Attachment A
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MARIA, CALIFORNIA,
AUTHORIZING THE CITY MANAGER TO NEGOTIATE, FINALIZE ,
AND EXECUTE AN AMENDMENT TO SALES AND DISPOSITION AGREEMENT (SDA), ESTOPPEL, AMENDMENT, AND PARTIAL ASSIGNMENT OF SDA,
SUBORDINATION AGREEMENT, AND PARKING AGREEMENT WITH VERNON
PROPERTY GROUP, LLC AND EXECUTE ANY RELATED DOCUMENTS
WHEREAS, the City of Santa Maria entered into a Sales and Disposition Agreement (SDA) with Vernon Property Group, LLC (“Vernon”) on September 17, 2024, for the purchase and development of four parcels of surplus lands concentrated near Broadway and Main Street in the downtown area; and
WHEREAS, the first development project to be constructed under the SDA will be the Perlman Apartmen ts on Lot 2, consisting of 150 affordable units for families, in furtherance of the City’s obligations under California’s Surplus Land Act; and
WHEREAS, Vernon has partnered with Danco Group (“Danco”), a fully integrated affordable housing firm, for the development of the Perlman Apartments on Lot 2, with Vernon remaining the master developer for the total SDA and partnering 50/50 on the construction component; and
WHEREAS, an Estoppel, Amendment, and Partial Assignment of SDA is proposed to allow Vernon to assign a portion of their rights and responsibilities under the SDA to Danco, who will assume ownership of the project and, upon completion, assume property management responsibilities; and
WHEREAS, a Subordination Agreement by and among the City, C itibank, N.A., and Santa Maria North Broadway LP (a related party of Danco Group) is required to allow the primary lender, Citibank, to provide the necessary funding for development of the Perlman Apartments; and
WHEREAS, a Parking Agreement is proposed to provide Perlman Apartments tenants with access to 55 spaces within the City-owned parking structure located on Main Street east of Broadway, as required under the project’s Downtown Permit as a condition of approval in addition to the 78 on-site spaces; and
WHEREAS, an amendment to the SDA is proposed to expand Lot 2 to include approximately 1,600 square feet of adjacent space for underground drainage facilities and nominal additional square footage for site connectivity, in exchange for which Danco and Vernon will construct a dog park within the existing inline park at an estimated value to the City of $280,000 and will forego fee waivers and reductions outlined in the SDA for Lot 2 consisting of $412,865 in impact fees and $201,535 in permitting fees, for a total value to the City of approximately $894,400; and
Attachment A
WHEREAS, the City of Santa Maria determined that the proposed action is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines; ther efore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
SECTION 1 . The City Manager is hereby authorized to execute the Estoppel, Amendment, and Partial Assignment of the Sales and Disposition Agreement (SDA) with Vernon Property Group, LLC and Danco Group; and
SECTION 2. The City Manager is hereby authorized to finalize and execute the Subordination Agreem ent by and among the City of Santa Maria, Citibank, N.A., and Santa Maria North Broadway LP; and
SECTION 3. The City Manager is hereby authorized to negotiate, finalize, and execute a Parking Agreement with Vernon Property Group, LLC providing Perlman Apartments tenants access to 55 spaces within the City-owned parking structure located on Main Street east of Broadway, in substantially the form submitted hereto; and
SECTION 4. The City Manager is hereby authorized to negotiate, finalize, and execute an amendment to the SDA with Vernon Property Group, LLC in a form approved by the City Attorney, based on the terms outlined in the Council Agenda Report, including the expansion of Lot 2 for underground drainage facilities and related surface area, in exchange for construction of a dog park and foregoing previously agreed -upon fee waivers and reductions for Lot 2; and
SECTION 5. The City Manager is hereby authorized to execute any related documents necessary to effectuate the closing of Lot 2 and facilitate de velopment of the Perlman Apartments and implementation of the Sales and Disposition Agreement dated September 17, 2024, with Vernon Property Group, LLC; and
SECTION 6. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
Attachment A
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 16th day of June 2026.
ATTEST:
Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
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City Attorney
APPROVED AS TO CONTENT:
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Department Director
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City Manager