RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI APPROVING
AFFORDABILITY AGREEMENTS WITH DIAMOND BOULEVARD, LLC FOR THE COTATI VILLAGE 1 AND COTATI VILLAGE 2 DEVELOPMENT PROJECTS WHEREAS, on February 27, 2024, the City Council approved Preliminary Design Review and a Tree Removal Permit for the Cotati Village 1 project, a 177-unit housing development with 4,752 square feet of commercial space proposed for the property located at the northeast corner of Gravenstein Highway and Alder Avenue; and WHEREAS, on August 27, 2024, the City Council approved Preliminary Design Review and a Tree Removal Permit for the Cotati Village 2 project, a 126-unit housing development with 2,200 square feet of commercial space proposed for the property located at the northwest corner of Gravenstein Highway and Alder Avenue; and
WHEREAS, pursuant to Chapter 17.31 (Affordable Housing Requirements) of the Cotati Municipal Code, 15% of the housing units in a residential development with more than nine units must be designated as affordable, based on Area Median Income (AMI) for a period of 55 years, and that one-third of the affordable units must be reserved for very low-income households, one-third for low-income households, and one-third for moderate-income households; and
WHEREAS, Chapter 17.31 of the City’s Municipal Code further requires the execution of an affordability agreement between the City and the developer/owner of each project subject to Chapter 17.31 in order to ensure that the requirements of that Chapter will be met; and WHEREAS, the applicant, Diamond Boulevard, a Limited Liability Corporation (LLC), has accepted the obligation to execute two Affordable Housing Regulatory Agreements and Declaration of Restricted Covenants (Affordable Housing Agreements) for Cotati Village 1 and 2 projects, respectively, and are attached to this resolution; and WHEREAS, the Cotati Village 1 and 2 projects utilize the State Density Bonus law, which requires local jurisdictions to grant an increase in density to qualifying residential projects in exchange for provision of a certain number of affordable, income-restricted housing units within the project that are maintained as such for a minimum term of 55 years; and WHEREAS, these projects support the City of Cotati’s 2023-2031 Housing Element’s goal to promote affordable housing development by providing affordable housing units at no public cost and contribute to the City’s Regional Housing Needs Allocation.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cotati hereby finds the following:
1. The foregoing recitals are declared to be true and correct and are incorporated herein by reference.
2. The City Council finds that the Affordable Housing Agreements for the Cotati Village 1 and 2 projects is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act ("CEQA") Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The City Council further finds that CEQA analysis for the Cotati Village 1 and 2 projects has been previously conducted and conformed to CEQA Guidelines Section 15183, which provides a streamlined review of the environmental impacts of the projects by tiering from the program level analysis prepared for the Cotati General Plan and its certified EIR. Section 15183 of the CEQA Guidelines mandates that projects which are determined to be consistent with the development density established by existing zoning, community plan, or general plan policies for which an EIR was certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site. All adopted mitigating General Plan policies and mitigation measures identified in the 2013 General Plan EIR that apply to the Project are identified in the analysis and imposed as environmental conditions of approval.
3. The City Council hereby approves the affordability agreements, in the form attached to this resolution, for the Cotati Village 1 and Cotati Village 2 development projects.
4. The City Council hereby authorizes the City Manager, or their designee, to execute the documents on behalf of the City, substantially in the form presented for City Council review. The City Manager, in consultation with the City Attorney, may approve modifications to the document, provided such changes align with the intent of this Resolution, do not increase the City’s obligations, and do not impair the City’s rights.
5. This Resolution shall become effective immediately upon adoption.
IT IS HEREBY CERTIFIED that the foregoing ordinance was duly adopted at a regular meeting of the City Council of the City of Cotati held on September 9, 2025, by the following vote, to wit:
Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney