Developer proposes land, $300,000 payment to cover 12 missing affordable units in Miravalle project

Beatrice Trujillo, Soledad’s community and economic development director, told the City Council that the Miravalle Parcel E project — approved as a planned unit development in 2019 — originally required 52 affordable units across income levels. The developer is proposing an in‑lieu plan that would result in 40 affordable units with long‑term restrictions, a dedication of 15,950 square feet of land on Parcel B and a proposed $300,000 in‑lieu payment.

Trujillo said the 2019 PUD required 24 moderate‑income units and 28 low/very‑low units. Under a 2023 amendment and a density bonus, the multifamily portion expanded so Eden Housing, the nonprofit partner, could build more rental units; that change allowed the rental component to increase from 28 to as many as 40 units. Under the plan presented May 21, Eden Housing would build the rental component with long‑term affordability controls: 20 low‑income units and 19 very‑low‑income units with 55‑year restrictions, plus one manager unit not counted as an affordable unit, for a total of 40 restricted units.

Trujillo said a key difference from the original requirements is that the 24 moderate‑income ownership units in the earlier plan were only recorded as affordable at the time of initial sale and lacked ongoing resale restrictions; the developer’s proposal would provide longer affordability controls on the rental units built by Eden Housing. The developer proposes the city accept the 15,950‑square‑foot land dedication on Parcel B and a $300,000 cash payment (calculated as $25,000 per missing unit) to cover the 12 affordable ownership units the project would not deliver as permanently restricted units.

Developer representative Laith Aga was present for the presentation; Trujillo outlined several reasons the city should consider the in‑lieu plan, including difficulty attracting a market‑rate homebuilder to the site, regional market pressures that favor larger neighboring jurisdictions when builders choose projects, and timing considerations tied to nearby growth in Salinas.

The presentation did not include a council vote on the in‑lieu proposal; council members asked questions and heard the developer’s explanation. No final action or binding agreement was made at the May 21 meeting. Trujillo said final entitlements for Parcel B were still pending and that the in‑lieu plan is being presented for council consideration under municipal code section 17.38.23.

Because the proposal changes how and where the units will remain affordable, the city will have follow‑up steps if it decides to accept the in‑lieu plan: staff must confirm the form and recording of long‑term affordability covenants, confirm the adequacy and location of the dedicated land, and document the terms of any developer reimbursement or funding agreements before a formal agreement is approved.

Council members did not vote on the plan at this meeting; staff said the item would return for formal council action after further review and negotiation.

A copy of the developer’s in‑lieu proposal, the existing PUD conditions and any affordability covenants will be part of the public record if the council schedules the item for future decision.