After decades of trying to buy the Marin Valley Mobile Country Club and secure their own futures, residents were told this month that the city is walking away from the deal. Novato abruptly shut down formal talks with the resident buyers, leaving many senior homeowners worried about whether the park will stay affordable. Residents say they lined up financing and crafted offers to pay the city while shielding rents, but city officials counter that those plans would have put long-term affordability on shaky ground.
City Ends Negotiations, Cites Affordability Concerns
In a December statement, the City of Novato said the Park Acquisition Corporation, the residents’ purchasing group, did not have the financial capacity to buy the 63-acre park without undermining rent protections for seniors. The city said continued public ownership is the safest way to keep rents stable.
The announcement went up on December 11, right as the Exclusive Negotiating Agreement that began in May 2024 hit its expiration date, wrapping roughly an 18-month negotiation period. In its online notice, the City of Novato added that officials will keep meeting with residents while they review options to preserve long-term affordability at the park.
Price Gap Was The Sticking Point
At the heart of the breakdown was a price gap the two sides never bridged. After an appraisal, the city set a fair-market value near 26 million dollars. PAC’s numbers and offers came in lower, ranging from about 21.3 million dollars after adjustments to a 23.5 million dollar all-cash counteroffer backed by outside financing.
City staff argued that PAC’s plans leaned on limited reserves and possible future assessments that could drive up costs for tenants. PAC leaders reject that description and say their financing plan did not depend on city loans. As reporting by SFGate and other local coverage shows, those competing offers were traded back and forth over multiple rounds this year.
Residents Voice Frustration
At a residents’ meeting in mid-December, many homeowners said they felt blindsided by the city’s decision and warned that a future sale to private developers could push out longtime neighbors…