MAC Meeting: Marketplace, Bowling Alley, Rudy’s Donuts Site

The popular Castro Valley Marketplace received an extension on its current permit, the bowling alley got approval for an extensive renovation, and the future of the Rudy’s donut site was discussed at this week’s meeting of the Castro Valley Municipal Advisory Council (MAC).

The MAC unanimously approved a revised conditional use permit for the continued operation of the Castro Valley Marketplace at 3295 Castro Valley Boulevard, including sales of alcoholic beverages. The MAC heard the matter as a routine five-year update on the original permit, but the current controversy about the paseo and outdoor dining at the site was not discussed.

County staff said the ongoing ligation about the paseo and shared parking were not part of the permit review and that an update on that lawsuit would happen in the future.

The current review was regarding maintenance of the building and how their liquor license has been going and the MAC gave the owners the thumbs-up to continue as-is.

Speaker and Castro Valley Chamber of Commerce President & CEO Gary Slate told the MAC that the Marketplace was a major asset to the community

“They’ve been good Chamber members,” said Slate. “They are good to work with for events and we’ve had a ton of positive feedback from the community.”

However, when the initial permit was issued, a crosswalk for easier pedestrian access to the Marketplace was in the plans. That never materialized in the subsequent five years and the MAC wanted to know why. The marketplace owners said that the county did not really seem enthusiastic about the crosswalk and it kind of just fell by the wayside. The MAC instructed the owners and county to address the crosswalk or at least some other pedestrian-friendly options before bringing the matter back before the MAC for a follow-up discussion in June 2025.

The MAC also gave unanimous approval for plans to allow an exterior renovation of the existing Castro Village Bowl building in the Village. There will be a new outdoor dining and the construction of a new commercial building as well as the demolition of two current buildings.

The bowling alley has been in business since 1959 and the owners have proposed a retro vibe for the remodeled façade. Following this week’s approval, the county anticipates it will take six months to a year to pull permits, then another 12 to 18 months for construction.

Two tenants are currently in the building that will be demolished, but they will be offered alternative locations in the Village, though one has indicated that they will leave.

MAC Chair Chuck Moore thanks the owners for being willing to take on major improvements to a landmark in town.

“Thank you for presenting upgrades to the center,” said Moore. “It would be wonderful to see more applications like this.”

Finally, the MAC was not so positive about a proposal to turn the current Rudy’s donuts site at 3692 Castro Valley Boulevard into a Kids Konnect Infant Care and Preschool.

The location has been home to Rudy’s Donuts for more than 60 years, but the owners have announced plans to retire and the beloved shop will close for good just before Christmas.

Property owner Dr. Jennifer Yang previously attempted to get approval to put her own dental practice in the spot but she withdrew that application after community feedback overwhelmingly demanded a café, donut spot, or similar use for the space.’ Said yang. 

“I am acutely aware how important this place is to the community,

Yang returned with the proposal for the day for up to 55 kids, but once again the MAC rebuffed her, saying retail or even mixed-use retail/ housing use was more appropriate for the location in the business corridor.

Everyone acknowledged that affordable childcare is necessary, but they simply don’t like it in a busy thoroughfare right off the Boulevard. Other concerns were the lack of parking and defined pick-up and drop-off areas for the kids, as well as space and noise issues.

“This isn’t a NIMBY (Not in My Backyard) thing, this is a ‘not in this location’ thing,” said MAC Vice-Chair Bill Mulgrew. The need is there, I just have a hard time with that location.”

Yang can resubmit another proposal for her property or go around the MAC to appeal to the Board of Supervisors to approve her current proposal.

Note: The upcoming MAC Land Use scheduled for Monday, December 23 is likely to be cancelled due to lack of agenda items.