Following a bitter battle with the East Palo Alto City Council, the owner of an upscale apartment complex in East Palo Alto has won the right to convert its apartments into condominiums.
Wind River Woodland Creek Partners LLC, which owns the 90-unit Woodland Creek Apartments, has been at odds with the city since 2004, the East Palo Alto City Attorney's Office reported.
In August, the company sued the city, claiming city officials had taken too long to process the company's conversion application. A San Mateo County court judge agreed. However, that decision was immediately appealed by the city, the office reported.
After about two years of conversation regarding the conversion, a settlement was reached on Wednesday between the two parties.
As part of the deal, East Palo Alto will receive $1.1 million in fees once the units start selling. The city will also keep 12 of the units in an affordable housing program for residents with moderate incomes, the office reported.
"This is a win-win situation for both sides," East Palo Alto Mayor Ruben Abrica said in a statement.
The 12 units that the city plans to retain will cost about 60 percent of what comparable units are currently selling for in the housing market.
While most one-and two-bedroom units are sold for $480,000 to $600,000, the city's 12 units will be sold for $288,000 to $360,000, city officials reported.
"This settlement gives us an opportunity to get significant new revenue while promoting home ownership opportunities for local residents," Abrica said.
According to the city attorney, had the city lost the appeal, Wind River Woodland Creek Partners LLC could have converted the apartments without paying any fees to the city.
The apartment complex is located on West Bayshore Road near U.S. Highway 101.