Interim Office of Affordable Housing Director Johanna Nelson told the governing body on Aug. 13 that the city is seeking to donate Tract 6A in Las Estrellas to a selected development partner to deliver permanently income‑restricted housing. The city acquired the Las Estrellas property in 2019 and the governing body adopted a January 2023 resolution directing staff to pursue sale or donation of Tract 6A for affordable housing, Nelson said.

Nelson said the city ran a public RFQ; two proposals were received and a proposer was selected. The draft donation agreement negotiated with the selected respondent would require a minimum of 40% of homes to be income‑restricted for low‑ to moderate‑income households and a 45‑year affordability restriction, Nelson said. She described the current process as two phases: (1) disposition consideration — whether to approve the donation agreement — and (2) development planning and land‑use approvals if the donation proceeds.

Heather Lamboy, identified in the presentation as the city planning director, outlined the land‑use steps that would follow any donation approval, including an early neighborhood notification meeting, a complete application and technical review by the development review team, and Planning Commission public hearings. “There has been no development application that has been submitted at this point,” Lamboy said, emphasizing that development approvals are a separate, later process.

Lisa Uvall, chief government affairs officer for HomeWise, described HomeWise’s mixed‑income, for‑sale model and said the developer expects a roughly 58‑unit outcome on the tract based on topography analysis. She said HomeWise’s prior Miraflores and Desert Sage projects delivered 40% affordability and that developer profit from market‑rate units subsidizes the affordable units. “The profit from the market rate homes is how we have subsidized the affordable homes,” Uvall said.

Councilors pressed staff and the developer on water, infrastructure, community engagement and local contracting. Lamboy reiterated that water rights requirements differ for affordable and market‑rate units: according to Lamboy, the city offers a water incentive for the affordable units while market‑rate units must demonstrate water rights. Nelson and HomeWise said the donation agreement would include milestones and deed restrictions to return the land to the city if the developer fails to meet performance requirements. Councilor Lee Garcia and others asked that final consideration include a public hearing and committee review; a formal vote on the donation had not been taken on Aug. 13.

The city posted an 18‑page compilation of community questions and answers from the July 16 community meeting; Nelson invited additional public comments and noted a housing community meetup scheduled for Sept. 16. Nelson and Lamboy said that if the governing body approves a donation, the responder would enter the development planning phase, trigger full planning review, and that multiple public input opportunities would be required before any construction permits are issued.

Why this matters: Tract 6A is city‑owned land long identified for housing in Las Estrellas master planning documents. The governing body is being asked to decide whether to approve a disposition agreement that would transfer the property under affordability and deed restrictions; if approved, detailed development approvals and environmental, water and infrastructure reviews would follow.

What’s next: The disposition/donation agreement may come to council committees and to the governing body for formal action. If the donation is approved, HomeWise said it would proceed to detailed site design, public engagement, and planning review; the city said it would enforce deed restrictions and milestones included in the donation agreement.