The Salinas City Council on Nov. 18 introduced an ordinance (first reading) authorizing a negotiated land‑disposition and development agreement with Taylor Fresh Foods for two city‑owned downtown parcels (Lots 8 and 12).

Under the proposed agreement, Lot 12 would be developed first with a mixed‑use residential and retail project of approximately 66 rental units. Lot 8 is proposed for a hotel with retail; that parcel would follow as staging and later development. The agreement sets procedural deadlines: the developer must apply for project approvals within one year of closing escrow for Lot 12; Lot 8 approvals are to occur within five years of closing.

City staff said the rental project would be subject to the city’s inclusionary housing ordinance: for rental developments, 12% of units must be affordable (staff estimated roughly eight inclusionary units on a 66‑unit project, two very low‑income and six low‑income). Several councilmembers asked whether the developer would build those units on‑site or pay an in‑lieu rental housing impact fee. Staff and the city attorney explained the ordinance allows on‑site units or a fee option that is tied to the availability of voucher resources for tenants; given current lack of Section 8 vouchers, the fee option may be unavailable and on‑site construction would be required if the project is built now.

Taylor‑affiliated representatives (Catherine Abala and others) showed renderings and described a parking plan that envisions roughly 90 stalls for the residential project; the developer said on‑site parking is intended but final details — including sale price, exact inclusionary plan and whether employee parking will be provided or staged elsewhere — will be negotiated in later steps.

Council voted to introduce the ordinance on first reading; the ordinance will return for final adoption at the next meeting.