Planning commission approves 36‑unit ‘Redwood Downtown’ project despite parking and sewer concerns

The Crescent City Planning Commission voted to approve the site plan and architectural design review for the "Redwood Downtown"—a proposed 36‑unit mixed‑use development at 962–964 3rd Street—after public discussion about parking, deliveries and wastewater capacity.

Planner Ethan Lawton presented the staff report, saying the project seeks to use the state density bonus (the 100% affordability component) to exceed local density limits in exchange for deed‑restricted affordable units and to obtain concessions including additional height, reduced rear setbacks and relief from parking requirements. Lawton told commissioners that staff believes the proposal meets state density bonus findings, qualifies for an infill CEQA exemption and recommended approval.

Developer Michael Barr, CEO of Community Systems Solutions, described the plan as two three‑story buildings with ground‑floor retail, a publicly accessible central green and a mix of studio, one‑bedroom and two‑bedroom units. Barr said the team is designing energy‑efficient units and a small business incubator and asked the commission to adopt resolution PC2026‑05 so the project may pursue state construction grants.

During public comment, several neighbors and business owners urged caution. Aileen Andrews, speaking for a neighboring business owner, said the development would remove a privately used parking/delivery area and could force large delivery trucks onto 3rd Street. Resident Lina Carmody said the building’s height would block sunlight and views into nearby homes. Community members including Margaret Sargent and Kate Klassen urged the commission to address water/wastewater capacity and to protect local character. Business owner Kevin Hartwick argued the city faces clear housing demand and that the review was largely architectural because state law limits some local discretion.

Commission discussion focused on parking and sewer capacity. City staff and the developer said state law limits the city’s ability to impose parking minimums for projects qualifying under the density bonus when located within a half‑mile of a major transit stop. The developer said he would continue working with the city and neighboring property owners to identify off‑site parking options and noted a downtown parcel in the vision plan designated for parking might be pursued.

Commissioner [Speaker 9] repeatedly requested wastewater treatment plant flow data and moved to delay action so the commission could review treatment‑plant capacity and projected hookups; the motion was seconded but the commission later considered and voted on a motion to approve the project. Commissioner Hyatt recused from the final vote; the remaining commissioners voted to approve (three yes, zero no, one recusal).

What happens next

The commission’s approval allows the applicant to proceed with required permits and to apply for state grant funding tied to the adopted resolution. Staff agreed to provide commissioners with wastewater flow reports and other technical materials requested during the meeting. The project remains subject to final building permits, any design refinements required under site plan review, and the 55‑year deed restrictions on affordable units required by the state density bonus.