CA Lic. #875823
(707) 443-6000 • [email protected]
339 2nd Street, Eureka, CA 95501 • www.acgcinc.com
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______________________________________________________________________________ April 2, 2025
Alexandra Stillman, Mayor
Kimberley White, Vice-Mayor
Meredith Matthews, Councilmember
Stacy Atkins-Salazar, Councilmember
Sarah Schaefer, Councilmember
Arcata City Council
736 F Street
Arcata, CA 95521
Sent via email: [email protected], [email protected], [email protected], [email protected], [email protected] Re: Bid for Town Hall Retrofit & Bathroom Remodel
Project No. PWP-00122
Dear Mayor, Vice-Mayor, and City Council Members:
I am writing regarding tonight’s agenda item: “Introduce Ordinance No. 1575, An Ordinance of the City Council of the City of Arcata Amending the Land Use Code to Update Affordable Housing Zoning; Waive Reading of the Text and Consent to Read by Title Only.” I am a resident of Arcata and the owner of Adams Commercial General Contracting, Inc., a local contractor who has been involved in many housing development projects in Humboldt County for many years. I most recently completed a mid income market rate 22 unit apartment building on the corner of Valley West and Valley East. The building filled up very quickly once we opened it for lease.
I would strongly encourage you to reject the inclusionary zoning in this ordinance for the following reasons:
1. Has Arcata identified a shortage in the amount of very low, low, and moderate income units built in the last, say, 5 or 10 years? How do these new units compare with State RENA housing goals? From my perspective, ALL units I have personal knowledge of being completed in recent past meet this criteria already. So if that is true, what is the CA Lic. #875823
(707) 443-6000 • [email protected]
339 2nd Street, Eureka, CA 95501 • www.acgcinc.com
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problem this ordinance seeks to cure? Kramer and Strombeck are doing moderate income. Danco is doing very low and low income. Craftsman Mall, when opened, will have a huge impact on housing availability. How many high income units have been built? I can't think of any with the exception of a couple custom homes I have seen built.
2. How many units total of moderate income have been built and how many are in permitting? Of this amount, how many will 3% and 6% mandated by this ordinance actually create? I would guess this would be just a handful of units. Danco does 100% low and very low. Why not encourage and fund more projects like this as this is a proven method?
3. If Arcata really has a housing shortage, which of late I have been questioning, will the ordinance encourage or discourage more construction of housing? In my case as a small time developer, it discourages me from building in Arcata. My market rate projects are profitable at single digital margins, and I would not be willing to accommodate this loss in rent on new construction. It just does not pencil out. See the article last week in the North Coast Journal about the cost of housing in California.
4. Supply vs. Demand is 9th grade economics. If there is a housing shortage, Arcata should encourage ALL types of housing. From mansions, condos, single family, apartments, modular, to tiny homes, all should be welcome.
Thank you,
___________
Will Adams, President
Cc: Merritt Perry, City Manager, [email protected] David Loya, [email protected]