CP&DR News Briefs May 26, 2026: Refinery Redevelopment; Concord Naval Station; S.F. Affordable Housing; and More

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Developer Proposes 3.91 Million Square Feet for L.A. Area Oil Refinery

Catellus-Deca, LLC on behalf of Phillips 66, has filed an application to redevelop the century-old decommissioned Phillips 66 refinery site in the Los Angeles County city of Carson after months of speculation over what would become of the site. The original site spans across two facilities, one in Carson and the other in Wilmington, connected by a five-mile pipeline. The proposed project at the Carson site, called Diamond Gateway, would cover 223 acres with 3.91 million square feet of building floor area comprising industrial buildings and two on-site parking lots for truck, trailer or electric vehicle parking. Plans for the Wilmington portion called Five Points Union, are still in progress, and would feature retail, outdoor space, and indoor sports complexes. The proposal also suggests possible “community benefits (such as financial contributions toward city initiatives and projects that support infrastructure throughout the city).” The project must be approved by the Carson City Council. A larger portion of the 659-acre refinery is in the City of Los Angeles; proposals for that property have yet to be issued.

Concord Naval Air Station Takes Step Forward with $628 Million Proposal

The Concord Local Reuse Authority, the U.S. Navy, and developer Brookfield have reached an agreement to transfer about 2,422 acres of the former Concord Naval Weapons Station for redevelopment after years of stalled talks. The term sheet establishes a price and payment structure before final contracts are written to finalize sale of the base opened in 1942, which played a logistical role during World War II and subsequent conflicts before being closed in the early 2000s. At full build-out, the Navy will receive $628 million over 30 years. The move could give planners and officials a financial pathway and clarity for what could one of the largest land reuse projects in California. (See related CP&DR coverage.)

San Francisco to Vote on Measure to Expand City's Affordable Housing Fund

The San Francisco Board of Supervisors has proposed a charter agreement for the November 2026 ballot which would expand the city’s Housing Trust Fund contributions from $52 million a year to $125 million by allocating a portion of future property tax growth every year to support affordable housing production and preservation. The Housing Trust Fund, which was established in 2012 and is set to expire in 2043, was approved by voters to support creating, preserving and supporting existing affordable housing projects. Under this agreement, funding for the program would be extended through 2058. This amendment comes on the heels of a proposed ordinance which would cut the percentage of affordable housing units market rate developers are required to include from 15% to 5%.

Remote Workers Choosing to Leave, Avoid California on Net

The California Legislative Analyst’s Office studied the effects of remote work, which has remained significantly more common in California than it was before the COVID-19 pandemic. Roughly three times as many people work remotely when compared to 2019, and although remote work rates initially fell after pandemic restrictions eased, they have stabilized since 2023. While heavily remote jobs have increased 16 percent in the rest of the U.S., the number sits at just 7 percent in California. Since the pandemic, California has experienced a net loss of workers in heavily remote jobs, with fewer remote workers choosing to move to California--for a net loss of over 37,000 in 2021. That pattern holds for California's urban areas, which had a net inflow of remote workers pre-pandemic.  California has long benefitted from a range of location-specific industries which have changed in the face of increased remote work. Employers can now hire nationally, while workers are less tied to relocating to California for opportunities in key industries.

CP&DR Coverage: L.A. Invokes SB 79 Delay Tactic

Continuing its resistance to SB 79, the Los Angeles City Council voted March 29 to pursue an upzoning plan designed to delay implementation of the state law. But the council chose the least aggressive of three alternatives put forth by the Planning Department, and it remains unclear whether the plan will be met with the approval of the Department of Housing and Community Development. SB 79 hits Los Angeles hard because the city and L.A. Metro have expanded the rail transit system so rapidly. Approximately 150 transit stations in the city appear to qualify for SB 79 treatment, including some 17,000 parcels, most of which are zoned for single-family housing. The city is trying to delay SB 79 implementation, citing active ongoing efforts to upzone near transit stations, a plan which is technically an expansion of the Citywide Housing Incentive Program (CHIP).

Quick Hits & Updates

The UC Berkeley Terner Center for Housing Innovation developed the Terner Housing Policy Simulator to help policymakers evaluate how housing reforms may affect different local markets. Using data on zoning, land values, construction costs, and historical development trends, the tool estimates how likely developers are to build multifamily housing under various policies and economic conditions. The findings show that reforms that significantly boost housing production in one city may have limited impact in another.

The Sacramento City Council unanimously rejected appeals against a proposed six-story mixed-use apartment development in Sacramento, clearing the way for a 332-unit housing project with retail space and parking along Alhambra Boulevard. Opponents argued the project was too large for the neighborhood, while supporters argued that Sacramento urgently needs dense infill housing.

A citizen-led initiative in Grover Beach gathered enough signatures to appear on the November ballot, where voters would decide whether to lower local building height limits and require 33% of mixed-use developments be devoted to commercial space. The measure would reduce maximum heights from 55 feet to 40 feet for mixed-use buildings and from 40 feet to 33 feet in industrial zones, limiting many projects to three stories instead of four.

The Placer County Board of Supervisors approved a five-year extension of the North Lake Tahoe Economic Development Incentive Program, continuing incentives through 2031 to encourage redevelopment and new lodging projects in the Tahoe Basin. The incentive program includes three primary components aimed at funding Tourist Accommodation Units required for lodging units, transient occupancy tax rebates to offset hotel costs, and offsets for infrastructure costs.

California Forever is negotiating with Suisun City to buy several city-owned Main Street properties and nearby parking lots in downtown as part of a broader investment in the waterfront district. The company says it has no fixed redevelopment plans yet and is looking for community input on what to do with the acquired property. The purchases tie into California Forever’s larger proposal, which would annex 22,873 acres for new housing, industry, entertainment, and manufacturing developments. (See related CP&DR coverage.)

The  Strategic Growth Council unanimously approved guidelines for two grant programs, the Transformative Climate Communities Round 6 and Community Resilience Centers Round 2, opening up  $153.4 million in awards available for communities. TCC provides funding to communities directly impacted by pollution to create a roadmap for environmental repair through local community-driven projects, while CRC funds centers and resources for climate and other emergencies. Guidelines and pre-proposals are available on their website, with deadlines in June 2026.

The California Department of Housing and Community Development released a series of Housing Law Fact Sheets to assist local decision-makers and staff, elected officials, planning bodies, and other stakeholders in understanding and implementing key state laws that make it easier and faster to produce housing at all income levels across the state. The entire collection of Housing Law Fact Sheets is available on HCD’s Enforcement Authority webpage, and the individual fact sheets are linked under each of the listed laws. 

The San Diego Sports Arena site redevelopment project Midway Rising received support from California’s Department of Housing and Community Development, who confirmed the developers can use the state’s density bonus law to exceed the area’s long-standing 30-foot coastal height limit. That ruling strengthens plans for a massive mixed-use project featuring 4,254 total residential units, a 16,000-seat arena, 130,000 square feet of commercial space, 8.1 acres of parks, and 6.4 acres public space.

President Donald Trump promised a plan to house up to 6,000 veterans at the West Los Angeles Veterans Administration campus, but the U.S. Department of Veterans Affairs budget request includes no funding for new housing units. Instead, the proposal calls for about $500 million in infrastructure upgrades, parking expansion, and building repairs, raising doubts about how housing goals will be met. Veteran advocates say the plan could displace roughly 330 current residents in treatment programs without clear alternatives for where they would go during construction.