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.
“Not having assurances of long-term protection from the city makes me feel very vulnerable,” resident Sue Meyer told the Marin Independent Journal. PAC leader Brad Witherspoon added, “This is not the end. Our goal is to become resident-owned. We will not give that up.”
As reported by the Marin Independent Journal, some residents also point to years of payments that helped cover the park's original loan as part of their argument that they should eventually own the property.
A History Of Attempts And A Big Price Tag
Novato has owned the park since a 1997 purchase that city officials say was meant to preserve affordable housing. According to municipal records, the city borrowed roughly 17 million dollars at the time to buy the property.
The community, which reports roughly 300 to 320 homes and several hundred residents, has made runs at resident ownership before, in 1997, in 2008, and again in the latest effort. The dispute even drew an unsolicited 30 million dollar offer from a developer in 2023, which intensified residents' fears of displacement.
Municipal documents and local reporting indicate the ENA set up a structured bargaining process and required PAC to submit a full acquisition and financing proposal by mid-2025. The city has posted its appraisal and response letters on its website. Novato.gov and Local News Matters have both tracked that history in detail.
What's Next For Residents
PAC leaders say they are not backing off on their push for resident ownership. The Marin Independent Journal reports that the City Council and PAC are set to meet in the new year to talk about their shared goals for the park's future.
The residents' group maintains that the park is financially self-sustaining and has never drawn from Novato's general fund. City staff continue to insist that any sale must lock in protections for current tenants and provide enough reserves to cover long-term capital needs.
For now, the end of the ENA leaves the community in limbo. Residents say they will keep chasing financing and political support, while the city studies how to guard rent stability without a sale. As covered by SFGate, the fight over Marin Valley is poised to roll on into 2026.
