The City Council on Tuesday unanimously rejected an ordinance that would have required certain new development projects to adhere to strict terms relating to local hiring, anti-displacement strategies and more.
The ordinance would have applied to project developers that receive $10 million or more in economic development subsidies from the city, and would have required that those developers provide affordable dwelling units, participate in transportation initiatives and implement “anti-displacement strategies,” the ordinance reads. Council members would still have been able to approve a project if a developer didn’t meet all of the outlined requirements.
The ordinance was created in response to a 2021 lawsuit and subsequent settlement agreement with Sacramento Investment Without Displacement, a coalition that supports the stability of neighborhoods impacted by big developments. The organization filed the lawsuit over concerns that Aggie Square, a controversial UC Davis science and tech hub project under construction near Broadway and Stockton Boulevard, may speed up gentrification in Oak Park and displace residents in other nearby neighborhoods.
Three coalition representatives and 11 members of the public attended the meeting to voice their disapproval of the ordinance for varying reasons, including the exclusion of previous recommendations and the need for case-by-case negotiations for developments that cannot meet all of the requirements.
Scott Ford, deputy director for the Downtown Sacramento Partnership, delivered a public comment urging the city to handle ordinance requirements on a case-by-case basis for new developments.
“Recently, we’ve seen great opportunities, legacy projects, [a] stadium in the Railyards, adaptive reuse live music venues and a much-needed Convention Center hotel come forward,” he said. “Those are great projects with major potential, but they’re also very delicate and we’re concerned that this is [a] well-intended but counterproductive policy that may jeopardize those very projects.”
Ford added that now is not the time to bring forward a “one size fits all” ordinance that would limit future opportunities for residents “while also not addressing their needs.”
Tamika L'Ecluse, vice president for the coalition, said during a presentation to the council that it was unfortunate that the city did not conduct a workshop about the ordinance. She said city leaders had promised to do so during a February council meeting where the coalition, the business community and others came together to “make this [ordinance] a win-win for all of Sacramento.”
“That did not happen,” she said. “Where’s the trust that was supposed to be built in this process? And that’s a question for your leadership, for you guys here at the dais, because that trust really has been broken.”
In a letter to the council, the coalition argued that the city failed to amend the ordinance with three main recommendations it made in February:
- Ensuring residents can stay in their neighborhood through minimum benefits around affordable housing, transportation, workforce development and small/local business protections.
- Community engagement in the negotiation process.
- Community oversight to enforce the ordinance in a way that makes sure the community gets the benefits for their neighborhoods.
Kiara Reed, executive director of Civic Thread and transportation chair for the coalition, also argued that the city failed to include these recommendations.
“If we can’t put forward a strong ordinance that has those minimum benefits that has community decision-making power and that is enforceable, then SIWD can’t stand behind it,” she emphasized. “And so we’re not standing behind this one that’s in front of you today. We believe our residents and our small businesses deserve more than what’s being offered to them.”
Mayor Darell Steinberg addressed several comments from coalition members that the city and council have lost the public’s trust by not creating mandatory minimum requirements for future developments.
“It’s a flawed concept because every project is different and needs different community benefits,” he said.
Sacramento Mayor Darrell Steinberg speaks at a City Council meeting on Tuesday, Nov. 19, 2024.(Gerardo Zavala/CapRadio)
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