Mill Valley council reapproves Bayfront Terrace, trims project footprint to qualify for new CEQA exemption

The Mill Valley City Council on Jan. 12 voted to reapprove the Bayfront Terrace affordable housing project at 1 Hamilton Drive after removing a 0.15‑acre tip from the development lease area to qualify for a 2025 statutory exemption to the California Environmental Quality Act (CEQA). The package the council approved included an ordinance to rezone the smaller parcel, a resolution to amend the lease and development agreement with EAH Housing, and a resolution approving design review and a tree‑removal permit.

Principal planner Danielle Staudy told the council the project as reapproved keeps the building design intact while reducing the site from 1.75 to 1.6 acres. "The building footprint was never going to touch that area," Staudy said, and the change is intended to make the project eligible for the statutory exemption while retaining mitigation measures from the previously certified project EIR as conditions of approval.

The reapproval covers roughly 45 affordable units (44 units plus a manager’s unit) in a podium‑parking design with about 63 ground‑floor parking spaces, Staudy said. Staff said the seasonal wetland at the parcel tip measures approximately 0.011 acres and that the 0.15‑acre modification removes the wetland and buffer from the lease area; the city will retain the wetland as open space outside the EAH lease.

Why it mattered: staff and council framed the change as a narrowly targeted action to reduce litigation risk and clear title for financing. City Attorney Inder said a recent state law enacted in 2025 creates a limited statutory exemption aimed at streamlining housing production, but it disqualifies projects that include wetlands within the development footprint. "The reason for removing the wetland site tonight is to allow the city council to move forward with the housing project here," Inder said, adding that the city will still require and enforce the mitigation measures identified in the project EIR.

Public reaction split: dozens of written and in‑person comments were submitted. Supporters said the project is overdue and would provide affordable homes for local workers and families. Opponents and local environmental speakers argued the site is a sensitive marsh edge and urged preserving the strip as open space. Paige Anderson, a resident and volunteer, said the marsh is "one of Mill Valley's biggest ecological workhorses" and urged protection; labor organizer Chris Palomo asked the council to adopt stronger labor and apprenticeship requirements despite staff saying prevailing‑wage rules will apply.

Key procedural details and conditions: staff told the council that the project remains subject to a Phase 1 environmental assessment requirement as a condition of approval and that the city may require an updated Phase 1 even though a 2022 assessment exists in the record. The reapproval also attaches mitigation measures from the certified project EIR into the project's conditions (identified in staff materials as conditions 47–51). Staff noted that the developer will pursue state funding and tax credits, which require a Tax Credit Allocation Committee (TCAC) regulatory agreement as part of the financing process.

Vote: Council member Burke moved and council member Carmel seconded the staff‑recommended motion (waive first reading; repeal and rezone the smaller parcel; amend the EAH lease to remove 0.15 acres; and approve design review and tree‑removal permit subject to conditions). The motion passed with the affirmative vote of the council.

What's next: staff said the ordinance will return for a second reading and that EAH will continue to pursue financing and permits. Council members and staff said they expect additional follow‑up on construction phasing, parking reconfiguration (including potential use of a Public Safety Building lot), and fulfillment of conditions such as the Phase 1 assessment and TCAC requirements.

Vote at a glance

- Ordinance to repeal prior rezoning and rezone 1.6 acres to multifamily residential Bayfront: adopted (motioned by Council Member Burke; seconded by Council Member Carmel; recorded as passed). - Resolution to amend lease/development agreement with EAH Housing to remove 0.15 acres: adopted. - Resolution to approve design review and tree‑removal permit and convert EIR mitigation measures into conditions of approval: adopted.

The council's action ended deliberations on the Bayfront Terrace reapproval at the Jan. 12 meeting; staff will proceed with follow‑up steps tied to financing and final approvals.