The city of Oakley has agreed to sell a prime downtown city parcel to a contractor who wants to develop retail and housing there.
The council on Tuesday approved the sale to R&R Pacific Construction. Earlier this spring, the nearly one-acre plot, located along the right-of-way adjacent to Oakley Plaza, was declared surplus land and offered up for qualified affordable housing but no developer responded, City Manager Josh McMurray said.
The land, part of a larger parcel north of Main Street under development for a train station and parking, was then offered for sale and R&R Pacific expressed interest. The Woodland company is also developing a nearby Mercantile Shopping Center on Main Street.
“It was originally planned for additional parking, but we saw a development opportunity here,” McMurray said.
The company’s proposal includes a mix of mixed-use commercial and retail on the lower level and residential housing on the upper level. Because of the housing component, the developer will have to make at least 15% of it for lower-income families to comply with Surplus Land Act requirements, City Manager Josh McMurray said.
In his report, McMurray said R&R Pacific’s conceptual plans for the 40,000-square-foot site “dovetail smoothly” with the city’s downtown plan and development goals. And though the offer came in at $98,500 and was appraised for $337,000, the city manager said there is a significant amount of site improvements needed.
“This is not a shovel-ready site,” he said, noting the applicant estimated it would cost $200,000 to bring the necessary infrastructure on-site.
McMurray added that economic growth has been a primary focus for the city and this project would allow for that.
“We’re trying to use all the tools at our disposal, but we really don’t have many since redevelopment is no longer a thing,” he said. “And we don’t have those incentives that we once had many years ago. So when a city has an opportunity to dispose of property, discounting the land can be an economic development incentive.”
But Councilman Fuller disagreed, saying the council should wait until the downtown specific plan is updated, giving residents a say about what they want to see downtown.
“I’m very concerned,” he said, noting it had been years since it had been updated.
“We may like it (the proposal), but the city residents – especially the new residents – haven’t had an opportunity to speak on their downtown specific plan and what they want to see in downtown.”
While McMurray said the property deal could be delayed, the downtown specific plan likely wouldn’t be updated until next year.
“The reality is we have momentum in our downtown right now,” the city manager said. “We have a lot of things going on. We’re investing a significant amount of money in city resources downtown right now … And, we have a proposal from a developer who not only has the experience, but they’ve shown that they can actually produce what they say they want to do.”
Councilmember Shannon Shaw supported the sale, noting that since the company was already doing construction nearby it might benefit them to seal the deal now.
Vice Mayor Anissa Williams also supported the sale.
“I am a big proponent of mixed-use (projects),” she said. “I love it in the downtown. I think that’s exactly what we need. I would like to keep the momentum going. Also, they’re doing beautiful work at The Mercantile (shopping center) and I think the economic development that will come from that and the different unique businesses are going to make a huge difference.”
McMurray also pointed out that though the sale was tied to R&R Construction receiving the entitlements and building permits, the actual project would still have to reviewed by the planning commission and approved by the council.
Even so, Fuller moved to table the item until the downtown specific plan is completed but the motion failed due to a lack of a second.
Mayor Aaron Meadows, meanwhile, also supported the sale as he thought the project was good for the city.
Shaw moved for approval, and the measure passed, with Fuller the sole dissenter.