Hayward Home Development Stalling
Development keeps happening around the city, but much of it is stalling due to funding issues. We also share updates on businesses and vacant buildings around town you may be wondering about.
During the April 6th Council Economic Development Committee meeting, Development Services Director Sara Buizer presented updates on a number of developments throughout the City of Hayward. While many are on track, a general theme arose that economic issues, including high interest rates, are stalling development throughout the city.
Multiple development projects are stalled while developers look for more funding, according to Director Buizer, which may also affect plans to offload municipal land. The city is looking to sell three downtown properties in particular, Cinema Place, City Center, and C and Main. Councilmember Angela Andrews suggested trying to find so-called institutional buyers, like education institutions. This was despite widespread issues around reduced funding and shrinking student populations.
Development Happening Around Hayward
The Bi-Annual report of the Development Services Department outlined a number of developments that are in the works at the Planning Department. A total of 12 different large-scale residential developments are in various stages of planning throughout the city. The Hayward Herald put together a map of the developments, so readers can see where development is happening.
Each green pin is a residential development project with a brief description of what is planned. Notable plans for downtown include at least two 5-story condominium/apartment developments near where Mission Blvd and Jackson intersect. Another interesting project is renovations at City View Apartments near CSUEB, which would several amenities buildings and some parking to add another 120 rental units and 193 parking spots.
Other Notable Developments
Director Buizer selected a number of other commercial developments to highlight in her presentation to the Economic Development Committee.
Former Honda Dealership
The former Honda dealership building on Mission Blvd was initially going to be purchased by another used car dealership. However, progress appears to have stalled. Director Buizer said that a chiropractic office has expressed some interest, but no paperwork has been filed as of yet.
U-Haul Corporate Office
Set to be constructed along the Hayward Shoreline at the site of the old salt mill, a U-Haul Corporate Office and Warehouse is waiting on state and federal permitting due to its proximity to the Hayward Shoreline. Local permits are on hold during this time, however Director Buizer said, "They're close."
Former Chalk It Up Building
The former home of Chalk It Up Billiards is still under construction, currently working on elevators. The final use has yet to be determined, with the owner in talks with the Economic Development Department to find future tenants. PG&E is also a factor slowing development. "It's active, but moving slowly," Director Buizer said.
Former Elephant Bar
The site of the former Elephant Bar near Southland Mall is slated to become Q-Pot, a Korean BBQ and hot pot restaurant out of San Jose. Permits have been issued, but there has been little activity beyond that. Mayor Mark Salinas said that he had seen people removing furniture and things from the building.
Former Hayward Fishery Location
The former site of the Hayward Fishery, then Art's Crab Shack, is supposed to be home to the final cannabis dispensary allowed in Hayward, Jiva Life. Unfortunately, the development has stalled, though Planning has given a final 1 year extension, which will expire at the end of 2026. "[They] must submit for and be issued building permits or else we are going to revoke their cannabis retail dispensary permit," Director Buizer said. "The clock is ticking."
Jiva Life had initially stalled due to a lawsuit over the name, but whether due to the complicated legal environment around cannabis or anything else, the business has been stalled for years. If the cannabis permit is revoked, the City Council will decide what to do, either reissue the permit to someone else or put the entire program on hold.
Maple and Main
"Our favorite project that never seems to get off the ground," Director Buizer said. The former site of Everest College, Maple and Main has faced a number of financial issues. The original owner of the project allegedly defaulted on a loan in November of last year. City staff then checked in with the new buyer who allegedly has developers interested and stressed that the property has not been foreclosed upon.
The project was initially approved in 2017 and has suffered numerous setbacks since then.
71 W Tennyson
The building near the parking lot of Monarcas Supermercado continues to sit vacant with no development applications or interest. The property is a part of the city's vacant property program, according to Director Buizer.
Mission Crossings Frontage
A frontage lot for Mission Crossings continues to remain vacant, as well, and has become a place for extensive unpermitted parking. The owner of the parcel was apparently absent and unaware of the issue, though code enforcement is making sure that the cars are removed by the end of the month. When asked if the owner was interested in activating the property in any way short-term, Director Buizer said that the new owners "don't want to do diddly."
Skywest Golf Course
The site of the former Skywest Golf Course has been at the center of community activism from some time, especially from SOS Skywest. Director Buizer said that the city is reevaluating plans for the site, especially considering the FAA height and density restrictions. She said that there will be a new round of community outreach and the plans will likely include housing, undeveloped park land, and commercial properties.
Councilmember Angela Andrews asked if the city had ever performed a cost/benefit analysis of the airport itself, but staff said that they hadn't done so for any city infrastructure.
Future Urban Air Adventure Park
The site of a future Urban Air Adventure Park on Mission Blvd continues to be developed. Director Buizer explained that many owners don't fully understand how many changes are necessary when a building's expected occupancy shifts with a new business. The site was formerly a grocery store, but changing to the new Adventure Park requires expensive renovations to align with new building and fire codes. The city is hoping to issue permits at the end of April.
B And Main
B and Main, a proposed 7 story mixed-use residential building, continues to move forward. Unfortunately, they are facing funding issues but say they are close to securing enough funding to continue. Once funding is secured, they're hoping to start construction this summer. Mayor Salinas asked if any pushback has surfaced on the project over time, given its scale—he specifically referenced the owner of The Bistro who worried about shadows. Director Buizer said no complaints had been made.
Former Ace Hardware
808 B Street, the site of the old Ace Hardware, continues to be under construction. The plan is for ground floor retail and livable units above—2 livable units on the ground floor facing the parking lot and 6 on the 2nd floor. There is no planned completion date, however, and no water or sewer upgrades have been applied for yet, either. The main issue will be getting new meters for the units.
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Auto Plaza In South Hayward
The former auto dealership near South Hayward BART continues to sit vacant. Due to its relatively small size and strange shape, many dealers have expressed interest but then backed out. The owner initially tried to see if the adjacent development was interested in adding more land, but they weren't.
Casper's Hot Dogs
The site of the old Casper's Hot Dogs in downtown was bought by a San Jose group for a barbershop, according to Director Buizer. However, after 2 rounds of permitting, there has been no movement or communication.
Strategy To Offload City Land
In an effort to reduce maintenance costs and provide a short-term cash injection to the city's coffers, the City Council is looking to offload multiple parcels of land throughout the City. The three that are getting special attention are Cinema Place (including the parking garage), City Center (including the parking garage), and C and Main. But the primary focus of discussion was the movie theater at Cinema Place.
All three properties will be appraised in the next few months before beginning the process of selling them. City staff will have reports for the City Council in May or June with two of the appraisals done, but apparently Cinema Place will be more tricky.
Though Mayor Salinas supported selling the Cinema Place property, he continued to worry about what could happen if a new owner raises rents or forces out existing tenants. City Manager Jennifer Ott explained that all existing leases, including for Cinemark, will have to be taken over by the new owner. Mayor Salinas suggested that new tenants may have come in specifically because the City was the landlord and worried about loss of control. City Manger Ott explained that City Council will have to weigh their competing priorities, but that if there are no good offers, selling isn't mandatory.
Councilmember Andrews suggested a number of possible uses for the movie theater after the Cinemark leas expires, pointing to vacant movie theaters during her visit to Eastwood in Los Angeles. Sue suggested conference rooms and trying to lure in universities or other educational institutions like CSUEB and private universities. City Manger Ott said they could look into it, but staff warned about declining populations being a concern for all colleges and universities—there may not be many wanting to expand.
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