Salida approves fee transfer to support eight deed-restricted units in Two Rivers project

The Salida City Council voted to approve a fee-transfer request tied to the Two Rivers housing project, directing $60,424 from the city's housing fund to the water and wastewater enterprise funds and $3,185 to the general fund for planning and permitting fees. The transfer was presented by city staff and requested by Chaffi Housing Trust, which told the council the project would create eight deed-restricted units.

Reed, representing Chaffi Housing Trust, said the development is a $4.3 million project and that the Trust had already raised roughly $1.6 million. "This is a $4.3 million project. We've raised 1.6 million in funds to pay for this," Reed said, noting the city's requested participation was a small fraction of the total cost. The Trust asked the city to approve roughly $63,000 in waived or transferred fees to reduce development costs and keep units affordable.

Council members debated the request at length. Some members pushed for a smaller city contribution and talked about preserving a buffer in the housing fund for future projects; others argued that supporting shovel-ready, fully affordable units now would be an effective investment. Council Member Fontana proposed funding 50% as a compromise at one point; Council Member Martin and others supported fully funding the present transfer.

After discussion, Council Member Papenfort moved to approve the fee transfers as described by staff: $60,424 to water/wastewater and $3,185 to the general fund. Roll-call voting recorded five "yes" votes and one "no," and the motion passed. Staff noted the housing-fund projected ending balance before the transfer was about $88,000; council discussion indicated the approved transfer would substantially reduce the near-term fund balance but not eliminate the fund.

Vote: Motion to approve the specified fee transfers carried (roll call recorded five in favor, one opposed).