City says mountain townhomes fully approved; surplus-lands notice starts proposals for Landing site

City staff reported on June 23 that final approvals are in place for the Mountain Townhomes project and that the city has begun a formal surplus-land process for the Landing property after filing with the California Department of Housing and Community Development (HCD).

Todd, a city staff member, told the City Council that the Mountain Townhomes project has received “full approval” and that developers expect to begin work in July once final changes are submitted. The council did not take a separate vote on the project during the meeting; staff described the approvals as completed and implementation-ready pending final submittals.

The council also heard that the city filed a surplus-land notice with HCD that starts a clock for proposals. Todd said any party noticed under the process has 60 days to submit a proposal; proposals that include on-site housing with at least 25% affordable units will receive deference. If multiple parties respond, the city will have 90 days to negotiate in good faith toward a development agreement. If no acceptable agreement is reached, the city may declare the property surplus and offer it for sale.

Staff warned the Landing site contains constraints that will shape proposals. Todd said portions of the property are covered by recorded land-use covenants that limit housing in some areas and permit nonresidential uses in others. He also noted geotechnical issues on parts of the site — “real compaction issues” — and steep grades that could require off-site hauling, soil work and possibly a pump station for sewer service. Todd said developers may propose phased development rather than build the entire parcel at once, and that developers already notified include K2 Development, Pinto Holdings and an out-of-area developer identified as Bob Kendrick.

Todd said the city has been in touch with 1 Shasta regarding easement access and utility arrangements; he said 1 Shasta likely cannot serve the site without municipal water and that discussions about joining city zoning standards and utility service are ongoing. He asked for council input as the response period begins.

The report framed the Landing process as the start of negotiations and technical study rather than final design decisions. No formal council direction or binding development agreement was approved at the meeting.

The council did not set an award date; staff said timelines depend on proposals and subsequent negotiations.

Ending: The city will accept proposals under the HCD notice period and return to the council as proposals are received and as staff advances preliminary engineering and environmental due diligence.