Sonoma County Supervisors Select Chanate Property Development Plan

The Sonoma County Board of Supervisors today approved entering into an Exclusive Negotiating Agreement with Chanate Community Development Partners, LLC to build a mixture of affordable housing units and recreational amenities on its 82-acre Chanate Complex property (Property) located north and south of Chanate Road in Santa Rosa, CA. Home to Sutter Health Hospital until it was vacated in 2014, the proposed development plan includes building a maximum of 800 multi-family housing units that meet the County’s 20 percent affordable housing requirement, and has units set aside for veterans and seniors. In addition to housing, the development plan proposes a small neighborhood retail center, and a variety of community amenities such as a dog park, community garden, and amphitheater. The plan also calls for preservation of existing open space, and has an estimated completion date of 2020. 

“The proposed development addresses our community’s need for affordable housing, community-based retail, open space, and parks,” said Sonoma County Board of Supervisors Chair Shirlee Zane. “This will be the largest land and housing development deal the County of Sonoma has entered into in recent history. For many of us, this property holds special meaning, whether it be the birth of a child at the hospital, or time spent as a health professional helping those in need. For me, this deal represents a special moment in time when the County can help build more memories for the future families that will call this property home.” 

The total value to the County will be $24.3 million, which includes: 

• $12.5 million – Cash value assuming all 800 multi-housing units are constructed
• $10 million – The avoided cost to the County as the developer will demolish existing buildings 
• $1.8 million – Value of lease savings for keeping the County Morgue and Public Health lab on-site for five years

Since 2014, the County has worked with the community and a Facilities Ad Hoc Committee led by Supervisor Zane and Supervisor Susan Gorin to develop recommendations regarding the highest and best use of the property. The County conducted studies including appraisals, water capacity, geological, environmental, and seismic studies, and environmental site assessments to assess the possible re-uses of the buildings and property. These studies concluded that it would cost $94 million to modernize and retrofit the buildings to meet seismic safety standards and to upgrade building systems. Based on these findings, in 2015, the Board issued a Request for Proposals for a Master Developer, leading to today’s Board action. 

“The Chanate campus is an important historical and physical resource in north Santa Rosa. Our community deserves a development that enhances everyone’s quality of life. I’m optimistic that the County and the City will continue the conversation with our community to determine how to best meet the needs of local neighbors, as well as the broader community, in the redevelopment of the site,” said Supervisor Gorin. 

Following today’s approval of the Exclusive Negotiations Agreement (ENA), which sets out the principal business terms and terms of sale, the County will work with the developer to finalize the property sale. The final details will be included in a Development and Disposition Agreement (DDA), which is anticipated to return to the Board for approval within six months. Since the property is within city limits, the City of Santa Rosa will review and approve the development plan with the developer once the sale of the property is complete. The City of Santa Rosa will also provide environmental review, land use approval, and community outreach. 

For more information about this project, please visit http://sonomacounty.ca.gov/General-Services/Facilities-Development-and-Management/Chanate-Complex/

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