Five Thumbs Way-Up! Elk Grove City Council Approves Souza Dairy Project

August 13, 2015 |

Citing its importance in remedying the city's well-documented job to housing imbalance, the Elk Grove City Council approved a 1,100 housing unit development at a special meeting last night.  

That subdivision, the 375-acre Souza Dairy Project, is the first major development approved within Elk Grove's so-called 1,200-acre Southeast Policy Area (SEPA). As the city's last major undeveloped  area within current city limits, the SEPA area has been presented as job magnet for Elk Grove.

During their deliberations, city council members emphasized the importance of establishing infrastructure derived from the establishment of residential neighborhoods to help attract employers to the area. Of the 375-acres in the project area, approximately 183-acres will be used for residential parcels are varying densities, 45-acres for multi-family housing of varying densities, 29-acres for parks, 25-acres for the so-called village center mixed use area, and 12-acres for offices.

Mayor Gary Davis also claimed that the number of jobs-to homes in the entire project area is in equilibrium  - something he said has never happened in Elk Grove planning. 

"The jobs to housing balance on this project is one-to-one," he said. "That far exceeds any project this city has approved."

Council Member Darren Suen said that while Elk Grove residents have been clamoring for jobs to come first, he opined that the residential component was needed to fund the infrastructure to attract employers. Suen noted the project and its point person, Gerry Kamilos, is willing to incur substantial short-term debt to fund the infrastructure, something employers are not generally willing to do. 

"I know there has been some criticism that rooftops will come before the jobs," Suen said. " But if you look at how infrastructure gets put into place, we don't have an employer here ready to take a portion of the $40 million it would take to serve that parcel."

Suen also said that it would be more attractive to employers and ease traffic flow to locate on the southern end of the SEPA, closer to the proposed Kammerer Road and Southeast Connector roadways.  

"It is easy to say, 'hey we want jobs first,'" he said. "But you have to look at the full picture and where it is situated today, is the best situation we have - a jobs center that is adjacent to a major thoroughfare and eventually a travel corridor where visibility for employers which they generally like."

In approving the project, the council agreed to a 20-year development agreement and adoption of the community facilities districts, more commonly known as Mello Roos assessments, that are in place for Elk Grove's Laguna Ridge planning area. The Mello Roos districts in Laguna Ridge include an assessment for a variety of projects under consideration by the council, including the city's aquatics center.   

Although some members of the council praised the project before they even voted for its approval, it was not without its critics. Notable among the critics was Robert Burness, of the Environmental Council of Sacramento. A former senior planner with Sacramento County with over 30-years experience, Burness was the county's senior planner for Elk Grove prior to its 2000 incorporation.    

Burness said that the practice of building homes in hopes of attracting employers has proven to be a failure in Elk Grove and the council's actions are doing nothing more than contributing to further sprawl. Furthermore, he said experience has shown that the jobs that come are low-paying service jobs.

"You appear to be giving up whatever leverage you may have in helping to ensure a better jobs to housing imbalance," he said.