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Developer threatens to again sue Sacramento over latest Crocker Village controversy

Developer Paul Petrovich waits to speak to the Sacramento City Council on Nov. 17, 2015. The city’s Planning and Design Commission on Thursday evening denied a request by Petrovich to build 61 single-family homes on vacant lots in his Crocker Village development.
Developer Paul Petrovich waits to speak to the Sacramento City Council on Nov. 17, 2015. The city’s Planning and Design Commission on Thursday evening denied a request by Petrovich to build 61 single-family homes on vacant lots in his Crocker Village development. Sacramento Bee file

A developer who recently won a $26 million settlement from the city of Sacramento is threatening to sue again.

Paul Petrovich asked the city for permission to build 61 more single-family homes on vacant lots in his Crocker Village development in Curtis Park, according to a city staff report. But half of those homes would be on a lot that’s currently zoned for multi-family residences, such as apartments.

The city’s Planning and Design Commission on Thursday evening denied the request to allow single-family homes on the multi-family parcel.

City staff recommended the commission deny the request in part because the city tries to encourage developers to build housing for all income levels to help address the housing crisis.

“It is inconsistent with the general plan land use policies that encourage development intensity adjacent to transit and encourage a mix of housing types to provide options for residents of different income levels,” Daniel Abbes, associate planner for the city, told the commission.

Petrovich meanwhile alleged staff’s recommendation was actually illegal, as a violation of the California Housing Accountability Act. He threatened legal action.

“Hasn’t this project been through enough?” Petrovich asked the commission.

It wouldn’t be the first time Petrovich sued the city regarding Crocker Village.

The city in 2023 paid a $26 million settlement to Petrovich, including $18.5 million in the form of purchasing a K Street building from him. The large settlement came after a state appeals court ruled the city had denied Petrovich a fair hearing on his proposal to build a gas station there.

The “Petrovich Family Playfields” is name of the new park in the Crocker Village development in Sacramento, according to signs on display on Wednesday, Dec. 6, 2023.
The “Petrovich Family Playfields” is name of the new park in the Crocker Village development in Sacramento, according to signs on display on Wednesday, Dec. 6, 2023. Paul Kitagaki Jr. Sacramento Bee file

Residents weigh in

Over 30 people spoke during Thursday’s meeting, on both sides of the issue, many of whom said they own homes in Crocker Village.

“It’s unfathomable to me that the city would actually reduce the only two parcels left in this area for multi-family housing,” said Cathy Creswell, Sacramento Housing Alliance board member.

Crocker Village resident Garrett Chinn disagreed.

“We’re not opposed to multi-family housing,” said Chinn, wearing a red cloth around his neck along with the rest of Petrovich’s supporters. “But what we can’t support is a short-sighted planning decision that disrupts the fabric of our established community and undermines what a well-thought out project could look like.”

The commission voted unanimously to keep the multi-family zoning, with Kendra Macias Reed recusing herself and Ginger Thompson absent.

The commission approved for Petrovich to build 31 homes on a different vacant parcel within the development near the corner of 10th Avenue and Crocker Drive. It’s unclear if Petrovich still plans to do so, however, or if he will instead build retail there.

“Tonight your decision is no housing or approve my plan,” Petrovich told the commission before they voted.

Petrovich did not immediately respond to a request for comment Friday.

The development currently contains a shopping center, park, more 400 homes and affordable, senior multi-family housing.

If Petrovich appeals the commission’s decision, it would go to the full council for consideration, said Jennifer Singer, a city spokesperson.

This story was originally published May 24, 2025 at 5:00 AM.

Theresa Clift
The Sacramento Bee
Theresa Clift is the Regional Watchdog Reporter for The Sacramento Bee. She covered Sacramento City Hall for The Bee from 2018 through 2024. Before joining The Bee, she worked for newspapers in Pennsylvania, Virginia and Wisconsin. She grew up in Michigan and graduated with a journalism degree from Central Michigan University.
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