Concord, CA's High-Opportunity Housing Push Led by Kmart Site Redevelopment

Concord is moving forward with a state-mandated rezoning effort designed to open its highest-opportunity neighborhoods to new housing. The initiative—required under California’s Affirmatively Furthering Fair Housing (AFFH) law—directs cities to expand housing capacity in areas with the strongest economic, educational, and health outcomes. In Concord, that means adding zoning for higher-density multifamily housing in the city’s southeastern, higher-income neighborhoods, without forcing construction or displacing existing businesses.

Concord Targets High-Resource Neighborhoods for Housing Capacity Boost

Under the city’s 2023–2031 Housing Element, Concord must create zoning capacity for 1,000 new housing units across roughly 20 acres. The program applies an overlay district—a new optional zoning layer—allowing multifamily development at 20 to 60 units per acre while leaving current commercial or office uses fully intact.

Seven Sites Identified — with the Kmart Property as the Flagship Redevelopment Opportunity

In early 2025, Concord identified seven underutilized or aging properties that could support up to 2,412 units under the proposed rezoning. These locations represent the clearest long-term redevelopment opportunities:

1. Kmart Site – 5100 Clayton Road (471 units)

Flagship redevelopment opportunity.
A vacant big-box center with deep redevelopment potential—suitable for a large-scale multifamily or mixed-use project.

2. Clayton Faire – 5280–5358 Clayton Road (248 units)

Aging shopping center in a high-resource zone, well-positioned for incremental or phased residential infill.

3. Palm Lake Apartments Infill – 780 Oak Grove Road (480 additional units; 780 total)

Existing 300-unit complex with substantial expansion potential—one of the city’s highest-capacity multifamily infill opportunities.

4. Vacant Land – Kirker Pass Road & Myrtle Drive (60 units)

Unbuilt parcel offering straightforward development potential.

5. 1539 Kirker Pass Road (56 units)

Compact infill site within a high-resource corridor.

More Complex or Controversial Sites

6. Treat & Clayton Road — CVS/Staples/Auto/Burger King (617 units)

7. Dental Offices — Treat & Oak Grove (180 units)

Both face feasibility, location, or displacement challenges.

Regulatory Tailwinds Shift the Process

Concord initially began a CEQA Environmental Impact Report in February 2025, but the landscape shifted when the Legislature passed SB 131, exempting Housing Element–consistent rezonings from CEQA.

Still, Concord completed several analyses that shape development prospects:

• Fiscal Impact: Commercial-to-residential conversion is projected to bring a net negative fiscal impact due to higher policing and public works costs.

• Development Feasibility: High-density projects struggle financially, largely because structured parking drives costs; townhomes and garden-style apartments pencil out more easily.

• Transportation: The seven sites would generate ~9,748 daily trips, with several intersections requiring mitigations to maintain performance standards.

Staff Recommendation: Narrow the Focus to Three Priority Sites

By November 2025, staff proposed moving forward with a refined list:

Recommended for AFFH Overlay

• Kmart Site

• Clayton Faire

• Palm Lake Apartments

Not Recommended

• CVS/Staples area — Not in a high-resource zone.

• Dental Offices — Cultural/environmental challenges.

This approach emphasizes sites most aligned with state mandates while reducing business displacement and redevelopment friction.

Public Response: Support vs. Infrastructure Concerns

Housing advocates pushed for swift adoption, stressing the need for affordable homes in high-opportunity areas. Many residents, however, raised concerns about traffic, noise, and strain on local roads—particularly around Clayton Road, Ygnacio Valley Road, and the Palm Lake complex.

City officials reminded the public that failure to complete the rezoning risks Housing Element decertification, Builder’s Remedy exposure, loss of state grant funding, and potential legal action.

Bottom Line: A Playbook for Long-Term Redevelopment

Concord’s AFFH rezoning is less about immediate construction and more about creating future capacity in targeted, high-opportunity areas. The standout redevelopment prospects include:

• Kmart Site — the city’s premier repositioning opportunity

• Clayton Faire — an underperforming retail center ripe for reinvention

• Palm Lake Apartments — the city’s largest near-term infill site

Together, these locations form the backbone of Concord’s strategy to meet state housing obligations while shaping the next generation of mixed-use and multifamily development.