From disaster to building boom? Bay Area developers look to Santa Rosa
SANTA ROSA — A busload of Bay Area developers and investors rolled into downtown Santa Rosa on a recent Friday, combing the streets for opportunity and asking each other a key question — will Santa Rosa be the site of the region’s next building boom?
City officials here hope the answer is a resounding yes.
A year and a half after the Tubbs fire devastated the city, killing 22 people, burning 3,000 homes and making an existing housing shortage even worse, Santa Rosa’s city leaders are trying to turn that tragedy into a catalyst for new development. They’re hoping for a flood of building applications that will transform Santa Rosa, bringing high-rise apartments to the city’s skyline and injecting new life into downtown. To get there, the city is pulling out all the stops — waiving development fees and relaxing rules on a scale the Bay Area has never seen, hoping to lure builders north.
“We need the Bay Area to come up here, recognize what we’re doing, help us out,” said Assistant City Manager David Guhin.
Those tactics already are turning heads, though some experts remain skeptical that Santa Rosa can support large-scale residential development.
In March, the Bay Area Council business association invited dozens of developers, investors, architects, brokers and others in the building industry on a tour of Santa Rosa to scope out the city’s potential. The response was overwhelming — the council filled a bus in 48 hours, and nearly 70 people ultimately joined the trip.
Guhin led the group on a rambling tour of downtown Santa Rosa, pointing out empty land, vacant buildings, parking lots and garages that could be turned into housing.
Many developers walked away with a new appreciation for the area.
“I’m interested,” said Wilson Chen of real estate developer and investor APIC. “The city seems very supportive, which is very rare in the Bay Area, so we see good potential here.”
Officials estimate Sonoma County has a shortage of 30,000 homes, after more than 5,000 were lost in the Tubbs and other 2017 wildfires. The fires devastated Santa Rosa in particular, costing the city 5 percent of its housing stock and destroying nearly the entire Coffey Park neighborhood.
A year and a half later, communities are bouncing back. In Santa Rosa, the rebuilding process has begun for more than 1,700 of the 3,000 homes lost within the city limits, said Guhin.
“We’re way ahead of where we thought we would be at this point,” he said.
But rebuilding the homes that burned down — mostly single-family houses in residential neighborhoods — isn’t enough. The city also needs new rental apartments to house residents who either don’t want to rebuild on their fire-ravaged properties, or can’t afford to because they were under-insured, Guhin said. In an effort to get that rental housing built, the city is rolling out the red carpet for developers, offering them a long list of perks if they build the type of housing Santa Rosa wants — tall, multi-family apartment buildings downtown.
Last year officials capped the city’s impact fees for downtown developments, charging builders only for the first three stories and waiving the rest. The city also expedited permitting for downtown projects, cutting the time it takes to get approval from 18 months down to six. And Santa Rosa officials are considering raising downtown height limits, now capped at 10 stories, and reducing parking requirements.