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Economic & Civic Development

Daughtrey Building Request for Interest/Development Concept (RFI)

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Background

  • In 2011, the former County Redevelopment Agency purchased the Daughtrey's property as a catalyst site for commercial development
  • The State Legislature dissolved all redevelopment agencies in February 2012 and a Successor Agency began the process of disposing of former Redevelopment properties
  • Greensfelder Development was selected as the preferred developer for the site in 2012 and the County approved a Disposition and Development Agreement (DDA) in 2014
  • Actual transfer of the property from the Successor Agency to the County was finalized in February 2016
  • Greensfelder withdrew in November 2016 after a proposed tenant was rejected by the MAC
  • The current Request for Interest/Development Concept process for selecting a developer is a departure from the prior approach
  • It's more proactive and prescribes desired uses and sets goals for the site
  • The County is seeking a public/private partnership to restore the property to active, vital use
  • The County is more interested in achieving a good outcome than in maximizing the land value
  • The Selection Committee interviewed the responsive developers. Committee comprised of 4 County staff (ECD, Planning, and Surplus Property Authority staff ) & 3 MAC Members

Request for Interest/Development Concept (RFI) Summary

  • RFI solicits proposals from developers interested in revitalizing this key property
  • RFI outlines the County's expectations and goals for this catalyst site
  • RFI outlines the criteria a successful developer must meet and prescribes the required elements for an RFI response, including experience, financial capacity, suggested retail uses, design concept, and vision for using the new paseo
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RFI Criteria for Selection of Preferred Developer

  • Development Team qualifications and financial capacity
  • Meets the community's desire for high-quality retail, dining and food-related experiences
  • Comfortable engaging in a robust public process - meeting with interested community members and groups
  • Transformative design and outstanding architecture
  • Proven track record in completing development projects
  • Project timing - including milestones such as construction commencement and project completion
  • Revenue generation - new property and sales tax revenues

County's Expectation for this Catalyst Site

  • An upscale restaurant, food-related and retail project offering new, unique choices
  • A catalyst project that will bring new customers, shoppers and diners to downtown Castro Valley
  • A project that incorporates the new paseo with opportunities for outdoor dining and active uses
  • A project that delivers a transformative design and outstanding architecture
  • A project that will generate new sales and property tax revenues

RFI Schedule

  • RFI/Dev. Concept was issued on Wednesday, March 1 , 2017
  • Responses were due by Friday, March 24th by 5 PM
  • Six responsive proposals were received by the March 24th deadline
  • ECD Staff and Consultant evaluate six responsive proposals - April
  • Selection Committee interviews six development teams - Wed., May 10th and Friday, May 12th
  • Six proposals will be posted to ECD website for public review following interviews and prior to MAC meeting
  • Selection Committee invited three top-ranked development teams to present their proposals at a special MAC meeting, along with staff presentation, public discussion and final MAC recommendation - June 1, 6 P.M., CV Library
  • MAC's recommendation presented to Unincorp. Services Committee, along with a draft Exclusive Right to Negotiate (ERNA) with the Preferred Developer - Summer of 2017

Future Steps Following Selection of Preferred Developer

  • Board of Supervisors consideration of ERNA with Preferred Developer - following Unincorp. Service Committee meeting
  • ECD staff presents draft Disposition & Development Agreement (DDA) to MAC upon conclusion of ERNA
  • ECD staff presents draft Disposition & Development Agreement (DDA) to Unincorporated Services Committee
  • Board of Supervisors holds Public Hearing on DDA
  • Site Development Review Process - Developer seeks entitlements
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Opportunities for Public Input

  • Feb. 22, 2017 MAC meeting - review of draft RFI with MAC and public
  • Special MAC Meeting Thursday June 1, 2017, 6 P.M., CV Library
  • Presentation to Unincorp. Services Committee - introduction of recommended Preferred Developer and review of draft Exclusive Right to Negotiate (ERNA) with Preferred Developer
  • Board of Supervisors consideration of ERNA with Preferred Developer
  • ECD presents draft Disposition & Development Agreement (DDA) to MAC for input
  • Presentation of draft DDA to Unincorporated Services Committee
  • Board of Supervisors Public Hearing and consideration of draft DDA
  • Site Development Review Process - public review is part of the entitlement process

Introduction to Responses to the Request for Information/Development Concept

On March 24th, Alameda County's Economic & Civic Development Department (ECD) received six responsive proposals from retail and mixed-use development teams. You can view these six responses below.

In addition, you will find supplemental information that three development teams provided during their May 10th and May 12th interviews with the Selection Committee.

The Selection Committee's Recommendation

The Selection Committee included three MAC members (Chair Marc Crawford, Sheila Cunha and Ken Carbone), Eileen Dalton and Susan McCue from ECD, Sonia Urzua from Planning, and Stuart Cook, Director of the County's Surplus Property Authority.

The Selection Committee reviewed the six responsive proposals that were submitted by the May 24th deadline and held intensive one-on-one interviews with each of the six teams on May 10th and May 12th.

Following the interviews, the Selection Committee ranked the six development teams and invited the top three ranked teams to present their proposals during the June 1st MAC meeting. The Selection Committee ranked Main Street Properties first, followed by Bay Area Urban, and Alikian/Samson Properties as the third team.

While three other proposals had merit, the Selection Committee felt that Main Street Properties, Bay Area Urban and Alikian/Samson's' submittals best fit the County's and community's expectations and goals for this catalyst site. These three teams also met the RFI required elements of development experience, financial capacity, suggested retail uses, design concept, vision for using the new paseo, and transformative design.

ECD's economic consultant, ALH Regional Economics, reviewed each teams' confidential financial information, sharing their analysis with the Selection Committee.

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Next Steps in the RFI Process

The MAC will hold a special meeting on Thursday, June 1st, 6 pm at the Castro Valley Library, to hear presentations from each of the three top-ranked development teams (Main Street, Bay Area Urban, and Alikian/Samson), to listen to public feedback, and to select a "preferred developer". Based upon the MAC's final recommendation, ECD would then move forward with an Exclusive Right to Negotiate (ERNA) with the "preferred developer" for consideration by the Board of Supervisors. The ERNA will detail the steps the developer must complete, including a robust engagement with the public and stakeholders to refine the development project.

Ultimately, the ERNA results in a Disposition and Development Agreement (DDA) with the "preferred developer" if all of the condi-tions were successfully completed. The DDA, which requires Board approval, spells out the terms and conditions the developer must meet to purchase this catalyst site from the County for an approved development project.

The Proposals

#1 - Main Street Properties

This retail-only project features a 24,000 square feet "department store of food" and utilizes the ground floor, second floor mezza-nine, and basement. Ground floor tenants focus on the new paseo, and include the Castro Valley Marketplace, an organic specialty grocer offering a deli with prepared foods and currently operating in Alameda as the Alameda Marketplace, and stalls and kiosks featuring artisan cheese, wine, fish, meat, poultry, gelato/chocolate, and sushi merchants, plus a florist, a juice bar, coffee, and a bakery/café. The second floor/mezzanine features a cooking school, yoga/pilates studio, a cookware shop and a salon/spa. Blind Tiger, a popular Oakland-based restaurant, would use a portion of the basement for a new Castro Valley Speakeasy res-taurant specializing in cocktails and tapas plates. The overall project meets the parking requirement through the shared parking lot currently under construction.

#2 - Bay Area Urban

Bay Area Urban (BAU) is proposing a mixed-use project featuring 8,750 square feet of retail and a 2,500 square foot courtyard on the ground floor, and nine residential rental units on the second floor. Proposed retail tenants include the Mexican Restaurant (currently operating in Hayward), the CV Taphouse serving craft beers and cider, and Journey Coffee Co. The basement would be used for office space and storage. The Mexican Restaurant, CV Taphouse, and Journey Coffee would all enjoy use of the interior landscaped courtyard, as well as access to the paseo. BAU is proposing that the residential units park in the shared parking lot.

#3 - Alikian/Samson Properties

Alikian/Samson Properties is proposing a mixed-use project with 11,000 to 12,000 square feet of ground floor retail, including a restaurant, wine bar, Henry's Coffee and 3 retail spaces. The second floor would feature 12 to 14 for-rent residential units, with an additional 8 for-rent residential units on the third floor. Residential parking would be provided in the basement. The restaurant and wine bar would enjoy direct access to the paseo and outdoor seating along the Castro Valley Boulevard frontage is proposed to enliven the street.

#4 - Miklyn Development Corporation

#5 - Gryphon Capital, LLC

#6 - Mash/Kimmel

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