There are few things more precious to residential developers than the sewer capacity needed to bring lots online.
So when Saybrook LLC turned to River Islands for additional reserve sewer capacity that would allow it to move forward with Phase 1C of its development within the Central Lathrop Specific Plan, the master planned community along the banks of the San Joaquin River respectfully declined to part with the excess capacity it currently has.
But the City of Lathrop was more than willing to step in and help.
As the only other entity with additional reserve sewer capacity to spare, the Lathrop City Council approved parting with 8,652 gallons-per-day of sewer capacity for a total of $282,375 – allowing the developers to move forward with plans to further expand its footprint.
Saybrook, which owns the property being developed as an LLC known as Lathrop Land Acquisition, was participant in the negotiations for the second phase of the Lathrop Consolidated Treatment Facility – ensuring that they have access to an initial capacity of 100,000 gallons per day while maintaining a reserve capacity of 36,364 gallons per day.
According to the staff report prepared for the item, Saybrook’s existing development plans used up the entire allotment of initial capacity as well as its reserve capacity and the additional reserve capacity that it purchased from the developer of the large industrial tracts within the South Lathrop Specific Plan.
As part of the agreement negotiated between the developers that helped fund the treatment plant expansion and the city, the city may only sell its reserve capacity if the developer that needs it can use it within one year.
While the amount being purchased will be used to bring final maps to the council when they meet next week for final approval, Saybrook requested that they be given two years due to delays in processing due to the COVID-19 pandemic.
The need for developers to purchase additional capacity from the city and one another in order to bring projects before the council is a testament to the hot housing market in the Northern San Joaquin Valley and the insane demand for housing as prices continue to rise.
According to Quicken Loans, Sacramento has the hottest housing market in the country at the moment while San Jose came in second place according to the company’s metrics. Other entities have Stockton and Fresno listed in the Top 10 nationally – an indicator that more people are willing to move into the Central Valley as the median home price in California inches higher seemingly by the day.
Stanford Crossing – the residential development that pays tribute to Leland Stanford, who gave Lathrop its name in honor of his wife’s family – is part of the land currently being developed by Saybrook. The company took over the footprint of what was initially a development envisioned by Richland until the collapse of the housing market forced the project to go unrealized.
To contact reporter Jason Campbell email jcampbell@mantecabulletin.com or call 209.249.3544.
