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Board directs negotiations on 17th Street Santa Ana site after close competition between two housing proposals
Summary
After multi‑hour questioning of two finalists for the county's 17th Street site in Santa Ana, supervisors directed staff to enter negotiations (initially with the runner the board chose) to sharpen affordability, unit mix, demolition assumptions and potential revenue; the board voted 4–1 to proceed with C & C/Waterford negotiations as the primary negotiator.
The board considered competing proposals to develop a 9.3‑acre county‑owned site on West 17th Street in Santa Ana. Two finalists presented contrasting approaches: TAP BFR/True America proposed a 300‑unit mixed‑use project with conventional private financing and earlier revenue streams; C & C/Waterford proposed a 360‑unit, 100% affordable project with on‑site Head Start space and prevailing‑wage commitments.
Supervisors and staff extensively questioned affordability levels (AMI bands and how rents would be calculated under the Surplus Land Act exemption), prevailing wage and Project Labor Agreement commitments, the assumed inclusion (or not) of demolition and remediation costs in pro formas, unit mix (requests for more 2‑ and 3‑bedroom family units), parking ratios, and the timing and structure of revenue to the county (front‑loading versus long‑term streams). County staff and proposers clarified that both proposals were evaluated under the RFP and that negotiations would refine terms.
Supervisor Sarmiento, citing neighborhood and college stakeholder feedback and his role as district supervisor, recommended the staff‑ranked top proposer but asked for deeper affordability and unit‑mix adjustments. Other supervisors argued for negotiating with both finalists to obtain best‑and‑final offers and to protect the county's fiscal needs, particularly to help relocate county health services.
After debate, the board voted to direct staff to open negotiations with C & C/Waterford as the primary negotiating partner and to seek adjustments on key items (affordability depth/unit mix, parking, demolition assumptions, prevailing wage/PLA, and upfront payments), with report‑back to the board on progress — a motion that carried 4–1. Staff told supervisors they would return with updates and, if needed, proceed to the alternate proposer.
