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Council votes to repurchase downtown lot after developer misses deadlines amid litigation
Summary
The council voted 5-1 to exercise its contractual right to repurchase a city-owned lot at 410 B Street from Cornerstone Communities LLC after the developer failed to meet post‑closing entitlement and plan submittal deadlines. Council cited years of missed milestones, staff time expended and active litigation among partners as reasons for action.
The Santa Rosa City Council voted to repurchase a city parking lot at 410 B Street, moving to reclaim the parcel after a developer missed multiple contract deadlines and litigation among the developer’s partners raised questions about its ability to complete the planned downtown project.
By a 5-1 vote (Councilmember Benuellos opposed), the council approved a resolution to exercise the city’s call right and repurchase the lot at the contract’s purchase price. The motion was made and carried following staff reports, legal summaries and public comment from people who both supported and opposed the repurchase.
City Real Estate Manager Jill Scott summarized the history: the city entered a purchase and sale agreement with Cornerstone Communities (closing in August 2021) that included post‑closing obligations — notably, entitlement submittals for 410 B Street and building permit submissions for related Cornerstone sites. Scott told council the developer repeatedly missed deadlines; staff granted multiple extensions and sought to…
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