The Salinas Planning Commission on Nov. 5 recommended that the City Council approve a land disposition and development agreement (DA 2025-001) with Taylor Fresh Foods to transfer and develop City-owned Parking Lots 8 and 12 in downtown Salinas. The commission’s 3-2 vote forwards staff’s recommendation that the council (1) find the project exempt from environmental review and (2) adopt an ordinance approving the agreement.

City Attorney Chris Callahan, presenting the proposal, said the LDA would allow the city to transfer the two lots to a private developer and provide the developer certainty about the laws and regulations that will apply to the projects. “A land disposition and development agreement is basically an agreement between the city and a private party pursuant to which the city agrees to transfer properties to the private party for specific purposes,” Callahan said. Callahan told commissioners the lots were declared surplus in 2020 and were rezoned to mixed use in 2021 to allow broader development opportunities.

Under terms described to the commission, the Lot 12 proposal would be a mixed-use multifamily residential and retail project with approximately 66 residential units; because the residential component exceeds 10 units it must meet the city’s inclusionary housing ordinance, and the developer has committed to complying with that ordinance. Staff explained the inclusionary program offers three compliance options, including an in-lieu fee, and that the required percentage of units incorporated into a project “is a minimum of 12% and goes up to 20%” depending on the chosen option.

Staff estimated the Lot 12 project would likely be developed first, within roughly 1–5 years after approvals; Lot 8’s proposed hotel, retail and commercial component is expected within a longer 3–8 year window and would require a discretionary conditional use permit for hotel use. Callahan said the draft LDA before the commission was not final and included blanks that staff would complete before forwarding the final agreement to council; appraisals have not yet been completed, so the city does not yet have an estimate of sale revenue.

Taylor Fresh Foods representatives attended and fielded questions. Kelly Sutherland, counsel for the project, said the developer would “comply with the ordinance,” but noted financial details and final unit plans had not been penciled out while appraisals and project costing remain incomplete. A Taylor representative added, “They’re not gonna be making any money off of this,” characterizing the project as a community-oriented effort. Leonard Battie of Taylor Farms said he hoped the development would “bring more housing to downtown to support the local businesses” and that tenants would shop and work locally.

Several commissioners and members of the public pressed staff on transparency, timing and public notice. Commissioner Purnell asked whether staff had a ballpark revenue figure from a sale; staff replied appraisals are required under the LDA’s process and a ballpark is not available now. An adjacent property owner and a resident identified as Liz said the staff report and public materials were light on background and asked for more accessible documentation; Liz said it felt “rushed” and urged more transparency because the item would not return to the planning commission except in limited circumstances.

Staff described the approvals path and public notice process: site plan review for the residential component is an administrative process without mailed notice, while a hotel conditional use permit requires notice (typically within 300 feet and a site posting) and an administrative CUP could be appealed and then brought to the planning commission if a hearing is requested. Callahan said the next public opportunity would be the City Council consideration anticipated for Nov. 18, 2025, subject to scheduling.

After discussion, the commission moved and seconded a resolution recommending that City Council find the project exempt from environmental review (as noted in the staff presentation) and adopt an ordinance approving the land disposition and development agreement. The roll-call vote recorded three votes in favor (Commissioner Rakimora, Commissioner Ruck, Chairperson McKelvey Day) and two votes against (Commissioner Meeks and Commissioner Purnell); Commissioners Almanza Larios and Gutierrez were absent. The motion passed and the recommendation will go to the City Council.

The planning commission also noted future agenda items including returning joint study session minutes, consideration of an off-sale alcohol license for a convenience store at 1018 North Davis Road, and a zoning code amendment related to EDU regulations; the meeting adjourned.