Berkeley council postpones vote on Columbia workforce-housing PILOT application

The Berkeley City Council on Monday postponed consideration of a workforce housing payment-in-lieu-of-taxes (PILOT) application for the Columbia development, voting unanimously to move the item to the council’s Oct. 20 meeting.

City staff explained the delay was requested after council and the applicant discussed revised terms at two recent special work sessions. Van Vleck, a city staff member, told the council the pilot ordinance requires the application be considered at a regular meeting within 60 days of receipt but that updated terms discussed that evening warranted postponement so the revised application can be presented formally on Oct. 20. “As updated terms were discussed at the special work session just earlier tonight, it is recommended that city council postpone the vote on this item until the next council meeting on October 20 when the application and its updated terms will be presented,” Van Vleck said.

Nut graf: The Columbia application asks the city to use a state-authorized pilot mechanism to reduce property-tax-like charges for a mixed studio/one-bedroom rental project in order to make workforce housing financially feasible. Council members emphasized the need to review the revised financial terms and public benefits before taking the required formal vote.

Background: Van Vleck summarized the state framework the city is using. She said the State Housing Development Authority Act (1966) and later changes give municipalities a mechanism—modeled on older low-income housing pilots—to offer a payment-in-lieu-of-taxes for workforce housing. Staff said the state expansion in 2022 broadened tools for local workforce housing and that a pilot typically substitutes a set percentage of rental income (1–10%) for property taxes, usually for 15 years with optional extensions. Van Vleck said the Columbia application was received in August and that staff and the Columbia Group met the council in two special sessions to work the terms.

Council action and next steps: Council member Hennen moved to postpone consideration of motion M9425 to Oct. 20; Mayor Pro Tem Gavin supported the motion. The roll call was recorded as unanimous in favor and the motion passed. No formal decision on the substance of the Columbia application was made. The item will return to the Oct. 20 agenda with the applicant’s updated terms and any recommended conditions for council review.

Why it matters: PILOT agreements can change a project’s financial viability and affect the city’s future tax revenue; council members asked for time to review how the proposed payment schedule, income restrictions, and public benefits would balance those trade-offs.

Ending: Staff and the applicant will present the revised application at the Oct. 20 meeting as directed. No vote on the substantive terms occurred on Oct. 6.