Ojai council approves development management agreement for 30-unit Cabin Village at former public works yard

The Ojai City Council on Tuesday approved a development management agreement and design review permit for the Cabin Village, a 30‑unit permanent supportive housing project at 408 South Signal Street, and authorized the city manager to execute the contract with nonprofit developer Dignity Moves.

City Community Development Director Lucas Seibert told the council the item before the body was “the Cabin Village, which is a permanent supportive housing project located at 408 South Signal Street,” and described staff recommendations to (1) allow the project at the city’s lower public works yard, (2) adopt a resolution finding CEQA exemptions and approving a sole‑source development management agreement with Dignity Moves, and (3) approve design review permit DRP 24‑006 and allow the city manager to sign the DMA.

The project’s construction budget in the agreement is capped at $9,500,000, with a $500,000 management fee included; under the proposed schedule Dignity Moves would receive an initial draw of $5,900,000 and staff would approve invoices before additional payments are released. Joanne Price, co‑founder and chief real estate officer for Dignity Moves, said the nonprofit focuses on rapid‑deployed permanent supportive housing and emphasized lower per‑unit costs compared with conventional local construction.

Why the council acted: the project is funded in part by the state Emergency Repair and Facilities (ERF) grant the city received and by other sources described in the staff report. The Housing and Community Development Department (HCD) provided a support letter attached to the agenda packet noting the project’s consistency with the city’s housing element and warning that denying the project could jeopardize the ERF award.

Contaminated‑soil testing and remediation: an environmental consultant for the city, Andy Nelson of Rincon, told the council additional borings around the initial detection location (RB6) showed lead exceedances concentrated roughly 3–5 feet below the surface in a limited area. Nelson described the planned approach: excavate contaminated soil, collect confirmation samples and submit the report to the Department of Toxic Substances Control (DTSC) for oversight. “The DTSC is gonna review it…and they’re gonna give that ‘no further action’ letter,” Nelson said, describing the letter as the agency’s legal finding that no further corrective action is required after confirmation sampling.

Nelson said the project team will use handheld XRF screening in the field and chase contamination until concentrations are below the residential screening level (about 80 parts per million for lead), then rely on laboratory confirmation before DTSC issues a no‑further‑action determination. Seibert said the city has submitted data to DTSC and will continue working with the agency as remediation proceeds.

Design and site details: project architect Dylan Johnson described a mission‑style “hacienda” plan with 28 single units and two double units, a central courtyard and a 1,000‑square‑foot support building that would include dining/gathering space and administrative offices. Landscape architect Kathy Nolan said the courtyard plan includes raised beds, low‑water plantings and defensible‑space design to meet fire‑hardening requirements; the site is surrounded by oak trees and will need limited pruning and minor clearing for fire safety.

Council discussion and public comment: dozens of residents and several advocacy groups spoke for and against the project during public comment. Supporters argued the city must act to replace an existing tent encampment with permanent housing; critics urged more budget detail and stronger contract protections before advancing a sole‑source agreement.

Council action and vote: after discussion the council adopted the staff recommendations and authorized the city manager to execute the DMA with Dignity Moves. The final roll call was 3 in favor, 2 opposed. The council added two requests as part of the motion: (1) staff should return with a donor/plaque proposal for the project and (2) staff should return with a clear, dated narrative/accounting of eligible ERF reimbursements and other expenditures related to the Cabin Village and the existing Ojai Tent Town (OTT) through 2024.

What happens next: staff will request a detailed project budget and schedule from Dignity Moves by August 30; council members were told that if the developer does not deliver a satisfactory budget and timeline the city may cancel the agreement and recover unspent funds. City staff also said unused grant funds will be returned to the city upon project completion and that DTSC oversight will be required during any soil excavation.

The council’s approval advances permitting and remediation steps but does not represent the end of the process: construction cannot begin until the necessary budget, permits, contractor selection and DTSC clearance are in place. Pending DTSC oversight and laboratory confirmation samples, staff said the excavation/remediation approach is expected to yield a DTSC no‑further‑action letter that would clear the site for development.