Santa Clara has approved issuing $50 million in tax-exempt bonds to fund a housing development for the poor.

At its most recent meeting May 5, the Santa Clara City Council gave the go-ahead for developer Resources for Community Development (RCD) to go out for the bonds. Those bonds will assist constructing a 120-apartment below-market-rate housing complex.

The Clara Gardens project, located at 3550 El Camino Real, replaces the interim housing on the old Bella Vista Inn site. 

Adam Marcus, the city’s housing and community services manager, told the council a building permit has already been issued for the development, which is a mix of studios, one, two and three-bedroom apartments. It will also host two community rooms. 

Of the 120 apartments, 64 will be at the extremely low threshold, which is 30% area median income (AMI). Of those, 30 apartments are earmarked permanent supportive housing. The remaining 55 apartments will be at very low, which is 50% AMI. 

AMI for a single person in Santa Clara is $136,650, according to the U.S. Dept. of Housing and Urban Development.

Ben Barker, California Municipal Finance Authority, said the city does not bear any “moral, legal or fiscal responsibility” because of the bond issuance. While the bond calls for “up to $50 million” in bond issuance, Barker said the actual cost is likely to be close to $31 million.

The site will remain below-market-rate housing for 55 years.

Nicole Brown, with RCD, told the council that the county owns the land, which is vacant, the homeless residents there having moved out at the end of March, with many finding planned permanent housing.

The site has 83 parking spaces, which will be issued by lottery, Brown said. She said the site has 4.5 full-time employees from social services provider Abode, available during business hours, and a 24/7 on-site security guard.

Hotel Tax on its way to Approval

The council also took the first step in extending the city’s tourism improvement district (TID). The district is made up of 11 hotels near the Convention Center. A 2% tax on hotel rooms funds the city’s destination marketing organization (DMO), Discover Santa Clara, which is responsible for marketing the city.

The renewal would extend the agreement through 2031. The new agreement would allow the hotels to increase the tax from 2% to up to 3% in 0.5% increments. 

The previous TID agreement budgeted 20% for marketing and communications and 40% convention sales, incentives and services. The new agreement earmarks 70% of its budget for the term on marketing and communications.

Christine Lawson, president of the Discover Santa Clara, said the DMO has grown Convention Center leads by 46%.

“We’ve started this momentum, and it is really important that we continue it,” she said.

Council Member Kevin Park bemoaned the loss of smaller events, such as the quilting festival.

The item will return to the council two more times, once for a public hearing June 9 and again June 23 for renewal.  

A New Vision for Santa Clara’s Parks

The council also approved the parks master plan.

Peter Winch, with the city’s design consultant, WRT, said the updated master plan aims to establish a long-term vision for the city’s parks and the amenities associated with them.

As one of the fastest growing cities in the Bay Area, Winch said his company’s survey revealed that Santa Clara’s parks enjoy good use but lower-than-average satisfaction. That points to a need for better upkeep. Multi-use trails and more pools topped the list of amenities residents prioritize.

Further, the city could do more to add more indoor sports, such as basketball and volleyball courts, Winch said.

His colleague, Madison Merrill, noted that the city’s 308 acres of parkland is unevenly distributed, adding that the city’s goal should be to add 80 acres of parkland by 2035. The goal, she said, is to increase the ratio of parks-to-people from 2.3 acres per 1,000 residents to 3 acres per 1,000 residents.

In addition to detailing public amenities residents would like to see more of, such as pickleball courts, cricket pitches and dog parks, the plan also establishes parks by type. Each type, determined by size and use, has its own parameters as the amenities onsite.

Council Member Suds Jain said he would like to see more activities for seniors.

Meanwhile, Park pushed back on the idea of cost recovery for public amenities, saying such things shouldn’t be “run like a business.”

“People pay taxes. They should get services,” he said.

The council unanimously approved the plan.

Santa Clara Consent Calendar Spending

The council approved the following spending in one motion via the consent calendar:

• A $2.7 million contract with Saboo, Inc. for emergency generator replacement.

The next regularly scheduled meeting is 7 p.m. Tuesday, May 19, in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara.

Members of the public can participate in the city council meetings on Zoom at https://santaclaraca.zoom.us/j/99706759306; Meeting ID: 997-0675-9306 or call 1 (669) 900-6833, via the City’s eComment (available during the meeting) or by email to PublicComment@santaclaraca.gov

Contact David Alexander at d.todd.alexander@gmail.com 

Previous Santa Clara City Council Meetings:
Santa Clara Updates Fee Schedule
Super Bowl, World Cup Reimbursements Flow Back to the City
Surveillance Contract Approved but not Funded