Construction of a new five-story parking garage at the MacArthur BART station could begin as early as 2011 as part of a plan to revitalize the area in the coming years with new housing and retail.

The entire MacArthur BART transit village will include 624 new residential units, as well as 42,500 square feet of retail, in addition to the 400-space parking structure, which will provide parking for BART riders. All of the buildings will be between five and six stories and will contain retail on the ground floor.

The project is expected to be built in phases over 13 years on what is now a sprawling surface parking lot at the station, located between West MacArthur Boulevard, Telegraph Avenue, 40th Street and Highway 24.

In July 2008, the City Council approved the entitlements and environmental impact report for the project. On July 10, the City Council is scheduled to consider approving the design of the parking structure, as well as the project’s infrastructure, which includes two new streets within the development.

“This time next year, the plan will be underway,” said Art May, the project manager. “The garage will be under construction, the streets will be under construction, there will be a lot of work on the project.”

May made his comments at a meeting April 21 to update the local neighborhoods on the project. About 24 residents attended and expressed concerns about the lighting and design of the parking garage; where the retail will be located; and how the garage, which will abut West MacArthur Boulevard and Highway 24, will be designed.

It was the latest move in a development process that dates back to 1993, when the MacArthur BART Citizens Planning Committee was created. The city has been working with developer MacArthur Transit Community Partners, LLC, since 2004.

Last year, an agreement between the city’s redevelopment agency and the developer committed $34 million in tax money for the project. Some $16.4 million of the money was taken from a low- and moderate-housing fund, and the redevelopment agency has required that 20 percent of the units be made affordable for renters.

Following the meeting, resident Walter Miles said he wanted to see as much density in the project as possible, in order for Oakland to capitalize on the environmental and social advantages of people living near transit. Over the years, there have been ideas to build up to 24 stories, he said, but the cooling housing market necessitated a more modest scale.

“I’m pleased that we’re able to get five or six stories,” said Miles, chair of the MacArthur BART Citizens Committee.

The $300 million project is slated to break ground next year and will be built in phases over 13 years. The construction of the BART parking garage and infrastructure in 2011 and 2012 will be followed by the construction of at least 90 affordable units and then construction of market-rate units and retail by 2016.

The Sleepy Hollow and Rio motels at West MacArthur near Highway 24 will be razed as part of the development to make room for the parking garage.

The purchase of additional commercial properties along Telegraph Avenue near 40th Street will be required for the final phase of development to move forward, said Deborah Castles, the vice president of development and asset management for McGrath Properties. 

Real estate investment company McGrath Properties and the affordable housing developers BRIDGE Housing Corporation are the partners that make up MacArthur Transit Community Partners, LLC. The BRIDGE Housing Corporation will own the affordable units.

The remainder of the units will likely be condominiums but may end up as rental units, depending on the market, May said. The timing of the construction of those units will also depend in part on market forces.

“It could go faster, it all depends on demand,” May said. “In this market it will go slower; everyone expects the market to improve.”

IN A NUTSHELL

The MacArthur BART transit village will create a vibrant mix of housing and retail and will also provide the following amenities for commuters and neighbors:

• Renovation of the existing BART plaza, including a covered waiting area for shuttle patrons
• A new public plaza across from the existing BART plaza
• Some $150,000 in funding for the implementation of a residential permit parking program near the station
• Commitment to work with BART to locate a high-capacity bike storage facility for BART patrons