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Council approves clerical change to Field Street vacation and authorizes bond financing agreement for Danko Mountain Townhomes
Summary
Council amended a prior Field Street vacation resolution to clarify use by Danko for design/functionality of an affordable housing project and approved joining a joint powers agreement to permit tax-exempt bond financing; water/sewer priority item was tabled.
The Mount Shasta City Council on Feb. 24 approved a clerical change to a prior vacation of half of Field Street to clarify that the vacated portion "may be used by Danko for the purpose of ensuring quality design and functionality of its affordable housing project," and separately approved joining a joint exercise of powers agreement with the California Municipal Finance Authority to enable tax-exempt financing for the Danko Mountain Townhomes project.
Todd and project consultants described the correction as clerical: council had previously approved a partial vacation in August 2023 to accommodate the Danko Mountain Townhomes affordable housing project, and consultants discovered language in the recorded resolution that suggested a narrower use. Staff proposed a revised wording to avoid future implementation confusion; council approved the change unanimously.
Tom Hessel (consultant) explained the background of the vacation, noted city utilities and the 80-foot right of way, and described that the city retained utility easements and planned to retain 40 feet for utilities while providing the developer space for design purposes.
Separately, the council approved a resolution authorizing the city to enter a joint powers agreement with the California Municipal Finance Authority (CMFA) and to approve the issuance of tax-exempt bonds for the project (Mount Shasta Chestnut Street LP) for an amount not to exceed $25 million. Council staff emphasized the city takes no repayment obligation: "None," Todd said when asked whether the city would be liable if Danko backs out; the obligation rests with the developer and the authority.
Councilors and staff noted the project is a 24‑unit multifamily development and that current construction costs are high; one councilor commented the apparent $25 million ceiling reflects elevated California construction costs. The council approved the CMFA/JPA resolution unanimously.
A separate agenda item on prioritizing water and sewer service to affordable housing developments was present on the agenda but was tabled to a later meeting.
