Local news- Press Release
City of Davis California - City of Davis and David Taormino Settle on Palomino Place Project 14 February 2024 ( news )
City of Davis , state California ( By Press Release office)
Feb 14,2024
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The City of Davis ( City ) announced today that it has entered into a settlement agreement with local developer , David Taormino ( Taormino ) regarding the Palomino Place housing proposal . The 25 - acre project , located within the city limits of Davis , aims to construct 163 residential units on the east side of the Wildhorse subdivision in North Davis that are a mix of housing types and sizes , with a focus on lower income affordable housing , first - time homebuyers and “missing middle” housing .
Taormino first submitted a preliminary application for the proposed project to the City in October 2021 . On April 14 , 2023 , Taormino invoked the California law known as “Builder’s Remedy . ” Under the Builder’s Remedy , a city that does not have a legally compliant Housing Element is required to approve a development project application that makes at least 20% of its housing units available for lower income households , unless the city can make one of the specific findings provided in state law for disapproval . For a city that does not have a legally compliant Housing Element , the project’s inconsistency with the General Plan or zoning may not be used as a basis for project denial . At the time that Taormino submitted his application under Builder’s Remedy , the City did not have a certified Housing Element .
The proposed project site is currently zoned as “horse ranch” and is designated “Agriculture” under the City’s General Plan . Despite these designations , Palomino Place proposes a residential subdivision which typically would not be allowed without a rezone , general plan amendment and Measure D vote . Along with other housing developers asserting Builder’s Remedy throughout the state , Taormino takes the position that the City of Davis must process the project without a zone change or General Plan Amendment given that inconsistency with zoning or the General Plan is not a legally permissible basis for denial of a project under Builder’s Remedy .
Since the lawsuit was filed , the City and Taormino have been actively engaged in good faith to reach a settlement on the project . Both the City and Taormino are pleased to announce that the settlement agreement , which has been signed by both parties , will result in a project that provides greater benefit to the Davis community than the original application .
Key elements of the settlement agreement include:
The City’s acknowledgement that Builder’s Remedy applies to the project .
The City’s agreement to process the Palomino Place project for City Council consideration in late 2024 without legislative entitlements ( General Plan amendment and zone change ) .
Taormino’s agreement to increase the number of low - income affordable units up to 45 units , which would result in 25% of the units in the project being affordable to low - or very low - income households .
Preparation of a robust environmental impact report to evaluate the environmental impacts of the project under CEQA .
Taormino’s obligation to explore additional environmental sustainability features in the project .
The City Council being given the ability to include reasonable conditions of approval to address community concerns .
Taormino’s agreement to proceed with this process at his sole risk .
“After carefully reviewing state law and conferring with the City Attorney , it became clear that this project qualified as a Builder’s Remedy project , ” said Davis Mayor Josh Chapman . “This settlement will save on litigation costs for the City , provide more affordable housing units for the community and resume the long awaited process for the Palomino Place project . ”
“I am pleased with the Council’s decision to settle the litigation , ” said developer Dave Taormino . “The lawsuit was intended to advance the project , which is exactly what this settlement does . I would much rather be building housing for young families and the missing middle than wasting time and taxpayer money debating state housing laws . The decision to put aside our differences and focus on building much needed housing is a win for this entire community . ”
For the full text of the settlement agreement , visit:
https://www . cityofdavis . org/home/showpublisheddocument/19070
. Please contact Jenny Tan at
jtan@cityofdavis . orgwith questions about the settlement agreement .
Attachment:
Palomino Place Illustrative Final . jpg
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