Scope of proposed Penryn housing project reduced as terms of settlement

USA Properties has reduced the scope of the Hope Way Apartments project slated for Penryn as terms of a settlement with Placer Citizens for Neighborhood Rights (PCNR) who filed a lawsuit against the developer in February. The project was originally proposed as 240 units in 12 three-story buildings with a mix of one-, two-, three- and four-bedroom energy-efficient units on an 11.43-acre site to serve qualified individuals and households in need of affordable housing. The project also proposed the addition of a roundabout on Penryn Road. PCNR's lawsuit was filed following the Placer County Board of Supervisors' 3-2 vote in January to approve the project's design review agreement and nine development standard concessions and waivers. The lawsuit alleged the project was unlawfully approved due the county's "failure to comply with the California Environmental Quality Act (CEQA) and the State Planning and Zoning Law …" and the project "presents site-specific and potentially significant impacts not analyzed in any prior CEQA document." According to a joint news release, USA Properties can proceed with building 132 apartments but cannot move forward on additional units on the site for the next four years. During that period, the parties will participate in good-faith discussions about possible alternatives and design modifications for the proposed roundabout or other public-safety measures. The parties confirmed the settlement will establish a process for additional construction if no agreement is reached regarding other uses of the site. Under that process, USA must only build an additional 23 units (for a total of 155), forgo future development or complete a traffic study after the initial 132 units are complete and leased before proceeding with additional construction. If traffic levels are found to be 15 percent more than projects, USA will mitigate to levels detailed in the application. "PCNR's Board of Directors wishes to express appreciation to the USA Properties Fund negotiating team, who worked hard to reach this settlement," PCNR Chairman Brian Myers said in the news release. "Neither side walked away with all they sought, but PCNR believes we have established checks and balances on this development that would not have occurred without the vigorous community support of this lawsuit." Added Milo Terzich, vice president of Development and Entitlements for USA, "The agreement provides benefits and protections for everyone involved, while allowing construction to start on much-needed housing for low-income residents. We will continue to work with PCNR regarding future development." Additionally, PCNR will support USA's future funding request to the county for the first phase of the project as part of the settlement. USA's initial request of $10.8 million (9 percent of the project's cost) of county-controlled funds was denied in January due to receiving a 2-3 vote. PCNR confirmed the lawsuit filed with the Placer County Superior Court has been dropped.