Friction builds over San Rafael electric bus hub plans
San Rafael officials are protesting an effort to turn a former car sales lot in the Canal neighborhood into an electric bus hub for Marin Transit, but the plan is gaining support from other local leaders.
Members of the City Council raised concerns at their meeting Monday about the pending deal between Marin Transit and property owners Marin Hospitality Inc. The property is at 1075 Francisco Blvd. East, a 3.5-acre lot visible from Interstate 580.
City officials said a bus yard would not conform with the city’s general plan, which outlines long-term development policy. It would require a change in the zoning and land use designation for the site, a move officials said they are reluctant to support.
Secondly, the council majority does not like the idea of increased traffic from buses in a densely populated and underserved community that already deals with daily gridlock.
Council members are also frustrated that they were caught off guard, learning about the plans days before a purchase agreement was approved.
“What just gives me so, so much heartburn is that it is all about the public process,” Mayor Kate Colin said. “And to me it looks like the subversion of what we hold most dear here in San Rafael, and that is the very, very deep engagement.”
Marin Hospitality Inc. had gained city approval for a 184-room hotel at the site in 2020. At the time, the hotel was expected to generate $700,000 annually in tax revenue and create an influx of new jobs, said Micah Hinkle, the city’s community and economic development director.
After the pandemic, Marin Hospitality decided not to follow through on its hotel plans because of financial conditions, Hinkle said.
The site is zoned for general commercial use and has a general plan land-use designation of community commercial use. In a notice to Marin Transit last month, Hinkle informed them that the bus hub plan was not the right fit.
Hinkle said an auto dealership or hotel — both enterprises that rely on high visibility and that generate tax revenue for the city — are the best uses for the site.
As a public agency, Marin Transit would be tax exempt, meaning a loss of revenue for the city, Hinkle said.
Marin Transit officials, who were not at the council meeting, said they’ve been looking for a home for their bus fleet for more than 10 years. Last year, the Biden administration awarded the agency a $31.5 million grant to realize that goal. Marin Transit is providing a $15.1 million local match for a total investment of about $46.7 million in a new hub.
Nancy Whelan, general manager of Marin Transit, said her staff was contacted by the property owners offering the site for sale. The board approved the purchase agreement in August. San Rafael Councilmember Maribeth Bushey, the city’s representative on the Marin Transit board, cast the sole vote against the plan.
The approval authorized a 60-day due diligence period that in part involved seeking confirmation from city planning officials that the potential use aligned with the city’s general plan. After receiving a letter from the city stating its disapproval, Marin Transit said it has authority under state code to overrule the city’s determination. The statement prompted the City Council discussion on Monday.
“We have a mandate from the state to electrify our fleet,” Whelan said when contacted after the meeting. She was referring to the requirements of the California Air Resources Board to convert the vehicles by the state’s 2040 target.
“Not having a facility has been an obstacle for us,” she said.
Grant funds have to be obligated within three years, and the agency needs to secure land before making a formal project proposal, she said. Once the land is acquired, there would be a formal proposal involving environmental compliance studies, public meetings and community input before any project is considered for approval, Whelan said.
San Rafael councilmembers expressed worries that after the time and money spent, it would be too late to back out.
“We’re required to do a full alternative’s analysis,” Whelan said. “In that regard, it’s not a done deal.”
San Rafael councilmembers said Golden Gate Transit has property in Novato, and asked why the two agencies don’t share.
Marin Transit has inquired about a long-term lease or purchasing property from Golden Gate Transit, but their requests were declined.
Denis Mulligan, general manager of the Golden Gate district, said it is under the same directive to convert its fleet to zero emissions and needs the space for its own use.
“In the coming years we will be making major modifications to our facilities and our fleet to comply with these requirements, including at our Novato property,” Mulligan said.
The grant to Marin Transit also includes $2.2 million for workforce development, which involves training workers and programs aimed at diversifying the staff with new recruits who are women and people of color. A portion of that also must be spent to develop onsite child care or subsidized child care for transit workers.
Councilmember Rachel Kertz differed from other members of the council. She said Marin Transit’s plan, while not yet a formal one, provides community benefits.
“Right now it’s an empty lot. It’s not nice to look at,” Kertz said.
Kertz said the hotel plan was approved without much community input, and the developers didn’t offer workforce training.
“No one is knocking on the door to put a hotel there, and I don’t see anyone really bringing forward plans to bring revenue there, so maybe we do need to think about something else,” she said.
Marin Transit staff are asking the board to overrule the city’s disapproval so they can move forward, Whelan said.
A special board meeting to consider the move is set for 3:30 p.m. Thursday, Oct. 24, at the Board of Supervisors chambers at the Marin County Civic Center in San Rafael. Meeting details are at marintransit.org.
If approved by the board, staff could close escrow as early as Monday, Whelan said.
In a letter to the Marin Transit board, U.S. Rep. Jared Huffman, D-San Rafael, said he supported Marin Transit’s grant application because there are environmental and community benefits to having an electric bus hub. He encouraged the board to complete the deal.
Three Marin nonprofit organizations — Sustainable San Rafael, Cool the Earth and Canal Alliance — also wrote to the Marin Transit board to encourage approval.
Omar Carrera, chief executive officer of Canal Alliance, wrote that his staff is talking with Marin Transit about collaborating on the grant-funded workforce development opportunities.
The project is “vital to continued operations, investments in clean and efficient transit service, and training for well-paid jobs in our community,” Carrera wrote. “The property will support the growing needs of seniors, youth, commuters, and low‐income and minority populations that rely on Marin Transit; for all these reasons, Canal Alliance supports the purchase of 1075 E. Francisco Blvd.”
In an email to Marin Transit, Colin wrote, “My plea remains the same — embrace and utilize the public process to evaluate this permanent land use decision by either changing the current project to fit the current zoning or applying for a General Plan amendment.”