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Buyer backs out of multi-million dollar Chanate Road deal with Sonoma County

Tyler Silvy, THE PRESS DEMOCRAT

The leading bidder for a 72-acre Santa Rosa site slated for affordable housing has pulled out of the process amid worries about prolonged delays from litigious neighbors and the two-step, county-city approval required to build up to 750 units on the former county hospital complex.

California Community Housing Agency, a public entity that taps into the municipal bond market to craft affordable housing projects across the state, told Sonoma County officials Tuesday afternoon it was dropping its bid to buy the Chanate Road property.

The news, confirmed by multiple county officials, comes a month after the agency and its partners were tapped as the leading bidders, with a complex proposal that promised the county a share of the equity in the project, as well as the option to acquire the property and re-sell it 15 years later while cashing in on market-value increases. It would have given the county a $5 million advance on the equity as well.

The developer’s exit delivers another blow to the county’s yearslong attempt to offload the sprawling former health care campus for redevelopment as housing. Both the withdrawn bid and a preceding proposal put forward under a controversial failed sale to a local developer two years ago stood to be the single largest housing project in Santa Rosa in a generation.

Read more at https://www.pressdemocrat.com/news/9902915-181/buyer-backs-out-of-multi-million

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Sonoma County housing construction fund formed by Silicon Valley trust, Santa Rosa chamber

Gary Quackenbush, NORTH BAY BUSINESS JOURNAL

Link to Strategic Sonoma Action Plan.

To accelerate the development of critically needed housing for workers in Sonoma County, the Santa Rosa Metro Chamber is teaming up with a Silicon Valley nonprofit to create a $10 million housing fund.

The Sonoma County Housing Fund, a partnership between the chamber and Housing Trust Silicon Valley, is designed to raise and leverage local funds to increase the supply of affordable housing in Sonoma County.

The chamber will work to secure and deploy local investments for the fund while Housing Trust Silicon Valley will underwrite, approve and administer loans for housing development. It is modeled on a similar collaboration between the Housing Trust and the Monterey Bay Economic Partnership, a group of public, private and civic entities in Monterey, San Benito and Santa Cruz counties.

Chamber CEO Peter Rumble stated it is reaching out to major employers to invest in the fund, as well as to foundations, private individuals, developers and others.

“If our kids are going to have a good education, we need to make sure our teachers can afford to live here,” said Rumble. “If our technology companies are going to thrive, we need to be able to recruit engineers. If we are going to be able to care for our aging population, our hospitals need to keep nurses and doctors living here. If our tourism industry is going to continue to be the envy of the world, we need to make sure there is a thriving workforce in our community. All of this comes back to creating housing throughout Sonoma County, and while the Sonoma County Housing Trust isn’t the single solution, it is an important step forward.”

The chamber will be responsible for endorsing projects for funding the Sonoma County trust, in consultation with the Employer Housing Council, composed of the 15 largest employers and educational institutions in the North Bay along with the North Coast Builders Exchange. Rumble is also co-chairman of the housing council along with Keith Woods, CEO of the builders exchange.

Under a memorandum of understanding it signed with the chamber in June, the role of Housing Trust Silicon Valley is to underwrite, approve and administer loans for infill projects in urban and priority development areas. To encourage local investment and spur more affordable projects, Housing Trust Silicon Valley will provide approximately $2 of matching money for every $1 dollar raised by the chamber for the fund.

Read more at https://www.northbaybusinessjournal.com/northbay/sonomacounty/9804595-181/housing-silicon-valley-santa-rosa-sonoma?ref=related

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Santa Rosa weighs options for downtown development through 2040

Will Schmitt, THE PRESS DEMOCRAT

More information is available online at plandowntownsr.com.

Santa Rosa’s downtown could add 7,000 new homes and more than 2,000 jobs housed in a collection of tall buildings over the next two decades while connecting Fourth Street through the Santa Rosa Plaza mall, according to three versions of a new plan to transform the heart of the largest city in Sonoma County.

The three proposed plan alternatives — dubbed “Vibrant Core,” “Village Centers” and “Transit Forward” — all would continue a current plan to eventually connect Fourth Street, which is divided by the downtown mall. The plans are going before the City Council and the Planning Commission at 10 a.m. Tuesday at Santa Rosa City Hall.

Santa Rosa’s current plan, adopted in 2007, envisions about 3,400 new homes downtown to be built over 20 years. Only 375 units have been built or approved, according to city data. Over the past few years, spurred by the October 2017 fires, Santa Rosa has ramped up efforts to entice new housing development, particularly near its two Sonoma-Marin Area Rail Transit stations.

All three new plan options are estimated to result in 7,000 new homes in the downtown area and between 2,000 and 4,000 new jobs, though the precise location of the new housing varies. Each would include some sort of connection through the mall property, though they differ on whether this proposed passage would be a full street or a route just for pedestrians and bicyclists.

The eventual downtown plan will likely combine elements of all three plans based on feedback from city officials, residents and others with interest in Santa Rosa’s future downtown, said Andrew Hill, a principal with Dyett & Bhatia, an Oakland-based consulting firm helping Santa Rosa cobble together a single vision by the end of the year.

“We’ll be letting people kick the tires on those various different alternatives to understand the pros and cons,” he said, noting that the idea of a connected Fourth Street through the mall property has been “resoundingly supported” by members of the public.

Read more at https://www.northbaybusinessjournal.com/northbay/sonomacounty/9804179-181/santa-rosa-downtown-housing-real-estate

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Santa Rosa gives final approval to 54-unit apartment complex for homeless and low-income residents

Will Schmitt, THE PRESS DEMOCRAT

More than 50 studio apartments for homeless people in Santa Rosa are awaiting a final piece of funding before workers break ground on the project at the southwest corner of College and Cleveland avenues.

Arcata-based developer, builder and property manager Danco Communities received approval last week from the city zoning administrator to proceed with construction, clearing the last government hurdle for the 54-unit development, which is set to rise on what is now a 1-acre gravel lot.

All of the units except one reserved for an apartment manager will be made available to low-income and formerly homeless people, about 1,800 of whom live in Santa Rosa, according to an annual count earlier this year overseen by the Sonoma County Community Development Commission.

The project is one of several that Danco Communities is pursuing in Northern California; a similar apartment complex in Eureka is set to open by Christmas Eve. The Santa Rosa project is backed by about $10.5 million from a state bond measure voters approved in November, said Chris Dart, the company’s president.

“The need has been there for years, but the funding hasn’t been there to back it up,” he said.

The project is the latest seeking to offer permanent shelter for homeless people in Santa Rosa. Last year, the city saw a former firehouse in the Junior College neighborhood converted into a seven-unit apartment complex for homeless veterans. The city is eyeing both the former Bennett Valley Senior Center and the Gold Coin Motel on Mendocino Avenue as future housing that could shelter more than 100 homeless people.

Read more at https://www.pressdemocrat.com/news/9760008-181/santa-rosa-gives-final-approval?sba=AAS

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Santa Rosa City Council to consider downtown height incentive plan

Will Carruthers, SONOMA COUNTY GAZETTE

This weekend, Santa Rosa celebrated its 150th birthday. But, despite its age, Sonoma County’s largest city has never really grown up.

At a September 10 meeting of the City Council’s Economic Development Subcommittee, city staff presented the conclusions of a forthcoming report on why the city lacks tall residential buildings downtown and unveiled a plan to encourage developers to build them.

The report, based on suggestions from the Council of Infill Developers, will suggest legislative tactics to encourage developers to build market rate and affordable housing projects on vacant and underutilized land within the city, a process known as infill development.

According to the report, the reasons for developers’ reluctance include:

–Market demand for tall buildings with less parking remains “unproven,” making developers wary of investing in Santa Rosa.

–A perception from developers that the city’s staff and politicians lack enthusiasm for taller buildings.

–Prohibitively high permitting fees discourage developers from building higher.

Read more at https://www.sonomacountygazette.com/sonoma-county-news/santa-rosa-city-council-to-consider-density-incentive-plan

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Op-Ed: Building boldly towards the future

Jake McKenzie and Teri Shore, THE PRESS DEMOCRAT

If we stay on track with city-centered growth and greenbelt protection, Sonoma County can usher in new era of thriving, affordable neighborhoods in cities and towns near jobs, schools and transit. If they stray, we could face a generation of scattered development on the urban edge and across the countryside that will cost us far more in public health, climate costs, congestion and loss of water and environmental quality, to say nothing of the natural beauty and the high quality of life that we love and enjoy in Sonoma County.

The tragic loss of homes in the October fires and the critical need for more affordable homes countywide is prompting a bold new look at how we revitalize our communities in Sonoma County. Greenbelt Alliance and our allies are looking forward, not backward, to meet the challenge of providing affordable homes to people who are vital to our communities and economy: teachers, doctors, restaurant cooks, winery and vineyard employees, young professionals and families and others. And we are convinced we can do this while ensuring the protection of our health and environment.

That is why we support investment in housing in our downtowns and existing neighborhoods to provide housing across the income spectrum while upholding environmental protections and longstanding growth policies. We reject recently published claims that we need to weaken environmental standards in order to recover and rebuild after last year’s fires.

To the contrary, our county has the chance to be on the cutting edge of creating a new generation of climate-friendly neighborhoods as we rebuild and invigorate new development.

Read more at https://www.pressdemocrat.com/opinion/8599327-181/close-to-home-building-boldly

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The fate of Chanate

Peter Byrne, NORTH BAY BOHEMIAN

Jeremy Nichols is a board member of the nonprofit Bird Rescue Center that serves Sonoma County, and he is troubled. The county is kicking the bird hospital out of its Quonset hut in the middle of 82 acres of public property known as Chanate.

Forested hills straddle Chanate Road as it winds through eastern Santa Rosa toward the ashes of Fountaingrove. The county has promised the land to William Gallaher, a local banker who develops senior living communities and single-family homes.

Gallaher’s partner in the deal, Komron Shahhosseini, is a planning commissioner for Sonoma County—a relationship which may pose a conflict of interest, according to a Haas School of Business ethics expert who reviewed details of the deal.

Hundreds of Santa Rosans, including Nichols, have mobilized to stop the sale, objecting to its terms at public meetings, in letters to the editor and in a lawsuit that went to trial in Superior Court last Friday in front of Judge René Auguste Chouteau. The trial took three hours, and the judge is expected to rule within 30 days on whether the development deal can go forward.

In early July, Nichols and two members of the activist group Friends of Chanate took me on a walking tour. Since the 1870s, the Chanate property has been the dumping ground for the county’s social and medical ills. It was originally the site of a work farm for low-income residents, then a public hospital complex. Now it’s ragged and falling down.

Read more at https://www.bohemian.com/northbay/the-fate-of-chanate/Content?oid=6621048

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Altamira project gets go-ahead

“Striving to better,” William Shakespeare warns in “King Lear,” “oft we mar what’s well.”

An undercurrent of that sentiment pervaded the Sonoma City Council meeting Jan. 29, when city officials denied an appeal of a controversial affordable housing proposal – paving the way for construction of a 48-unit low-income development at the south end of Broadway, and dashing the hopes of project critics who argued it was too big, too dense and too out of character with surrounding neighborhoods.

As skeptics reminded the crowd multiple times at the Monday meeting – it would be the densest housing development in the history of Sonoma.

As if, during a housing crisis, that’s necessarily a bad thing.

Opponents of the project urged the council to do its “due diligence” and order an environmental impact report on the proposal in order to better vet potential parking, traffic and noise implications — studies which city staff had already conducted, but whose conclusions were unsatisfactory to project opponents.

The council, while acknowledging the understandable concerns of the neighbors over a project of this size in their neck of the woods, made little haste in refuting the appeal and, in the words of Councilmember Gary Edwards, getting “shovels in the ground” on this small fraction of a much-needed infusion of affordable housing stock in the Valley.

Read more at http://www.sonomanews.com/opinion/7945368-181/jason-walsh-altamira-project-gets?sba=AAS

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Petaluma apartment project passes key hurdle

A proposal for a 184-unit rental apartment complex in the heart of Petaluma won the approval of the Petaluma Planning Commission Tuesday, a critical first step in moving the long-stalled project forward as the city faces a grim housing crisis.

After three years of seeking community input and altering plans based on feedback from citizens and city officials, representatives from Stockton-based A.G. Spanos Companies now face a yet-to-be-scheduled city council hearing for additional approvals, including granting access across a city-owned parcel for a road that’s part of the North River Apartment project at the intersection of Petaluma Boulevard North and Oak Street.
Read more at http://www.petaluma360.com/news/7912963-181/petaluma-apartment-project-passes-key

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Santa Rosa may boost housing densities in exchange for affordable units

Kevin McCallum, THE PRESS DEMOCRAT

6 p.m. to 7:30 p.m. Monday at the Finley Community Center Auditorium, 2060 W. College Ave, Santa Rosa

How much additional housing can — or should — your Santa Rosa neighborhood be asked to absorb?
The city is seeking feedback from the public Monday on its plan to dramatically increase housing densities throughout the city, especially downtown and near its two train stations.
The plan calls for increasing incentives known as density bonuses for developers that could allow up to 100 percent more housing units on a particular property than regular zoning would allow.
“This is an important tool in our tool chest to address the housing crisis,” said David Guhin, director of planning and economic development. “It’s not going to solve all of the issues, but it’s an important one.”
Currently, developers who build affordable units in their projects can be granted the right to build up to 35 percent more units than normal.
Read more at: Santa Rosa may boost housing densities in exchange for affordable units | The Press Democrat –