Developer proposes up to 601 West Side units; seeks fee reductions and faster approvals

Developer Jack Bay presented a West Side housing proposal to council Monday that would add hundreds of homes and asked the city to consider fee reductions and faster permitting to lower prices for entry-level buyers.

Bay, identified as CEO of Down By The Bay LLC, described two build options: a 601-unit multifamily and single-family mix or a conversion to 466 single-family units intended for a build-to-rent delivery that an investor would later convert to owner-occupied housing. “We're either gonna build a 601 unit, multifamily and single family community over there, or we've actually been asked to convert that over to a 466 single family and sell it to an investor for build to rent,” Bay said.

Bay proposed the use of factory-built modular units (he referenced Boxabl and similar modular systems) to reduce construction time and cost. He said a 1,600-square-foot, four-bedroom specimen home priced at about $374,000 in stick-frame construction could be produced for roughly $279,000 using modular methods in his cost model, a difference Bay said could meaningfully expand affordability.

The developer outlined projected returns to the city tied to permitting and taxes. He estimated about $4.3 million in fees and related permit revenue over build-out and roughly $1.4 million in annual tax revenue once built. He asked the city to consider targeted fee reductions or incentives so the per-home price could drop by several thousand dollars and improve mortgage qualification prospects for buyers.

Councilors pressed for details on income targeting and site planning. Councilor Maestro asked about finished widths, lot depths and HOA arrangements; Bay said finished home width would be about 20 feet on a 30-foot lot, with small common areas and a clubhouse. Councilor Gomez and others asked the developer to work with planning and finance staff on feasibility and on how prior public investments — including an earlier $1.7 million in ARPA funding for West Side infrastructure — should factor into any city incentives.

Bay said the investor model would initially rent properties and convert them to ownership over roughly a five- to seven-year period. He asked the city to consider reductions in fees and streamlined approval timelines to bring entry-level home prices closer to the mid-$200,000 range. Councilors said they supported faster reviews and suggested staff and the developer meet to refine a proposal for future council consideration.