HomeMy WebLinkAboutCED 620 Canal Street Acquisition____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 06/23/2025
Disposition: Resolution 15434
Agenda Item No: 6.b
Meeting Date: June 23, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development Department
Prepared by: Greg Minor, Assistant Director City Manager Approval: ______________
TOPIC: 620 CANAL STREET ACQUISITION
SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING
THE CITY MANAGER TO:
1.NEGOTIATE AND EXECUTE A GRANT AGREEMENT, IN A FORM APPROVED BY
THE CITY ATTORNEY, WITH MARIN COUNTY FOR A MINIMUM OF $1,150,000 IN
MEASURE A LAND PRESERVATION AND PARK ACCESS PROGRAM FUNDS
(“MEASURE A FUNDS”), ACCEPTING AND APPROPRIATING GRANT FUNDS;
2.NEGOTIATE AND ENTER INTO A PURCHASE AND SALE AGREEMENT AND
ANCILLARY DOCUMENTS FOR THE PROPERTY LOCATED AT 620 CANAL
STREET, PROVIDED THE CITY’S CONTRIBUTION TO THE PURCHASE PRICE
DOES NOT EXCEED $500,000, PLUS SAID MEASURE A FUNDS RECEIVED; AND
3.TO TAKE ACTIONS NECESSARY OR INCIDENTAL TO CARRYING OUT THE
INTENT OF THIS RESOLUTION
RECOMMENDATION:
Staff recommends that the City Council adopt the above-referenced Resolution authorizing the purchase
of 620 Canal Street, Assessor’s Parcel Number (APN) 014-162-01, to serve as a park and potential base
of a bicycle and pedestrian bridge across the San Rafael Creek (Canal).
BACKGROUND:
The property at 620 Canal Street is 1.65 acres of land located along the southern edge of the Canal at
the end of Canal Street northwest of Harbor Street. The property is designated as Marine-related Mixed
Use within the General Plan and currently consists of three buildings, storage racks, and containers that
support maritime uses. This property has been identified as a potential park and possible location for the
southern landing of a bicycle and pedestrian bridge between the Canal Neighborhood and destinations
north of San Rafael Creek.
The Canal neighborhood has limited access points to the rest of the City of San Rafael (City) due to the
neighborhood being bordered by the San Rafael Creek (Canal) and the Highway 101 and Interstate 580
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
freeways. The Canal neighborhood and the City have identified the desire to have a bicycle and
pedestrian bridge in multiple planning documents including, the Bicycle and Pedestrian Master Plan
(2018) and Downtown Precise Plan (2021). Most recently, the City Council identified as part of the Fiscal
Year 2025-2028 Strategic Plan Goal B.1.3: “Conduct East San Rafael Canal Crossing feasibility study
and pursue partnerships and funding sources for possible construction of a swing bridge.”
On April 7, 2025, the City Council authorized the acceptance of a $1,575,000 Active Transportation
Program (ATP) grant to fund a feasibility study of the San Rafael Crossing Project. Although the City has
been awarded an additional $2.35 million in ATP grant funds for bridge design and subsequent phases,
the City will only utilize these funds if the study determines a bridge is feasible.
Additionally, the property at 620 Canal Street is ideally suited for transformation into an outdoor
community gathering space and recreational gateway to the Canal and San Francisco Bay. Residents
have long recognized the need for more public parks, plazas, walkways, and recreational amenities in
the Canal neighborhood. Both the City’s 2009 Canalfront Conceptual Design Plan and its 2023 Parks
and Recreation Master Plan incorporate community recommendations for such amenities. A site of this
type and location will be highly competitive for future park development grant opportunities.
ANALYSIS:
In the fall of 2024, the Trust for Public Land (TPL) began negotiating with the property owner on behalf
of the City, culminating in an executed purchase and sale agreement in December 2024. After months
of negotiations, the TPL and the property owner have reached an agreement on a sale price of
$3,335,000. With respect to funding the purchase, Table 1 outlines the anticipated contributions from
the City, the County of Marin, and the TPL:
Table 1: 620 Canal Street Acquisition Funding
Funding Source Amount
City of San Rafael $500,000
Marin County (Measure A Grant) $1,150,000
Private Philanthropy (Fundraised by TPL) $1,705,000
TOTAL $3,355,000
The TPL requests that the County of Marin and the City formalize their funding commitments before the
end of TPL’s due diligence period on July 18, 2025. Following the City Council’s consideration of the
attached Resolution on June 23, 2025, the Marin County Board of Supervisors will consider approval of
a Measure A Grant on July 8, 2025, which would provide funding for purchasing 620 Canal Street
provided the property serves as a public park. If the City Council and Marin County Board of Supervisors
provide approvals consistent with the above timeline, the TPL has indicated that it will have the assurance
it needs to finalize the purchase of the property. Ultimately, after July 18, the TPL has thirty days to close
on the property.
Although the property may take years to secure funding to make the property safe for public access and
enjoyment, purchasing 620 Canal brings the City closer to providing this much needed public space and
the potential landing place for a pedestrian and bicycle bridge. The longer-term planning for a future park
and bridge could take a decade, depending on funding and environmental clearance. However,
ownership of this property should make the City more competitive for future grants that the City will need
to build these future improvements. Additionally, securing the property now will eliminate the uncertainty,
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
time, and resources the City would otherwise have to expend to obtain the land through either an
alternative voluntary transaction or eminent domain.
To mitigate the cost of operating a park at 620 Canal Street, staff intends to pursue an agreement with
Marin County to assist with the property’s maintenance.
ENVIRONMENTAL REVIEW:
This Project is exempt from environmental review under Public Resources Code Section
21080.28(a)(1)(F) and California Environmental Quality Act Guideline 15325(f) because it involves the
acquisition of land for park purposes, partially funded by Measure A funds from the County. The County
has found that projects satisfying Measure A requirements and receiving funding are exempt from CEQA
under the foregoing provisions.
COMMUNITY OUTREACH:
For decades, community members have advocated through multiple processes for more public gathering
spaces in the Canal and a pedestrian and bicycle crossing of the San Rafael Creek. The City maintains
a project website for the feasibility study of the Canal Crossing Project. Staff will present the proposed
acquisition to the City’s Park and Recreation Advisory Commission, who will meet at 618 B St on June
25th at 6:00pm. Additionally, the Marin County Board of Supervisors will consider awarding Measure A
Grant funds for the Project during its July 8th meeting.
FISCAL IMPACT:
The acquisition of 620 Canal Street will result in short-term and long-term fiscal impacts to the City. In
the short term, the acquisition will require a funding commitment of $500,000 toward the purchase of the
property. Funding has been provided in the FY 2025-26 Adopted Budget via appropriations of $375,000
within in the Parkland Dedication Fund (240) and $125,000 within the Capital Improvement Fund (401).
In the long term, the City will need to identify additional funding, either through grants or future investment
of City funds, to cover the costs associated with securing the property, making it safe for public access,
and developing the property into a park. Staff have not had the opportunity to quantify the precise costs
of these long-term improvements. However, initial estimates suggest that the medium-term costs could
require hundreds of thousands of dollars, and the long-term costs of developing and constructing the
park will require tens of millions of dollars. Notably, the City can avoid incurring these significant medium-
and long-term costs until the City secures a grant or other funding to advance the Project.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Adopt the proposed Resolution.
2. Direct staff to return with more information.
3. Do not approve the Resolution.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt the above-referenced Resolution authorizing the purchase
of 620 Canal Street, Assessor’s Parcel Number (APN) 014-162-01, to serve as a park and potential base
of a bicycle and pedestrian bridge across the San Rafael Creek (Canal).
ATTACHMENTS:
1. Resolution
RESOLUTION NO. 15434
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE
CITY MANAGER TO:
1.NEGOTIATE AND EXECUTE A GRANT AGREEMENT, IN A FORM APPROVED BY
THE CITY ATTORNEY, WITH MARIN COUNTY FOR A MINIMUM OF $1,150,000 IN
MEASURE A LAND PRESERVATION AND PARK ACCESS PROGRAM FUNDS
(“MEASURE A FUNDS”); ACCEPTING AND APPROPRIATING GRANT FUNDS;
2.NEGOTIATE AND ENTER INTO A PURCHASE AND SALE AGREEMENT AND
ANCILLIARY DOCUMENTS FOR THE PROPERTY LOCATED AT 620 CANAL
STREET, PROVIDED THE CITY’S CONTRIBUTION TO THE PURCHASE PRICE
DOES NOT EXCEED $500,000, PLUS SAID MEASURE A FUNDS RECEIVED; AND
3.TO TAKE ACTIONS NECESSARY OR INCIDENTAL TO CARRYING OUT THE
INTENT OF THIS RESOLUTION
WHEREAS, The Canal neighborhood is physically isolated from other parts of San Rafael
by the San Rafael Creek (Canal) and the Highway 101 and Interstate 580 freeways; and
WHEREAS, Several City Council adopted city planning documents including the
Downtown Precise plan (2021) and the Citywide Bicycle and Pedestrian Plan (2018) have
identified the need for a bicycle and pedestrian bridge connection from the Canal neighborhood
to the north side of the Canal;
WHEREAS, Over a third of Canal neighborhood residents live in poverty; and
WHEREAS, Encouraging walking and cycling, improving connectivity and providing
accessible affordable recreational resources to low-income communities further goals adopted by
the San Rafael City Council in the General Plan 2040, Downtown Precise Plan, Bicycle and
Pedestrian Master Plan, Parks and Recreation Master Plan, Canal Neighborhood Community-
Based Transportation Plan and Capital Improvement Plan; and
WHEREAS, The property at 620 Canal Street, Assessor’s Parcel Number 014-162-01, is
ideally situated to serve as one end of a bicycle and pedestrian bridge crossing the San Rafael
Creek (Canal) and offers access to a potential waterfront park; and
WHEREAS, The Trust for Public Land (TPL) has entered into a purchase and sale
agreement for the property at 620 Canal Street; and
WHEREAS, TPL’s purchase and sale agreement relies on a combination of funds from
the City of San Rafael, the County of Marin (”County”) Measure A Land Preservation and Park
Access Grant Program Funds, and Private Philanthropy and is contingent upon sufficient Private
Philanthropy Funds being available for the purchase; and
WHEREAS, on June 2, 2025, the City Council approved the City’s Fiscal Year 2025-26
budget, which includes $500,000 in budget appropriations within the Parkland Dedication Fund
($375,000), and Capital Improvement Fund ($125,000), supporting the City’s funding contribution
toward the purchase of the property; and
WHEREAS, on July 8, 2025, the County Board of Supervisors will consider authorizing an
award of $1,150,000 in Measure A proceeds to fund the Project (defined below), finding that the
Project was consistent with Measure A requirements; and
WHEREAS, the County has found that its program for Measure A funds is exempt from
environmental review pursuant to Public Resources Code Section 21080.28(a)(1)(F) and
California Environmental Quality Act Guideline 15325(f); and
WHEREAS, the City of San Rafael desires to purchase the property at 620 Canal Street
to redevelop it as a park with the potential for an urban and pedestrian pathway to cross the canal
to provide connectivity within San Rafael (“Project”).
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby finds that the
foregoing recitals are true and correct and authorizes as follows:
1.The City Manager is authorized to negotiate and execute a grant agreement, in a form
approved by the City Attorney or his designee with the County of Marin for a minimum
of one million, one hundred and fifty thousand dollars ($1,150,000) Measure A Land
Preservation and Park Access Program Funds (“Measure A Funds”); and authorize
acceptance and appropriation of Measure A grant funds, for purposes as specified;
2.The City Manager is authorized to enter into a Purchase and Sale Agreement and
ancillary documents in a form approved by the City Attorney or his designee to acquire
the property located at 620 Canal Street, provided the City’s contribution to the
purchase price does not exceed $500,000, plus the Measure A Funds received from
the County for the purchase of the property; and
3.The City Manager is authorized to take any action necessary or incidental to carrying
out the intention of this Resolution, including, but not limited to, payment of transaction
costs, which are customary for a buyer to pay or as agreed to in the purchase and sale
agreement.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution
was duly and regularly introduced and adopted at a regular meeting of the City Council of the City
of San Rafael, held on Monday, the 23rd day of June, 2025 by the following vote, to wit:
AYES: Councilmembers: Bushey, Hill, Kertz & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: Llorens Gulati
____________________
Lindsay Lara, City Clerk