Ojai reverses decision on apartments at developer's request

The Ojai City Council voted to take a controversial apartment project off the ballot next year and — at the developer's request — rescind the development agreement for the 67-unit complex.

The council was split 3-2 on the issue Tuesday night after a lengthy discussion. Mayor Betsy Stix and Councilmember Andrew Whitman voted against rescinding the deal because they wanted more time to analyze consequences, including potential lawsuits.

“I still think that this is a huge decision and we need advice on these lawsuits, and housing legislation is really tricky right now,” Stix said.

The action concerns proposed apartments spread across four locations, with some affordable units in the mix.

The attorney for the Ojai Bungalows/Greenhawk LLC project wrote a letter to the city on Aug. 11 saying the developer had withdrawn his application for the development agreement. The letter claimed the development was being "actively blocked" by the current city council.

Attorney Beth Collins wrote that high election costs as well as litigation from local nonprofit Simply Ojai would make it hard to continue with the project. In December, Simply Ojai had filed a lawsuit seeking to overturn the city’s approval of the project.

“Even if the electorate rejects the referendum, the city and our clients will need to litigate the Simply Ojai lawsuit before proceeding,” wrote Collins, making housing development under the current agreement "impossible for some time, likely years.”

Developer Jeffrey Becker plans to independently pursue the projects, the letter indicates.

The apartments include 20 units for moderate-income tenants, six for low-income and one for a very-low-income resident. Some in the community wanted more affordable housing units and tenant protections, among other issues. The developer's letter said opponents, led by Simply Ojai, had spread "significant misinformation" about the agreement that caused confusion about the project.

In late January, the council, with new members, voted 3-2 to place the housing project on the March 5, 2024, ballot, superseding a previous approval by the prior council in October.

During Tuesday's meeting, Interim City Manager Mark Scott responded to Stix and Whitman’s concerns. He said he didn't believe the city could get an analysis done quickly enough to make a difference in making a decision.

“I don’t think it’s likely to be an analysis on what happens if we withdraw from the ballot,” Scott said. “I think it’s likely to be on what’s going forward with all these other projects. We’ve got to be an organization that can deal with development in a less messy way than we’ve been doing.”

Scott said he wants to hire someone to advise the city on housing legislation and the state Department of Housing and Community Development for future projects and litigation risk.

As part of the decision to rescind, the council will also look into hiring an outside lawyer.

Councilmembers Rachel Lang, Suza Francina and Leslie Rule voted in favor of rescinding.

“I just don’t think it’s feasible to be able to do the type of analysis we’re talking about doing,” Lang said. “I think we’re going to end up at the same result.”

L Caldwell, who lives at the Mallory Way apartments, said she and other people who live at the complex are worried about losing their dwellings.

“It’s not this developer’s fault there isn’t housing for us,” Caldwell told the council. “The responsibility is on the city to provide the housing we need.”

Jeffrey Starkweather, a former planning commissioner, said it was not feasible to expect a developer to “wait forever” and said he expected this to happen.

“I support their request,” Starkweather said. “Let's get started and give them an opportunity to move forward.”

Speaker Teal Rowe, who lives outside of the city, wanted the council to wait to make a decision for those who signed the petition for the referendum.

“Take time, because my head’s spinning and I’m sure everyone’s head that signed the petition is spinning as well,” Rowe told the council.

Wes Woods II covers West County for the Ventura County Star. Reach him at wesley.woodsii@vcstar.com, 805-437-0262 or @JournoWes.

This article originally appeared on Ventura County Star: Ojai rescinds agreement for apartments at developer's request