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Developer Republic Metropolitan claims Santa Clara violated state housing law, breached contract

Renderings of the Santa Clara Station Project and Republic Metropolitan President Robert H. Mendelsohn (City of Santa Clara, Republic Metropolitan)
Renderings of the Santa Clara Station Venture and Republic Metropolitan President Robert H. Mendelsohn (Metropolis of Santa Clara, Republic Metropolitan)

Developer Republic Metropolitan statements the metropolis of Santa Clara violated a state housing legislation and breached its agreement soon after its best governing physique previous calendar year voted in closed session to terminate a 240-device apartment task by the corporation.

Republic Metropolitan — Re/Achieved for shorter — served a complaint on Nov. 12 in opposition to the Silicon Valley city, in search of both to be permitted to resume get the job done or acquire reduction for the “substantial financial hardship and several years of wasted exertion brought on by the metropolis.”

The advancement “meets all the necessities of the sort of housing that the metropolis so desperately demands,” stated Ravel Law’s Ann Ravel, an lawyer for Re/Met in its declare against Santa Clara, in an job interview on Tuesday.

“They evidently require spots like this for housing and have failed to provide it,” Ravel claimed. “The way that they terminated the job, that much into the negotiation course of action, was absurd,” she said.

Re/Met, which gave the city 45 times to reply to the declare, seeks an purchase mandating that it and Santa Clara immediately resume excellent-religion negotiations beneath the phrases of an distinctive agreement they and the Santa Clara Valley Transportation Authority (VTA) entered into in 2018. The San Francisco-dependent organization also seeks damages to be established at demo, assuming it and Santa Clara can’t settle matters independently, and authorized charges, in accordance to its complaint.

Santa Clara spokesperson Lon Peterson explained Tuesday that the town has just begun reviewing Re/Met’s assert towards it. He claimed that since it is a pending grievance, the town simply cannot comment on it.

The City Council declined to extend its unique agreement to negotiate with Re/Fulfilled in a closed-doorway meeting on Oct. 15, 2020, declaring the company unsuccessful to meet essential provisions of the offer, which include a requirement to relocate an existing drinking water effectively on that property and deliver a next properly site.

Santa Clara experienced formerly extended the exceptional settlement for six months in 2019 and from July 2019 to August 2020, the declare reported.

Re/Satisfied explained in its criticism that particular city officers acted “inaccurately and fraudulently” by conditioning the agreement’s 3rd extension on phrases “never contemplated by the parties” underneath the initial doc. The developer aims to create 170 so-termed workforce housing models on about 1.7 acres of land at 500 S. Benton Avenue, a city-owned parcel positioned involving Santa Clara College and a Caltrain station.

Before the metropolis voted to cancel the challenge, it prepared to give all those rental units at $1,500 to $1,700 a thirty day period, which, whilst not reasonably priced to all those making much less than the nearby median revenue, would have made them amid the lowest priced marketplace-price flats offered in Santa Clara County, according to the criticism.

The challenge also features an cost-effective housing element: 70 units with rents concerning 30 and 80 p.c of the local median cash flow on a .7-acre home owned by the VTA that adjoins Re/Met’s enhancement web-site. The Michaels Firm, a non-public very affordable housing developer and owner, would have been responsible for that ingredient, according to Re/Met’s assert.

Reps for Re/Satisfied and law firm Cotchett, Pitre and McCarthy, LLP, which is also symbolizing the developer in its assert, did not react to telephone calls trying to get comment. The Mercury Information earlier noted details of Re/Met’s assert.