Vacaville reaches settlement with developer after large apartment complex denied

State office buildings could soon become apartments in bid to ease housing crunch

VACAVILLE – The city of Vacaville announced this week it has negotiated a settlement with a developer that sued the city after the City Council denied its request to build a large apartment complex.

The developer, TA Leisure Town LLC, has agreed to drop its lawsuit if the council approves new terms between the city and the developer, according to the city. The developer filed suit in December after the council denied their 236-unit Southtown Apartments project in November. The project narrowly passed a planning commission vote in August with a 4-to-3 vote. 

The council echoed many voices from the nearby community who were concerned about the huge scope of the development, which would cover nearly 10 acres with a mixture of townhomes and apartments in 14 three-story buildings at the corner of Leisure Town Road and Redstone Parkway. The site would create 468 parking spots plus create more on-street parking issues. The area already deals with congestion problems, opponents said. 

The city cited Senate Bill 330, the Housing Accountability Act passed in 2019 to address California's housing shortage, as a reason for its settlement. The law essentially cuts red tape for housing development in several ways, one of which is by mandating that if a proposed project adheres to a city's established planning standards, a municipality must approve it unless it can outline specific adverse impacts it might have on the community.

Artist's rendering of the proposed Southtown Apartments in Vacaville. City of Vacaville

In short, it is not easy to deny new developments and Vacaville doesn't want to keep litigating about this particular project.

"Faced with the enormous expense of defending the current lawsuit and potentially multiple lawsuits, as well as stringent state housing mandates applicable to all California cities, the City has moved to take actions to end the Southtown litigation," a statement from the city said. 

Part of the settlement agreed to includes a "significantly" revised parking plan that reduces on-street parking by 50 percent and adds onsite parking. Vacaville said that the developer has also agreed to provide "substantial" funding for police and fire services and additional privacy screening around the project.

A public hearing regarding the new provisions will be held on March 14 and the council will again be asked to approve the project, the city said. If the council approves the development this time, TA Leisure Town LLC will drop its case. If the council decides not to hear the project or denies it, the litigation with continue.

"If the City Council chooses to litigate, it is anticipated that the City would face total expense and exposure in the seven-figure range," said the city.  

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