Cotati council approves DDA with Freebird for 44-unit affordable housing at 120 East Cotati Avenue

Cotati — The City Council voted to approve a disposition and development agreement (DDA) with Freebird Development Company LLC to build a three‑story, mixed‑use affordable housing project on three city‑owned parcels at 120 East Cotati Avenue.

City staff told the council the site comprises roughly 0.86 acres and that the proposed development would include 44 rental units (43 restricted to households earning up to 80% of Sonoma County median income for a term of 55 years), about 3,850 square feet of ground‑floor commercial/community space, an enclosed shared parking garage with 54 vehicle spaces and 46 bicycle spaces, and a courtyard and community room. The DDA sets a target construction-completion window and includes standard performance milestones, cure periods and lender‑related subordination language.

Why it matters: The council purchased the property in December 2023 for $1,650,000 using restricted affordable‑housing impact fees; because the site was bought with those funds it must be developed as affordable housing. Staff presented financial terms that reduce the city’s immediate cash outlay but include an $825,000 discounted transfer price and roughly $1.56 million in impact‑fee waivers. With those waivers and other contributions, staff estimated the city’s local contribution at about $2.4 million total — roughly $54,000 per unit — a figure staff described as modest compared with other Sonoma County affordable projects.

Developer case and labor commitments: Robin, a representative of Freebird Development, explained why subsidy is required in the Bay Area market, citing higher land, labor and construction costs and limited eligibility for some state incentives. She told the council Freebird will require prevailing wages on the project and that the DDA requires prevailing‑wage compliance monitoring; Freebird said it will bid to both union and nonunion general contractors and will support three separate labor‑compliance monitors (the contractor’s monitor, the developer’s monitor, and a third monitor funded by Freebird for the city). "Public subsidy covered approximately 35%" on comparable Sonoma County projects, Robin said, arguing the requested package is smaller than typical local contributions elsewhere.

Public reaction and union input: Public comment was mixed. Several neighborhood speakers and other residents opposed discounted land and fee waivers, calling for greater transparency and questioning financial tradeoffs for the city. Construction‑trade speakers and union representatives urged stronger labor language, including employer‑provided health care and apprenticeship standards, and urged the council to adopt prequalification language to reduce the risk of wage theft or misclassification. Freebird and contractor representatives answered those concerns, describing contractor vetting and compliance-monitoring plans.

Council action and next steps: The council debated trade‑offs between maximizing affordability and preserving a broad contractor pool. After members discussed safeguards and the project’s long‑term affordability commitments, Vice Mayor Harvey moved to direct the city manager to execute the DDA with Freebird. The motion passed on a roll call with three affirmative votes, one recusal and one member absent. The DDA includes a schedule of performance, off‑ramps for missed milestones, prevailing‑wage requirements, and a city right to match or first refusal on commercial leases intended for community use. Freebird must finalize financing plans and satisfy due‑diligence conditions before the city transfers the property and close escrow.

What’s next: With the DDA approved, Freebird will pursue project financing, tax credits and other funding sources. City staff will continue negotiating final exhibits, and the parties must meet the DDA conditions (including financing approval and schedule milestones) before closing. The council’s approval begins a multi‑step process; if project milestones are missed the DDA includes standard cure periods and termination options.