Oak Rose housing project $9.1 million settlement details announced by Elk Grove; Attorney General's lawsuit remains

The Oak Rose supportive housing project, which has put Mayor Bobbie Singh-Allen under legal scrutiny, will be moved to the city's northern border in a multi-million dollar buyout. | 

Today, Elk Grove revealed the details of multi-million dollar settlement over the Oak Rose supportive housing project. The Oak Rose project, initially proposed for Old Town-Historic Downtown Elk Grove by Long Beach, Calif.-based Excelerate Housing, will now be moved to Elk Grove-Florin Road in the northern extremities of the city in City Council District 3.

According to the announcement, the city will purchase Excelerate's property on Elk Grove Boulevard at appraised value and transfer ownership of city-owned property at 8484 Elk Grove-Florin Road. The Elk Grove-Florin Road parcel is listed as 2.17 acres by the county assessor, and the city purchased it for $1 million. 

The Old Town parcel is 1.23 acres and, as of January 24, had an assessed value of $867,000.

In the joint announcement, Dana Trujillo, President and CEO of Excelerate Housing, said the land swap and the sale of their Old Town parcel will facilitate a larger footprint in District 3. 

"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," Trujillo said.

As an indication of Mayor Bobbie Singh-Allen's weak negotiation position, taxpayers will provide "the project with a $5,000,000 grant, using funds designated for the support of affordable housing, for the Elk Grove-Florin site development, distributed in phases based on the completion of various milestones."

Additionally, Excelerate will be reimbursed $850,000, and to make the lawsuit go away, taxpayers will pay damages of $860,000 and attorney fees of $600,000. Combined, the settlement is costing taxpayers $9.1 million (see calculation below).

However, if Mayor Bobbie Singh-Allen and her city council do not approve the Elk Grove-Florin project by June 30, Exelerate can terminate the agreement. If that were to happen, taxpayers would still be obliged to pay $2.2 million to the Excelerate while the city would retain ownership of the Old Town and Elk Grove-Florin parcel.  

The enhanced settlement resolves one lawsuit against the city after Mayor Singh-Allen and the city council in July 2022 illegally denied the project. The fair housing lawsuit by California Gov. Gavin Newsom and Attorney General Rob Bonta remains unresolved. 

Today's settlement announcement ended by saying Singh-Allen and her city council "are hopeful, however, that this settlement with the private developer will also prompt a swift and reasonable resolution with the State."

Taxpayers purchase Oak Rose property in Old Town for about $850,000 
Taxpayers fave the Elk Grove-Florin parcel worth $1,000,000 
Taxpayers give $5,000,000 to help with construction
Taxpayers paid $850,000 to reimburse construction planning costs at the old site
Taxpayers paid $860,000 for punitive damages
Taxpayers paid $600,000 for Oak Rose legal expenses

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Sid Vicious said...

We now have a price tag for political cowardice in Elk Grove.

Capt. Benjamin Willard said...

While Mr. Vicious correctly calls this cowardice, Madame Mayor Singh-Allen and her followers will try to reframe their actions. Undoubtedly they will say they are courageous for standing up for the community even though their objections bordered on bigoted and elitist thinking.

Regardless, this settlement is costly not only to taxpayers, but reflects poorly on the city's reputation writ large.

D.J. Blutarsky said...

Well, the local news broadcasts will begin in about 3 hours and wanna bet how many times the City's press release will blanket the airwaves? 

I understand the City wanting to put their spin on their biggest faux pas since the City incorporated 24 years ago. However, if we step back and look at the facts, the City Council monarchy should be holding their heads down in shame--not beaming with the grin of a kid who just stole a candy bar from the corner market!

$9.1 million, not counting the City's own legal consulting costs, is a steep price to pay to cover the butt of the staff person who missed the Oak Rose property being listed on the market in the first place; to appease a handful of Old Town (correction: "Historic" Old Town) NIMBYs who are prejudice against homeless people living with dignity in their neighborhood; and to put the coup de grace on the blatant rhetoric from the Elk Grove Monarchy who claim to represent all people--except in reality, not homeless living next to their precious new library!

I will avoid all television newscasts today because I don't want to support Elk Grove disinformation and heaven forbid, an interview with one of our local "leaders". Long Live the Monarchy!

Juan Trippe said...

This settlement will take a big bite of out the reserves or Measure E. Nice going city council!

Spoons and Forks said...

Oak Rose played Elk Grove for a sucker. They are such as easy mark. Any flimflam man can roll into town and leave with millions!

Golden Skillet said...

NIMBYism wins
and Randy Bekker gets a "Top Fan" badge on BSA's facebook page.

Renegade said...

Skillet: You nailed it!

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