Dive Brief:

California developer Core Companies' plan for a mixed-income community, featuring a 1.5-acre, "agrihood" urban agriculture space, was selected by the Santa Clara City Council, despite Core’s proposal being less financially viable than others, according to city officials.

Core’s development would also include 165 affordable senior rental units, 160 market-rate rental units — with 16 restricted as affordable for moderate-income households — and 35 market-rate townhomes. Core has proposed paying the city $15.5 million for the land on which it will build the market-rate housing portion, according to the Silicon Valley Business Journal.

16 restricted as affordable for moderate-income households and 35 market-rate townhomes. Core has proposed paying the city $15.5 million for the land on which it will build the market-rate housing portion, according to the Silicon Valley Business Journal. The 6-acre site was part of the University of California’s R&D station called the Bay Area Research and Extension Center, and a condition of its sale to Santa Clara in 2005 required that some form of affordable housing begin construction by January 2017.

Dive Insight:

Competing developer ROEM Corp, according to a city staff report, submitted the most financially sound proposal, one that provided the "highest level of certainty" that the project would be able to start construction by the 2017 deadline. However, City Council members were won over by Core’s "urban farm" concept.

"I know I’m a little bit out of my comfort zone with this project, but I kind of love the feeling," said City Council Member Lisa Gillmor. "The Core development — it’s sort of different. It’s a first of its kind for Santa Clara. I don’t think we’ve done anything like this in the past."

The Core proposal, supported by community activists who want to see the site retain some of its historical agricultural elements, will allow people to grow their own fruits, vegetables, herbs and flowers in the 1.5-acre open space.

"I think sometimes we need to go beyond dollars and cents," said Council Member Dominic Caserta, "and the word that keeps popping up is a unique opportunity and legacy here, that isn’t just bottom line dollars and cents."

The vote by the City Council doesn't give Core Companies complete approval for the project, but it opens up negotiations between the developer and the city to decide on a final deal.