Council approves exclusive negotiations with Mercy Housing for 1762 Dale Road site; ENA sets phased review

The City Council approved an exclusive-right-to-negotiate agreement (ENA) with Mercy Housing for the disposition and development of 1762 Dale Road, a 2‑acre site the city acquired in 2023 after the former assisted-living facility was demolished. Economic Development staff described the ENA as a time-limited framework to move from concept to financing, entitlement and final land-transfer documents if both parties proceed.

Under the ENA, Mercy Housing will deposit funds and enter a 120‑day concept-phase during which city staff and Mercy will define project details, outreach, parking, site access, and funding options. If the parties proceed after that phase, a second phase would extend for 270 days to finalize financing plans, legal documents for a land transfer, and entitlement pathways. Staff told council the concept in early negotiations anticipates roughly 65–70 affordable homes with about one parking space per unit, on-site services for residents, and shared community space. Tiffany Chu, the economic development manager, said the council would review and approve the concept before the second phase begins.

The ENA includes an option to extend timelines if needed; staff also told council that if the city were to cancel the ENA at certain points it could owe a penalty payment to Mercy Housing (as described in the ENA language). Council members voted unanimously to approve the ENA and directed staff to proceed under the negotiated terms.

Mercy Housing staff attended the meeting and are expected to take part in the ENA working group and community outreach described in the agreement. The ENA does not authorize construction; any proposed project would require follow-up approvals, financing commitments and environmental review.