SAN RAFAEL, CA - A dispute between the Ross Valley Sanitary District and a local building company could cost an affordable housing development in Larkspur $250,000. EAH Housing began excavating dirt April 30 to build Drake's Way, a development for low-income households. But the dirt has nowhere to go after the sanitary district and a development company, Campus Property Group of San Rafael, hit an impasse in land sale talks. Campus is trying to buy the 10.65-acre district land adjacent to Drake's Way behind Larkspur Landing for a hotel and residential development. During negotiations, Campus suggested that Ross Valley take the excess dirt from the Drake's Way lot to help fill and grade the sanitary district land.
But the district and Campus have not been able to hash out which party would be responsible for the dirt after it reaches district land. Instead of a free lot where it could move 17,000 cubic yards of dirt, EAH may have to spend $250,000 to truck the dirt to a lot in San Rafael. "We're still looking for a home for all this dirt," Drake's Way project manager Andy Blauvelt said. "If we can find someone nearby who needs a lot of dirt, it would save us a lot of money."
Blauvelt and a number of EAH executives and local elected officials attended a ground-breaking ceremony at Drake's Way on Thursday. The $14 million development is set to open in late 2009 and will feature 24 townhouse-style rental units for households with incomes of $12,000 to $73,000 per year. The development is funded by federal affordable housing tax credits. Bulldozers have begun grading the land but have not had to remove any of the dirt yet. EAH was hoping the dirt would simply be pushed onto the adjacent lot for the sanitary district and Campus to use.
The district wants Campus to sign a release indemnifying the sanitary district of responsibility for grading and flattening the dirt. Campus says that part of the proposed sale agreement states that the Ross Valley Sanitary District will hand over a ready-to-build-on lot. "It's their obligation to us to provide a clean, flat site to build on," Campus partner Michael Hooper said. "It is their responsibility to fill the site and grade it, not ours."
District interim director Vivian Housen said the district is reluctant to take on the responsiblity of the dirt. She said the district had a similar situation at the site recently and ended up paying to move and grade dirt for a potential buyer who pulled out at the last minute. "If we got a release from Campus, we would take the soil in a heart beat," Housen said. "They think it's not their responsibility, but it is, because they are buying the land. We think that if it benefits them, they should sign the release."
Blauvelt said EAH will pay to haul the dirt elsewhere but still hopes the sanitary district and Campus can strike a deal. The city of Larkspur is holding out hope, as well, but has no jurisdiction over the matter. "It would be nice if Ross Valley would accept the grading materials so they don't have to be hauled off," Larkspur Planning Director Nancy Kaufman said. "They will need filling materials eventually."Cooper said Campus is eager to get the deal done. Housen said the sanitary district wants to finish the deal as well, provided it can be indemnified by Campus. "This will be a benefit to them, not to us," Housen said. "They should sign the release."
Source: MarinIJ.com