Council approves review application for housing project

Apartment complex would provide 71 units in low-income housing

The Marysville City Council voted 3-2 to approve a development plan review application for a 71-unit affordable apartment complex at 1315 Yuba Street on the block bounded by E 13th, E 14th, Ramirez and

Yuba streets.

After a public hearing on Tuesday, Vice Mayor Bruce Buttacavoli, council member Brad Hudson and council member Stuart Gilchrist voted to approve the review application for the “East Lake Apartments.” Mayor Chris Branscum and council member Dom Belza voted no.

A development plan review will determine if the project site is suitable for the proposed use, if the project meets the zoning requirements, if the infrastructure capacity is adequate and if the project is compatible with the neighborhood. The vacant lot used to be a sign yard for Caltrans District 3.

The developer will be applying to finance the project through low income tax credit financing. If approved, the apartment complex would be a low income restricted project. Because it is an affordable housing project, the developer will be seeking a property tax exemption, according to planning consultant Paul Richardson who presented to the council. A four-person household making less than $56,000 a year would qualify for a unit.

“Fifty-two percent of our population of the residents of Marysville will qualify to move into this apartment building,” Gilchrist said. “... We need to increase the housing here to have a health general fund ... I think it would be a great thing.”

Richardson said the value of the project would be $15 million. Without the tax exemption, the site would generate $150,000 in property taxes of which Marysville would get approximately $25,500. The city currently generates about $406 in property taxes from the site. If developers are approved and get the exemption, the city would get an estimated one time fee of around $275,000, but no

property tax revenue.

The tax exempt status of the project is what led Branscum to vote no.

“This is a project that is going to place a burden on valuable services which are already stretched thin ... In terms of is it compatible? My suggestion is absolutely not ... It’s incompatible with the current fiscal environment in Marysville,” Branscum said.

He also said the apartment complex would lead to an increase in students at local schools that would not

get tax revenue from the project. Mike Kelley, who represented the developer at the meeting, said a market study done by his company found that most people who would inhabit the complex would have kids already attending Marysville schools.

“There really would not be a substantive impact on the schools,” Kelley said. “They’re already going to those schools.”

There would be one, two or three bedroom units in the complex, a half court basketball court, children’s play area, a community garden, a community room and downstairs laundry facilities. At this point, tenants could have laundry facilities in their own unit

or use the communal laundry facilities.

The Marysville Planning Commission voted

5-0 to recommend the council to approve the development plan review application. As part of its recommendation, the planning commission included 10 conditions for the developer to implement. Some of those include repairing frontage improvements including curb, gutter and sidewalk; the developer being responsible for on-going maintenance; and installing perimeter fencing that shall be black, decorative wrought iron, metal or aluminum that will be visually open and transparent.

During public comment, Marysville resident Helen Perkins spoke on behalf

160 residents who signed a petition in opposition of the project because of its tax exempt nature.

Johnny Burke, executive director of the Sutter-yuba Homeless Consortium, said his organization supported the project.

“This is a great project because affordable housing is something that our area, especially Marysville desperately needs,” Burke said during the meeting.

John Nicoletti also voiced his support for the project and the positive impact it would have in the community.

“There is a massive need in the state of California,”

Nicoletti said. “Cost of living here is greater than anywhere else. A project like this actually helps those that are just getting started that will contribute for years to come.”

Buttacavoli said he had concerns about the project being tax exempt but asked staff about how approving the project would affect the city’s housing element. Richardson said the proposed apartment complex being built would meet the low/ moderate income housing requirements for Marysville from 2021-2029.

City Manager Jim

Schaad said not meeting the housing element requirements could make it more difficult for the city to

obtain grant funding from the state for other larger projects.

“(The year) 2029 seems like a long time away but with particularly moderate and low income housing many communities have struggled to meet those quotas in that type of time period,” Schaad said.

In addition, Schaad said the approximately $25,000 the city would be losing in property tax revenue could be recouped by an increase in sales tax revenue from having a 71-unit affordable apartment complex.

A nearly identical project for the same location was approved by the city in 2016 but the developer was unable to see the project to completion.