Soledad council weighs land donation and higher in‑lieu fee after developer proposal would cut moderate‑income ownership units

Soledad City Council members and staff spent an extended portion of their meeting debating a developer proposal to donate land called Parcel B to the city in exchange for reducing the number of required moderate‑income for‑sale units in a larger residential project.

The proposal would dedicate roughly 0.33 acres of Parcel B to Soledad and accept an in‑lieu fee instead of requiring the original set aside of moderate‑income homeownership units. Beatrice (staff), who presented the plan, said the in‑lieu approach “doesn't have a direct impact to the general fund” and would generate funds for the city's affordable housing goals while giving the city discretion over how the donated land is developed.

Council members said the developer's current cash offer—$300,000, calculated as 12 units × $25,000—was insufficient because it would convert 23 planned moderate‑income ownership units to market rate. Council member Anzaldu Sanchez said, “we're losing 23 moderate units,” and said the city should seek a larger in‑lieu payment and protections for Soledad residents.

Why this matters: the change would shift units originally slated as moderate‑income ownership into market rate or rental product,…