Soledad authorizes deposit and letter of intent to pursue 4-acre Parcel B for affordable housing

Soledad City Council authorized staff to sign a letter of intent and place a $10,000 deposit in escrow to pursue acquisition of a 4-acre site identified as Parcel B for potential affordable and workforce homeownership development.

Community Development staff explained the parcel is currently entitled for a mixed project (about 37 small-lot single-family units and 24 multifamily units) but said that if the city acquires the site it would issue an RFQ to select a developer and pursue funding to convert the project to predominantly affordable homeownership and workforce units. "The owner is asking for $2.5 million; the county has tentatively agreed to $1.68 million toward acquisition," staff said, adding that the remaining gap is roughly $820,000 and staff are seeking partners and potential internal funds to cover the difference.

A written public comment from Habitat for Humanity Monterey Bay (read into the record) expressed strong support, noting the site's proximity to parks and services and calling the opportunity important for creating homeownership pathways. Council members asked clarifying questions about prior parcel swaps and appraisals and were told the $10,000 deposit is earnest money that would allow the city to complete an appraisal and soils work while funding sources are pursued; the deposit would be refundable if the acquisition does not move forward.

Outcome: Council voted to adopt Resolution 6354 authorizing the city manager to execute a letter of intent with the owner and make a $10,000 deposit to escrow to facilitate pursuit of funding and due diligence. Staff said they would return with appraisal results and funding plans as negotiations progress.