Novato, ‘in a pickle,’ advances one housing project, delays another

The Novato City Council has two vetted downtown housing proposals, sending one plan forward despite reservations while stalling another over criticism about building height.

The council voted unanimously on Tuesday to approve a mixed-use proposal for Grant Avenue and Fourth Street. The panel said it is hamstrung by state requirements to push through the project, which received widespread condemnation from the public during a nearly three-hour session on the topic.

The council deferred a decision on a proposal by the same developer, AMG & Associates LLC, to create housing on Grant Avenue at First Street, noting that a deeper discussion should be held on the building’s height and massing. The statutory deadline to act on the project is Oct. 1.

The First Street and Grant Avenue project would include 170 apartments and 8,010 square feet of ground floor retail space at 1107 Grant Ave. The Fourth Street and Grant Avenue proposal would include 209 apartments with 5,335 square feet of ground floor retail space.

The apartments have been billed as low-income workforce housing, according to the co-applicant, the California House Defense Fund of Encino.

Alexis Gevorgian, founder of AMG Associates, said he had been in contact with the Downtown Novato Business Association to reduce the height and massing in order to quell criticisms about density and a lack of parking.

“We’re making a good faith effort,” he said. “Our objective really is to develop workforce housing.”

Still, council members said the effort appeared to be less than philanthropic.

“It’s a money-making venture,” said Councilmember Susan Wernick. “But we need to do it in a way that’s leaving the world better than we found it.”

Mayor Pro Tempore Tim O’Connor called the process frustrating and said the decision was forced by state requirements that undermine local control. He said his vote was “under duress.”

“If a project checks all the boxes, we have no ability to decline it,” O’Connor said. “Based on my knowledge of our community, I strongly question whether you’re building a project which has demand.”

The development plans include a density bonus and requests for concessions to development standards.

The city’s zoning allows for a range of 10 to 23 dwellings per acre. The First and Grant proposal has a density of 200 dwellings per acre based on a site area of 0.85 acres. The Fourth and Grant project has a density of 186 dwellings per acre based on a site area of 1.12 acres.

The requested density levels are possible through a provision of density bonus law offering unlimited density to fully affordable housing projects within one-half mile of a major transit stop. The downtown Novato SMART station qualifies.

“From staff’s perspective, any existing train is a qualifier as a major transit stop,” said Steve Marshall, deputy director of community development. “And I think Novato is consistent in that perspective as places like San Rafael and Santa Rosa also have SMART stations and they’re also processing projects that are subject to major transit stop requirements.”

The same density bonus provision also grants a 33-foot building height increase above a city’s applicable height limit, in this case 35 feet.

The project plans incorrectly list the maximum height limit as 45 feet, a city staff report noted. The maximum height for the buildings is actually 68 feet.

Kevin Jacobs, a Novato Chamber of Commerce board member who is running for a seat on the City Council, said during the public comment period that the plans are large in scale and ignore zoning requirements on heights in the area.

“This will change the looks and feel of our downtown in a negative way,” Jacobs said.

AMG also is developing a mixed-use site at Grant Avenue and Third Street that was approved by the council in June. The project includes 56 apartments and 1,735 square feet of ground-floor commercial space. The development also includes a density bonus under Assembly Bill 2011, which allows for streamlined approval of housing projects that meet specific criteria. The plans received similar criticism for a lack of parking.

Councilmember Rachel Farac implored the developers to work further with the city and its stakeholders in order to refine the plans to meet new height and parking standards.

“We want to create a win-win situation with you,” she said. “That means looking at parking, that means looking at the studio and the one-bedroom, and I don’t think that’s a fit for Novato.”

Mayor Mark Milberg said he looks forward to future discussions.

“I am definitely hearing that we are in a pickle,” Milberg said. “We’d really appreciate that you come back with a much more thoughtful approach.”

Under the state’s housing mandate, Novato is required to permit 2,090 new dwellings during the eight-year planning cycle. The mandate includes 570 residences for very-low-income households and 328 for low-income households.