive time or

that's the one that was at Honda. Honda. They're they're they're not gonna be there. Yeah.

They're not it's not been active. I mean, they have an application in, but they haven't withdrawn it, but they haven't been very active with their application either.

We do just on the auto billing, we do get inquiries from other dealers seeking to locate here. Someone looked at the site. It's just much smaller than Yeah. Than what the current market's looking for. And then the the the aerial it's a little bit of a weird shaped triangular property, which a lot of thought, you know, it's kinda shy away because they want maximum frontage to stage the new cars into a showroom. But every once in while, we do get a couple inquiries from the dealers both new and used. Just nothing's penciled so far, but we're in regular communication with the property owner. We help want to send it out to anybody anyone anyone's looking for this kind of size of space.

Would the residential developer next door be interested in?

They did not

that's the first

thing I thought. Like, it makes sense to expand the residential. The the current owner went and approached them and a couple other housing developers, and and nothing kind of ends with that.

That's the last site that I have, but I'm certainly could answer any questions.

I know I was late. Apologies. Did you all talk about the U Haul site?

Yes. Okay. So federal and state permits are still pending, but the building permits are ready to or close to going, assuming we get clearance that they've gotten their state and federal permits and clearances to do that. But I was noticing that, like, some of the roof is missing off of that building now and but, yeah, they don't yet have permits. But permits are pretty close. Building permits are pretty close, but we can't issue them until they get their state and federal clearances.

What's happening with the Casper's right up here that shut down?

Yeah. So Casper's on C Street was acquired by a group out of San Jose with the intention of opening a, burger shop. They had submitted for permits. They were receiving concierge service through staff through, two rounds of permitting, and then, last we heard back from them is that they've been in the building for so was currently active. So And

then you already talked about Jiva? Yes. Okay.

So that has got we did a one year extension in December, and they have one year to pull permits, or we'll be back revoking their cannabis permit and then allowing counsel to decide what you wanna do with that third dispensary permit.

And what about Phoenix?

Still in that lawsuit. I don't know much more.

Yeah. It's kinda in my understanding from the city attorney's office once that it's subject to litigation. We can't really anticipate those revenues. Definitely not for this fiscal year or next year is uncertain.

Litigation.

Why a year for Chivalent?

Oh, because that's, like, the third, like, extension we've given, and they've not moved forward at all.

But I guess that, you know, a year seems like a long time or is that

not Well,

that was in December. So right? I mean, we we gave them one last one year extension. I think we came here. We asked council what you thought. So I just give them one last shot. So we did one year one year extension for them and told them very clearly, you need to pull your building permits to do this or pull the permit for an activity. Because I think it would be the council to decide. Do you wanna find a third? Do you wanna put it out? Do you wanna, you know, allow it? Because we had you know, council had decided the three years and years and years ago. And the only one that moved forward was cookies at this point. Right? And so I guess, technically, Auntie Hunting's now has approval of a second spot, you know, with Phenos.

But for a long time, we were seeing no activity. I think council was like, what's happening? What's going on with this? And so in an effort to sort of be responsive, we think it's important for you guys to decide. What do you wanna now do? And so I think we just didn't wanna keep giving them

Yep.

Till for forever to decide whether they wanted to do it because you could then choose to find a different operator or a different somebody to give that dispensary permit to. They'll still have to go through the use permit process, find a location, go through all of that. But at least it will be hopefully somebody that would move forward or council could choose, you know what? We're good with two. We're not gonna do anymore, and maybe you take a different approach. But we just Right now, it's just holding you up. I mean, it's you know, we can't do anything because we've granted them a permit, they're not moving forward. You can't really give it to somebody else yet. You can't so you kinda got stuck in a funky place. And so this at least gives you counsel some options.

Right? It gives them some options. Get one last shot. See if you can pull your permits. And if you can't, then we can decide what we wanna do with that third dispensary. GivaLife, do they own that property? No. They do not. Oh,

who owns the property?

Oh, it's a different gentleman.

And so they were just doing

a long term lease with their own I think so. Yes. Yes.

Okay. What about the Islander Motel? Is that just like a viable business, or is that

Where is that? Mission?

Mission in Tennyson?

I don't know anything about that.

Yeah. We are. They they

in terms of uncomfortable issues there. It seems like dilapidated. I don't know. It's just

They will they stay there. Right?

It's it's they will stay at it. Yeah. So for hotels, just overarching hotels, have to have generally seek to have an occupancy over 60% to make their note. So they're still in business, and they must be receiving at least that much.

And what about the Kaiser side on Tennyson?

We've gotten random inquiries mainly from housing developers that have looked at that site, but haven't really

So they need formal applications or

no? Formal applications.

Okay. What else? Where else does

That's all I have for for you.

But if you guys have any

other questions or other things you're interested in to share, and then attached was our Thank you.

About the Corner Of Mission In Seymour or Sycamore? No. Seam Seymour, where the Old South Barbecue used to be, like, twenty years ago. You know, on right next to Jack in a Box. So Jack in a Box right across from the plunge, right across from from seven Eleven.

There's a there's a little property. I in fact, we I think we own that property, though.

They're clearly right across the street in 70.

That's a Tracy question.

Hey. Don't we own that piece of property?

To our next

Oh, okay. Thank you.

Computer that computer place too. It seems pretty new, but they did too.

Yeah. Next to Wendy. Yeah. Yeah. Next to Wendy. So we've sent yeah. That's and it's vacant, but we've sent a tremendous amount of people there. They just never getting responses.

Well, maybe we need to send them a bill when we clean it. We'll get a response from that. There. Yeah.

That was there.

Because well, because I know I think I think because I I think I was even surprised when I when I learned I could be wrong, but I think I was surprised when I learned that we we own that corner, you know, Mission And Right? That's Seymour? Yeah. Mission And Seymour. And then right across from the Fiji, and now it's just like a Fijian barbershop or something. Was whatever that

Oh, yeah. That's cool.

But, anyways, there's that site. And then there's of course, the other the other site that that sticks out like a a sore thumb is the corner of Mission And Sycamore. Not Seymour, but Sycamore, which is right across the street from Urban Air, right there in the corner. We haven't switched.

Sycamore is the one with the But then Seymour.

Yeah. Seymour. My bad. So there's Sycamore is

Right her straight from room?

Yes. Yeah. Yeah.

Right there in High 10 of the Baskin

Robbins. Yes. Yeah. And before you get to the if you're going south, you hit the actually, the I think it's more across the street from the cemetery. Yeah. Know.

That's the Sorenson or Sycamore?

It could be Sorenson. My bad. So yeah.

Is it Mission in Sorenson across the street from the yeah. And that's that spot

Yeah.

That's for apartment.

Yeah. That's the that's the

little Nothing.

The Bob Tais Yeah. Nope. Property. Nothing.

So what's our strategy with Mission in general? Like, we have now Trans Property Day is a plan there. What's mission is so big. So so I don't know. What do you think our focus should be?

We have updated code. Let me do the code updates. As well.

We have a I mean, we have the updated admission boulevard codes that cover the different things that are allowed there. We've changed and made it easier. We're doing the additional business friendly changes that are gonna be coming. I'm not sure what else is possible for us to do from a land use perspective. Right? I mean, it's really gonna come down to the market and people's interest in investment.

Has there been any kind of discussion about having a an improvement association on admission of any sort?

It is something if if the market comes back and we start to see a lot more interest. I mean, I think it's hard now to go out and ask people to tax themselves more when things economically are down. But if we start to get some traction with the new development, it could be something we look at more or around certain areas that are kind of more active. Just you need people to be able to afford to wanna pay additional fees.

Is there any kind of partnerships we can offer for some of the development to use some of these lots for parking at least to get some of this

some

activation of the sites? We have a lot in the site.

Some of the issue is that then you end up with, like, what happened on the Mission Crossing's frontage

where

you just

have people parking willy nilly on dirt, which we can't allow. You need to be parking on a paved surface. And so then they don't wanna invest that little bit that they need to into the property to allow them to do that. Sometimes the zoning doesn't support it, then that's like all these exceptions. And nobody wants to invest that much money just to park a car. I mean, it's just I we're just not seeing it.

And and we have we have, like, the like, the Mission Crossings, that that site. I mean, we had a plan to I think you I think you yeah. We had a plan to sort of level it, put gravel, put food trucks, or, you know, reactivate the site, but that that never happened. And then but even going back, but, you know, predating both of you, you know, the the the general sort of vision for Mission Boulevard through the these catalyst sites was the the you know, from this Mission Boulevard was commercial. It was you know, we we argued whether it was gonna be an auto mall or or or housing, but I remember having very vigorous debates with, you know, people like Greg Jones and Mike Sweeney around how much housing to allow along the Mission Boulevard.

And do you you know, because that's when we were talking about the Ford site. And, you know, there was a lot of discussion around keeping Commercial Mission Boulevard to, you know, half the block, and then housing was gonna be I forget what the what the footage was, but housing was gonna be in the middle of the block to, like, Dollar Street, for example. And and so and I think we finally held a line on commercial front to back, and then housing was gonna be second story and above. But, I mean, it's you know, sort of sort of to go back to your question, you know, sort of what was the vision? I think, historically, it's been just keep it commercial.

Housing, I think, has been sort of frowned upon or we just haven't really supported housing. But

At least not ground floor.

At least ground floor is

what we discussion. Ground floor. But the coast Yeah.

Supports my Yeah. Lot of houses. And I think you get the market comes back and we can start to get more housing, then you're gonna create more demand for retail. And like you see down at stuff, they were. Mhmm. Market is so bad. You know? Ethan just can't cancel. Mhmm. Especially instead of family.

Where does he go?

I don't know of anything that's really getting built right now.

I mean We used

some townhomes, so they're getting built, but now that improves.

Yeah. On the residential side from the developers and the appraisers, there's just zero movement. It's been land banking and just kinda they're holding on and waiting. Like, my brother works for now, but

they were

retail. They pivoted. They were pivoting and trying to just figure out how to get rid of stuff and figuring out development. Self storage was a big one they were doing for a while. Just people needed to store stuff, but it was based on the entitlements what was allowed. It it's tough right now. With everything else now going on, it's made it harder, but the interest rate's not going the way everybody was planning.

Oh, in data centers.

Yes. Yes. Yeah.

That's what they go.

They said it.

Yeah. When you talk to developer in real estate, they're all people are shifting into data center or, like, development companies, and that's what they're like. That's the market range.

You know, is it me or is it is it me and just my own observation that the moment the moment the president said he supported data centers, like, was the sharp pivot that it became a highly politically charged issue. I'm just curious. I don't know. Because I don't know if it was I mean, because I I I mean, I I know I mean, I there was some I remember last year at the State of the City last year when out of the blue, someone hit me with the data center question in Monterey County. And I was like, I don't know.

Like, it kinda caught me off guard, and I wasn't sure what it was. And then and fast forward a few months ago or what last summer or whatever it was, you know, the president made a comment about, you know, a data center in every corner or whatever whatever he made. It just seemed like once he you know, I just it just seems like, you know, every time he makes a statement about a particular industry or something, it becomes a pit like a flash point where, you know, if you're not, you know, along those you know, if you're not on that side of the, you know, of the political spectrum, it's the sharp turn the other way. And I did you know, I just I don't know. I just an observation I made.

Because, literally, like, the day after he made the comment, all of a sudden, we started getting emails about that. And I was like, I don't know.

It's just in the news a lot too. And I think people are becoming a little more aware of them and are feeling maybe the impacts of some of them, especially some of the ones that were getting built in San Jose and other areas, and it just becomes the buzzword in the topic.

Yeah. Okay. Never heard

of I don't know.

You could be writing Somebody's been porn Yep. Into building. Yeah.

I mean, because I mean, I'll go back to the U Haul to the U Haul site. I mean, if I'm not mistaken, I think I was I think that was I don't know where I don't know whether you're on council and how well we voted on that. But I I think I I think I was in one no vote. I I I was at no vote on the U Haul site, and the reason why was because the amount of employees. It was a large space with, like, 35 employees.

Sure. And then the building across the 92, equal sized building, but it had, like, 1,200 employees. And and I was, you know, and I was thinking, you know, what's you know, how's the city gonna benefit and what what are we know, what's the economic value of this? And, you know, we're basically housing boxes and containers versus, you know, housing, you know, people and, you know, containers. You know, they don't go and eat at restaurants, you know, and that and so my I was like, we're we're we're putting this big huge warehouse with a with a few amount of people where, you know, we would benefit more if it was, like, a thousand people in that building versus just 35.

You know? That's but, you know but, anyways

Should we go to the real estate strategy or Yeah.

Any have any questions for her before we move on?

No. I was you know, if she Okay. No. Focus. No. Okay. So we close number two. Thank you very much. You're welcome. Thanks. And we move on to item number three, which is an overview of real estate objectives and strategy.

Thank you very much. I think everyone in this probably seen this a couple times or heard it. I've done some updates, as we move through the slide deck here. I want to read the next slide. Yep. So same objective, same same you know, goal is to sell these three properties as fast as possible. We're gonna pivot to some of the stuff on mission that we own through redevelopment agency because we do have pressure. So, hopefully, that'll start marketing. Unfortunately, that money doesn't come to us, but will go you know, get it off the books, stop paying all the other fun things we're doing to defend it and protect it, and I'll bring money back to the city and put it back on the tax rules. That's the other.

There's positive outcome. You can go to next slide. Again, these are the three. So kinda where we're at. I just sent off the contracts or the appraisal agreements. So we'll get those going, hopefully, here quickly. It's still evaluating the leasehold and all that type of structure based off that appraisal. Initiating the surplus claims act tomorrow. We got those items on consent for you guys to approve. That way, we can trigger that.

That starts at that sixty day clock where we have to allow the affordable housing developers that time slot. Had to meet last week with outside counsel and internally confirmed it. We there's not really any good options for us other than, the cinema place. We can't sell our current leasehold Problem there is we have thirty five years left on the firm term roughly and about two more options, which will only get us to fifty years. So that is tough for a developer and investor, so to speak.

We'd be strictly trying to find an investor that essentially wants a fifty year bond. Most folks are looking for long term investments. So that's the strategy we're still pushing out through the surplus lands act because we can now renegotiate a longer term lease. It's a little tricky because we'd have to get approval from, the state and the redevelopment agency that oversees it because this asset was supposed to be sold at some point. Essentially, I think our report was, like, roughly when leases are initially expired, but we're trying to get money. They want money too, so that hopefully is the solution. Continue on. Guess you guys seen this timeline. Still, we're making great progress when we went through. We're hitting all the objectives here as we talked about.

Only one we kinda fell back on is last week I tried to send out a bunch of the marketing pre marketing stuff. You guys saw the initial draft of flyer, the pre. I'm not allowed to send out to 957 people. So we're working with Chuck's team to get that email out through their platform. IT finally got back to me. That's the best way to do it. It's going out this week. Yes. Yeah. Yeah. Yeah. It's to Chuck's team. I that's that's exactly I went over to Chuck. I tried to grab him last week. He wasn't around. Grabbed him today. Said, hey. I need help. Can we get this out? Because they'll flag us as a spammer, and we don't want the city's email going down.

So that'll be going out along with the notice to proceed. I already started filling all the that stuff out. That's all ready to go. So that'll be two steps right there in getting it going, get it marked. Continue. So we'll

be on Looking to

come back in by May?

Yeah. May, June to do.

Date to counsel on what kind of interest we're receiving. Hopefully, Benjamin will know from one of appraisals, so we'll have something to report. You may not may not be ready to direct to enter into a transaction with anybody, but at least we'll I think we'll have some something substantive to come back to report to you.

Yeah. We'll have two of the appraisal back. They they should be thirty days once we execute the contracts. So that'll be quick on those two. That is the c main properties and the city center property. The cinema is gonna take a little longer, obviously, for obvious reasons. It's more complex because of the leases that are in place and that type of information, but we'll bring that back hopefully. I think they said six to eight weeks. So, hopefully, I got it re teed up with our property management, getting all the information so that way we can move quickly with that.

If we've released the marketing flyers, we'll at least get a sense of who's interested in theaters. So even with all the appraisals, we'll have kind of some sense of, like, what interest is out there.

Yeah. And I've been calling, talking to my broker friends and just saying, hey. Come soon. Do you think it or just, like, just am I crazy? Would there be interest? And, yeah, it all depends on the price, though. And I know we're trying to get the best value for it, so that that that's what I've been replying back with. So we'll see what happens. That that's where

that long range from these terms will help help in that regard. I mean, considering what you were saying about kind of the market earlier

Yeah.

What's your perspective on kind of likely doing anything with this?

I mean more the civil base.

I guess all three.

Oh, so housing stuff is just you already saw Sarah's presentation, all those guys that are just riding and trying to find new money and all that type of stuff. I know when I was Oakland, same issue. I mean, they were pivoting from condos to townhomes, and that's stalled. That hasn't even moved. I checked in with my friends up there, but I still know. I was like, how's that move forward? You know? I think it it's just tough. You know? This fun little thing going on in The Middle East really kind of threw a ratchet, I think, in everybody's projections and timelines.

You know? Cost just I heard the other day, like fertilizer has gone up, and it's this ripple effect down not through here so much, but over in, you know, other Asian countries that rely on that for those products that we end up buying. It's just this domino effect.

I do think Citadel plays because all the great work to get it leased up where you have an actual lease and generating income. I mean, the theater only has a two year lease so that creates some uncertainty, but I think there's at least some income in leases. So it could be that someone looks at that as a potential opportunity, because of the income that's coming up off of that. Right?

Yeah. And we'll work on the second assignment. I just got all the approvals, and we're gonna get that going. That'll help, you know, bring in a new tenant, new energy. You know? Paul's team worked great to work get that in there and get going. So it's just us me doing the formalization of the paperwork side, but that'll be the objective is probably the best one.

Oh, yeah. I was Are you done? Okay.

Was just I was gonna ask a question.

Go ahead. I was actually should've asked Sarah this about the old Charlotte's. Yeah. Did he is anything? No. Nothing.

Come off into that space. I talk to Nick about it every time. I didn't even look like, have

you heard anything? What do you know?

What do I know? We always share stories about things that he's hearing and things that I'm hearing, but nothing. Oh, okay.

Nothing. Just wondering if there is a way to kinda get but I've seen there could be some kind of piecing together or something that would be better. I was in Westwood last week, and it was still booming except the theaters.

The

all the theaters were closed. So I guess if it's any consolation for us is that that's kinda why we took off the risk because it's they're just huge anchors. They're in the middle of their downtown. They're sitting completely empty, and they've been there. It's been like that for a long time.

So my the reason why I bring it up is if that's Westwood down the street from Hollywood as a theater, what's gonna happen here is my question. And what are some of the things that we are thinking about if the lease expires and we still have this asset? Are we looking at what other cities and countries are doing with their theaters and turning them into, you know, actually giant coffee shops even though we already have a coffee shop. Like, I'm not sure what the other uses are for theaters.

Yeah. I mean, I think we should see if we can if we get a good proposal back and we can sell it. If we can't and we don't get any interest or the interest is really lackluster, then I think we need to we'll need to pivot. And we have two years, so the lease is up for the theater.

Other things that I've things that I've seen is that, actually, cities have been transforming them into conference room spaces and offices. So I've seen that in Long Beach. And and how do we get Cal State East Bay to come downtown? Is this a potential way of getting Cal State East Bay to come down and active with the downtown using this space? I just think it's something that we might wanna talk to them about. Okay. Yeah.

So that's exactly what I was gonna say is, you know, you hear, you know, you hear, like, some of the like, in I think it was I I forget who it was in Downtown Oakland. Isn't there a university

Mhmm.

Relocated in downtown? I mean, we have a big lecture hall. Right? I mean, you know, when I was down at UC Riverside, the movie theater across the street from campus you went to Riverside, did

you? Yeah. Yeah.

So the movie theater across from Riverside, we used to you know, during the day, it was all lecture halls. And then right at 05:00, it turned over to movie theaters. But, you know, I mean, maybe there's, you know, colleges and universities out there that would wanna do it. I so let me ask those questions and and, you know, just given the point that councilor Matthews just asked. You know, yes. You know, the market is what it is today, and and and that that's the that's the reality. And the lease is up in two years. We have that. The movie theater is there. There's people coming and going.

There are some movies going on, you know, there. So I guess the the the question is and I know that there's, you know, clearly, we're going in this direction to sort of unload this asset. I get it. But let me ask this. I mean, you know, if we sold it, you know, let's say somebody came in and and bought it tomorrow for, you know, whatever.

I mean, would we would we or would we not have control as to, you know, keeping it filled? You know, could somebody come in, you know, say someone bought it and say, alright, we'll buy it. But then all of a sudden, they start to sort of empty the building. Right? I mean, they're and, you know, this goes back to what we wanted to prevent a few years ago.

Building. And and so I guess I mean, you know, I I guess that, you know, you know, get it. Right? And I understand sort of the the the the awareness around this this site, you know, but even if we hold on to it let's say we hold on to it. I mean, having it filled at least for the next two years, is that better than selling it in the next six to eight next year, and then a new person comes in.

You know, let's say they buy it. You know, we you know, let's say they buy it $3,000,000 over what we paid for it. Let's say we make money on it, but then we are sitting on a big empty building. Let's say they, you know, they they leave. Right? Everyone they drive everyone out. You know? And then we're right back where we started from, where we didn't want an empty building. I mean,

I think we're gonna have to see what we get, and then we'll have to analyze all. But, I mean, there's so many different possibilities. I mean, I think we as a public entity that owns an asset, you have lots you have different goals. Right?

Yeah.

And some of those goals might be competing. Right? I I think in right now, given our fiscal situation, I think maximizing Yeah. The market value is probably one of my top goals at least. But should that come with the you know, some use that you really don't want? Maybe not. Right? Mean, so they're we're just gonna have to weigh the trade offs. But the more restrictions like, you can put operating covenants on a property before you sell it. But if you do that, then it's worth less, and people are and then you won't have buyers who will wanna pay less for it because they don't have as much free rein to respond to the market so that so then you shot yourself in the foot on the value side. So we're gonna have to weigh all those things and get back to you, and and it could be complicated. Right? I mean, maybe it'll be a slam dunk and someone's gonna come in and wanna pay a ton

of money. It's gonna be

a great use, and we don't have to have, you know, chances to that are unlikely, but that could happen. Or it could be really obvious. Someone comes in and wants to pay very little for the property and wants to do something terrible, in which case we're gonna reject that. Right? And then maybe we decide

to hold it and look

at other alternative uses and really figure something else out. So you're just gonna have wait.

That's it.

I'm because I'm also looking at I mean, you got, you know, the coffee shop that's going in there. I mean, you have, you know, you have the retailers that are there right now. You know you know, potentially, I mean, you know, a little bird told me that, you know, even Rocket Burger is gonna change over perhaps. I mean, you have all these kinda new exciting things happening, and, you know, and people you know, the these these entrepreneurs or, you know, these, you know, business folks are they're investing in the building perhaps because they know who owns the building. You know? And and so I you know, if we unload it, how do we define or how do we sort of yeah. How do we define the future of the tenants of those of those tenants?

I mean, Paul knows better than Yeah. Like, they have some of them have long term leases. Yeah. They have to break that contract or buy that user out of essentially, just do a lease buyout.

Yeah.

So those individual tenants have contracts, and we would transfer the property and assign those leases to the the owner, the future owner. So they would have to take the property subject to those. They would probably like that because that's a source of stability and income too. So think I they're gonna see that as a positive. I mean, unless they've got crazy redevelopment plans, why would you not take income, right, on a property that you now have to hold and maintain? So I think our interests are gonna generally align. Okay. I think the bigger issue is the theater the theater use itself, which only had two years in that. Right, Paul?

Yeah. Okay. Yeah.

I think it's more than two years. Or more than two years. Think it's the next four. Okay. Okay. So we have some time. And so I I would just say as a caper to the conversation, like, this is this is the moment to start marketing it because we have a full asset. So all those rents, when you mark bring it to market, it shows that every tenant space is full. Yeah. Big tenant space is generating rent. So anyone who's gonna buy it and hold it, at least until they figure out what they're you know, maybe they have redevelopment, maybe they don't. But it it's a compelling argument to buy an asset because it's generating revenue.

We're capturing all the costs, so we're positioning it to make it attractive to buyers and stuff like that. And I saw this when I was in private sector. Certain owners and developers, these missed stuff. Don't pass all the all the common area meetings cost or all the cost they can on to tenants. The tensor, it's a double edged sword. Right? You're making their rent more expensive, it's making it less attractive to other investors and it causes you back pain on the other end. So we we're doing the best we can to make it the most attractive asset to an investor right now.

And if they if they if we hold it, let's say, and they start going out of business or the theater four years goes out of business, then we might not be able to get recovered on our company or expenses. And then those those become obligations that we have to pay. And that that's what worries me too is the risk associated with kind of the our ongoing Yeah. No. If we start to lose tenants too. But you're right. Then you lose control, and that's the downside.

You know, in the so and I'll just I'll make this final point before I call you that in in that, I mean, we're having this very complex conversation about it. And I and that that's great in this room, and I know we're recorded and people could listen to it. But at the end of the day, right, the person who's walking up and down B Street, all they're gonna see is an empty building.

Right. That's true.

And and We we wanna avoid And so, you know, that's that's what we're trying to avoid.

I don't know if you all talked about chalk it up already.

I heard that was gonna be Yeah. They're they're moving long, but there's no I mean, the last inspection was late January. And it's gonna be the what is it gonna be? We don't

We don't know yet. Right

now, it's just a shell. There's no

Okay.

Use. But ED's reached out and has offered to assist with helping to market and bring tenants to that.

Absolutely.

Okay. That sort of thing when they

get further along. Yeah. I was the reason I was asking about those two one specifically was because I was in San Mateo, and it seems like Draper University just bought a lot of or they're leasing a lot of space in that area in San Mateo. I So was just wondering, are there, like, smaller schools that would be interested in coming and looking at all the buildings and seeing if that's something that I don't know if you've seen that as a strategy, like, those smaller online type universities.

For the theater? For the theater, chalk

it up, whatever. Like, they I've seen them kinda pop up.

Yeah. Was it what

there was that Eastern took over, like, parts of buildings in downtown.

Yeah. Yeah. There was that it was that university that just opened up in Fremont. What's it called? Like, was it San Francisco not San Francisco University, but what's

it called?

Golden. Golden. It's something like

Oh, yeah. I know which one you're talking about. Yeah. It just seems like may maybe our strategy might

difference at the at the place.

Might if how if we're not building housing, if the retail is not coming

San Yeah.

San

Francisco Francisco Bay. Okay. Maybe we need to look at going to some conferences. There are schools that might be interested in building stuff in smaller spaces in downtowns. Interesting.

Yeah.

But I think for the theater itself, it it does have four years left, right, it's hard to we're not you know, chances are someone wait till that lease expires or if they want it. So I don't know that For some of our buy it for school now, but so they'd probably buy it as an investment company to try it out. And it's something we could look out for some of these other properties.

So so as of today, the whole the all the all the 10 are filled. Right? A 100% vacant 100% vacant occupied.

Yes. Yeah. Great. Right.

Can do this. Good job. You can The coffee shop will be opening

Yeah. Sometime in summer.

So So Yay.

Good. Alright.

That's the huge plaza about Mhmm. Strike now.

And it's nice. I mean, I saw the I saw

the venue.

Yeah. Alright.

Well, Tracy, to me, just talk since we've talked about those three properties, do you want me to he was just gonna go through each one of these, or do you wanna talk about the additional property and get a sense of what we're doing?

Well so, I mean, the city center, I mean, we kinda sorta know city center. I mean, you wanna talk about city?

Oh, that could be one of those sites. Right? Like cause it seems like something's weird going on in the country. It seems like East Coast schools are coming to the West to capture the Western market. And then I'm seeing this the the California schools where they're heavily impacted by traffic are going to the South Bay. They're kinda they're kinda spreading out to capture as many students closer.

Yeah. So so when I was at Penn State, what we were preparing for was decline in the birth rate. So they're trying to capture that presence as best they can

Yeah.

To because it's it's a war for students. Right? Right. The number of kids are just not there, so they are trying to create a better presence wherever they can. And when we're at Penn State, it's challenging. When you're to be honest, like, the theater is pretty far from the core campus. Like, to walk through UCR, it was owned by the university via ground lease. It was for future expansion, but we would just walk to core campus. We're a stone's throw away. You know? We had to go underneath the freeway, but it was closer than the parking lot that I had to park at.

But you're talking about, like, Northeastern, expanding But college. Yeah. Then East Coast College, and I expand to one at, like, city center.

Correct. And that could be the target because we we would lease out the theater across the way from us for our classrooms at Swing Space as we were doing it. So there can be an expansion opportunity. You know, Pepperdine had a bunch of satellite campuses where I went to grad school, so I started up here. And then I moved back back down south to finish up. But

But, like, even I don't know how like, Berkeley. Like, if people don't Yeah. If they wanted an extension home, like, stay at home, but they don't wanna drive all the way to Berkeley every day. And if they had an extension here because I think they have an extension on the other side for just, like, more professional classes.

But Yeah.

I mean, that's something we could always could always explore it. Like, I'm And Patent City.

Well, I was gonna say, yes. And I what and the I was the comment I was gonna make after you were done was a lot of these moves by universities coming from East Coast to the West Coast, and when they when they move into these cities, they're not without heartburn on, like, neighboring colleges call like, UC Berkeley, mad. You know? And Cal State is mad. You know? They're they, you know, they see it creeping on to their students.

Well, tell them to come down.

You know? I'll come down. You know?

And if and if they are a public university, then we get not wouldn't necessarily get property tax.

Oh, okay. Yeah. That's what's, like, the private Private,

I think we would, actually. I

don't know.

So but those are we could look at mean, institutional uses right now, like schools or other things like that that might I mean, those are good potential uses of the traditional markets.

Yeah. It doesn't have to compete, but, like, like, beauty schools that are bigger, I guess. Like, I don't know. Palm Mitchell, derm Dermalogica. I think they were all in El Segundo, but they took up a lot of space.

Yeah. I mean, we we should get the word out to as many folks as possible. Okay. K. Did you wanna do CNMade?

Or

Yeah. We could go see I mean, it's right next door. So, like, ideally, if we can lock these in with the other one at the same time, there might be a developer that's, like, interested in both, do something at the same time, build, add to the presence downtown that would help everything get Walk into cinema place? Yeah. Because it's right next door, so they may wanna buy both just to offset the numbers of, like, as they're trying to develop. So you may it really makes sense, you know, because that that's a way to create revenue because we are a positive cash flow. That's a great thing right now. So we wanna keep that going. So they may wanna use that income to help offset the cost per so that, you know, hopefully

I wouldn't be surprised if we get an affordable housing developer.

Correct.

Because because There's been interest Yeah. In affordable housing for the site at SeedMak.

And we are making it clear to them. We're asking fair market value. It's not gonna be the typical. Hey. We're gonna

So if we're gonna Unfortunately,

we can't afford to give it away at this point on a discount just as in our current financial situation. So it won't work. And then if you wanna go to the next slide, I can give you guys some updates here. DeepaRome, we're gonna execute that contract here. We did a hundred and twenty day extension because we have some trailers there and the navigation center that's on-site. That's gonna off pivot off, and we gotta figure out what to do with those trailers since they're sitting property, sitting down. It gave us a hundred and twenty days. That was they'll cover us on that. Then the next thing you'll see on the right is the hard piece that's on tomorrow's agenda. Parcels. Yep. Parcels. Sorry. That piece will be for us to transfer. We got approval to negotiate.

We're now coming back to get the official transfer. We struck a deal there. Came in the knees and cut across. Good. RCD, everything's moving forward. We're down to one tenant left that's still looking for a location, but has told us she will be out, as of the date in our notice. So that's good news. So that'll be out of there. Property owned, pre management's boarding up the property. Facility team and I are gonna go out this week sometime to just double check to make sure it's to our standards. And if not, we'll reinforce it. Bunker Hill, that one's a

Group 5.

Oh, a parcel Group 5, PG 5. That one is in a bit of a challenge. Developers plan hasn't penciled out what they wanted to do. We had a meeting last week. We're working a schedule called Caltrans to help talk them through this project and see if we can we can get something, a deal struck. The goal is nobody, you know, wants to see this fail. We wanna see the homes. I'll help everybody out, even even Caltrans. So

The developers out of like, there's no DDA that expires. There's no existing contracts with the developer. You know? So we're trying to see if TrueMark, who is the developer, we had a DVA, still be interested in doing some kind of

Yeah. It it's just the hillside slope, the cost to redo the infrastructure and, you know, put up

But the entitlement's still bad for the site. So, you know, market were to miraculously come back, they might still wanna execute. Yeah.

But That is yeah.

Is there any incentives we can give to Mark? Or

incentive would be because I don't know if you remember you know, some of this is negotiations, but it's I think it's well known is that we were gonna perch we bought these property or we took we bought buy them, but then we would then Caltrans would get a base price, and then the city would get above that. But right now, we end up spending lots of money just maintaining them. So the incentive would be if the city were willing potentially to sell the property below the base price and not take a a profit, so to speak, just to get this developed because there are private property owners that front are that are carved out of this property that are on infrastructure that's old and decrepit. So we may just want to move this property faster just to release some liability associated with it and get housing development built, but that would be the incentive would be to sell it for less than the base price if Caltrans would allow it and then not have the city get money from it.

Yeah. And the positive there is the long game. We're gonna get the tax revenue as those homes are developed and sold by the developer. So it and the offset of the cost we're using to defend it. So the infrastructure, all those things that in theory we're gonna potentially have to pay for it.

Can we move on that?

Once you can place we can get it in Caltrans. Yeah. Let's put it that way.

Let's try to convince Caltrans to be 10 to our state reps to get it moving. Not yet. We're trying to schedule something for

next They're they're on vacation with the whole spring breaks and everything like that. So I followed up last week, which was when I realized

tomorrow, so I know we have to. I wanna meet with them first when I've I am I do think we it may be what we wanted to be political about, but I wanna we're gonna try first.

The next one is a little remnant that I'm helping, public works. I'm thinking with the lead negotiations there. We'll sell that off. We're in negotiations. I should get an LOI from them this week, and we'll move forward on that. You'll be seeing that because that's another one we'll have to come back to you guys for final approval. So, hopefully, May, we'll have that knocked out and agreed upon, move forward there. And then these other ones, I'm still looking into. Oh, do we have a road we already talked about? But my plan is to get start focusing on some of these that are their landlocked parcels that are just ready to be sold.

It's Costco one, and the other one with the industrial, that's something we can get easy exemptions and move forward and start talking to the property owner right away. So those will be the next ones as I move forward.

And then I've given has taken a look at a couple of other groups, two thirty eight groups to see if they want the other open space. So what was the thing that I might four, be interested in? P maybe a remnant of seven above the superdevices. So we're kind of asking to see if they're interested.

And these are super hard for us to even sell off of because p g four is all open space or an ad use. So it's, like, gonna be really hard for anybody to come in and have to go through entitlement process, rezoning, and all that. So passing it to heart will really help us. The p g seven, the remnant remnant one, that's all uphill. I took it to a bunch of people. Hey. What are your ideas? And they're like, oh, that's great. And then they got Street View, and they're like, oh, that's gonna be tough, you know, just because of the size and you start cutting into the hillside. So it makes sense to go talk to Hart and see if they could use it.

What about Casa East Bay for any programs?

CSU? Mhmm. Do they have any, like I don't know.

What what what location are you talking about? It's Subaru, Carlos B.

Oh, yeah. Yeah. Yeah. Yeah. So

I know it.

But but but but but Subaru

but they have the lower half of that property at Carlos B And Mission. There's the upper portion of what was former Parcel Group 7. Yeah. It's still

There's one of those other parcels I see. They didn't need to buy.

Don't know. We can look at it. Let just see. CSU would be yeah. I don't know. We can look at it. Yeah. See what they might want.

I'm just trying to think of anything around there.

Because I got who has money right now?

Anybody? They wanna think they could fix it for a crate here. Yeah.

Tracy's working hard, doing a great job, and everyone's helping Paul and Sarah. Nice for a bench. A view.

Oh, and

you I know. You know? Don't know.

Gross up. It looks good a bunch of complaints about loitering.

That the the bottom the last box sent yeah. Central the spring. Where is that is that by is that over there by It's actually Delmar? Like, is that off of Mission?

It's tucked in beneath Bunker Hill. I think everybody thought it was part of the P G 5 Bunker Hill properties. Uh-huh. And we going through the history, we inherited the upper half of the street, and then Hard actually inherited the lower half of the street. It's like so we're gonna set there's they had no interest. I already talked to Hard at that point in time. They actually wanna get rid of their half as well. It was through, you know, just one of those fun things.

Was that where the It's a map. Right?

Single family lots.

Single family lots.

You could potentially sell it to people if they wanted to build their like, build their own homes

for you. Mhmm. That would be the idea. We still have to go through the surplus land act because they triggers because the because they'll make us consolidate all the.

Wasn't exempt. But yeah.

It's identified as a as a park at one point. Park was going to do. Spring Grove Park.

Yeah. Which they have no interest in moving forward. Put

a fence around it. Make it a dog park. I'll go.

Might be far for these folks in the cannery to drive.

I know. The cannery, they would like to put a fence around

The water tower. The water tower.

Yeah. And make that a dog park.

Yeah. That's good.

Well, is there any other properties downtown we can make that a part? That's pretty pretty for the cannery? Like, any type of

I I, you know, I mean, I I know Hard sort of is controlling them right now, but I would like to take an Eaton Greenway stretch perhaps on Cypress going all the way to the BART track or the train tracks, put a fence around that whole thing, just open that up into one big massive dog park. That would be a destination dog park. Oh, is it Dublin? Is it city of Dublin has that huge you know, I haven't been there, but I've seen pictures of it. It's this huge I don't know how many acres.

It's lots

of acres, and and it's just big swath of of land. And it's, yeah, it's a dog park. And but the the Eden Greenway, it you know, it is completely underutilized. And there there could

lines. Right?

Yeah. I mean, there could be so many things. You know, pick a stretch, any of the stretches. Like Spark Social and Yeah. Yeah. And and, you know, the So the So To Road, Eaton Greenway, you know, between Orchard and and Hard Earth, Take you know, put a fence around from Jackson or from So To all the way around to Berry. Put that whole thing into a into a fence into a fence, and then just open it up for your dog. You know? Oh my god. Dang.

Okay. Yeah. I was trying Okay. Any other questions? Okay. Future meeting top topics. Update on Cinnamon Plaza, business friendly, business engagement to put in program. That's different. Yeah. And then

Just a quick comment on this, Mayor. So we we will have, as you know, council director Scott to reduce the number

of meetings, and we will get

the count moving moving moving to the quarterly format. Economic development since these have been on our docket for us for a while, we wanna go ahead and continue with our current approved regular schedule. So in May, we'll bring in our new business engagement two point o program, which is kind of a offshoot of what you have been experiencing with our forward tours. So this these will be actually business particular businesses, very similar to when you're talking to new businesses or existing business expansion, you can hear firsthand why they dictate where what challenges they have, what they need from the city.

Nice.

And a specialist volunteers are gonna roll that out to something we've been wanting to do for quite a while. And now we will have some bandwidth since we don't have a lot funding for new programs, but so this is more staff labor intensive effort. So we'll be delaying that in May, and then, May is also when we will have opportunity to approve the next fiscal year twenty seven meeting schedule, which would then be moved to accordingly.

Can we, in a future meeting topic, doesn't have to be anything urgent, but get a update from SPCA. It seems that they could be more present. And I feel like I refer people up to SBDA, but once they hear it's Cal State East Bay, they shut down immediately because they don't feel like driving up there. It's a campus. They don't know where to go. And I just wanted to see what their plans are to be more business friendly and more accessible. Accessible.

Yeah. That absolutely did help to broker that conversation. Staff is in conversation now. Council member Andrews, you may recall when we did an update on the, social media Mhmm. Presentation. You requested the to see if we could engage the SBDC, to yeah. Sorry. SBDC's Small Business Development Center. East Bay SBDC to hold specific trainings to small businesses for social media and marketing. We're starting those conversations now.

They actually have done, just last week, they launched a huge, procurement summit where they brought in a lot of public agencies and had a big event at Casa East Bay to help small businesses understand and navigate the public sector procurement process. In a in the next couple of weeks, there are also I think it's actually next week. I'm sorry. Next week, there's a capital access to capital summit. So you will see ED will be putting out some communication to our small businesses to go to this free training up on on campus, to learn about how to access capital from traditional lenders and also secondary lenders.

And then what we're hoping as they slush start slowing down from those two big initiatives, we'll do to engage them and actually start planning either social media training and what you just talked about to have potential office hours here at Citi. We have to kind of walk that lightly because they do to, like, how city is made. We're in your city. It's accessible street that's out there. It'll take some coaxing, but we can continue those conversations. Okay.

And then another question I have is about events. And I've been looking at different cities, and it seems like it's a combo of DHI chamber and other small business associations that are putting on events in different cities. And just trying to figure out what our strategy is. I know we DHA did a presentation, and it was really good. It sounds like they're gonna be working with West Coast makers, but it just it's something that's not cohesive enough for me to understand. Like, we don't have a tourism bureau, but that tourism bureau needs to do the events. So is there some kind of strategy we're looking at?

Like,

I don't know what's happening with the World Cup. Like, I still don't know, and it's happening in two months. And the same thing happened with the Super Bowl, and just trying to figure out what are we doing as a city, those types of events.

Well, as you know, economic development, we we're not the events arm of the city, so we'll have to reach out to the

I know you guys aren't the events arm, but you guys know what works to drive economic development through events. So I think there just there needs to be some kind of task force or working group when these kind of things come up. So it seems like the World Cup is now gonna be a missed opportunity. So I know Heart is doing some things.

I was gonna say Heart's doing a bunch of watch parties. We're gonna be doing the community and media relations is gonna be doing a campaign related to our hotels to try to encourage hotel use for them, so we're working on that. It might not be as coordinated. We can look into ways to make that more coordinated, but I know I and I've talked to Hart about it. They're doing the watch party and a bunch of different things. So I think there are a lot of things on the on the horizon. It just may we're not portraying them to you in a

a coordinated fashion. Yeah. I'll I'll daylight something, a program that we're gonna actually daylight and kind of introduce, the next CDC meeting. But we are our team is about to launch a new program called Hayward Amplified, which is a offshoot or an evolution of, you know, Hayward Live that you saw during post COVID and then also with the hashtag Hayward, where we saw a lot of small level activations at businesses. So in a nutshell, Hayward Amplified is a will be a grant and technical assistance program designed for small businesses that want to activate their private properties, similar to what you saw mayor at Trammer and Cutting.

I know there was a lot of good feedback from council and attendees because they had a DJ there. And so we will be unveiling that program and all the details in the next couple weeks. We're actively kind of slow rolling some recruitment now, but we you'll see a full court press with some communications from our office, some website, application period. And it's designed to for that activation, customer ranges, but also the idea is to provide technical assistance and capital to build the infrastructure and capacity of the businesses. So for example, say, Tram, it's not necessarily just to give money for one off a grant for one off activation to hire DJ or guest party or something like that.

It's to give them the the training and technical assistance and also the infrastructure, meaning the speaker system, the TVs, the the setup, where to place it, how to market it, the whole wraparound service so they can take it and then use it for future events, including advertising world cup, the next world series, the NBA playoffs, something where there's a body of work or body of activations they could do beyond staff kind of quarterbacking the warm off of them. Yeah. So you'll hear more about that at next step Okay. Next CDC.

Very good.