City of Capitola
Special City Council Meeting Minutes
Monday, March 16, 2026 – 5:30 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Margaux Morgan
Vice Mayor: Gerry Jensen
Council Members: Joe Clarke, Melinda Orbach, Susan Westman Closed Session – 5:00 PM
A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to Gov’t Code § 54956.9(d)(4) One Case
Special Meeting of the Capitola City Council – 5:30 PM
1. Roll Call and Pledge of Allegiance – In attendance: Council Members Clarke, Orbach, Westman, Vice Mayor Jensen, and Mayor Morgan.
Mayor Morgan invited Public Works Director Kahn to provide a brief update on the Stockton Bridge closure and associated traffic impacts.
2. Report on Closed Session – The City Council met and discussed one item on the Closed Session agenda. No reportable action was taken.
3. Additional Materials
A. Item 5A – Seven emails received after publication of the agenda packet.
4. Oral Communications by Members of the Public
• Goran Klepic
5. Public Hearings
A. Capitola Mall and Objective Standards Zoning Code Amendments Recommended Action: 1) Adopt a resolution amending the General Plan Land Use Element; 2) introduce for first reading, by title only, waiving further reading, an ordinance amending Capitola Municipal Code Title 17: Zoning; and 3) adopt a resolution authorizing submittal to the California Coastal Commission for the certification of an amendment to the Local Coastal Program. (Continued from the February 23, 2026, Special City Council Meeting) Community and Economic Development Director Herlihy presented the staff report.
Public Comment:
• Hector Aspilcueta, Unite Here Local 19 Union
• Martha Hernandez, Unite Here Local 19 Union
• Daya Kunkun, Unite Here Local 19 Union
• Daniel Alvarez, Nor Cal Carpenters Union
• Cheryl
• Kevin Maguire
• Jamas Gwilliam, Merlone Geier Partners
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The City Council discussed the perimeter zone and tiers and reached consensus on three tiers for standard development objectives (listed below). The Council discussed an additional condition imposed upon commercial use in potential developments to create a desirable and dynamic area for residents and visitors. The Council reviewed a draft additional requirement to this effect and added medical offices and clinics:
“The minimum required commercial floor area for a Tier 2 or Tier 3 project shall be occupied by active, publicly accessible commercial, cultural, or entertainment uses open to the general public, including retail sales, restaurants, food and beverage establishments, and similar visitor-serving uses. Medical offices and clinics and uses that are membership-based personal service uses, including gyms, fitness centers, and yoga studios, shall not count toward the minimum required commercial floor area.
Alternative uses consistent with underlaying zoning may be permitted with the issuance of a Conditional Use Permit upon a finding by Planning Commission that the above uses are not viable in the current market.”
The Council agreed with staff’s recommendation for ground floor commercial height and bike lanes. The Council recommended maintaining the existing bike parking rules and directed staff to include a discussion on the Citywide requirements for bicycle parking within the next round of Zoning Code updates.
Tier 1 Tier 2 Tier 3
Min. Density (du/ac) 20 20 20
Max Density (du/ac) 48 53 53
Perimeter Zone
41 st
Ave. (ft) 125 75 75
Capitola Rd. (ft) 125 75 75
Clares St. (ft) 125 125 125
Perimeter Height (ft) 55 65* 65
Core Height (ft) 75 85 85
Open Space 5% 2.5% 2.5%
Affordable Housing 20% 20% 20%
Commercial sf 0 35,000 200,000
Hotel Rooms 0 120 0
Meeting Space sf 0 3,600 0
* A hotel with a height up to 85 feet is allowed in the perimeter zone.
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Motion to adopt Resolution No. 4476 amending the General Plan Land Use Element; introduce Ordinance No. 1075 amending CMC Title 17 with the changes discussed by the Council during tonight’s hearing; and adopt Resolution No. 4477 authorizing submittal to the Coastal Commission for certification: Council Member Orbach Second: Council Member Westman
Voting Yea: Council Member Clarke, Orbach, Westman, Vice Mayor Jensen, Mayor Morgan
6. Adjournment
The meeting adjourned at 7:19 PM. The next regularly scheduled City Council meeting is on March 26, 2026, at 6:00 PM.
________________________
Margaux Morgan, Mayor
ATTEST:
______________________
Julia Gautho, City Clerk
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