The City Commission on Oct. 21 approved a resolution allowing the developer of Atlantic Grove to pay a one‑time $160,000 fee instead of providing an on‑site workforce housing unit required by the city’s land-development regulations.

Developer Tim Hernandez told the commission the Atlantic Grove project had previously reserved several units at below‑market prices in earlier phases, but current market conditions — higher mortgage rates, rising construction costs and higher homeowners‑association fees — have made it impractical to sell a qualifying unit at the regulatory income threshold. "We tried for three years to sell that," Hernandez said, describing repeated attempts to find a buyer who qualified under the workforce program.

Anthea Gianniotis, development services director, said the code in that corridor allows a developer to provide an on‑site unit, build off‑site, or pay the buyout fee. The developer asked the commission to accept the $160,000 payment so he could sell the remaining unit at market rates; the resolution directs the city manager to accept the fee and release the workforce‑housing covenant on the specified lot.

Why it matters: The action allows the project to move forward and places funds into the city’s workforce-housing account rather than adding an on‑site restricted unit. Commissioners who voted in favor said the developer had made reasonable efforts and that the payment will support housing programs administered by the city or partner nonprofits.

Ending: The commission approved the one‑time payment unanimously; staff said half the proceeds will be distributed to local nonprofit partners as specified in the city’s housing program framework.