‘Settlement in principle’ reached between Elk Grove, Oak Rose project proponents
After reconvening from a closed session meeting late Tuesday afternoon, the city of Elk Grove has announced a “settlement in principle” with the Oak Rose supportive housing project to relocate their project to an alternate site in city limits.
Reading from a prepared statement after the one-hour city council closed session, Elk Grove Mayor Bobbie Singh-Allen said the project would be relocated outside the Old Town special planning area. Although parcels on Elk Grove-Florin-Road just south of Calvine have been cited as possible locations for the supportive housing project, Singh-Allen did not specify the new location.
“The settlement is not final, the details and formal settlement documents still need to be prepared and finalized,” Singh-Allen read into the record.
The Oak Rose affordable and supportive housing project in Old Town has generated controversy and opposition from residents in the special planning area. The opponents have portrayed the possible residents of the Oak Rose complex in unflattering terms.
Over the course of several meetings starting in July 2022, the Elk Grove City Council responded to the expressed fears and denied the project. That rejection has put Elk Grove under the scrutiny of California Governor Gavin Newsom and Attorney General Rob Bonta, who jointly filed a fair housing lawsuit against the city.
As a result of the announcement, the hearing planned for the Oak Rose project at tomorrow night’s city council meeting has been rescheduled. The matter will be heard during the January 24 session.
With the tentative settlement, the city appears to have ended the litigation with Long Beach, Calif-based Excelerate Housing, the Oak Rose developer. As recently as Sunday, Elk Grove City Councilmember Darren Suen told Elk Grove News that negotiations up to then had yet to progress because the terms dictated by Excelerate were unacceptable to the city.
As noted during a city council meeting last September, city attorney Jonathan Hobbs said the city could be liable to pay the Oak Rose’s legal fees, which he said could be a high six-figure amount. Singh-Allen did not disclose the financial terms of the settlement.
Additionally, Singh-Allen did not say how this tentative settlement will affect the state’s fair housing lawsuit against the city. Representatives of Excelerate could not be reached for confirmation or to comment on Singh-Allen’s statement.
