Agenda Item #13.1
For Council Meeting of: September 29, 2026
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: GABE OSBURN, DIRECTOR OF PLANNING AND ECONOMIC DEVELOPMENT SUBJECT: PARKING AGREEMENT BETWEEN THE CITY OF SANTA ROSA AND 425 HUMBOLDT, LLC FOR THE USE OF PARKING GARAGE 3 AGENDA ACTION: MOTION
RECOMMENDATION
The Planning and Economic Development Department recommends that the Council, by motion: 1) approve a Parking Agreement with 425 Humboldt, LLC, of Los Altos, California, allowing the purchase of up to 150 non-reserved residential parking permits in Garage 3, located at 735 Fifth Street, in connection with the approved 425 Humboldt Street Apartment Project, located at 625, 631, and 635 Fifth Street and 431 Humboldt Street; and 2) authorize the City Manager or designee to execute the Agreement, subject to approval as to form by the City Attorney.
EXECUTIVE SUMMARY
The approved 425 Humboldt Street Apartment Project consists of a seven-story, mixed-use building with 299 residential units, ground-floor commercial space, and approximately 185 on-site parking spaces. The approved Project narrative and plans also contemplated supplemental resident parking in Garage 3, located at 735 Fifth Street. The proposed Agreement would allow 425 Humboldt, LLC to purchase up to 150 non-reserved residential parking permits in Garage 3.
GOAL
This item relates to Council Goal #3 - Promote Citywide Economic Development by supporting development within the Downtown Station Area to address the parking needs associated with the City’s efforts to encourage new housing and increased activity in the downtown area.
BACKGROUND/PRIOR COUNCIL REVIEW
425 Humboldt, LLC plans to construct the approved 425 Humboldt Street Apartment Project (Project), a seven-story, mixed-use development with 299 residential units, including live/work units, ground-floor commercial space, and approximately 185 on-site parking spaces. The Project is located at 625, 631, and 635 Fifth Street and 431 Humboldt Street within the City’s Parking District.
Because the Project is located within one-half mile of a major transit stop, the Zoning Code does not establish a minimum automobile-parking requirement for the Project. Nevertheless, the approved Project narrative and plans contemplated supplemental resident parking in Garage 3. The applicant has requested a Parking Agreement with the City for non-reserved parking permits for future Project residents.
On August 19, 2025, the Council approved a parking Agreement with 425 Humboldt, LLC, for the purchase of residential parking permits in Garage 3. The Agreement was not executed. The parties subsequently revised the commencement and termination provisions, requiring Council approval of the proposed Parking Agreement.
ANALYSIS
The proposed Agreement would provide non-reserved parking permits in Garage 3 for residents of the approved Project. Section 3(C)(ii) of the Agreement guarantees the availability of up to 150 permits requested in accordance with the Agreement. The Developer may request additional permits, which the City may issue in its sole discretion.
The Agreement takes effect upon execution. It initially includes a development holding period ending upon issuance of the Project’s certificate of occupancy or December 31, 2028, whichever occurs first. If the certificate of occupancy is timely issued, a 15-year occupancy period begins, followed by three optional 10-year extensions. The Agreement provides that its total term may not exceed 50 years from the Effective Date.
During the occupancy period and any extension term, the Developer will pay the then-applicable non-reserved Garage 3 monthly permit rate established by the City Council, together with generally applicable administrative fees. No permits will be issued, and no permit payments will be required, during the development holding period.
The City retains the right to repair, improve, redevelop, reconstruct, or demolish Garage 3. If redevelopment or reconstruction would limit the Developer’s use of Garage 3, the City must provide 12 months’ written notice and make good-faith efforts to offer alternative parking. If the City does not make alternative parking available, the permit charges will be prorated during the closure.
FISCAL IMPACT
It is estimated that 425 Humboldt, LLC will purchase 150 monthly non-reserved parking permits. The current approved non-reserved permit rate is $60/month, generating an additional estimated revenue of $108,000 to the Parking Fund. There is no fiscal impact to the General Fund.
ENVIRONMENTAL IMPACT
On March 19, 2025, the Zoning Administrator approved Streamlined Design Review for the 425 Humboldt Street Apartment Project and determined that the Project qualified for streamlined environmental review pursuant to CEQA Guidelines Section 15182, based on its consistency with the Downtown Station Area Specific Plan and the associated Subsequent Environmental Impact Report. The Zoning Administrator also determined that the Project qualified for the Class 32 infill exemption pursuant to CEQA Guidelines Section 15332. The approved Project narrative and plans identified supplemental resident parking in Garage 3.
The proposed Parking Agreement implements the parking arrangement contemplated as part of the previously approved Project and does not modify the Project’s physical development, increase the number of residential units, or authorize additional construction. No substantial changes to the Project, substantial changes in circumstances, or new information of substantial importance require additional environmental review pursuant to CEQA Guidelines Section 15162. Accordingly, the prior CEQA determination remains applicable, and no further environmental review is required.
In addition, the use of existing parking spaces within Garage 3 is categorically exempt pursuant to CEQA Guidelines Section 15301 because it involves the continued operation of an existing public parking facility with no or negligible expansion of its existing use.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
None.
NOTIFICATION
Not applicable.
ATTACHMENTS
Attachment 1 – Parking Agreement
PRESENTER(S)
Chad Hedge, Parking Manager
PARKING AGREEMENT BETWEEN THE CITY OF SANTA ROSA AND 425 HUMBOLDT, LLC FOR THE USE OF PARKING GARAGE 3 PAGE 3 OF 3