FOLSOM — A major project planned for the east side of Folsom cleared another hurdle Tuesday night, as the Folsom City Council approved a development agreement with Elliott Homes, Inc. and Broadstone Crossing Phase II, LLC. The approval, which came during the consent calendar portion of the meeting, formally adopts and establishes the conditions for how the Broadstone Crossing Phase II project will move forward while securing millions of dollars in public infrastructure improvements.
The action followed months of review by city staff, the Planning Commission, and the council. The project, located at 1565 Cavitt Drive, was originally approved in November 2024 when the Planning Commission signed off on a Vesting Tentative Parcel Map, a Planned Development permit, and a Master Sign Program for the site. The approval divided an 18.7-acre parcel into three lots that will house three separate buildings with a combined total of more than 200,000 square feet. The largest of the buildings will be a 106,500-square-foot Sutter Medical Office, with two additional buildings planned as part of the overall design.
From the beginning, city leaders and staff emphasized that the new development would have to address both traffic impacts and pedestrian safety challenges in one of Folsom’s busiest corridors. Those requirements were spelled out in Conditions of Approval 42 and 43, which required traffic circulation improvements as well as a fair-share contribution toward a pedestrian overcrossing of East Bidwell Street near the Palladio. The development agreement adopted this week formally locks in those obligations, ensuring that the project pays for its proportional share of the improvements.
Traffic impacts were outlined in a Transportation Impact Study prepared by T. Kear Transportation Planning & Management, Inc. That study identified the need for new turn lanes, updated signal coordination, extended turn pockets, and improved intersection striping along East Bidwell Street and Iron Point Road. Under the agreement, Elliott Homes and Broadstone Crossing Phase II will deposit $3.6 million with the city to fund these upgrades. An initial deposit of $1.445 million will be made when the first building permit is issued for the Sutter Health facility, with another $2.155 million to follow as work proceeds.
If costs exceed that amount, the developer must reimburse the city. While the city will oversee the bulk of the construction through its Capital Improvement Project program, the developer will remain financially responsible. The improvements are expected to be completed within five years unless delays arise from right-of-way acquisition, environmental clearance, or utility coordination.
Equally significant is the pedestrian bridge component. With East Bidwell Street carrying heavy volumes of vehicle traffic each day, staff determined that a pedestrian overcrossing would reduce delays at traffic signals and improve safety for people walking between the project site and the Palladio. Because the development contributes to the increased demand but does not alone justify building the bridge, the city required a fair-share contribution from the developer. The agreement calls for Elliott Homes to provide $2.5 million toward the project, with $1 million to be deposited within 30 days of the city issuing a request for proposals for design and engineering. The remaining $1.5 million will follow after the initial deposit is used. In addition to the funding, the developer will dedicate land on both sides of East Bidwell Street to accommodate the bridge footings. Since Elliott Homes controls property in that location, the land value will also count toward its overall contribution.
The pedestrian overcrossing is expected to cost more than the developer’s $2.5 million contribution, and the city intends to pursue state and federal grants to fund the balance. City staff believe the project could be completed well within the 10-year term of the development agreement if grant funding is secured. The Planning Commission, which voted unanimously last August to recommend approval, had raised concerns about the timing of payments for the pedestrian bridge. To address that issue, the developer agreed to advance $1 million early in the process, ensuring that design and environmental work could begin promptly and make the project eligible for outside funding.
From a financial perspective, city officials noted that the development agreement protects taxpayers by requiring the developer to cover the entire cost of roadway improvements and by capping its pedestrian bridge contribution at $2.5 million. The remaining costs for the bridge will not come from the city’s General Fund but instead from outside grant sources. The arrangement guarantees that the necessary public improvements move forward without impacting city finances.
The council had introduced the ordinance and held a first reading on Aug. 26, determining at that time that the agreement was exempt from further environmental review under the California Environmental Quality Act. With no changes made since that meeting, the council voted unanimously Tuesday to adopt the agreement as part of its consent calendar. The approval not only sets the course for Broadstone Crossing Phase II to move forward but also secures major infrastructure commitments that city leaders believe will improve traffic flow, enhance pedestrian safety, and benefit the entire community as the east side of Folsom continues to grow.
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