Developer Reaffirms Commitment to Local Participation on Heritage Square South Development

During a review of the pre-development plan for a mixed-use companion to the Heritage Square Apartments, the project’s builders reaffirmed their commitment to local hiring and the use of local resources.

“We absolutely stand behind our initial commitment and ongoing commitment to upholding all the local hire, local benefit, local contracting that we committed to previously,” Ana Slaby, senior project manager with nonprofit Bridge Housing Corp., told the City Council at its meeting Monday.

When completed, Heritage Square South, located immediately south of Heritage Square Apartments, on the northeast corner of North Fair Oaks Avenue and Orange Grove Boulevard, would provide 69 affordable housing units for independent seniors and one unit for a manager of the complex. 

The 48,462 square-foot project also includes approximately 2,200 square feet of ground-floor commercial space and a 37-space surface parking lot. The project is expected to cost $30 million.

Per the city’s Inclusionary Housing Ordinance, 20 percent of the units must be available to very low, low, and moderate-income people at an affordable housing cost.

In addition, 5% of the units must be rented to very low-income households, 5% must be rented to very low- or low-income households, and 10% must be rented to very low, low, or moderate-income households. 

“The purpose of the PPR (Pre-Development Plan Review) is to achieve better projects through early consultation between city staff and applicants,” according to a city staff report. “The intent is to coordinate the review of projects among city staff and city departments, familiarize applicants with regulations and procedures that apply to the project, and avoid significant investment in the design of a project without preliminary input from city staff.”

Bridge Housing was selected to build the project last year during a hearing before a packed council chamber that included speakers from the city’s affordable housing advocacy community.

The property, valued at $5 million, would remain owned by the city and leased to Bridge Housing on a long-term basis.

Bridge Housing has more than six years of experience in building mixed-use and supportive housing projects.

The 70-unit Heritage Square Apartments, located at l762 N. Fair Oaks Ave., on the original site of Pasadena’s historic Decker House, was completed in 2017.

Councilmember John Kennedy on Monday pointed out developers on that project went beyond the agreement of using the city’s standard of 15% locally hired workers, and required 20% local contractors, and 15% sourcing of local materials. 

Kennedy said he felt burned by Lincoln Properties on the campus of the former Parson’s Engineering headquarters in Old Pasadena. That project will cover 6.4 acres and include five stories of Class-A office space (known as 10 West Walnut). 

The 210,000 square-foot project also includes 400 residential units, 17,500 square feet of retail and dining space, and three levels of below-grade parking.

Pasadena Now reported in February that 200 people attended a job fair held by the developers. At that time, only 43 of the more than 3,000 workers hired for the project were Pasadena residents, according to a recent city staff report, well below the 20% threshold for local hiring.

Kennedy said efforts by Lincoln Properties to hire locally were an “abysmal failure.”