HERCULES — Tons of of further flats had been deliberate to fill out the Hercules Bayfront, however a change in market situations has led the mission developer to slash its proposal.
Ledcor Improvement, a Southern California agency, had beforehand deliberate to construct 476 flats on almost 4.5 acres of land divided throughout three parcels simply off the San Pablo Bay.
The proposal was half of a bigger three-part growth effort dubbed the Hercules Bayfront Group. Ledcor has already seen the completion of two different house tasks — The Trade and The Dylan — that introduced 403 items to the town.
Whereas the corporate was unable to acquire financing for the unique model of the proposal, a brand new iteration accepted by council members at their Sept. 9 assembly, now requires 168 for-sale properties, 141 multi-family townhomes and 27 live-work items on 5 parcels masking about 7 acres of land.
“It’s been a journey on this project,” mentioned Jason Silver, Ledcor’s vice chairman of growth, throughout the council assembly. “I’m still very proud of it. Unfortunately, economic times have changed,”
As a part of the Transit Village Neighborhood, the Hercules Bayfront Group was meant to be a high-density neighborhood that might help the town’s future transit hub, a prepare, bus and ferry station that has been within the works for many years.
However market-rate growth has slowed just lately as rates of interest stay excessive, rents stagnate and the business braces for the already rising prices of constructing supplies to be compounded by President Donald Trump’s tariffs.
Ledcor Senior Vice President John Santry mentioned the agency, which makes a speciality of house, apartment, mixed-use and resort growth, will probably search to promote the mission to a nationwide residence builder starting in January 2026, when rates of interest could also be decrease, Santry mentioned. Building is then anticipated to start that summer season.
“The market is significantly soft after a really surprising lack of sales in the spring selling season into the summer,” Santry mentioned. “The hope is that next summer you’ll see dirt starting to move and construction underway.”
As soon as constructed, the location will embody 10 items designated as inexpensive housing for individuals not making greater than 60% of the world median earnings, bringing the whole variety of inexpensive items locally growth to 25. The unique plan would have included 30 inexpensive properties.
In Contra Costa County, space median earnings is about $159,800 for a household of 4, in line with the 2025 State Revenue Limits launched by California’s Housing and Group Improvement Division.
Hercules additionally has a purpose of including 995 new properties to the town by 2031 as a part of its Regional Housing Wants Evaluation, a state mandated course of requiring jurisdictions to plan for extra residence growth. Greater than half of these new properties would should be listed at inexpensive charges for the town to satisfy its purpose.
Whereas some councilmembers shared disappointment within the lack of density, they finally accepted the brand new proposal.
The up to date proposal abides by all zoning, common plan and goal design requirements, which means the council may solely deny the mission if it posed a transparent and documented threat to public well being or security, in accordance with Senate Invoice 330.
“It’s unfortunate we’re losing that density downtown,” Mayor Dion Bailey mentioned. “But the positive thing is I think parking would be more than we can handle if we had eight-story buildings.”
Initially Printed: September 17, 2025 at 4:30 AM PDT
