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Developer pitches 333‑unit Block 67 project for downtown Hillsborough, including workforce housing and a grocery space
Summary
City staff and Coase Development presented an unsolicited proposal to redevelop Block 67 into two buildings with middle‑income workforce housing (60–80% AMI), an age‑restricted building, street‑front retail and an anchor grocery; the city would write down the land value and offer a tax abatement in exchange for a 10‑year affordability covenant.
City economic development staff and a private developer presented a negotiated proposal to redevelop Block 67, the full block site the city acquired downtown. Coase Development said the project would deliver two primary buildings: a 109‑unit age‑restricted building (55+ independent living) and a larger workforce housing building aimed at households at roughly 60–80% of area median income (AMI). The development team said the project would total approximately 333 units and include street‑front commercial space with an approximately 16,000‑square‑foot grocery anchor and additional retail space (roughly 10–12,000 square feet).
Key commitments from the developer: Coase representatives described an operating model with “all‑inclusive” rents (utilities included) for workforce units and smaller studio footprints to reduce costs. The developer committed to a 10‑year affordability covenant tied to roughly the 60–80% AMI rents and said they would retain ownership for at least 10 years; the city staff said they expect to write the land down to $1 and provide a 10‑year partial property‑tax abatement (staff characterized the abatement as roughly 80% of the value under evaluation) and to make available accrued system development charge credits to aid project feasibility.
Parking and site design: Staff and developers said the site will provide about 114 on‑site parking spaces and may supplement those with lease/usage of stalls in the nearby intermodal transit facility. The team emphasized a goal of balancing amenity/open space with parking to keep the block walkable and welcoming to the community.
Council and public reaction: Councilors asked detailed implementation questions—how public engagement will be handled, when the public open house will be advertised, and design choices for the internal street within the block. Several council members and public commenters expressed support for providing missing‑middle and workforce housing in the downtown core; one councilor requested robust outreach to nearby residents given the open house is scheduled quickly before the holidays.
Next procedural steps: Staff said a letter of intent is signed and the development and disposition agreement is nearing finalization; the city plans a public open house to present design details, then a land‑use review and permitting. Staff did not set a definitive groundbreaking date.
Ending: The project, if approved through the normal land‑use and permitting steps, would provide a mixture of age‑restricted units, smaller workforce apartments, retail activation including a grocery, and a time‑limited affordability commitment intended to preserve middle‑income housing in the downtown core.
