Brawley council considers housing development
BRAWLEY — Concerned residents of the La Paloma Specific Plan Area diligently followed explanations of how a law suit bond settlement and possible re-enactment of a tax could help a stalled housing development move forward.
Gordon Gaste, planning director briefly reviewed how La Paloma reached its present state. The project sits on over 400 acres with houses planned for parcels Unit 1 and 2. Currently, 25 houses have been completed, comprised of planned 282 units.
The city formed a Community Facilities District, a funding mechanism developers request to help cover costs. But not all development projects in the city have CFD’s, just those voted approval by the city council. But when the recession hit in 2008, the original developer ran into financial difficulties and the project stagnated.
In 2010, with the economy just beginning to recover, the city moved to temporarily suspend the Special Tax Levy A (after only one year payment). Meanwhile, the former developer filed suit against the city. After a year the city won a $2.7 million bond settlement agreement with Arch Insurance Company.
A new developer, Pacific West took over the project. But the city wanted to use the settlement fund to bring offsite improvements to roads on the perimeter of the subdivision to ameliorate public safety concerns. The city adopted Resolution 2013-53 to set priorities for La Paloma Units 1 and 2. The city has applied bond settlement proceeds to reimburse the city for litigation, improve existing streets in the subdivision and prepare design plans for construction on Eastern Avenue and underground a section of the Oakley Canal.
Andrew Dixon, president of Pacific West Development made an appeal to the council to reinstate special Tax Levy A and also rescind Resolution No. 2013-53. By completing Units 1 and 2, it will benefit the 25 residents already there with upgraded security, build out a greener and cleaner community and raise home values, Dixon noted. But without adopting the two measures, completing the additional 268 homes would not be economically feasible, he explained.
Several residents of the subdivision expressed concerns about the reinstated tax. The tax runs from $1,186.74 annually for a 1,600- square- foot home, up to $2,010.13 for a 2,850-square-foot home. Stephen Elliot, a resident, said the written letter he received last week was short notice and additional tax of $2,000 was “hard to swallow.”
Raymond Leon, another resident, noted when they moved in to La Paloma, they were promised a park, shopping center and a fire department station house nearby, but no improvements have been made. And several other residents said they believed all city residents should help bear the burden of a tax.
Councilman George Nava said he was remaining neutral on the issue. But Nava pointed out residents did not have to pay the tax for five years and the requests by Pacific West Development would substantially improve the subdivision. He added the lawsuit cost $ 400,000 even though the city won.
“I’m in agreement (with residents), we need more information before we move forward with the process,” Nava.