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THE CITY OF 16 PLEASANTON, MEMORANDUM Date: June 12, 2023 To: Pleasanton City Council From: Gerry Beaudin, City Manager a Ellen Clark, Director of Community Development Subject: Housing Element Update, Item 16 This memorandum provides supplemental information to the City Council in advance of the June 20, 2023, City Council meeting. It supplements the Agenda Report provided for the June 6, 2023, meeting, at which staff requested the item be postponed to allow additional time to respond to communication received shortly before the meeting. On June 6, 2023,the City received a letter from Kaiser Permanente(Kaiser)with respect its property at 5600 Stoneridge Mall Road(APN 941-120105203). The Kaiser property is among the existing zoned sites that was included in the 6th Cycle Housing Element sites inventory, as adopted by City Council in January 2023. The site was originally added to the Housing Element in 2012, during the 4th Cycle Housing Element update, based on discussions between the City and Kaiser, with Kaiser expressing interest in the possibility of housing being developed on a vacant, approximately three-acre portion of its site. Following adoption of the 4th Cycle Housing Element the site was subsequently re-zoned to PUD-Mixed Use (PUD-MU), with a zoned density between 30 and 40 units to the acre and assumed to yield up to 182 high-density/lower-income residential units in the 4th, 5th, and 6th Cycle Housing Elements. The June 6, 2023, letter indicates that Kaiser does not intend to dispose of the property or intend to develop residential uses on the site within the next eight years. As such,the Kaiser site is no longer viable for inclusion in the 60h Cycle Housing Element. Staff notes that until receipt of the letter, it was the City's understanding that the three-acre portion of the site designated for housing (the undeveloped area; approximately one-third of the site)remained a viable option for inclusion in the City's Housing Element,having not received communication from Kaiser to the contrary, nor indicating any definitive plan or proposal to develop that three-acre portion to another use. Removal of the Kaiser site, and its projected 182-unit yield of higher-density units, suitable to accommodate lower-income housing, will require adjustments to the Housing Element in the following ways: • Remove reference to the Kaiser site throughout the document(i.e., Pages 25, B-23, B-24, B-26, Appendix B maps, B-68, and Appendix F tables and maps).