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Council pauses sale of Premier Towers, asks Housing to explore alternatives
Summary
CRA staff recommended selling Premier Towers, a 120‑unit residential project, for $4 million. Council members raised objections noting roughly $18.9 million has been invested over 19 years; the council voted to continue the matter for 60 days and refer it to the Housing Department for alternatives.
The council paused a proposed $4 million sale of Premier Towers after considerable questioning of the Community Redevelopment Agency’s long history with the project.
Don Spivac of the CRA told the council the property — a 120‑unit apartment building originally developed as condominiums — drew five offers and the recommended buyer’s $4 million bid exceeded the appraisal. Spivac said the agency’s total investment in the project over approximately 19 years was about $18.9 million, covering loan guarantees, purchase of trust deeds, acquisition and operating advances.
Council members objected that the sale represents a large net loss relative to cumulative CRA investment. Council Member Bernson and others characterized the outcome as poor stewardship of taxpayer funds and urged the council to seek alternatives rather than a quick sale. Council members asked whether the Housing Department could manage the property or otherwise preserve affordable housing downtown.
Given those concerns, the council voted to continue the item for 60 days and referred it to the Housing Department to develop alternatives and report back. During the continuance the CRA will retain management responsibilities; no sale was finalized at the meeting.
Next steps: the matter was continued for 60 days (to mid‑February), and the Housing Department will report options, including possible alternative management or rehabilitation plans and potential preservation of affordability.
