Cotati planning commission recommends no immediate changes to Santeroway/TOC parcel rezoning, delays condo‑conversion overhaul

The Cotati Planning Commission voted to recommend the Santeroway Specific Plan parcel‑by‑parcel rezoning and the associated Transit‑Oriented Communities (TOC) implementation ordinance to the City Council without further amendments, and decided to wait for ABAG‑MTC compliance scoring before altering the condominium‑conversion replacement rule.

Director Hush told the commission the ordinance before them was a housekeeping action to identify each parcel that would convert to the TOC and Santeroway zoning districts; staff had not previously attached the parcel list to the ordinance adopted by council. Staff also noted the council directed removal of one large parcel (referred to in the meeting as the "Oliver's" parcel) from the rezoning because council members were concerned upzoning could displace commercial uses there.

A second substantive issue was the TOC preservation requirement that jurisdictions adopt a condominium‑conversion ordinance requiring replacement housing for apartments converted to condominiums. Staff described a proposed compromise to address lenders' concerns: apply a 1:1 replacement requirement only to buildings in existence as of Jan. 1, 2026, while exempting units created after that date so as not to discourage future development financing. Staff warned ABAG‑MTC might view that carve‑out as inconsistent with the TOC preservation element.

Commissioners questioned whether staff had verified developers' financing claims with lenders; staff said they had not contacted banks directly and had relied on developers' statements and staff experience with lending practices. Staff also told commissioners that on Feb. 25 ABAG‑MTC separated TOC compliance from the One Bay Area Grant funding pot and postponed mandatory compliance until July 1, 2027, although jurisdictions that are fully compliant may receive additional incentive funds.

Given the changed timing and the uncertainty about how ABAG‑MTC will score Cotati, staff recommended—and the commission agreed—not to change the condominium‑conversion language now and instead wait for the compliance score and reassess. The motion to leave the ordinance as submitted passed by roll call vote: Commissioner Sparks—yes; Commissioner Berman—yes; Vice Chair Gelardi—yes; Chair Long—yes.

Next steps: the commission will forward its recommendation to the City Council. If ABAG‑MTC's score indicates Cotati risks losing incentive eligibility, staff said it could return with a standalone ordinance and the same public hearing process to amend the condominium‑conversion requirement or other TOC elements.

This action preserves current tenant protections in Cotati's existing condominium‑conversion ordinance but defers a binding 1:1 replacement mandate for all conversions pending regional guidance and scoring.