The City of Santa Rosa is suing Cornerstone Properties to force the developer to hand back a prime 1.4-acre parking lot at 410 B Street. The city claims the firm breached a 2021 agreement by failing to build hundreds of promised housing units across three downtown sites.
The Press Democrat reports over the summer the City Council voted to buy the property back for its original price of $1.34 million. However, Cornerstone has refused to sign over the deed, filing its own lawsuit to block the move and demanding more time to move forward.
The city’s countersuit argues that construction is unlikely even with more time, noting that several project permits have already expired. Officials say the stalled deal is “frustrating” the city’s housing goals and leaving the downtown site in limbo.
A judge is set to hear the initial arguments on January 29th. In the meantime, the city has capped legal fees for the case at $145,000, paid out of its reserves.
