Superintendent Randy Banks and Board President Chris Burke asked the Soledad City Council on Aug. 6, 2025, to waive or substantially reduce City of Soledad development-impact fees for a 20‑unit teacher‑housing project the district is building on downtown land acquired in a prior sale.
The school district asked the council to waive approximately $485,740 in city impact fees (a figure the district referenced alongside a separate $436,000 figure included in earlier correspondence). Superintendent Banks said the project, budgeted at roughly $13–14 million and financed in part with Measure N bond proceeds and certificates of participation, is intended to provide workforce housing for district employees and to help revitalize an underused downtown property.
City Manager Megan Hunter reviewed the city’s analysis and recommended denying the waiver. Hunter said development-impact fees pay for capital improvements — roads, parks and other infrastructure — and that waiving the fees would produce a shortfall the city would need to absorb from general revenues, delay projects or reduce planned improvements. Hunter also warned a fee waiver could set a precedent other developers could expect. As an alternative, Hunter said the city has previously offered low‑interest development-impact loans to developers and presented two illustrative amortizations: a five‑year loan with an estimated monthly payment of about $8,500, or a 10‑year loan with an estimated monthly payment of about $4,500.
School leaders said the project is intended to support teacher recruitment and retention and noted the downtown site had stood vacant for decades. Board President Chris Burke said the district expected limited impacts on police, fire and parks because most units will house single teachers and staff subject to department-of-justice background checks.
Council discussion split. Several council members supported finding a path to assist the district while protecting city capital plans; some council members opposed waiving fees outright, saying the city has its own near-term budget constraints and obligations to other projects. The council asked district and city staff to provide a detailed pro forma of project revenues, debt service and operating costs and directed city staff to discuss a short-term loan structure with the district and return to council with specific terms if the district is interested.
No formal fee waiver was approved at the meeting. City staff will work with the district on financial details and present one or more concrete options to the council for final action.