The San Rafael City Council shot down an appeal seeking relief from the conditions of approval attached to a planned eight-story complex downtown.

The property owner group, represented by David Wheeler, has been in contract with Monahan Pacific Corp., a San Rafael firm, to develop the 0.6-acre site at 1030 Third St. since 2023. The building address will be changed to 900 A St.

Monahan gained Planning Commission approval for the 131-apartment project in November, but protested nine of the 121 conditions of approval.

The owners objected to conditions involving fees, archaeological and cultural resources, biological surveys and an affordable housing agreement. The appellants argued some conditions violated state laws, while others were inconsistent with the city’s own planning documents.

Surfus said his clients are disappointed with how long the project has taken.

“It took nearly two years for the city to correct its own error in designating the property as a historical resource,” Surfus said. “That issue alone significantly delayed progress through no fault of the owners.”

Tom Monahan, president of Monahan Pacific Corp., said it wants the project to move forward.

“We understand their conditions of approval, we get all that,” Monahan said. “What we’re looking for is help. We just want to make the project happen.”

Councilmember Maika Llorens Gulati asked city staff: “How can we help support this project?”

Micah Hinkle, the city’s community development director, said staff have met with the project team and “heard their issues, concerns.”

“We really do attempt to have maximum flexibility, but some conditions are required of the project,” Hinkle said. “And we feel strongly that the ones identified here, that these should be the recommended conditions to move forward for the project.”

Llorens Gulati said the project “is perfect for that site.” She encouraged staff to continue to be as flexible as possible in working through the permitting and development.

“Anything we can do to ensure that we are able to keep things on track, I think is really important,” Vice Mayor Rachel Kertz said. “When I look through this one and the number of meetings and the extensions of it, I get concerned. There’s lessons learned here, so I think that we, hopefully, will be on a better track going forward.”

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