ELK GROVE, Calif — Update: Jan. 10, 2024
Hours before the Elk Grove City Council was set to have another vote on a contentious housing project for their historic district, officials said the city has reached a "settlement in principle" with the developers for the Oak Rose Apartments.
The agreement would relocate the project to a different site in the city outside of the city's historic district. However, the settlement is not final yet.
Staff is expected to ask City Council to postpone action on the project until Jan. 24 in order to finalized the settlement details and settlement documents.
Original Story:
The Oak Rose Apartments project is returning again to the Elk Grove City Council for a vote after talks for an alternate site have yet to produce results.
The future of the 67-unit permanent supportive housing program for those at risk of homelessness has been up in the air for some time. It was initially denied by the Elk Grove City Council more than a year ago, but it found its way back to the agenda after two lawsuits, one from the developer and one from California's attorney general.
The last time the city council had a vote before them, they postponed the item in an effort to engage with the developer and find an alternate site.
Despite the negotiations, the city said no resolution for an alternate site has been found, according to a city staff report. And city staff is again recommending the project for approval.
Dana Trujillo, CEO of Excelerate Housing Group and developer for the Oak Rose project, told ABC10 in a statement that talks between the two sides are still ongoing with the council meeting ahead.
“The goal of Excelerate Housing Group and our partner, Hope Cooperative, is to build affordable housing for struggling Californians. We are continuing to talk with City leadership about building on an alternative site that could provide more homeless housing in Elk Grove than the original site. We have shared terms with the City that would allow us to achieve that compromise,” said Trujillo. "It is now up to City leaders to make a decision about where they want this new affordable housing to be built."
Notably, the lawsuit between the developer and the city of Elk Grove is still active, and it's not clear how a decision for an alternative site could impact the lawsuit from the attorney general.
Trujillo added that Excelerate Housing Group won't be attending the city council meeting scheduled for Jan. 10.
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