City OKs downtown apartment deal: Marysville complex on D Street would offer 'market-rate' housing options

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Jan. 18—As the city continues its push toward a revitalization of downtown Marysville, the city council on Tuesday night approved an agreement that could bring more than 30 new apartments to an area in dire need of quality housing.

With unanimous approval, the Marysville City Council passed a motion to authorize the mayor to sign a “Disposition and Development Agreement (DDA) by and between the City of Marysville and Harinder Johl, etal. for properties described as 302 and 304 D Street,” according to the city.

The agreement, which includes a land sale price of $66,800, comes with a set of terms and conditions that must be met by the developer. Those general terms include: — Sale price of $66,800. — Property will be developed with market rate one- and two-bedroom apartments with the bottom floor being initially developed into apartment units and convertible to commercial space at a later date based on community and economic demand. — The development shall be in compliance with the city’s Municipal Code and the plans, drawings, and documents submitted by the developer shall be reasonably approved by the city in accordance with its ordinary and customary procedures.

The 11,000-square-foot site purchased in the agreement will, according to the city and the developers, lead to the development of a four-level building that is expected to have 34 one- and two-bedroom units. Those units are expected to be “market-rate,” according to the city.

The sale of the property and its development is the result of a motion passed in Oct. 20, 2020, that allowed the city to “enter into agreements with interested purchasers and sell the eleven remaining Redevelopment Agency properties.” The city said six of those “Agency Parcels” were considered “developable.” The two parcels sold Tuesday night are contiguous.

“To maximize the benefit to the city and eliminate vacant or underutilized parcels, the purchasers will enter into a DDA to develop these sites,” Marysville Community Development Director Dan Flores said. “The extreme lack of housing in California has created a high level of demand. The multifamily market continues to demonstrate increasingly favorable trends for development, including low vacancy rates and very limited availability. The proposed project will be highly desirable based on the project’s site location, which is in the core of downtown Marysville.”

Johl, who was confident Tuesday night in meeting those terms, said when all is said and done, the new building could be completed and available for residents within 24 months.

Nick Pocquette, an entitlements manager for Global Capital Group, said the development group behind the new complex is “excited” about the upcoming Marysville project. Johl and the group have been involved with several similar projects throughout the country, including in South Carolina and in the region.

Johl, who said he was born and raised in Yuba City, said he “loves Hotel Marysville” and recognized the historic and unique nature of Marysville.

“I think there’s a lot of opportunity,” Johl said. “I think if our project can get approved and then if Hotel Marysville, (they) can put that together, I think that’s gonna set up all the small businesses around there. … It’s going to really change the direction of Marysville.”

Officials with Adventist Health/Rideout Hospital have been in discussions with Johl and other potential area developers about housing around the hospital and downtown area. With a lack of quality, market-rate options, the need for more available homes and apartments has increased steadily.

Should Hotel Marysville and other proposed developments in the downtown area come to fruition, hospital officials and other major employers already have suggested, both publicly and privately, that those new dwellings would be quickly occupied by employees.

“We talked about filling some of their needs for housing … especially to retain employees,” Johl said of the hospital and discussions related to a need for housing options. “Their needs were expressed to us, like they wanted more two-bedroom two-bath. … They wanted two-bedroom two-bath so they could eventually attract talent to move over here. … This site met all their criteria.”

While there are preliminary designs of what the building will look like, Johl said “tweaks” would be made and that his group is open to changes. He also said any parking issues would be addressed as the project moves forward.