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Berkeley council directs staff to draft contracts with BART to advance Ashby TOD

Berkeley City Council · September 16, 2024
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Summary

The City Council voted to authorize staff to draft binding contractual agreements with BART to implement a negotiated term sheet for Ashby BART transit‑oriented development, which includes ambitious affordability goals, a reserved $26.5 million city contribution for affordable housing, and commitments to preserve the Berkeley Flea Market.

Mayor Arreguin opened the special meeting and framed the Ashby BART transit‑oriented development (TOD) deal as the outcome of nearly a decade of community work and 18 months of negotiation with BART. He told the council the term sheet focuses on "affordable housing, community benefits, and vital infrastructure improvements."

City staff recommended adoption of a resolution authorizing the city manager and city attorney to draft ahead of adoption the real estate and related contractual agreements with BART that would implement the term sheet and allow developer solicitations to move forward. Alisa Shen, principal planner, summarized key financial commitments in the term sheet, saying the city "has reserved $26,500,000 of its affordable housing funding, $18,500,000 for the West Lot, and $8,000,000 reserved for the East Lot."

The term sheet includes a land/air‑rights swap: the city would relinquish its option to acquire West Lot air rights in exchange for fee‑simple ownership of the East Lot and community benefits from BART. Affordability targets in the agreement call for a minimum of 50% of the first 602 West Lot units to be affordable across prescribed income tiers, and at least 35% affordable units on the East Lot. The West Lot must also provide at least 5,000 square feet of below‑market ground‑floor space for community/civic uses, including a permanent home for the Berkeley Flea Market.

Century Urban presented an economic analysis showing higher infrastructure costs on the West Lot and a valuation of the East Lot at approximately $8.6 million; staff said the structure is intended to make development financeable and to preserve community benefits. Next steps if the council’s direction is upheld: staff will draft binding legal documents and return in November for approval; BART intends to issue a developer solicitation in December with a target to select a developer by June 2025.

After public comment and extended council discussion — which included repeated calls from residents and advocacy groups for 100% permanently affordable housing — the council moved and seconded the resolution. On a roll call the motion carried; the clerk recorded affirmative votes from Keserwani, Chaplin, Bartlett, Trego, Luna Parra, Humbert, and Mayor Arreguin. The council recorded Kaplan as absent. The adopted direction authorizes staff to prepare the legal agreements to implement the negotiated term sheet and begin the procurement and community engagement steps needed to move the project forward.