CITY OF EAST PALO ALTO
Office of the City Council
East Palo Alto Government Center – 2415 University Avenue, East Palo Alto, CA 94303 – 650.853.3100 March 4, 2022
President Betsy Yanez
Board of Directors
East Palo Alto Sanitary District
901 Weeks Street
East Palo Alto Alto, CA 94303
Dear President Yanez and Board members:
I am writing this letter at the direction of the City Council. As you know the City of East Palo Alto and the East Palo Alto Sanitary District are currently involved with a 185- unit affordable housing development at 1805 E. Bayshore Road in the City being pursued by Light Tree Two, L. P. (“Light Tree”.) The existing 94 existing unit apartment complex will be rehabilitated by demolishing 37 existing apartments, renovation of the remaining 57 apartments and construction of 128 new apartments for a total of 185 units.
The City understands that, in 2020, Light Tree and the District entered into a Wastewater Services Agreement for the project. The agreement describes construction of sewer lines as set forth in Exhibit C to the agreement is attached here as Exhibit A.
The City also understands that Light Tree has fully paid to the District all of the financial obligations specified in the Wastewater Services Agreement. Therefore, to move the Light Tree project forward, the City recommends the following:
1. The project move forward with construction shown in segments A through 6 of the Exhibit.
2. The city will issue an encroachment permit for all work required in segments A through 6, and the California Environmental Quality Act clearance for that permit and work is documented in the Notice of Exemption filed by the District on March 23, 2021 pertaining to the “1805 East Bayshore Road Sewer Main Replacement” Project.
3. The District begin construction work on segments A through 6.
4. The California Environmental Quality Act environmental review of the construction and installation of the sewer lines in Segment 7 will be included in the California Environmental Quality Act environmental review for the District’s Trunk Line Project.
With completion of segments A through 6, 77% of the district system expansion will be brought online before the new units at Light Tree will be occupied thus preserving the project’s existing financing which includes a $20,000,000 Affordable Housing Sustainable Communities award.
At the next regular City Council meeting on March 15, 2022, The City will consider entering into a Memorandum of Understanding between the City and the District with reference to the above proposals. We respectfully request that the Board of Directors also place this matter on the agenda of your next regular meeting.
Both the City and District should receive significant benefits from the Light Tree project.
We look forward to working with you in bringing this project to successful completion.
Sincerely,
Ruben Abrica
Mayor
Attachment
Exhibit A
cc: EPASD Board of Directors
Akin Okupe, District Manager
City Councilmembers
Jaime Fontes, City Manager
Patrick Heisinger, Assistant City Manager