Developer deal could kick start Rainier

A homebuilder is proposing to construct the first phase of the Rainier extension in return for incentives.|

A Southern California developer has approached Petaluma officials with a proposal to build key city infrastructure, including a piece of the Rainier crosstown connector, in exchange for concessions to make its housing project financially feasible.

Warmigton Residential, headquartered in Costa Mesa, has an option to purchase land between Petaluma Boulevard North and the Petaluma River. The parcels, which are zoned for residential development, are also the location of the future Rainer Avenue extension.

The .65-mile crosstown road, first proposed in the 1960s, has become a divisive issue in Petaluma. Proponents say it is needed to ease crosstown traffic. Opponents say it is expensive, would open unwanted development and would not provide traffic relief.

At a September meeting, staff told the Petaluma City Council that the road, which would connect Petaluma Boulevard and McDowell Boulevard, would cost the city an additional ?$66.4 million. The city has already invested $13 million in the roadway, mostly for Caltrans to build an underpass while it widens Highway 101 above the future right of way.

Caltrans expects to complete the freeway widening project through Petaluma by the end of 2022, at which time Rainier could become a reality, city officials say. A development deal could get the western end of the road complete even sooner.

“It’s pretty time sensitive,” Councilwoman Kathy Miller said. “This is something the community has supported for a long time. When we see an opportunity to move forward, we should take advantage.”

Warmington’s proposal, according to Miller and Councilman Mike Healy, would give the city the right of way needed for the western portion of Rainer and build the road, including a new intersection at Petaluma Boulevard, up to where Rainier would cross the Petaluma River.

In exchange, Warmington would be looking for incentives that could potentially increase the number of houses and townhomes they are allowed to build on the land, as well as credits toward their traffic impact fees and paying into an affordable housing fund instead of building it on site.

Mike Banducci, senior director of community development for Warmington, said preliminary plans call for 160 residential units on the 20 acre property.

“The asks are not unreasonable. Everything being asked is exceedingly standard,” he said. “We’re willing to work with the city.”

Banducci said the proposed development, which is behind the Marin Sun Farms slaughterhouse, would not be within the floodplain. He said the developer has been working on the project for 18 months and could submit plans for approval within months if the city gives the green light.

The council is set to discuss the proposal at its Nov. 18 meeting. City Manager Peggy Flynn said she hopes to gauge the council’s interest and receive direction on how to proceed.

“It will be a high level discussion with the council to talk about elements of a potential project with Warmington. It’s putting meat on the bone,” she said. “A developer wants to invest in the city, bring in needed housing, and build part of Rainier. That’s a community benefit, but the devil is in the details.”

Mayor Teresa Barrett, who has been skeptical of Rainier in the past, was out of the country and not available for comment. She was planning on missing the Nov. 18 council meeting.

Councilman Kevin McDonnell, who has called for more public discussion on Rainier, said he welcomed the conversation. He said the western portion of Rainier included in the discussion is relatively easy compared with the portion that goes over the river and under the freeway, a segment that remains unfunded.

McDonnell said he was cautious about making too many concessions, like easing the developer’s affordable housing requirements.

“There’s no reason to concede things at this point,” he said. “I don’t think we ought to be considering a reduction in our standards at the beginning.”

Healy, who asked to place the Rainier discussion on the council’s agenda with Miller and Councilman Dave King, said just getting the right of way for a portion of the road would be a benefit to the city.

“It’s not an opportunity to be missed,” he said. “Having a voluntary transfer of the right of way means we don’t have to deal with eminent domain. It’s a real win-win for a project we’ve been trying to achieve for a long time.”

(Contact Matt Brown at matt.brown@arguscourier.com.)

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