BERKELEY CITY COUNCIL

Summary

The City Council will hold a public hearing to consider an appeal against the Zoning Adjustments Board's (ZAB) approval of Use Permit #ZP2024-0126 for a project at 2298 Durant Avenue and 2360 Ellsworth Street. The project involves demolishing an existing commercial building and a residential building with 7 rent-controlled dwelling units, merging two lots, and constructing an eight-story (92-foot), 80,046 square-foot residential building with 65 units. Of these, 5 units will be Very Low-Income (VLI) and 2 will be Low-Income (LI), utilizing a State Density Bonus which allows 16 additional units above the base of 49. The ZAB approved the project on October 30, 2025, and the City Council will hear the appeal on February 23, 2026.

Key Concessions and Waivers:
The appeal, filed by the Building and Construction Trades Council of Alameda County and the Northern California Carpenters Regional Council, challenges two key concessions granted by the ZAB: a waiver from the City’s "HARDHATS" ordinance (healthcare coverage for construction workers, BMC Section 13.107.050) and a waiver from prevailing wage requirements of the Southside Plan Area (BMC Section 13.108.030). The applicant reported these concessions would result in cost savings of $2,131,000 for healthcare and $7,707,000 for prevailing wages. Appellants argue these waivers are an improper use of the State Density Bonus Law and pose a "specific, adverse impact upon public health and safety" for construction workers.

Additional waivers granted include reduced usable open space (1,579 sq ft provided vs. 3,159 sq ft required, consisting only of indoor amenity space), no landscaped usable open space, exceeding the 85-foot height limit to 92 feet, no long-term bicycle parking (99 required), and removal of a camphor street tree. The project also requires an Affordable Housing In-Lieu Fee of $844,321.39.

Staff Recommendation:
Staff recommends denying the appeal, asserting the City cannot make the necessary statutory findings to reject the concessions. Tenant protections are in place for displaced residents, including relocation assistance and a right of first refusal for new units.

Citizen Impact

This project will significantly increase housing density in the Southside, adding 65 new units, including 7 affordable units, but requires the demolition of 7 existing rent-controlled units. Displaced tenants are protected with relocation assistance and a right of first refusal for new units. The debate over waived labor standards (healthcare and prevailing wages) could impact construction worker safety and wages on this and future projects.

Confidence

high

Summary

The City Council will hold a public hearing on an appeal regarding Use Permit #ZP2024-0162 for a significant housing development at 2425 Durant Avenue. The project involves demolishing three existing two-story residential buildings containing 19 rent-controlled dwelling units and constructing a 20-story (208 feet tall), 148,940-square-foot residential building with 169 new dwelling units.

Affordable Housing: The project includes 32 Below Market Rate (BMR) units, specifically 6 Extremely Low-Income (ELI), 7 Very Low-Income (VLI), 6 Low-Income (LI), and 13 Moderate Income (MI) units. This provision of affordable housing qualifies the project for a 100% density bonus under the State Density Bonus Law, allowing 84 additional units above the base density of 85 units.

Waivers from Local Standards: To accommodate the project and density bonus, the Zoning Adjustments Board (ZAB) approved waivers from several local development standards, including significant deviations for height (208 feet vs 90 feet allowed), Floor Area Ratio (14.86 FAR vs 7 max), and Usable Open Space (1,012 sq ft provided vs 5,239 sq ft required), as well as the removal of a Coast Live Oak Tree.

The Appeal (Labor Concessions): The appeal, filed by the Building and Construction Trades Council and the Northern California Carpenters Regional Council, specifically challenges three concessions granted by ZAB: exemptions from the City’s Apprenticeship Requirements, Health Care Expenditures (both from the HARDHATS Ordinance), and Prevailing Wage requirements (from the Southside Plan). The applicant claims these concessions result in $16,560,000 in cost savings ($2,520,000 for apprenticeship, $1,080,000 for healthcare, $12,960,000 for prevailing wage).

Appellants' Argument: The unions argue these concessions are an improper use of State Density Bonus Law, contending they do not relate to physical development standards and would have a specific, adverse impact on public health and safety by undermining worker training, health coverage, and fair wages. They also state the applicant provided no evidence to substantiate the claimed cost reductions.

Staff Recommendation: City staff recommend denying the appeal and affirming ZAB's decision. They assert that the State Density Bonus Law allows for such concessions if they result in identifiable cost reductions, and the City cannot make the necessary findings, based on substantial evidence, to deny them under state law's limited exceptions.

Citizen Impact

This project will significantly increase housing supply in a transit-rich area, adding 169 new units, including 32 affordable units, but will result in the demolition of 19 existing rent-controlled units. Displaced tenants are entitled to relocation assistance and a right of first refusal for comparable units. The construction of a 20-story building will dramatically change the local streetscape. The outcome of the appeal will determine whether the project must comply with local labor standards, potentially impacting construction worker wages and benefits.

Confidence

high