Holder Law Group holderecolaw.com
2940 Summit St, Suite 2D
Oakland, CA 94609-3416
(510) 338-3759
[email protected]
June 17, 2025
VIA EMAIL ONLY (PLEASE CONFIRM RECEIPT)
City of Arcata
City Council
Alexandra Stillman, Mayor
Kimberley White, Vice-Mayor
Meredith Matthews, Councilmember
Stacy Atkins-Salazar, Councilmember
Sarah Schaefer, Councilmember
C/O City Clerk:
Email: [email protected]
City of Arcata Planning Department
ATTN: David Loya, Community Dev. Director
736 F Street
Arcata, CA 95521
Email: [email protected]
Re: Summary of Ten Primary Concerns Regarding the Proposed Roger’s Garage Project (1622 & 1632 Old Arcata Road; File No. 242-020)
Dear Mayor Stillman, Councilmembers, and Planning Staff:
On behalf of Building Bayside Better (“BBB”), we submit these abbreviated comments regarding the Roger’s Garage project (a.k.a., Valley View Commons) (“Project”) in response to the recommendation in the June 18, 2025, staff report to receive public input without taking action. While BBB appreciates the decision to delay formal action on this matter, given the complexities and significant unresolved issues, BBB members and other impacted stakeholders continue to express substantial concerns about the City’s preliminary approach, which has prematurely sought approval of project funding and CEQA exemptions without (1) adequate environmental review and (2) approved and vetted plans for remediation of substantial on-site contamination.
The following summary of ten primary concerns is based upon currently available information. Many of these concerns were previously detailed in our May 14, 2025 and May 20, 2025 letters, and are summarized, expanded, and augmented briefly below. We reserve our full supporting evidence, explanations, and arguments for future consideration when more information is made available for public review and consideration and Council action is agendized:
City of Arcata, City Council June 17, 2025
David Loya, Community Development Director
Re: Abbreviated Supplemental Comments re Roger’s Garage Project Page 2
1. Procedural Deficiencies and Transparency Violations
The City’s initial notice and subsequent handling of public processes have not complied with transparency requirements mandated by the Brown Act and CEQA. The recent undated public notice for this meeting (which was not sent to the undersigned or to BBB members despite our repeated requests for notice) contradicts itself by claiming both certainty (for exemption purposes) and uncertainty (for funding flexibility). (See Exhibit A, Notice of Public Hearing, CDBG Program Income Application, Roger's Garage Affordable Housing Project and CDBG Pl General Admin.) The staff report for this agenda item reverses staff’s prior recommendations (as indicated in the public notice). These contradictions create significant procedural ambiguities and unresolved internal inconsistencies. The approach severely undermines meaningful public participation and the legality of the City's environmental determinations.
2. Incomplete Project Application and Unsatisfied Environmental Impact Analysis The current project application remains incomplete and insufficient to support environmental analysis or determinations under CEQA or NEPA. Critical details regarding the full scope of contamination, comprehensive remediation measures, cost estimates, and specific mitigation strategies have not been provided. CEQA and NEPA both require that potential impacts be thoroughly identified, analyzed, and mitigated prior to project approval. The City’s failure to require, at the outset, a fully completed and detailed application addressing these environmental obligations further demonstrates procedural deficiencies and premature advancement of the Project.
3. Inapplicability of CEQA Exemptions
According to the recently released staff report, staff has now reversed its position with respect to the applicability of CEQA exemptions, concluding that Project may not rely upon the exemption because the Project “is listed on the Department of Toxic Substances Control EnviroStore website” (the “Cortese List”) and “Sites on lists developed under this Government Code do not qualify for Categorical Exemptions.” Nevertheless, because the public notice for this meeting indicated the City would rely on CEQA exemptions for the Project, and because staff may again propose relying upon the Class 32 and Class 30 exemptions for the Project itself or for related funding decisions, we must again caution against this improper approach.
The City’s previously proposed reliance on CEQA exemptions remains inappropriate due to documented contamination, shallow groundwater conditions, and onsite jurisdictional wetlands. These constitute “unusual circumstances” triggering mandatory exceptions under CEQA Guidelines §15300.2(c). Historical records clearly establish the presence of lead and hydrocarbon contamination far exceeding residential standards, with ongoing Regional Water Board oversight indicating unresolved contamination concerns and incomplete remediation plans for the site.
City of Arcata, City Council June 17, 2025
David Loya, Community Development Director
Re: Abbreviated Supplemental Comments re Roger’s Garage Project Page 3 Recent correspondence posted to the Geotracker website for the site further underscores these concerns, specifically highlighting incomplete remediation and monitoring requirements. AEI Consultants’ letter dated May 29, 2025, notably highlights “challenges” related to implementing the lead remediation plan but fails entirely to address critical petrochemical-related soil and groundwater contamination or other toxic pollutants at the site. (See Exhibit B, AEI Consultants Letter, dated May 29, 2025.) The Regional Water Board’s June 5, 2025, letter to Danco explicitly requires additional groundwater monitoring and testing for a range of contaminants, including petroleum hydrocarbons, BTEX, lead scavengers (EDB, 1,2- DCA), tetraethyl lead, and metals such as cadmium, chromium, nickel, zinc, and lead. (See Exhibit C, Regional Water Board Letter, dated June 5, 2025) The AEI Consultants’ selective omission concerning remediation highlights inadequacies and gaps in the current remediation approach, suggesting that the full extent of contamination has neither been adequately characterized nor addressed. The Regional Water Board’s response letter clearly demonstrates that the full extent and nature of contamination have not yet been adequately assessed, precluding the use of categorical exemptions and undermining any claim that a comprehensive remediation plan for the site is in place (or has even been drafted).
4. NEPA Compliance Requirements
The utilization of federal CDBG Program Income funds explicitly mandates NEPA compliance. However, the City has not publicly disclosed required Environmental Assessment (EA) documentation pursuant to federal regulations (24 CFR Part 58). Without comprehensive NEPA compliance documentation, no federal funding commitments or project approvals can lawfully proceed.
5. Premature Financial Commitments and Transparency Concerns The proposed increase in public funding from $820,000 to $1,000,000 and an additional $332,000 in administrative costs identified in the recent public notice and described in the staff report raises critical questions regarding transparency and financial propriety. HUD regulations strictly prohibit the commitment of funds, including property acquisition and project management, before environmental reviews under NEPA are formally completed and approved.
6. Mello Act Feasibility and Alternative Project Sites
The substantial environmental contamination and unresolved remediation requirements call into question the current project's feasibility under the Mello Act (Government Code, §§ 65590, 65590.1). Given the severe contamination and associated cleanup challenges, it remains legally necessary and fiscally prudent for the Council to explore alternative locations or project designs prior to any further approvals.
City of Arcata, City Council June 17, 2025
David Loya, Community Development Director
Re: Abbreviated Supplemental Comments re Roger’s Garage Project Page 4
7. Evidence of Misrepresentation in CEQA Certification
In the City’s June 2024 CPLHA funding application, the submitted January 2024 Phase 1 Environmental Site Assessment (“ESA”) acknowledged the site’s Cortese List status while the Environmental Verification form certified likely eligibility for a CEQA exemption. This simultaneous submission of contradictory documents strongly suggests misrepresentation rather than mere oversight. Such apparent misrepresentation undermines the credibility of subsequent environmental analyses and necessitates independent review and investigation.
The City recently published information concerning the Project on its “Major Development Projects” website.1 The website only references the more recent Phase 1 ESA prepared for the Project site, it does not disclose the Phase 1 ESA finalized four months earlier by Freshwater Environmental Review Services and submitted with the CPLHA funding application. The two Phase I ESAs differ substantially in scope, findings, and conclusions regarding existing environmental conditions. Apparently, dissatisfied with the findings concerning contamination in the first Phase 1 ESA, the applicant commissioned a second report with more favorable findings.
8. Avoidance of Required Initial Study Following Application Rejection The City has failed to require a complete application and to initiate an Initial Study prior to making funding decisions on the Project, as mandated by Arcata Municipal Code (“AMC”) §
9.78.030(A). Instead, City staff, the applicant’s agents, and Regional Water Board staff participated in undisclosed meetings to ostensibly shape the project’s narrative for exemption eligibility. Public assertions by staff regarding recent “discovery” of Cortese List designation are undermined by earlier documented acknowledgments, indicating deliberate avoidance of mandated environmental review procedures.
9. Misuse of Public Funds and Implausible Claim of Ignorance The Council’s November 2023 approval of a $180,000 loan explicitly acknowledged “known lead contamination” and an open Regional Water Board case. (See adopted Minutes for November 1, 2023 City Council meeting, p. 7.) The subsequently assured reliance on the Class 32 CEQA exemption in the June 2024 Environmental Verification form, despite acknowledged contamination, raises serious concerns about misuse of public resources and transparency in decision-making. These inconsistencies undermine public trust and suggest a deliberate attempt to circumvent environmental analysis and mitigation obligations. 1 See https://www.cityofarcata.org/705/Major-Development-Projects.
City of Arcata, City Council June 17, 2025
David Loya, Community Development Director
Re: Abbreviated Supplemental Comments re Roger’s Garage Project Page 5
10. Improper Assumption of a Legal Advisor Role by Community Development Director At the May 21, 2025 Council meeting, Community Development Director David Loya improperly advised Councilmembers against deliberating or asking any questions concerning the Project, suggesting potential legal prejudice. (See adopted Minutes for May 21, 2025 City Council meeting, p. 4; see also video of meeting, at approximate hour/minute marks: 1:35, 1:47.) Such actions exceed the Director’s authority, infringe upon the City Attorney’s role, and improperly restrict the Council’s oversight responsibilities. The Council retains full authority to investigate procedural irregularities, question contradictory staff representations, and question the propriety of an asserted CEQA exemption without prejudice to future Project decisions.
Conclusion and Requests:
In light of the substantial environmental, procedural, legal, and financial issues detailed above, BBB respectfully requests the Council:
1. Delay all decisions regarding Project approvals, CEQA compliance, and CDBG funding until comprehensive and compliant CEQA and NEPA reviews are completed and publicly reviewed.
2. Resolve the contradictions and procedural ambiguities inherent in recent public notices and staff reports.
3. Provide full transparency on financial disclosures, including acquisition costs, remediation budgets, and administrative funding allocations, prior to further Council deliberation.
We appreciate the opportunity to participate and look forward to continued engagement. BBB reserves the right to provide further evidence and detailed arguments at future hearings.
As we previously requested in written correspondence concerning this Project, please provide notice of all future proceedings, communications, and public information concerning the Project to the undersigned via email at [email protected] and to BBB representatives at [email protected].
Very Truly Yours,
_________________________
Jason Holder
City of Arcata, City Council June 17, 2025
David Loya, Community Development Director
Re: Abbreviated Supplemental Comments re Roger’s Garage Project Page 6 cc: (Via e-mail only)
Merritt Perry, City Manager, City of Arcata ([email protected]) North Coast Regional Water Quality Control Board (CASE #: 1NHU804), Attn. Heidi Bauer, Senior Engineering Geologist ([email protected]) Client contacts
Attachments:
Exh. A. Notice of Public Hearing, CDBG Program Income Application, Roger's Garage Affordable Housing Project and CDBG Pl General Admin
Exh. B. AEI Consultants Letter, dated May 29, 2025
Exh. C. Regional Water Board Letter, dated June 5, 2025 City Council
Notice of Public Hearing
CDBG Program Income Application �
Roger's Garage Affordable Housing Project and CDBG Pl General Admin NOTICE IS HEREBY GIVEN that the City of Arcata City Council will hold a Public Hearing on Wednesday, June 18, 2025, at 6:00 p.m., or as soon thereafter as the matter may be heard, in the Arcata City Council Chambers, at 736 F Street, Arcata to consider application for Community Development Block Grant (CDBG) Program Income eligible activities. The Council will consider application for the Roger's Garage Affordable Housing Project and for the City's use of Program Income for General Administration. The City will also consider adding Program Income funds to the City's open Economic Development Grant {22- CDBG-30042). The City currently has approximately $1,500,000 in CDBG Program Income and wishes to allocate the funds to eligible activities. Eligible jurisdictions may submit Housing and Community Development applications for use of their CDBG Program Income funds for eligible activhies that promote community development and support low-income individuals and households.
This hearing will consider allocating CDBG Program Income to support the following eligible activities:
• Roger's Garage Affordable Housing Project - CDBG Program Income to make a soft loan to the project lie for property acquisition for the Roger's Garage affordable housing project. This is an eligible activity under CDBG guidelines and will help close the financing gap for critical affordable housing. Total CDBG Pl loan amount is $1M.
Environmental: The project is exempt from CEQA pursuant to the Infill Exemption {Class 32, CEQA Guidelines §15332) and Minor Actions to Prevent,-Minimize, Stabilize, Mitigate or Eliminate the Release or Threat of Relea�e of Hazardous Waste or Hazardous Substances {Class 30, CEQA Guidelines §1S330). NEPA is on file with the -�ommunity Development Department.
• General Administration - CDBG Program Income will be allocated to the Roger's Garage Pl Grant to account for prior year's administrative expenditures, as well as general administration expenditures through Fiscal Year 26/27. Tota.I allocation to Pl general ad min is $332K.
Environmental: The General Administration does not have direct impacts on the environment. Activities include staff time, loan servicing, and supplies. It can be seen with certainty that these activities will not have an impact on the environment. This action is exempt pursuant to CEQA Guidelines Sec. 15061{b){3). NEPA is on file with the Community Development Department.
• Economic Development - CDBG program income to supplement the Business Assistance {BA) and Microenterprise (ME) Program operated under Grant No. 22-CDBG-30042.
These CDBG Program Income funds will continue and expand these programs, which provide technical assistance, grants, and low-interest loans to small businesses and lowincome entrepreneurs. Total CDBG Pl allocated is $200K. •
Environmental: The funding will not have direct impacts on the environment. The nature of future loans that will be made from the supplemental funding is unknown at this time. As such, projects and their impacts are speculative. Therefore, this action qualifies for the common sense exemption because it can be seen with certainty that the action will not have an impact on the environment. Any actions taken as a result of the Economic Development loa·ns will be evaluated for compliance with CEQA. This action is exempt pursuant to CEQA Guidelines Sec. 15061{b){3). NEPA is-on file with the Community Development Department .
All projects must meet the Targeted Income Group (TIG) benefit national objective. Projects are subject to the approval of the CDBG Program. These projects will benefit Low and Very-Low Income individuals. f h h · · t ·ve individuals an opportunity to comment on the use of funds and The purpose o t e earing 1s o g1
.
. .
· 1· 'bl t· ·t·es the City should apply for with State CDBG funding. Written suggest alternative e 1g1 e ac 1v1 1 b d. t d t the c·ity of Arcata at 736 F Street Arcata or you may contact Sara Channell comments can e irec e o
by email at [email protected].
Th C·ty f Arcata does not discriminate on the basis of race, color, national origin, sex, sexual orientation, e i o d t· t ..
gender identify, age, religion or disability. If you require specific accommo a ions o part1c1pate in the public hearing, please contact the City Clerk at (707) 822-5953.
Exhibit A
AEI Consultants
2500 Camino Diablo
Walnut Creek, California 94597
925.746.6000
www.aeiconsultants.com
May 29, 2025
Tom Magney
North Coast Regional Water Quality Control Board
5550 Skylane Boulevard, Suite A
Santa Rosa, California 95403
Subject: Status Update
1622 Old Arcata Road
Bayside, California
AEI Project No. 488291
Dear Tom Magney,
On behalf of The Danco Group, AEI Consultants (AEI) has prepared this letter presenting an update to the status of activities at 1622 Old Arcata Road in Bayside, California (“the Site”). In a letter dated April 29, 2025, the North Coast Regional Water Quality Control Board requested bimonthly updates to current site conditions, corrective actions, and planned redevelopment activities. This letter represents the first bimonthly update.
The Site is located on the northeast side of Old Arcata Road in Arcata, California. The Site consists of approximately 1.68 acres of land that is improved with four one-story buildings. The remainder of the Site is improved with an asphalt parking lot at the southwest end. Figure 1 presents the site location map. Figure 2 presents the site map.
Activities at the Site
The main building at the Site is currently used as a gym, with the remaining buildings are used for storage. No new data have been collected at the Site since work described in the June 6, 2024, Limited Subsurface Investigation Report.
Challenges
The May 25, 2005, Metals Excavation Workplan presented the characterization and proposed removal of soils with elevated lead concentrations, which is the current plan to address the lead affected soils at the Site. The proposed soil removal activities are currently planned to be performed during future redevelopment activities when the necessary funds will be available and due to the significant impacts to Site uses that would be caused by implementation of the work plan.
Exhibit B
Status Update
1622 Old Arcata Road
Bayside, California
Project No. 488291
May 29, 2025 Page 2
AEI appreciates working with the Regional Water Board to move this project forward, and trusts that this letter meets with your approval. If you have any questions, please do not hesitate to contact me at (408) 656-1738 or [email protected].
Sincerely,
AEI Consultants
Trent A. Weise, P.E.
Vice President (Lic. No. C64480)
Copies:
The Danco Group
LEGEND
1622 Old Arcata Road,
Arcata, California 95524
SITE LOCATION MAP
FIGURE 1
Project No. 488291
Source:
Approximate Site Boundary
USGS
SITE
LOCATION
LEGEND SITE MAP
FIGURE 2
Project No. 488291
1622 Old Arcata Road
Bayside, California
Approximate Soil Boring Location
0 32 64
SCALE: 1” = 64’
Source:
Figure 5
Phase I Environmental Site Assessment
by Freshwater Environmental Services
dated January 4, 2024
SB-2
SB-1
SB-7 SB-3 SB-5
SB-4
SB-6
Scale is Approximate
North Coast Regional Water Quality Control Board
June 5, 2025
Mr. Dan Johnson
The Danco Group
5251 Ericson Way
Arcata, CA 95521
djohnson@danco group.com
Dear Mr. Johnson:
Site: Roger’s Garage (Former), 1622 Old Arcata Road, Arcata, California Case No. 1NHU804 (CR No. 2010044)
Subject: Requirement for Groundwater Monitoring
North Coast Regional Water Quality Control Board (Regional Water Board) staff reviewed the AEI Consultants (AEI) May 29, 2025, Status Update report for the referenced property. Thank you for the timely submittal of this document. We also reviewed analytical data collected in April 2024 included in the June 23, 2024, “Limited Subsurface Investigation Report” produced by AEI.
Grab groundwater samples from three of the seven borings drilled during the April 2024 investigation contained total petroleum hydrocarbons as gasoline (TPHg), or diesel (TPHd) as well as low concentrations of benzene, toluene, ethylbenzene, and xylenes (BTEX), likely from historic fueling and/or car crushing activities. Lead scavengers such as ethylene dibromide (EDB), 1,2- dichloroethane (1,2-DCA) and formerly used antiknocking agents such as tetraethyl lead were not analyzed.
Since there is a concern that soil surface metal contamination may impact groundwater in the area, please
1) Redevelop existing wells MW-1 and MW-3 through MW-7; 2) Gauge groundwater elevations in the redeveloped wells; 3) Sample the wells;
4) Analyze groundwater samples for TPHg, TPHd, BTEX, EDB, 1,2-DCA, tetraethyl lead, and cadmium, chromium, total lead, nickel and zinc. Please note that samples collected for metals analysis should either be field or lab filtered to remove particulate matter which can bias analytical results.
Exhibit C
Former Roger’s Garage - 2 - June 4, 2025
Results of the sampling event will be evaluated to refine future sampling requirements, if necessary. Please submit the groundwater monitoring report for this site by August 15, 2025.
If you have any questions regarding this request or need clarification regarding reporting requirements, please contact me at [email protected] or at (707) 543-7128.
Sincerely,
Tom Magney
Engineering Geologist
cc: McKenzie Dibble, [email protected]
David Loya, Community Development, [email protected] Kelsey Fletterick, Community Development, [email protected]