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The Livermore City Council recently voted in favor of a compromise with McGrath RentCorp that would secure for the city over 100 acres of the company’s property in Midtown for potential future residential development opportunities.
The property in discussion spans a total of about 130 acres located generally between Southfront and Las Positas roads. It is here that McGrath is headquartered and operates a mobile modular commercial-industrial business.
The compromise is written out in an amendment to a development agreement with McGrath that features a 30-year term extension of vested land-use rights to continue company operations, shifted boundaries of the agreement and future transfer of a portion of the land to a commercial user.
During its July 27 meeting, the council unanimously voted to introduce an ordinance authorizing the city manager to execute the first amendment to the development agreement.
“The original development agreement wasn’t very favorable to the city,” Councilmember Evan Branning said. “This new one really cleans up a lot of the language. It allows us to have a working relationship going forward. It helps us avoid potentially a series of really nasty lawsuits, to be honest, if we had gone a different direction.”
The initial development agreement between McGrath and the city secured the company’s commercial and industrial land use rights through 2029.
McGrath previously expressed opposition to aspects of city planning for Midtown such as the site’s inclusion in the Midtown Specific Plan Area and the potential future mix of uses and residential densities, according to the staff report prepared by Livermore economic development manager Jake Potter.
But under the amended agreement, the city flexibility for the land’s continued use by McGrath or future residential use, Branning explained during the meeting.
McGrath would not oppose future residential densities of 18 to 22 dwelling units per acre and 23 to 30 dwelling units per acre on the property, the staff report states.
McGrath would also be obligated to transfer about 40 acres on the northern portion of the site to a high-value commercial user by January 15, 2027. This acreage would be removed from the agreement area.
The city would benefit from an incoming commercial user, as it is expected to provide about 400 to 600 jobs and become one of the city’s top ten tax generators at about $900,000 to $1 million annually, according to the staff report.
As for the 30-year term extension to 2059, McGrath receives operational security, the staff report states.
The certainty is “necessary to secure McGrath’s support for future residential planning and the commercial property conveyance”, the staff report states.
Additionally, the McGrath-owned property south of Las Positas Road would be added to the development agreement for the company’s operations.
“It’s a win for both McGrath and for the city,” company representative Mike Bray said during the meeting.
That same night, the council approved the Livermore General Plan 2045 and introduced an ordinance adopting conforming amendments to the city’s zoning map, including a zoning change to the northern portion of the property to commercial service.
The amendment does not approve a development project and any future development proposals would require regulatory approvals.
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