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The City of Berkeley--UC Berkeley Agreement
Last month, the City of Berkeley and University of California Board of Regents approved a settlement agreement on UC Berkeley’s 2021 Long Range Development Plan (LRDP) and lawsuits challenging UC’s enrollment increases and impacts on neighborhoods. The Berkeley City Council authorized execution of the settlement by an 8-1 vote. This historic agreement is the culmination of several years of advocacy and litigation by the City over the impacts of significant campus enrollment increases, and paves the way for a new era of cooperation between the City of Berkeley and UC Berkeley. The agreement is one of the largest financial settlements any UC campus has provided a host city, and includes binding commitments on collaborative planning for campus growth and partnerships on issues important to the Berkeley community.
Since its announcement, there have been questions, as well as confusion about the terms and impact of this agreement. This summary is intended to clearly explain the agreement and its impact on the Berkeley community.
- It is important to understand that the previous 2005 LRDP settlement agreement had expired on May 31, 2021. The University was under no obligation to continue making ANY payments to the City until a new agreement was reached. If the City had continued with litigation (estimated at up to additional two years), the City would have lost $1.8 million per year in annual payments, plus the cost of litigation. The new agreement was effective upon signing and as a result the City will receive payment this current fiscal year without interruption, enabling us to support fire and other city services.
- Under the new agreement, UC Berkeley will provide annual payments to the City for a total amount of $82.64 million over the next 16 years. Payments will start at an annual amount of $4.1 million and increase by 3% annually. This is over 4 times the amount of the previous agreement over the life of this LRDP. The funding will support fire and city services, and projects and services supporting residents within a half mile of the UC main campus and Clark Kerr Campus. (see entire agreement for payment allocation).
- It does not allow the University to terminate the agreement if the University “does not like” how the City is spending the money. Rather, it provides several mechanisms for ensuring that the payments are used consistently with the terms of the agreement. These terms do not interfere with the City Council or Mayor’s ability under the City Charter to control expenditures of monies collected and appropriated from the city’s General Fund.
- In addition to the annual payment, the University will continue to make annual contributions to the City’s Proposition 218 Stormwater and Street Light Fund, the Downtown Berkeley Association, and the Telegraph Improvement District. The annual payment does not eliminate or otherwise supersede ongoing fees for services paid to the City by the University.
- The agreement will bring the University into compliance with the City’s Parking Space Rental Tax provisions in a way that treats similarly situated entities (the University, the City, and BART) similarly.
- The agreement requires commercial tenants, in University owned properties, to obtain permits and pay city impact fees. Previously, the University had leased its property to commercial tenants engaged in non-program uses, and did not require commercial entities to get city approvals or pay taxes.
- The City and University will explore the possible relocation of the 8-unit building at 1921 Walnut Street. This is in addition to $920,000 in funding to the City’s Housing Trust Fund to address the potential demolition of the units, and any relocation benefits the campus may provide existing tenants.
- As a part of the People’s Park Project, the University will lease land for a 100+ bed Permanent Supportive Housing project on People’s Park to support the homeless population in the area.
- The campus will support a Homeless Drop-in Center for Telegraph District and surrounding neighborhood during the construction of the People’s Park Housing Project.
- UC Berkeley will continue funding a homeless outreach worker for Telegraph area, Willard Park and surrounding neighborhood.
- Funding Chancellor’s Grant beginning at $300,000 annually with 3% annual increases.
- The University commits to joint planning for a new fire station and donating land off the main UC campus for a new City fire station to serve both the City and campus communities.
- If campus undergraduate enrollment growth exceeds one percent per year on average over three consecutive years, then the City and UC will meet to discuss the potential physical impacts of enrollment increases on the City and whether any amendments should be made to the agreement to address the enrollment increase.
- The University was under no obligation to pay parking taxes “in arrears”. Any recovery of these fees would have required yet another lawsuit, costing the City more in litigation fees and delaying any updated annual payments.
- Honoring the City’s zoning standards in the design of off-campus projects.
- Creating a collaborative planning process for projects in the City Environs.
- Because of the importance to the City of maintaining properties on the City’s tax rolls, the University made a commitment that University-owned land will always be the first option explored by the University for both new program space and parking.
- A commitment to work with the City to explore ending the practice of master leasing of private housing.
- Establish a collaborative planning process for the City to review and comment upon campus capital projects located in the City environs and implementation of sustainable development standards prior to campus approval of such project.
- With regard to the Clark Kerr Campus, the terms of the MOU are not altered by the agreement. During the remaining term of the MOU, the University and the City will comply with the MOU by working cooperatively in planning and development of projects on the Clark Kerr Campus. There will also be collaboration about the potential expanded public access to recreational facilities and operational mitigations to address potential impacts on the surrounding neighborhood .
- Commitment to work with the City around the closure of Alta Bates Hospital and its emergency room in Berkeley, and identify alternatives to continue emergency and acute care for the University and city population.