WATSONVILLE — The Watsonville City Council agreed to move forward with annexing half of an affordable housing development into city limits Tuesday, a decision City Manager Charles Montoya described as a showing of “goodwill” toward the county.
The council voted 5-2, with Councilmembers Nancy Bilicich and Jimmy Dutra dissenting.
The vote starts a process that would annex a 2.4-acre parcel on 56 Atkinson Lane into city limits.
The property is part of a 3.7-acre affordable housing project that is currently under construction, called Pippin Orchards. It consists of 20 apartment units within city limits and 26 units on unincorporated Santa Cruz County land.
The project has been many years in the making, and was downsized from 14.4 acres after a settlement with the Santa Cruz County Farm Bureau in 2011. In 2014, the City of Watsonville and County of Santa Cruz entered into an agreement where the city provides services such as police and water for the entire project, while the county processes building permits, among other things.
Pippin Orchards broke ground in the summer and is expected to start welcoming residents in August 2018.
With Tuesday’s vote, the annexation plan will now go to the Santa Cruz Local Agency Formation Commission (LAFCO) for approval.
Community Development Director Suzi Merriam said having the entire development within city limits would allow all residents to vote in city elections and avoid potential confusion for calls of service.
Montoya said he has met with each member of the Santa Cruz County Board of Supervisors, who urged Watsonville to annex the 2.4-acre parcel. Watsonville will still have to pay for services either way, as per the agreement approved by the city in 2014, he said, although developer MidPen will provide an $800,000 mitigation fee.
Working with LAFCO on this project, Montoya added, would “lay out that olive branch some point in the future” for other projects in the city.
“Our goodwill has to start somewhere,” he said.
Councilman Jimmy Dutra said he was skeptical of the decision, saying LAFCO has never offered the “olive branch” to Watsonville in past history.
“I feel it’s Watsonville that’s always had to bend over backwards for everyone else,” he said. “This is very typical for the county to tell us to take on the bills.”
Because the agreement had already been approved in 2014, the county will receive the affordable housing credits for the units on the 2.4-acre parcel, not the city, which Bilicich questioned.
“Here they are in the city, and we don’t get credit for them? What’s the benefit?” she said.
LAFCO Executive Officer Patrick McCormick said the organization supports the annexation.
“This is cleaned-up, good government,” he said. “We are setting the stage for whatever future things you want to send to LAFCO.”
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Also during Tuesday’s meeting, the council agreed unanimously to give a project to construct two medical offices on Technology Drive one more year to obtain the necessary permits from other agencies.
In 2012, the planning commission approved a permit for the two, 20,000-square-foot office buildings at 398 Technology Drive.
Developer Anatol Shliapnikoff said he has been working over the past five years to gain approval from the Army Corps of Engineers, the California Department of Fish and Wildlife, and the Regional Water Quality Control Board, since the project requires the removal of a wetland.
The city approved a two-year extension of the permit in 2014. Although the extension has expired, Merriam said Shliapnikoff has shown “meaningful progress” to warrant another extension.
Shliapnikoff said he has a client ready to go to fill the buildings, but they need to know if the project is moving forward by Dec. 31.
“My issue right now is if you postpone this, I might lose the client,” he said. “I have to give them an answer if I am building or not building.”
Because the project will eliminate a .27-acre pond if it moves forward, it has drawn the opposition of Watsonville Wetlands Watch.
Jim Van Houten, vice chair of Wetlands Watch’s Planning and Conservation Committee, said the development is “too dense” for the “steeply sloping riparian corridor.” He added that Wetlands Watch proposed an alternate plan for the site to the planning commission in 2012 that was not considered.
“This is a mediocre development on a very difficult parcel of land,” Van Houten said.
Just over two hours before the item was set to appear on the council’s agenda, city officials received an emailed letter from an attorney representing Watsonville Pilots Association in opposition to the project.
In the letter, Natalie Kirkish of Wittwer Parkin LLP wrote that the WPA was given “insufficient” notice of Tuesday’s meeting. The letter also states that the project, which is in an airport safety zone, cannot be approved because the California Aeronautics Handbook is not incorporated into the city’s General Plan.
Should the city be taken to court over its approval, City Attorney Alan Smith said the developer would be required to pay the fees per an agreement.
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The council also approved a rate study that both increases and decreases many “user fees” charged by the Community Development, Fire, Police, City Clerk, Utilities and Recreation departments. These fees include building permits, sign permits and numerous others.
The fees will go into effect on Feb. 1.
A list of the fees can be found at tinyurl.com/y9ckhp9b.
