Developer Looks to Build Senior and Affordable Housing in Novato

West Bay Builders, known as a large-scale public works and heavy civil builder in Northern California, has invested in three private sector projects in Novato. Although two of the projects are zoned and planned for commercial development, the Novato company wants to shift those properties to providing senior and low-income housing.

According to the company’s president, Paul Thompson, West Bay’s development arm, Thompson Development, is pursuing those housing projects with city staff.

One of the properties, at 803 State Access Road, is 40,000 square feet and east of the old commissary site at Hamilton. Thompson said the property was purchased three years ago with an idea to develop it for senior housing, including an affordable housing component. But according to the city, the site is not zoned for housing.

Thompson said his team disagrees and believes that property is eligible for housing use but that the city is taking a conservative approach. His company is going through the approval process to make changes to the city’s general and reuse plan for the change in zoning.

Meantime, Dave Wallace, the city's community development director, said he included West Bay's proposed 50-unit senior housing complex in formulating the number of affordable housing units needed to satisfy the state’s housing mandate for the years 2007-2014. Wallace estimated that 10 of those units could be designated as affordable.

Thompson said that because of economic conditions his company would like to change directions on two other properties that are zoned commercial and already approved for office projects in Novato. Thompson Development is exploring senior housing, assisted-living and full-care facilities for those sites with an affordable housing component, he said.

The first site is the old gas station at Hamilton on Main Gate Road at C Street, which was approved in 2007 for construction of a 30,550-square-foot office condominium project.

The other is a former McPhail’s concrete site at the northeast corner of Highway 37 and Highway 101. It was approved for office space in 2008 and is adjacent to the proposed Hanna Ranch development, just south of the .

Thompson said he doesn’t believe the commercial market will rebound for at least another five to eight years. “We’re in a total holding pattern,” said Thompson about the gas station site.

Thompson said that two years ago they informally discussed a housing option for the Hamilton gas station property with the city. “The city said it would never go for housing on that site,” Thompson said. “I think we should re-explore that.”

He added that not looking at other options would likely mean the properties would remain vacant and undeveloped.

On the 60,000-square-foot McPhail’s site, Thompson’s idea would be to develop an assisted living facility for seniors, along with a full-care facility.

Wallace said a change in proposals would require the company to go through the approval process, essentially from scratch.

Thompson said that they have a consultant and and architect for the McPhail’s site and his company plans to go through the process and submit a proposal.

“With this economy and this market ... this is the time to think outside the box,” Thompson said. "Property tax dollars and construction jobs generate revenue, too."