Sutter Lofts project receives design review and density bonus entitlements; building, engineering and permit reviews next
A proposed six-unit apartment project planned at the rear of two existing Sutter Street properties cleared a key hurdle Tuesday night, as the Folsom City Council approved the design review and density bonus entitlements for Sutter Lofts at 807 and 809 Sutter Street.
The council’s action confirmed a recommendation from the Historic District Commission following its Sept. 2 review of the project. It also determined the project is exempt from review under the California Environmental Quality Act.
While Tuesday’s action represents final city approval of the project’s land-use entitlements, it does not mean construction can begin immediately. Detailed building and engineering plans must still go through city review, conditions of approval must be satisfied and required permits must be obtained before work can get underway.
Those remaining steps include preparation and city approval of a geotechnical report before grading, improvement or building permits can be issued. Improvement plans must also be reviewed and approved by the city before a building permit is issued.
The Sutter Lofts proposal calls for a 4,374-square-foot apartment building at the rear of the property. Plans include six rental lofts — four approximately 600-square-foot studios and two 987-square-foot one-bedroom units. The two one-bedroom units will each have a balcony facing Sutter Street.

The approximately 0.13-acre site slopes downward toward Sutter Street, allowing the new building to appear as three stories from the Sutter Street side and two stories from the higher rear alley. Its average height is approximately 34 feet, 3 inches, remaining below the 35-foot maximum allowed in the district.
An existing 2,370-square-foot commercial building at the front of the property dates to approximately 1895, according to Sacramento County records cited in the city report. It is not listed as a historic resource on local, state or national registers and has not previously been evaluated for such eligibility. The apartment project does not propose alterations to that building, with the new residential structure planned approximately 75 feet back from Sutter Street.
A key piece of the proposal is its use of California’s Density Bonus Law. The property’s base density would allow four residential units. The applicant qualifies for a 50% density bonus that permits two additional units, bringing the project total to six. In exchange, one of the four base units — 25% — will be deed-restricted for occupancy by a low-income household for at least 55 years.
With the bonus, the project will have a density of approximately 46.2 dwelling units per acre. The property carries a Historic Folsom Mixed-Use General Plan designation, which otherwise provides for a base residential density of 20 to 30 units per acre.
The project’s proximity to the Historic Folsom light rail station also affects how it moves through the approval process. Residential projects with three or more units in the Sutter Street Subarea would generally require a conditional use permit. City staff determined Sutter Lofts qualifies under state law as a housing development allowed by right because it is within one-quarter mile of the Historic Folsom light rail station and meets applicable unit and density requirements. As a result, a conditional use permit is not required.
The Housing Accountability Act further limits the city’s ability to deny or reduce the density of qualifying housing projects that comply with applicable objective standards. According to the staff report, doing so would require the city to identify a specific adverse impact on public health or safety that could not feasibly be mitigated in another way.
Because Sutter Lofts sits within Historic Folsom, how the new building will look alongside the district’s existing architecture was a significant part of the review. Plans call for a brick veneer facade facing Sutter Street, with board-and-batten siding along the sides and rear. Other features include black wrought-iron balcony railings, French double doors, vertically proportioned windows, decorative cornice work and gooseneck lighting. A rooftop parapet is designed to screen mechanical equipment and a solar area.
City staff compared elements of the proposal with several existing Historic District properties, including Whiskey Row Lofts, the Roundhouse building and Sutter Court, as well as nearby Sutter Street businesses. Staff found the proposed materials, colors and architectural features generally compatible with the surrounding district.
The applicant also made several changes during the review process in response to city feedback. Accent metal paneling was removed, alley-facing windows were redesigned with more traditional vertical proportions and gridded panes, sliding balcony doors were replaced with French double doors, a more decorative cornice was added and the color scheme was adjusted.
One departure from the Historic District design guidelines involves the main entrance. Those guidelines generally call for a building’s primary entrance to face the principal street, but the Sutter Lofts entrance will be from the rear alley. Staff supported the arrangement because creating an entrance from Sutter Street could require alterations to the existing commercial building.
The placement of the apartments well behind the street frontage will also reduce how much of the new structure is visible from Sutter Street. City planners said the approximately 75-foot setback, combined with the existing commercial building in front, will substantially limit views of the new building from the street.
The development will provide two dedicated on-site parking spaces. State law, however, prevents the city from imposing a minimum parking requirement on the project because of its proximity to a qualifying major transit stop. City staff noted that future residents could use nearby public parking or alternative transportation, including light rail. Parking in the rear alley will not be permitted because the alley must remain open for circulation and access.
Parking drew additional attention when the Historic District Commission reviewed the proposal Sept. 2. Commissioners added a condition requiring the property owner or applicant to notify tenants of the three-hour parking restriction along Sutter Street. That requirement carries forward with the project approved by the council.
The Heritage Preservation League submitted written comments to the city in August raising concerns about the building’s height, accessibility and several architectural features. The group recommended a more prominent cornice, changes to the color palette, additional window grids, a wood gate at the trash enclosure and greater use of brick or stucco in place of some of the proposed board-and-batten siding.
City staff responded that the proposed height complies with the district’s 35-foot maximum. The Building Division also found no initial accessibility concerns during its preliminary review, although accessibility and California Building Code compliance will receive a more detailed review when the project reaches the building-permit stage.
Several of the preservation group’s design suggestions were incorporated by the applicant, including additional cornice and brick detailing and changes to the color palette. Others were not. Staff noted that city specifications require metal doors for the trash enclosure and that board-and-batten or wood-style siding can already be found elsewhere in the Sutter Street Subarea, including at the Folsom Hotel and Fat Rabbit.
City staff also examined whether the development could affect nearby historic resources, including the Historic Higgins Residence at 802 Figueroa Street and Historic Gable Residence at 806 Figueroa Street, both listed on the city’s Cultural Resources Inventory.
The historic residences are more than 110 feet from the proposed apartment building, according to the city’s analysis, and newer accessory structures closer to the alley help screen views between the properties. Staff concluded the project would have limited visual impacts and would not cause a substantial adverse change to the historic significance of either property.
The city also determined the development qualifies for a categorical CEQA exemption covering construction of apartments of up to six units in an urbanized area, as well as the state’s common-sense exemption. Staff found none of the exceptions that would prevent those exemptions from applying.
Utility improvements are also planned as part of the eventual development. Existing overhead utility lines crossing the site are to be placed underground to serve both the existing commercial building and the new apartments. Sewer service is planned from the rear alley, while water service will come from Sutter Street.
With the council action complete, Sutter Lofts can now move into the more detailed development and permitting phase. Final building and civil engineering plans and other required improvement documents remain subject to city review. The developer must satisfy the conditions attached to the entitlement approval, complete required technical work and obtain the necessary permits before construction can begin. The city will also conduct its more detailed building-code and accessibility review as part of the building-permit process.
Tuesday’s council action clears a significant hurdle for the six-unit Sutter Street development, but it is not the final step before construction. The project has secured its key land-use approvals, while the detailed plans, technical reviews and permits needed to move the development toward construction still remain ahead.