Sacramento doubles down in denying litigious developer’s request. Will he sue again?
The Sacramento City Council on Tuesday doubled down on its decision to deny a litigious developer’s request to build more single-family homes in a Curtis Park development, partly on a lot zoned for multi-family.
Paul Petrovich asked the city for permission to build 61 new single-family homes on vacant lots in his Crocker Village development, 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.
That’s why the plan would require city approval. City staff recommended the council deny Petrovich’s request because the city wants to encourage developers to build housing for all income types to help alleviate the housing crisis. The council agreed during a May meeting, and Petrovich threatened to sue.
On Tuesday, the council again denied the request, which came in the form of an appeal.
Daniel Freedman, Petrovich’s attorney, made the argument that the council’s denial won’t necessarily mean Petrovich will build apartments instead of single-family homes however, and could instead just lead to fewer housing units being built at all.
“The multi family projects they don’t pencil,” Freedman said. “My client knows what he’s doing. He knows how to track what rental income would be vs. the number of units they can provide. If he thought he can make money and actually profit to the extent that would pay for the project, he would consider it. He did consider it.”
Freedman also offered for Petrovich to include ADUs on the single-family home lots, but that didn’t convince the council.
Several speakers said they wanted to stop Petrovich from building more of the luxury homes that he has already built in the development.
A 2,815 square-foot home there sold last month for $1.27 million, for example, according to Zillow.
However, the single-family homes Petrovich was planning to build in the new phase would have been more affordable than that, providing homeownership opportunities for the so-called “missing middle.” He has also built rentals as part of the development, he said.
“I’m disappointed in the applicant,” Dickinson said of Petrovich. “It’s discouraging to hear this contention here when I know he’s capable of much more.”
Petrovich did not speak at the Tuesday meeting, but during the May meeting he threatened litigation.
If he does so, 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.
Over two years later, the city has not yet announced what it plans to do with the K Street building, but is asking developers for proposals.
The item to deny Petrovich’s appeal Tuesday passed 8-0. Councilwoman Lisa Kaplan recused herself due to a conflict.
This story was originally published September 10, 2025 at 12:24 PM.
