The Santa Clarita City Council approved an expansion of The Hartwell by the narrowest of margins Tuesday, after conflicts of interests prompted a pair of council member recusals and fireworks on the dais.
The 3-0 vote in favor of the new plan adds 20 condos and almost 1,100 square feet of commercial space, bringing the respective totals to 98 units and 6,300 square feet of retail to a mixed-use project intended to further the city’s revitalization of Downtown Newhall.
The most recent proposal was made possible Tuesday after the Newhall developer behind the project came to terms to buy the neighboring radio station’s building, which was adjacent to the plan’s northern border, at 24320 Main St.
A minimum of three votes is needed to move an item forward.
Councilman Jason Gibbs announced prior to the start of the discussion that he had recently accepted campaign contributions from Carl and Jeri Goldman, who own the radio station. As a result of their contribution, he would not be able to vote on the project. Mayor Pro Tem Laurene Weste also continued to recuse herself from the plan’s discussion. She declined to state why, but property records indicate she owns land just east of the project.
Mayor Bill Miranda expressed surprise in response to Gibbs’ announcement about taking the money, saying Gibbs was too experienced to miss the ramifications of the donation.
Gibbs answered, saying that by the time he knew the City Council would be taking up the Goldman property as part of the discussion, the 30-day window had passed under the Levine Act that forbids an elected official from discussing a project involving someone from which they’ve received a campaign contribution of $1,000 or more — meaning he could not return the contribution and take part in the discussion.
But that was only the start of Miranda stating his displeasure Tuesday.
During council comments, Miranda said Gibbs was the head of the local Republican Party, and it’s inexcusable that in that role, he didn’t know enough about campaigning to avoid such a mistake, which put the project in jeopardy.
Miranda also was shocked by the Goldmans for giving the donation, and said Carl Goldman had accused the city of not being transparent prior to the deal’s approval. Miranda added that it was the Goldmans, not the city, that behaved in a non-transparent way.
Miranda told Jason Tolleson of Serrano Development Group, the project’s principal, he was “smelling something that I don’t like to smell and I wish you could make me feel better about this,” to which Tolleson said he was really trying to avoid a legal fight at the start of this project.
Miranda then asked for $750,000 to the city. He reasoned that if Tolleson could offer over-market price to the Goldmans for their building, then he could give mitigation money to the city, which was in the original plan for the project.
There was no additional money added to the city in the final project approval.
Miranda also said he didn’t appreciate Jeri Seratti-Goldman stirring up support for ousted Planning Commissioner Denise Lite against Miranda, adding Lite voted for the deal twice.
Tolleson addressed the City Council during his presentation by focusing on his work with the current tenants of the buildings he’s purchased for demolition.
Tolleson said he’s given substantial support to Rafters, a local Alcoholic Anonymous group, which has completed its location. He said he’s already been making preparations with respect to the historic courthouse on the property, noting one wall held jail bars from the original that was in the nearly 100-year-old courthouse.
“The building’s architectural style and height would remain the same as the original approval, at five stories (52 feet) in height, with one subterranean level of parking,” according to the city agenda for Tuesday. “Commercial storefronts along Main Street would be expanded to the north, with parking behind, within the building footprint. Apartment units would be located on the upper levels and oriented around an internal courtyard located on the second floor. Vehicle access to the project site would remain via two driveways: one on Railroad Avenue and one on Market Street.”
Then Miranda called for a motion, which Ayala made and Miranda seconded.
McLean asked what would happen if she voted no.
City Attorney Joe Montes said the decision could be challenged, and McLean said the city had been sent a letter demanding approval under threat of lawsuit from a housing group.
“I have great reservations, but I don’t want to hurt the city,” Miranda said, explaining his vote.
The approval by Miranda, Ayala and McLean gives Tolleson a plan that matches his other major development at the other end of Main Street, next to the Newhall Library, called Newhall Crossings.
Newhall Crossings is 20,000 square feet of retail space and nearly 50 residential units on the Lyons Avenue side.
The plans originally were brought forth under an agreement that included a historical impact fee that Weste acknowledged she had negotiated on behalf of the city.
During his presentation, Tolleson touted the potential positive impacts to surrounding businesses in Downtown Newhall. Neighboring tenants spoke about the benefits the project might bring.
Dean Cox said it was “the best for what we’ve got going on in Downtown Newhall,” adding he also was looking forward to the future of a parking garage slated for the south side of Main Street.
Several people who identified themselves as members of the city’s Arts and Entertainment District in Downtown Newhall expressed concern about the parking impacts.
The city cited parking studies that officials said were not enough to prove a negative impact
McLean who said she had abstained from the previous vote due to her concerns about the project, asked if the city could take another look at the parking requirements, based on the city’s concern. She said felt like she didn’t have a choice with the project.
City officials previously said they had little wiggle room to approve a plan that was compliant with the city’s objective standards, which they have said the plan was. Under the state Housing Accountability Act, because the city failed to give notice of any problems with the plan by the state’s deadline, the city’s hands had been tied. But that period restarted with the requested amendment.
McLean called for another look at the parking requirements in response to the parking concerns, as well as the impacts to neighboring businesses during construction.
Montes the city would only have 30 days to make a determination on whether there’s a parking issue and then determine the objective standard that wasn’t met, and neither he nor city planners knew of such a standard.
McLean said it was obvious when the project came to the City Council in May that there were parking problems, but the city acknowledged previously meeting the 30-day deadline under the Housing Accountability Act.
“I am told I have to vote yes, even though I have those concerns,” McLean said, “And that is not OK with me.”
McLean said she felt the state’s “overbearing rules” were responsible, expressing her “disgust” with the project and the concessions that have been made for The Hartwell.
Previously, the Santa Clarita City Council approved three existing buildings on the project’s site for demolition: the Horseshoe on Main building, previously known as Soundsations; the historic Masonic Lodge/Courthouse; and the Mac’s Pool Supply building, which is next to the radio station.
Councilwoman Patsy Ayala said she wanted to ask a few questions to build public trust in the project by asking Tolleson a few questions during council comments. She asked Tolleson if there was a backroom deal or any money promised, and he said, “no.”
Weste recused herself in May from the City Council’s 3-0 vote then to approve the project.
Ayala received $1,006 in donations from the Goldmans prior to Ayala’s 2024 election, but the lion’s share of their contribution, $1,000, was declared in the June 30, 2024, disclosure period, which put it outside the one-year conflict-of-interest law provision that Gibbs cited by just under two months.
