CITY OF SANTA MARIA
City of Santa Maria
Vernon Group
Sales and Disposition Agreement
September 17, 2024
BACKGROUND / TIMELINE
• 2008 Adopted Downtown Specific Plan
• 2015 Adopted Revised Downtown Specific Plan
• 2019 Adopted Downtown Streetscape Plan
• 2020 Issued Request For Proposals for development on underutilized City property
• 2021 City selects Vernon Property Group based on project vision/design and team qualifications
• 2022+ Worked on refining project concepts, agreement terms, Alvin Newton Apartments and Firefighters Memorial, Heritage Walk Lofts, Surplus Lands Act, etc.
VISION / STRATEGY
• Create a walkable downtown in a mixed-use environment with destination features: inviting plazas and open spaces, restaurants and places to eat and gather, as well as new housing in proximity to these uses • Convert underutilized spaces and leverage them for highest possible value and use, injecting new life into downtown
• Work closely with existing businesses and Town Center to minimize impacts during future construction and to ensure future success
OVERALL CONCEPT PLAN / PROJECT DESCRIPTION
N
• Lot 1 (2 acres) – Up to 375 housing
units, including condos and/or hotel
rooms, minimum 10,000 sq. ft. for
commercial uses with minimum
5,000 sq. ft. for dining
establishments
• Lot 2 (1.12 acre) – Up to 160
affordable housing units
• Lot 3 (0.62 acre) – 82 apartments
with ground floor commercial
• Lot 4 (0.84 acre) – Future option
after progress on Lots 1, 2, and 3
About 600 new units on Lots 1, 2, and
3 with over 15,000 sq. ft. in
commercial uses, and new plazas,
paseos and landscaping to enhance
these spaces.
1 2
3 4
OVERALL ISOMETRIC PLAN
OVERALL ISOMETRIC PLAN
LOT 1 – HERITAGE WALK
LOT 1 – PLAZA and OPEN SPACE
LOT 1 – PLAZA and OPEN SPACE
LOT 2 – SITE PLAN / GROUND FLOOR PARKING
E
LOT 2 – SITE PLAN / TYPICAL UPPER FLOOR PLAN
E
LOT 2 – SOUTH and EAST ELEVATIONS
LOT 2 – SOUTH and EAST ELEVATIONS
LOT 2 – RENDERING AT MAIN and BROADWAY
LOT 2 – RENDERING FROM MAIN ST
LOT 3 – ALVIN NEWTON APARTMENTS
LOT 3 – ALVIN NEWTON APARTMENTS
LOT 3 – ALVIN NEWTON APARTMENTS
LOT 3 – ALVIN NEWTON APARTMENTS
LOT 3 – ALVIN NEWTON APARTMENTS
BOOT BARN / HERITAGE WALK
INCENTIVES
To incentivize development, the City offers the following key incentives:
• Discounted price for each Lot at $120,000
• Use of the Town Center parking structure on Main Street • 50 percent discount on Planning and Building fees, and growth mitigation fees for City Hall, Consolidated Corporation Yard, Police, Fire, Traffic, and Library (depending on final unit count and square footage constructed, is estimated to be over $2 million)
These concessions are subject to performance requirements, including adherence to proposed timing for milestones. While not necessarily a part of the agreement, the City is also spending approximately $3.5 million (in REAP 2.0 and ARPA grant funding combined) on Downtown infrastructure, including sewer line upgrades, a bus rapid transit station, and other pedestrian improvements.
FUTURE TIMING
For each lot, one year is allotted for Planning review and approval, and preparation of construction plans. Six months are allotted for construction plan review and three years are allotted for construction following construction plan approval. Given the time set aside for plan preparation, review processes, and construction, we could see completion of the following:
• Lot 3 (Alvin Newton Apartments) before January 2028
• Lot 2 (Perlman Apartments) before March 2029
• Lot 1 before December 2031
• Lot 4 (as an option) after Lots 1, 2, and 3
INCENTIVES AND REVENUES ANALYSIS
INCENTIVES AND REVENUES ANALYSIS
RECOMMENDATION
Adopt a Resolution approving the sales, disposition and development of City surplus land in Downtown (identified as Lot 1, Lot 2, and Lot 3, with an option for Lot 4), and authorizing the City Manager to complete negotiations and execute the Sales and Disposition Agreement (SDA) between Vernon Property Group, LLC and the City of Santa Maria and all necessary implementing agreements and documents consistent with the material terms presented to the City Council.
END OF PRESENTATION