Martinez Launches Developer Search for Landmark Train Depot, Cracks Down on Vacant Storefronts

The Martinez City Council spent last week's packed agenda advancing a coordinated revitalization push — soliciting developers for the city's long-vacant 1877 train station, establishing a new fee to punish prolonged commercial vacancies, and adopting mid-year budget amendments that reveal tightening revenues beneath an otherwise on-track strategic plan.

• Council authorizes developer search for the old train depot, vacant since 2001, with the city funding interior remediation to sweeten the deal

• New $1,075 annual fee on vacant commercial properties takes effect July 1, with some owners already pulling permits in anticipation

• Mid-year budget amendments adopted as sales tax and cannabis revenues decline for the third straight year; city manager's contingency fund reduced to just $7,100

• Surplus Lafayette Street lot sold for $69,788, with proceeds directed to the affordable housing fund

• Tenant anti-harassment protections ordinance delayed to April 15

After 25 Years, the Train Depot Gets Its Shot

The Martinez City Council unanimously authorized release of a Request for Qualifications and Proposals to find a developer willing to rehabilitate the old train depot at 401 Marina Vista Avenue — a 0.95-acre site anchored by the original 1877 train station that has sat vacant since the Amtrak station opened in 2001.

Why it matters: The depot sits at the physical crossroads between downtown's shopping corridor along Escobar and Main streets to the west and the county government center and community college offices to the east. Its rehabilitation is viewed as a linchpin connecting those economic engines — and a proving ground for whether Martinez can attract private investment to its most visible vacant landmarks.

Where things stand: Consultant Alex Greenwood walked the council through the constraints: the building is roughly 5,200 square feet, and only about 10,000 square feet of the site is available for above-grade construction due to railroad tracks, subsurface conditions, and easements. The city completed a Surplus Land Act process, obtained a historic resource evaluation confirming the building is not classified as historic by the state, and is now funding interior remediation — removing non-load-bearing walls — to lower barriers for prospective developers.

"Figure if it's 5,200 square feet, maybe they're making $100,000 per year in rent and it's going to be millions of dollars for the rehabilitation. So it's going to take a very special type of developer," said Alex Greenwood, consultant/planner.

The RFQP format was deliberately streamlined — just a three-page cover letter, qualifications statement, and two-page project concept — to attract a broader pool. The city plans to showcase the opportunity at the ICSC Conference in Monterey on March 24-25, with submissions due at the end of April, interviews in May through July, and a potential exclusive negotiating agreement of 12-18 months.

Vice Mayor Satinder Malhi emphasized the city's financial commitment to the project: "I think it is important for us to underscore the fact that we are picking up the cost of the remediation for the inside, which is no small feat."

Mayor Brianne Zorn pressed for prioritizing developers who will move quickly: "One of the most important things here is their timeline for actually doing the project. We have passed along properties and entrusted them with different groups of people in the past and things are still sitting vacant."

The other side: Public commenter Tom raised a practical concern — whether the depot's parking lot might be needed for a future vehicular overpass to the planned marina and waterfront development. Economic Development Director Jill Bergman noted that engineering studies for secondary waterfront access have not yet determined whether this site would be affected, and Greenwood pointed out that the parallel timelines of both projects would allow resolution before any final commitments. Public commenter Dick Duncan pitched a different vision entirely, advocating for a hands-on youth learning center and permanent display of the Joltin' Joe Chris Craft boat in partnership with the Boys and Girls Club.

Decisions: The council voted 5-0 to authorize the RFQP. The ad hoc committee of Vice Mayor Malhi and Councilmember Greg Young recommended adding language excluding sensitive uses and referencing the marina revitalization project.

What's next: Developer outreach runs through March and April. Submissions are due by end of April, with interviews planned for May through July.

The Status Quo Is Over: $1,075 Fee Targets Vacant Storefronts

After what the council described as over a decade of discussion, Martinez now has a financial enforcement tool to combat prolonged commercial vacancies. The council unanimously adopted a $1,075 annual registration fee for vacant commercial properties, effective July 1, 2026.

The basics: Under Ordinance 1478, adopted in October 2025, commercial property owners must register vacant structures after 90 days of vacancy. Properties deemed "ready for occupancy" — code-compliant, suitable for immediate use, actively marketed, and with operational utilities — are exempt. The $1,075 fee is based on an estimated 5.5 hours of annual staff time per property at $175 per hour, falling in the middle of comparable city fees that range from $500 to $3,000.

Why it matters: Downtown Martinez has struggled with persistently vacant storefronts that contribute to a perception of blight. The fee gives the city its first real financial lever against owners who leave properties empty indefinitely with no effort to attract tenants.

Where things stand: Staff will begin with the downtown specific plan area as a pilot. The process starts with a general notification mailed to all commercial property owners, followed by windshield surveys and cross-referencing with CoStar commercial real estate listings to identify apparently vacant properties. Staff then works individually with each owner to determine whether they meet the vacancy criteria. Mayor Zorn confirmed the fee is not assessed until an owner is unable to demonstrate tenant-readiness.

Vice Mayor Malhi did not mince words, expressing frustration with historically unresponsive commercial property owners: "We are moving forward as a community and I want to make sure that you have all the requisite tools in your toolbox to ensure compliance, and if you don't, come to us, tell us what you need."

Staff reported the program is already having an effect. Michael Cass, the staff member presenting the item, confirmed that some property owners have begun pulling permits and preparing spaces for tenants in anticipation of the fee.

The city attorney confirmed Councilmember Debbie McKillop had no conflict of interest despite owning commercial property, as the fee applies to all commercial property owners equally. Public commenter Kristen Henderson suggested that an accurate historic resources inventory, which she said has been neglected for 40 years, would help the program by providing options under the California Historic Building Code.

Decisions: Passed 5-0 by voice vote.

What's next: The fee takes effect July 1, 2026. Proactive enforcement begins in the downtown specific plan area.

Budget Tightens as Sales Tax and Cannabis Revenues Slide

The council adopted mid-year amendments to the FY 2025-2026 operating and capital improvement budgets, a vote that carried unanimously but surfaced persistent concerns about structural revenue declines.

Why it matters: General fund revenues are projected at $37.7 million against expenditures of $38.5 million. A net revenue increase of $251,000 is driven almost entirely by stronger-than-expected building permit and plan review activity ($275,000 increase), which is masking a $232,000 decline in sales tax and a $156,000 drop in cannabis tax revenue. Property tax growth held steady at 2.2%.

Where things stand: Assistant City Manager Lauren Sugayan characterized the sales tax slide as systemic: "This has been an issue for at least two to three years now. It is definitely not a Martinez issue. This is much broader. It's a statewide issue. What can we do to control it? Very little." Cannabis revenue, once expected to be a significant revenue source statewide, has similarly underperformed. The city uses third-party consultant HDL for quarterly economic projections and has adopted increasingly conservative assumptions in its 5-and-10-year financial model.

The city manager's contingency fund of $188,000 is nearly exhausted — $109,000 already spent on legal fees, communication contracts, risk management, the park master plan transfer, and July 4th permit fees, plus $102,500 in additional mid-year requests — leaving just $7,100 for the remainder of the fiscal year.

Lauren noted staff has reduced reliance on outside consultants: "We cut by well over $1 million in a matter of three years."

Vice Mayor Malhi praised the city's restraint in not over-relying on cannabis revenue as some other cities did, but raised alarm about broader economic headwinds, referencing international events in the preceding days and upcoming revenue-raising ballot measures from BART and the county that could affect local voter appetite for future city measures.

Key capital improvement amendments include $307,000 for emergency water system repairs, $200,000 returned from a cancelled waterfront stage project to the cultural facilities fund, and $150,000 in Measure D pavement design accelerated from the next fiscal year.

Decisions: Passed 5-0 by voice vote.

What's next: Staff returns in April to begin FY 2026-2027 budget planning, starting from a projected deficit.

Surplus Lot Sold, Proceeds Flow to Affordable Housing

Associate Planner Brandon Northart presented the sale of a city-owned vacant lot at 0 Lafayette Street — one of six sites declared surplus for housing element compliance in May 2025. The 8,200-square-foot parcel, zoned for single-family use, received one letter of interest from Kathleen Cox, who already owns three adjacent lots.

An appraisal set fair market value at $68,888, plus $900 for the condition of title guarantee, totaling $69,788. The $68,888 goes to the affordable housing fund; the $900 goes to the general fund. A deed restriction requires that if seven or more units are ever developed on the combined site, 15% must be deed-restricted affordable housing — a threshold reduced from the Surplus Land Act's standard of 10 units at the applicant's agreement. Design review is also required for any future development.

Kathleen Cox thanked the council and praised staff for transparency throughout the process.

Decisions: Passed 5-0 by voice vote. This is the first of six housing element surplus sites to complete the disposition process.

Chamber and Downtown Martinez Show Progress on City-Funded Programs

The Martinez Chamber of Commerce and Downtown Martinez & Co each delivered mid-year progress reports on their city-funded programs for FY 2025-2026.

Chamber Executive Director Aaron Alencastre reported the organization surveyed 1,070 business license holders, achieving an 8% response rate — above the 5-6% industry standard cited by the Small Business Development Center at CSU East Bay. That SBDC partnership is bringing four workshops and 20 hours of one-on-one counseling to Martinez between April and July, with $500 grants for the first 20 businesses completing the series.

"One of my main goals when I took this position was to find a way to close that gap between what I consider inner and outer Martinez," said Alencastre.

Mayor Zorn praised the SBDC partnership, calling it "really exciting to bring something here that benefits the businesses with no cost to them."

Downtown Martinez & Co-Executive Director Sarah Baird presented her organization's first full-year strategic plan, including a Vibe Map interactive directory, connected TV advertising across streaming platforms, new business welcome kits featuring local products, and a Main Street committee approach inviting community members to join working groups.

Vice Mayor Malhi praised both organizations for expanding outreach beyond the downtown corridor, noting that residents in District 3 sometimes feel more connected to neighboring cities than to Martinez's core.

Minor Items

• Consent calendar (items 3-13) approved 5-0, including the completed fire hydrant maintenance project; the tenant anti-harassment protections ordinance (item 13) was continued to April 15.

• Councilmember McKillop requested a future agenda item on fire safety and evacuation awareness, asking that ConFire, the police department, and CERT be invited to present. Mayor Zorn noted a desktop evacuation rehearsal is being planned and asked that council be included early.

• $88,000 in IT internal service fund increases approved for new budget planning software ($75,000 to replace ClearGov) and GASB 87/92 compliance tracking ($13,000).

• $307,000 in water system emergency repairs authorized for the Alhambra Valley Road transmission main and Pine/Susanna intersection.

• $150,000 in Measure D pavement design accelerated from FY 2026-2027 to the current year.

• Strategic plan update: All goals reported on track except a slight delay on the equipment and vehicle replacement master plan. Highlights included housing element certification, a new Ross storefront, the Throne Labs public restroom, 150 trees planted for the sesquicentennial, and an internal professional development academy for city managers and executives.

• Chief White confirmed that the Alhambra Avenue radar speed survey remains valid in response to constituent complaints about speeding.