RAC Approves $175,000 for First Phase of Valetti Acquisition

In a meeting held on Thursday, April 7, the Springs Redevelopment Advisory Committee signed off on the first steps to acquire the Valetti property – about 6 acres of land, which sits on Highway 12, just south of the Sonoma Charter School – with the long-term aim of using the space for an affordable housing project.

Previously the county was in the late states of acquiring the property for the “Las Palmas” housing project, until funding sources dried up – leaving the county high and dry with it’s previously spent due-diligence funds. 

Though the purchase didn’t solidify, the county retained “first refusal” right for any other offers on the property.

“Right of first refusal is not unlimited,” said redevelopment manager John Haig. Under the first refusal right, the county has 30 days to match any incoming offers, but “it’s hard for the CDC to do anything in 30 days,” said Haig. “We need more authority.”

In a unanimous vote, the RAC approved $175,000 to provide for all possible due diligence expenses for the negotiations with property owner Marco Valetti.

“If we were able to do it for $10,000 to $15,000, nothing would make me happier,” said Haig, “but because we’re a governmental entity we will have to do environmental reviews, which may run into phase one and two.”

“It would seem there was a tremendous amount of due diligence and title work done with Las Palmas project, which you could use to expedite the process,” says Chairperson Steve Cox.

Indeed, the long escrow period required when selling land to the public sector requires a unique buyer who can tolerate a slow sale, advised Community Development Manager Mark Krug.

 “It’s not your typical, I’m on the market I want out of here type of thing.” said Krug,

The RAC has a $2 million budget to provide affordable housing, which, coupled with private sector funding, would provide for a 35 - 50 unit project.

But, Krug warned, most private sector funding is provided to acquire tax incentives - which have decreased in recent time.

‘The intent here would be to move with diligence toward soliciting interest in the development of the property,” said Cox.

Haig said the CDA will draw up papers to present to the Valettis this week. The Sonoma County Board of Commission will vote on April 12 to approve the funds.