Developer outlines plans for 100% affordable mixed‑use project on East Market Street under SB 423

The Salinas Planning Department and a developer screening a proposal under Senate Bill 423 on Sept. 23 presented details for a 75–85 unit, 100% affordable mixed‑use project at 467 and 479 East Market Street.

Tom Miles, planning staff, opened the informational item as a required public meeting under SB 423 and said the application from Envision 2 LLC proposes demolition of existing one‑story commercial structures and construction of a multi‑story building with residential units above and commercial use on the ground floor. No entitlement action was required at the meeting.

Developer presentation and site history

Sibley Simon, president of Envision 2 LLC (also identified as president of New Way Homes and principal at Workbench architecture), said the project has evolved over seven years of planning and redesign. Early site investigations discovered contaminated soils — including evidence of a historical underground gasoline tank leak — and the developer secured over $2 million in state grant funding for initial cleanup work; additional cleanup is planned in 2026 with oversight from the regional water board.

Simon said the concept is a six‑story building (five stories of wood framing over a commercial podium), focused on family‑sized units including three‑ and two‑bedroom apartments alongside one‑bedroom and studio units. The project would be 100% affordable across a range of lower‑income levels and would include outdoor space, resident amenities and parking, along with measures to encourage transit, shared vehicles and bike parking. He said the developer expects to pursue prevailing wage construction standards and local hire priorities.

Commercial space and community partnerships

A central part of the developer’s proposal is a ground‑floor commercial space intended to host a kitchen incubator in partnership with a community development corporation (the transcript names “El Paro CDC” and references a Watsonville model). Simon said the incubator would offer licensed kitchen access and small‑business training, with a specific emphasis on a women’s business center component.

Public outreach, timeline and funding

Simon described years of community outreach conducted during the pandemic and after, including meetings tied to the Alice L. vibrancy plan and mailed notices to neighbors within a half‑mile radius. The project team said a Notice of Funding Availability (NOFA) was issued for development funds and that the project will still need to compete for tax‑credit financing and other gap funding. The developer said an optimistic “break ground” target would be 2027, subject to entitlements, financing and building permits.

Public comments and council questions

Speakers at the meeting expressed support for affordable housing and the kitchen incubator idea, asked whether childcare space could be included, and raised concerns about parking, traffic and impacts to neighboring businesses. Council members asked about tribal notification, prevailing wage and local hiring plans, and about how the SB 423 ministerial (administrative) process differs from other review routes.

Next steps and limits

Planning staff said SB 423 establishes a ministerial approval pathway when projects meet state criteria and do not deviate by more than 20% from the submitted preliminary project review; the city will process a formal development review and an environmental checklist. The developer will refine plans, complete additional cleanup approvals with the water board, and pursue competitive funding. No council action was required or taken at the Sept. 23 meeting.