Commission recommends approval of 352-unit affordable housing project at 2811 Grady Street despite staff concerns over industrial land-use designation

Planning staff recommended denial of a proposed 352-unit multifamily development at 2811 Grady Street, citing the Richmond 300 master plan’s industrial land-use designation for the parcel. After extended discussion and developer and council-office testimony, the Planning Commission voted to forward the project to City Council with a recommendation for approval.

Staff described the 23-acre parcel as largely zoned M-2 heavy industrial and as designated “industrial” in Richmond 300; staff concluded the proposed residential use would remove land reserved for industrial activity that the city needs for jobs and a diversified economy. Staff also noted significant site constraints, including a creek and topography, and said that, if the site were in a different future-land-use category, staff would be prepared to recommend approval provided negotiated site improvements.

The applicant (Elmington, represented at the meeting) and supporters argued that the project would deliver deeply affordable housing — units targeted at households at 60% of area median income (AMI) — and that the design incorporates public-realm features that further Richmond 300 goals: re-establishing a street grid, pedestrian connections to adjacent neighborhoods, a clubhouse and amenities, bicycle parking, and rear parking for most units. The proposal also includes right-of-way improvements, a pedestrian crosswalk at Rady Court, and a phased plan for streetscape and sidewalk construction. The applicant said the proposal also anticipates a request for an affordable housing performance grant; Elmington representatives told the commission that the fiscal model for producing housing at the proposed affordability requires public subsidy or grant support.

Councilmember Robertson spoke in favor, saying the site is a strong candidate for affordable housing that would reconnect the neighborhood and provide housing for residents being priced out. Planning staff acknowledged the applicant had negotiated multiple site revisions and that many Richmond 300 objectives were incorporated into the design, but reiterated the central staff concern: the master plan’s industrial designation does not include residential uses and staff could not recommend approval on that basis.

After discussion the Planning Commission voted to forward the special-use permit to City Council with a recommendation for approval. Commissioners who supported the motion cited the urgent need for affordable housing, the applicant’s public-realm investments and the accompanying plans for pedestrian connectivity and public improvements. The project now moves to Council, and staff noted the proposal will also require review by the city’s economic/finance bodies for any performance grant support tied to affordability.