Baldwin Park is set to enter negotiations with a developer looking to build a warehouse on city-owned land that had been tentatively earmarked for affordable housing.

The City Council voted 3-2 Wednesday to enter into an exclusive negotiating agreement with MG Development Group for the purchase of city-owned lots at 13057, 13061 and 13065 Garvey Ave., just north of the 10 Freeway.

The city of Baldwin Park could sell former Caltrans land along Garvey Avenue and the 10 Freeway to a developer to build a single commercial/industrial warehouse there, seen on Wednesday, May 2, 2018. The site had previously been earmarked with a non-binding agreement for affordable housing. (Correspondent photo by Trevor Stamp)

The city of Baldwin Park could sell former Caltrans land along Garvey Avenue and the 10 Freeway to a developer to build a single commercial/industrial warehouse there, seen on Wednesday, May 2, 2018. The site had previously been earmarked with a non-binding agreement for affordable housing. (Correspondent photo by Trevor Stamp)

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The city of Baldwin Park could sell former Caltrans land along Garvey Avenue and the 10 Freeway to a developer to build a single commercial/industrial warehouse there, seen on Wednesday, May 2, 2018. The site had previously been earmarked with a non-binding agreement for affordable housing. (Correspondent photo by Trevor Stamp)

The city of Baldwin Park could sell former Caltrans land along Garvey Avenue and the 10 Freeway to a developer to build a single commercial/industrial warehouse there, seen on Wednesday, May 2, 2018. The site had previously been earmarked with a non-binding agreement for affordable housing. (Correspondent photo by Trevor Stamp)

The city of Baldwin Park could sell former Caltrans land along Garvey Avenue and the 10 Freeway to a developer to build a single commercial/industrial warehouse there, seen on Wednesday, May 2, 2018. The site had previously been earmarked with a non-binding agreement for affordable housing. (Correspondent photo by Trevor Stamp)



The city of Baldwin Park could sell former Caltrans land along Garvey Avenue and the 10 Freeway to a developer to build a single commercial/industrial warehouse there, seen on Wednesday, May 2, 2018. The site had previously been earmarked with a non-binding agreement for affordable housing. (Correspondent photo by Trevor Stamp)

The city bought the lots from Caltrans for $375,000 in August 2016, and Caltrans made the general request that they be used for affordable housing. However, Caltrans and the city did not enter into a binding agreement to ensure the land is used for affordable housing, according to a staff report prepared by Community Development Director Gustavo Romo.

In a March 2 letter to city CEO Shannon Yauchzee, MG Development Group President Michael Galanakis offered $525,000 for the land. On it, the company plans to build a single, 15,000-square-foot commercial-industrial warehouse building with Mission-style architecture.

The lots are next to both homes and businesses, such as an auto repair shop and a motel.

During the discussion Wednesday, no council members addressed the Caltrans request. Instead, they talked about the design of the proposed building and possible outsider influence.

Councilwoman Cruz Baca asked the city wait to enter into the negotiating agreement because she wished to see updated architectural design concepts first.

Vice Mayor Ricardo Pacheco argued that MG Development Group had no incentive to produce further architectural designs before entering into the negotiating agreement.

“It’s premature to ask for architectural drawings now,” Pacheco said. “We need to get an estimate for how much the land is worth (as part of the negotiations) and move forward from there.”

Cruz was also concerned that City Councilwoman Monica Garcia had accepted a $1,000 donation from MG Development Group’s owner, Michael Galanakis, to her state Senate campaign on Dec. 25.

While Garcia did not comment about the campaign donation at Wednesday’s council meeting, Pacheco said Baca and City Councilwoman Susan Rubio have also accepted campaign donations from developers in the city but did not offer any further specifics.