Rohnert Park approves housing complex on Press Democrat-owned industrial property

The Rohnert Park City Council has advanced a plan allowing a developer to build an apartment complex on an industrial property at the city’s north end owned by the parent company of The Press Democrat.

The approval would allow a housing project of up to 156 apartments on the 6.5-acre plot located off Business Park Drive behind the newspaper’s printing plant. The property’s pending sale to Petaluma-based Advanced Building Solutions was contingent on a zoning change and other approvals granted by the council Tuesday on a 3-1 vote.

It was the council’s third public hearing on the proposal, which failed to advance on prior occasions due in large part to council members’ push to have the developer commit a portion of the complex to affordable units.

During the past month, city staff and Chris Scerri, president of Advanced Building Solutions, agreed to a framework where 10 percent of units in the future Redwood Crossings project will be dedicated as income-limited affordable housing.

Terms of the multimillion dollar deal between Advanced Building Solutions and Sonoma Media Investments, owner of The Press Democrat, were withheld by both sides.

Steve Falk, CEO of Sonoma Media Investments, said the sale will pay off debts owed to a group of local investors that bought the newspaper and related properties from Halifax Media Group in 2012.

“As you look across the country at media operations, the ones that are in the most trouble are the ones that are in the most debt,” said Falk. “Being debt free does not mean the business is going to get any easier, but it eliminates one financial burden that we can reinvest into being a healthier organization.”

To convince the council to rezone the property from light industrial to high-density residential, Scerri agreed to up to 16 units of affordable housing within the complex, consisting of one- , two- and three-bedroom apartments. He previously offered an in-lieu fee of $465,000, which did not satisfy a majority of council members.

The maximum income for qualifying residents of the affordable units will be set at 120 percent of the area median income - about $80,000 annually for a two-person household and $100,000 for a family of four.

Mitigation fees to account for impacts to endangered tiger salamander habitat could amount to an estimated $1.5 million. Park fees paid to the city would add another $1.4 million, to help purchase 5 acres of community green space.

Redwood Crossings will also trigger $128,500 in annual fees toward Rohnert Park’s public safety and public works departments.

Scerri did not respond to interview requests about the project after Tuesday’s hearing.

Advanced Building Solutions previously built an 84-unit complex called The Reserve just south of the proposed project site. Another housing project, the 244-unit Fiori Estates Apartments, was recently completed nearby on the city’s west side, an area previously zoned only for commercial and industrial uses.

Councilwoman Gina Belforte, who in October signaled she would oppose the Redwood Crossings project without a higher commitment of affordable housing, was absent from the hearing. Vice Mayor Joe Callinan was the lone dissenting vote. He held firm to the stance that housing should never have been allowed in Rohnert Park west of Highway 101.

“Unfortunately I still think over in that area, it’s not the right location for anymore units,” Callinan said. “I’ve said it since we’ve been approving these for a couple years now that there’s no parks over there really, there’s no area for kids to play, and I’ve just got to put down my foot somewhere.”

Denise Weems, property manager and resident at Fiori Estates, spoke during public comment, sharing concerns about approving the zoning change, and permitting the housing project to move forward. She feared more market-rate units could hurt occupancy rates at the complex she oversees and add to existing congestion issues in the neighborhood.

“To add another 156 units to that street I think would be a lot,” she said. “I would really consider something smaller. Traffic can be a little tedious during commute times coming home.”

The majority of the council was unmoved and voted in favor of the project. A second formal vote is set for the council’s Nov. 27 meeting.

“It’s a great result for everyone involved,” Falk said of the two-year process to complete the deal. “The community gets much-needed housing. The council gets 10 percent moderate (units) as part of the complex as opposed to in-lieu fees, and obviously The Press Democrat benefits from the ability to pay off our debt.”