Planning panel clears 88-unit Lipeshi Homes project, recommends on‑site affordable units to city council

The Newark Planning Commission on Aug. 13 approved design review, a density bonus and a vesting tentative map for an 88-unit for‑sale condominium project in the Old Town Newark specific plan area and recommended that the City Council permit the developer to provide on‑site below‑market‑rate (BMR) for‑sale units in lieu of paying the city’s in‑lieu fee.

Curtis Banks of Urban Planning Partners told the commission the project would consolidate seven parcels into two lots totaling about 1.25 acres at the Thornton/Olive intersection and include two buildings: Building A (60 units) and Building B (28 units) with roughly 1,600 square feet of ground-floor commercial. Building A would be five stories with a clock tower topping about 68.5 feet. The proposal includes approximately 138 parking stalls (125 in Building A, 13 in Building B) and 88 bike stalls.

Under Newark’s affordable‑housing program, developers may provide on‑site affordable units as an alternative to an in‑lieu fee; Banks said the fee in this case would be just under $2,000,000. The developer proposes 13 low‑income for‑sale units restricted at 80% of area median income (AMI): 11 one‑bedroom units and 2 two‑bedroom units (11 to be in Building B and 2 in Building A). Banks presented example pricing using current AMI figures: roughly $294,000 for a one‑bedroom and $334,000 for a two‑bedroom affordable unit, noting final prices will be set when units are ready for sale and will use prevailing AMI calculations.

Community Development Director Stephen Turner said the city is preparing to contract with a firm to manage eligibility and resale of for‑sale restricted units and expects to finalize an approach within roughly six months. City Attorney Alex Mung said the city typically uses a lottery process for buyer selection, with a preference for people who live or work in Newark.

Several commissioners pressed the applicant and project team on parking, unit distribution and traffic. Architect Dirk Phelan described the contemporary‑Spanish design, unit mix and podium amenity spaces. Applicant and owner Kishore Polakala said he expects to break ground in roughly Q2 of next year and estimated market‑rate sales in the $700,000–$900,000 range depending on unit type and market conditions at completion.

Resident Jason Beiser, who lives nearby, raised concerns about additional traffic, the site’s cul‑de‑sac access and potential cut‑throughs on nearby streets. Staff responded that traffic and vehicle‑miles‑traveled analyses were prepared as part of the Old Town specific plan and that the project generally falls within those assumptions; staff also noted an upcoming Thornton streetscape project (lane reductions, bike lanes, wider sidewalks and landscaping) intended to improve circulation and reduce heavy‑truck cut‑throughs. Engineering staff said they will monitor local traffic patterns and can consider mitigation measures if problems emerge.

A commissioner moved to approve the design review, density bonus and vesting tentative map and to adopt a resolution recommending council approval of the alternative means of compliance allowing on‑site BMR units; the motion was seconded and carried unanimously.

The commission’s approvals will be forwarded to the city council where the alternative means of compliance (on‑site BMR units in place of the in‑lieu fee) is subject to council action and the final vesting map and permits are subject to standard ministerial processing.