Marin Transit responds to resistance on San Rafael bus lot

Marin Transit has pledged to explore the potential for housing, retail and bicycle and pedestrian improvements as part of its plan to create an electric-bus hub in San Rafael’s Canal neighborhood.

The agency’s board approved a resolution last week expressing commitment to “a robust community engagement and communication process” in partnership with city officials and organizations to look at the possibility of such initiatives.

The move was in response to protest from city officials who said a bus hub at the site would not conform with the city’s general plan, which outlines long-term development policy. City officials said the area is overburdened by traffic and that the community has not been involved in project planning.

“We have listened and heard those comments, and we appreciate the attention the city is giving to the purchase,” said Brian Colbert, a San Anselmo councilmember who is chair of the Marin Transit board.

At a special board meeting Thursday, Colbert, working with staff, proposed amendments to the resolution to memorialize the agency’s intent to work with city leaders.

“As Marin Transit has indicated in the staff report, we are committed to engaging with the city of San Rafael and the community as we plan for the future development of the site,” Colbert said.

The board pledged to develop a community engagement plan by no later than March 31.

Marin Transit is purchasing 1075 Francisco Blvd. East, a 3.5-acre former car sales lot, from Marin Hospitality Inc. It has not approved any specific project there.

Nancy Whelan, general manager of Marin Transit, said the purchase agreement allows up to 30 days after Oct. 25 to close escrow. Officials expect to close soon, Whelan said Tuesday.

Marin Hospitality Inc., which has owned the property since 2016, had gained city approval to construct a 184-room hotel in 2020. At the time, the hotel was expected to generate $700,000 annually in tax revenue and create an influx of new jobs, city staff said.

After the pandemic, Marin Hospitality decided not to follow through on its hotel plans because of financial conditions, city staff said.

The site is zoned for general commercial use, and its general plan land-use designation is community commercial use. In a notice to Marin Transit last month, city staff said the bus hub plan was not the right fit.

San Rafael staffers told the City Council at a meeting last week that 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, staff said.

Staff said a bus center would be appropriate at properties with a light-industrial land-use designation.

Marin Transit has been looking for a home for its 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.

The board approved the property purchase agreement in August. 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 for several reasons.

The electric-bus facility would be consistent with the city’s general plan goals on climate change, transit and equity, said Deborah Miller, a lawyer for Marin Transit.

Second, the project site is bordered by light-industrial-designated properties to the north, east and southeast, making it a bus center a harmonious addition, Miller said.

“Finally, acquisition of a property is critical to the agency’s ability to meet the state’s mandated zero-emission vehicle fleet requirements,” Miller said. “Without acquiring a property, the agency will be extremely challenged in meeting those state mandates.”

Once the land is acquired, there will be a formal proposal involving environmental compliance studies, public meetings and community input before any project is considered for approval, Whelan 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.

U.S. Rep. Jared Huffman, D-San Rafael, as well as three Marin nonprofit organizations — Sustainable San Rafael, Cool the Earth and Canal Alliance — wrote to Marin Transit to support the property acquisition.

John Stefanski, San Rafael assistant city manager, addressed the Marin Transit board at its meeting. Stefanski said land use was “carefully considered by our community” in developing the city’s general plan.

“The city’s determination of nonconformance is a reflection of those community efforts to create that plan,” Stefanski said.

With that said, the agency’s express commitment to collaboration seems promising, Stefanski said.

“It’s imperative that our agencies continue to work together in the best interest of the communities that we serve,” he said.

Marin County Supervisor Dennis Rodoni, a Marin Transit board member, said the agency places priority on giving residents of the Canal, Bay Point and Spinnaker Point neighborhoods a say in the planning process.

“These are the residents that are neighbors of this project if it goes ahead, and I think it’s really important that we engage them,” Rodoni said. “I know they have a voice and they need a voice in this, and we need to provide them that opportunity.”