Committee approves donation of Las Estrellas Tract 6A to HomeWise amid neighborhood concerns

The Public Works and Utilities Committee voted Monday to approve a donation agreement transferring Las Estrellas Tract 6A to HomeWise for development as affordable housing.

Committee members and staff said the vote transfers the property but does not approve any development plan; HomeWise must secure land entitlements, planning approvals and demonstrate funding before building.

The decision matters because residents pressed the committee with repeated concerns that the tract’s arroyos, shifting soils and drainage make it unsuitable for high-density housing and could create long-term costs and risks for future homeowners. Committee members and staff said the donation agreement contains performance deadlines and that HomeWise will need to complete technical due diligence before any construction could begin.

More than a half-dozen residents and neighborhood representatives spoke against donating the site without further analysis and community review. "We support affordable housing, but because Tract 6A is simply ill suited for high density development," said Bunny Hall, a resident, arguing the site’s drainage and soil conditions could threaten future homeowners. Kevin Pazine, president of the Santa Fe Estates Neighborhood Association, said HomeWise’s experience is “limited” to flatter urban sites and urged the city to consider single-unit worker housing or other sites in the Northwest Quadrant.

City staff summarized technical work done to date. "Wilson and Company ... determined that a total of 86 dwelling units could actually be supported on the property," said Terry Lease, the city’s asset development manager, citing a Wilson and Company feasibility study dated 12/01/2023 that estimated roughly 19 acres in the tract with 12.33 acres available for development. Lease said the study reviewed roads, dry utilities, wastewater, water, drainage and design guidelines but did not include core soil samples, and that core sampling and detailed soils work would be part of HomeWise’s due diligence.

Lease described the donation agreement’s protections: HomeWise will have five years to develop the property, must obtain planning commission and other city approvals and demonstrate proof of funds; if HomeWise does not meet the agreement’s requirements the deed includes provisions allowing the city to reclaim the property. Councilor Michael Garcia, a sponsor of the original resolution designating the site for affordable housing, said the tract’s size and relative separation from existing homes were factors in its selection and that staff walked and analyzed multiple parcels before recommending 6A.

Several council members and staff noted that the resolution before the committee only transfers the land and that formal development review — including additional community engagement and planning commission hearings — would occur later if HomeWise proceeds. Councilor Castro said she preferred city ownership of land for affordable housing when possible but supported this donation as a pragmatic compromise because the city currently lacks capacity to build, manage and maintain a large housing development.

A motion to postpone the item until the committee’s Sept. 29 meeting failed on a 3–2 roll call (Romero Wirth: No; Michael Garcia: Yes; Lee Garcia: No; Castro: Yes; Chair Chavez: No). The committee then voted to approve the donation agreement by roll call: Councilor Castro: No; Councilor Lee Garcia: Yes; Councilor Michael Garcia: Yes; Councilor Romero Wirth: Yes; Chair Chavez: Yes. The motion passed 4–1.

Next steps: staff said the item is scheduled to continue through the committee process (Quality of Life Committee and Finance Committee) before the governing body considers final action; staff and councilors said additional community meetings and more detailed feasibility and soils work will occur if HomeWise takes control of the parcel. The donation itself does not authorize construction, zoning changes or site work.