ELK GROVE, Calif. — Elk Grove city officials announced Thursday they reached a legal settlement with the Oak Rose Apartments developers — agreeing to move the proposed permanent supportive housing project out of the city's historic district.
The project originally set for 9252 Elk Grove Boulevard divided members of the Old Town neighborhood who said welcoming new neighbors could cause an unsafe environment.
Ownership of their property at 8484 Elk Grove-Florin Road will now be transferred to the Oak Rose Apartments developers Excelerate Housing Group.
"The 8484 Elk Grove-Florin Road site allows us to increase the size and number of units in the project and provide additional amenities to future residents compared to the Elk Grove Boulevard site. We appreciate the time and effort the Mayor and key staff put into these discussions to come to a mutually beneficial resolution," said Excelerate Housing Group CEO and President Dana Trujillo.
The developers will also be reimbursed by the city a total of $2,310,000 for damages, attorneys' fees and money spent on the previous Old Town site.
Another $5 million in grants will be provided by the city to help develop the Elk Grove-Florin site.
City officials have until June 30 to approve or reject the developer's proposal. In the event Excelerate Housing Group terminates the agreement, the city must pay the developers $2.2 million.
Legal action filed by the State of California remains pending and is not part of the current settlement, but city officials say they hope the settlement will spark a swift resolution with state officials.
