Housing and commercial projects in downtown Salinas move one step forward.

Salinas City Council voted 6-1 on Tuesday, Nov. 18 to move forward with transferring ownership of two downtown city-owned properties to Taylor Fresh Foods. The development agreement for the properties would include a hotel, commercial space and housing.

These properties are across from Salinas City Hall, at the intersection of Lincoln Avenue and West Gabilan Street. Parking Lot 8 is primarily used by downtown visitors, while Parking Lot 12 is mainly used for city employees during the week.

For Lot 8, Taylor envisions building a hotel and commercial area, and making Lot 12 into a multi-family residential area with 66 units. Estimated timelines – after project approval – range from three to eight years and one to five years, respectively.

Since the residential area would have more than 10 units, it should meet the city’s inclusionary housing requirements. The affordable units could range from 12 to 20 percent of the total, or the developer could pay in-lieu fees. Taylor representatives said they would prioritize the housing project since the city has a long-standing housing crisis.

Lisa Brinton, the city’s community development director, says this step locks the potential project into abiding by current laws and regulations, but notes it won’t be a done deal until it closes escrow. “Either party can walk away and terminate the agreement,” Brinton says.

Some residents and council members shared concerns about potential parking issues. The housing project proposal includes 90 parking spaces and city staff added they could look for alternatives, like turning the old police station next door into parking.

In 2020, both properties became surplus and went up for grabs for private developers. Next steps include appraising the properties, agreeing to a purchase price and environmental assessments.

The agreements are expected to come back to council for final approval on Dec. 2. If it moves forward, Taylor Fresh Foods would pay in cash.