Daly City postpones Carter Martin site selection after two competing development proposals

Daly City’s Housing Development Finance Agency on Oct. 13 heard detailed presentations from two finalists for the Carter Martin (Bayshore) redevelopment site but did not select a developer, instead directing staff to gather comparative data and schedule a special meeting.

The two finalists offered different approaches. The Legacy team described a transit‑oriented mixed‑use vision it called “Pacific North,” originally proposing up to 400 units before signaling flexibility to a lower count. Legacy said its plan could be structured as 100% affordable housing, with roughly 75% of units targeted at 80% area median income (AMI) and the remainder at higher AMI tiers; the team estimated a total development cost near $340 million and said private equity and institutional debt would fund most of the project. Legacy representatives also projected construction employment and local spending benefits if selected.

Peggy Lichtard of Human Good presented a separate concept focused on a 200‑unit development: about 125 market‑rate units and 75 senior affordable units supported by a PACE‑style senior services center. Human Good said it typically targets deeper affordability for seniors (around 60% AMI), would reserve roughly 20% of units for special‑needs or formerly homeless residents, and relies on a mix of public and private funding with experienced partners (including a proposed commercial partner named Waterford).

City staff and board members repeatedly pressed both teams on affordability levels (AMI breakdowns by household size and unit type), bedroom counts and square footage, unit mix (seniors versus family units), parking and traffic impacts, and how each proposal fits legal requirements tied to the Surplus Lands Act. Staff told the board the two proposals were pursuing different Surplus Lands Act pathways: mixed‑use concepts and 100% residential concepts trigger different minimum residential counts and affordability obligations, a distinction that helps explain the difference in unit totals between the teams.

Councilmembers repeatedly emphasized that the Carter Martin parcel is one of the city’s last large redevelopment sites and asked for a clear “apples‑to‑apples” comparison before selecting a developer. Councilmember Justin Manalo asked for AMI detail tied to unit sizes to ensure the project serves Daly City residents; others requested traffic, noise and environmental analyses and clearer commitments on retail or grocery space on the ground floor to address the neighborhood’s retail needs.

Developers and staff recommended the ENA (exclusive negotiating agreement) phase to resolve technical constraints — including site access, title and geotechnical work, market studies and detailed financial term sheets — and said those deliverables would be produced during due diligence. Both finalists said they were willing to refine proposals in response to the agency’s direction; Legacy emphasized its willingness to select a general partner with deep affordable‑housing experience, while Human Good highlighted existing partnerships and experience delivering senior affordable units and wraparound services.

Next steps: the board did not vote on a developer. Instead it asked staff to prepare a side‑by‑side grid with AMI breakdowns, unit sizes, funding sources, timelines, and parking/traffic impacts, and to convene an ad hoc committee and a short special meeting within weeks to receive updated materials and a staff recommendation. The agency’s choice and any ENA authorization will be brought back to the board for formal action.

Staff and both development teams provided the information in public session; further technical studies and community outreach are expected during the ENA/due‑diligence phase.