Cities Index.
Agenda packet

Santa Cruz City Council
February 25, 2025

Document
Agenda packet
Meeting
February 25, 2025
Body
Santa Cruz City Council
Pages
151
Original file
152.5 MB
Text extracted from the city's file for reading and search. Open the original on ecm.cityofsantacruz.com. That file is the official record.

Thank you for your interest in the proposed project for 313 Swift Street. Please provide any project related question or comment in the fields provided. Your comment/question will be automatically directed to the City Planner assigned to this project. Please note that questions and/or comments entered here are public information and subject to release in accordance with the Public Records Act.

1. Select what applies:
[×] I have a question(s).

2. Question/Comment:

I dont understand why it has to look like a prison or a county building. what happened to designs that have unique and beautiful features.
thank you.

I dont need a personal response but please consider

3. If you have a question that needs a response, please enter your email address or phone number.

Email: Not answered
Phone: Not answered
Thank you,
City of Santa Cruz
This is an automated message generated by Granicus. Please do not reply directly to this email.

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From: Timothy Maier
To: [email protected]
Subject: RE: 313 Swift Street Question/Comment Received Date: Thursday, April 25, 2024 10:08:00 PM
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Hello Ms. Swann,
Thanks for your message and for reaching out.

Thus far, the proposed educator workforce housing project has been submitted as a Preapplication, which provides for the applicant (contractor and architects working on behalf of Santa Cruz City Schools) to receive early feedback related to the proposed project.

The site is listed as an environmental cleanup site in the City’s records. Information related to the project has been forwarded to the County Department of Environmental Health, whose staff have reviewed the submittal, have conducted background research on the history/potential for contamination on the site, and are compiling comments related to it.

Based on preliminary information received from the County, minimally, a Phase I Environmental Site Assessment (ESA) will be required to be conducted; information resulting from that investigation, once prepared, will be reviewed by City and County staff.

Recommendations of the Phase I ESA will determine the need for further study and potential remediation, as applicable. If necessary, further studies (i.e. extended Phase I or Phase II ESA) will be conducted and additional recommendations provided. Actions required for remediation, as necessary, will be described through such studies.

I appreciate the background information you have provided. The Phase I ESA will additionally provide a thorough description of the background of the subject site and disclose past activities and likely contamination present. On-site sampling and subsequent testing of soil, groundwater, and the like is expected to take place to identify any contamination, and studies will determine steps needed for remediation as relevant.

You may have seen that a Public Outreach Meeting will be held via remote teleconference (Zoom) on May 6, beginning at 6:30 PM. You are welcome and encouraged to participate to learn more about the proposed project, ask questions, receive clarification, etc.

Feel free to reach out to me with any questions or to provide any further information you may have about the site.

Best regards,
Tim Maier
Timothy Maier
Senior Planner
City of Santa Cruz | Planning and Community Development 809 Center Street, Room 101, Santa Cruz, CA 95060
Main: 831-420-5110 | Direct: 831-420-5129

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Email: [email protected]
Web: www.cityofsantacruz.com
From: [email protected] <[email protected]> Sent: Thursday, April 25, 2024 4:56 PM
To: Timothy Maier <[email protected]>
Subject: 313 Swift Street Question/Comment Received
A new entry to a form/survey has been submitted.

Form Name: 313 Swift Street
Date & Time: 04/25/2024 4:56 PM
Response #: 1
Submitter ID: 109713
IP address: 54.193.9.48
Time to complete: 15 min. , 40 sec.

Survey Details

Page 1 ends

Thank you for your interest in the proposed project for 313 Swift Street. Please provide any project related question or comment in the fields provided. Your comment/question will be automatically directed to the City Planner assigned to this project. Please note that questions and/or comments entered here are public information and subject to release in accordance with the Public Records Act.

1. Select what applies:
[×] I have a question(s).

2. Question/Comment:

Have you thoroughly cleaned and removed the toxic waste tested the ground water and soil at that site? This land used to be federal land, leased to the school district for decades. It was a toxic site where munitions was stored and it's not clear it was ever adequately cleaned up. It was never intended to be built upon. The district used the land for their facilities yard where old vehicles were stored and sometimes services. Undoubtedly more toxic chemicals where spilled and/or dumped there since it was basically an old machinery "storage area" as well as a place vehicles were parked and services on the bare ground.

When Monarch School was moved there (in late 1990s or early 2000s?) to a new triple-wide portable

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classroom on that site adjacent, that facility yard area was fenced in to keep children from wandering to the toxic areas and out of the machinery. It's in the interest of public safety to do soil testing and ground water sampling before building homes on that land.

3. If you have a question that needs a response, please enter your email address or phone number.

Email: [email protected]
Phone: (831) 334-7045
Thank you,
City of Santa Cruz
This is an automated message generated by Granicus. Please do not reply directly to this email.

16.1684
From: Timothy Maier
To: [email protected]
Subject: RE: 313 Swift Street Question/Comment Received Date: Thursday, June 6, 2024 7:42:00 PM
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Hello Erin,
Thanks for you question and for reaching out to us.

No change is proposed to the existing buildings related to the proposed educator workforce housing project at 313 Swift St. However, it may be advisable to contact Santa Cruz City School District to inquire about any planned future programming changes.

Timothy Maier
Senior Planner
City of Santa Cruz | Planning and Community Development 809 Center Street, Room 101, Santa Cruz, CA 95060
Main: 831-420-5110 | Direct: 831-420-5129
Email: [email protected]
Web: www.cityofsantacruz.com
From: [email protected] <[email protected]> Sent: Monday, May 6, 2024 6:36 PM
To: Timothy Maier <[email protected]>
Subject: 313 Swift Street Question/Comment Received
A new entry to a form/survey has been submitted.

Form Name: 313 Swift Street
Date & Time: 05/06/2024 6:35 PM
Response #: 4
Submitter ID: 109874
IP address: 2600:1700:87f1:24df:4162:7006:b11a:5a7b
Time to complete: 1 min. , 30 sec.

Survey Details

Page 1 ends

Thank you for your interest in the proposed project for 313 Swift Street. Please provide any project

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related question or comment in the fields provided. Your comment/question will be automatically directed to the City Planner assigned to this project. Please note that questions and/or comments entered here are public information and subject to release in accordance with the Public Records Act.

1. Select what applies:
[×] I have a question(s).

2. Question/Comment:

IIs it possible for WPENS preschool to remain in the current building during construction or even move in after construction has completed?

3. If you have a question that needs a response, please enter your email address or phone number.

Email: [email protected]
Phone: (925) 200-9949
Thank you,
City of Santa Cruz
This is an automated message generated by Granicus. Please do not reply directly to this email.

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From: Timothy Maier
To: [email protected]
Subject: RE: 313 Swift Street Question/Comment Received Date: Thursday, May 23, 2024 9:16:00 AM
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Good morning Gill,
Thanks for your message and for reaching out with your feedback related to the proposed redevelopment of 313 Swift St. (CP24-0073).

As a Preapplication, the project proposal remains under review for compliance with applicable regulations. A Traffic Impact Study will be prepared for evaluation of existing and proposed traffic and circulation. Additionally, a Stormwater Management Plan will be required to be prepared for assessment of existing and proposed stormwater runoff. Impact fees relevant to the project application address increased use of City facilities, such as parks.

Your comments have additionally been forwarded to the project application for consideration.

Thanks,
Timothy Maier
Senior Planner
City of Santa Cruz | Planning and Community Development 809 Center Street, Room 101, Santa Cruz, CA 95060
Main: 831-420-5110 | Direct: 831-420-5129
Email: [email protected]
Web: www.cityofsantacruz.com
From: [email protected] <[email protected]> Sent: Wednesday, May 22, 2024 10:21 PM
To: Timothy Maier <[email protected]>
Subject: 313 Swift Street Question/Comment Received
A new entry to a form/survey has been submitted.

Form Name: 313 Swift Street
Date & Time: 05/22/2024 10:21 PM
Response #: 6
Submitter ID: 110111
IP address: 2601:647:cb00:4e0:f4b2:d0e5:56fd:f695

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Time to complete: 29 min. , 33 sec.

Survey Details

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Thank you for your interest in the proposed project for 313 Swift Street. Please provide any project related question or comment in the fields provided. Your comment/question will be automatically directed to the City Planner assigned to this project. Please note that questions and/or comments entered here are public information and subject to release in accordance with the Public Records Act.

1. Select what applies:
[×] I have a comment(s).

2. Question/Comment:

1. Right-turn-only egress is a BIG problem because Swift and Delaware are far better designed to handle the traffic than the streets to which right turns will direct traffic. Please reconsider.

2. The project will increase surface water run-off to the south (downhill) toward the school playground at a site that gets water-saturated during heavy winter rain. This needs mitigation.

3. The project will increase use of Sgt. Derby Park and that also needs mitigation. The project could pay for some park improvements such as playground facilities for older children. Because most pickleball players come to the park by car and are noisy, the project provides increased reason for the City and University to resolve their differences in order to create a dedicated pickleball facility on Natural Bridges Drive.

Great project in general.

3. If you have a question that needs a response, please enter your email address or phone number.

Email: [email protected]
Phone: (831) 425-3817
Thank you,
City of Santa Cruz
This is an automated message generated by Granicus. Please do not reply directly to this email.

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01/10/2025
City: City of Santa Cruz - Planning and Community Development Department Timothy Maier
809 Center Street, Room 101, Santa Cruz, CA 95060, USA
[email protected]
Construction Site Well Review (CSWR) ID: 1013150
Assessor Parcel Number(s): 00316132
Property Owner(s): Santa Cruz Schools
Project Location Address: 809 Center Street, Room 101 Santa Cruz, California 95060 Project Title: SCH - 2024120753 Santa Cruz City Schools Educator Housing Public Resources Code (PRC) § 3208.1 establishes well reabandonment responsibility when a previously plugged and abandoned well will be impacted by planned property development or construction activities. Local permitting agencies, property owners, and/or developers should be aware of, and fully understand, that significant and potentially dangerous issues may be associated with development near oil, gas, and geothermal wells.

The California Geologic Energy Management Division (CalGEM) has received and reviewed the above referenced project dated 1/8/2025. To assist local permitting agencies, property owners, and developers in making wise land use decisions regarding potential development near oil, gas, or geothermal wells, the Division provides the following well evaluation.

The project is located in Santa Cruz County, within the boundaries of the following fields:

N/A
Our records indicate there are no known oil or gas wells located within the project boundary as identified in the application.

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• Number of wells Not Abandoned to Current Division Requirements as Prescribed by Law and Projected to Be Built Over or Have Future Access Impeded by this project: 0 • Number of wells Not Abandoned to Current Division Requirements as Prescribed by Law and Not Projected to Be Built Over or Have Future Access Impeded by this project: 0 • Number of wells Abandoned to Current Division Requirements as Prescribed by Law and Projected to Be Built Over or Have Future Access Impeded by this project: 0 • Number of wells Abandoned to Current Division Requirements as Prescribed by Law and Not Projected to Be Built Over or Have Future Access Impeded by this project: 0 The Division categorically advises against building over, or in any way impeding access to, oil, gas, or geothermal wells. Impeding access to a well could result in the need to remove any structure or obstacle that prevents or impedes access including, but not limited to, buildings, housing, fencing, landscaping, trees, pools, patios, sidewalks, roadways, and decking. Maintaining sufficient access is considered the ability for a well servicing unit and associated necessary equipment to reach a well from a public street or access way, solely over the parcel on which the well is located. A well servicing unit, and any necessary equipment, should be able to pass unimpeded along and over the route, and should be able to access the well without disturbing the integrity of surrounding infrastructure.

There are no guarantees a well abandoned in compliance with current Division requirements as prescribed by law will not start leaking in the future. It always remains a possibility that any well may start to leak oil, gas, and/or water after abandonment, no matter how thoroughly the well was plugged and abandoned. The Division acknowledges wells plugged and abandoned to the most current Division requirements as prescribed by law have a lower probability of leaking in the future, however there is no guarantees that such abandonments will not leak.

The Division advises that all wells identified on the development parcel prior to, or during, development activities be tested for liquid and gas leakage. Surveyed locations should be provided to the Division in Latitude and Longitude, NAD 83 decimal format. The Division expects any wells found leaking to be reported to it immediately.

Failure to plug and reabandon the well may result in enforcement action, including an order to perform reabandonment well work, pursuant to PRC § 3208.1, and 3224.

PRC § 3208.1 give the Division the authority to order or permit the re-abandonment of any well where it has reason to question the integrity of the previous abandonment, or if the well is not accessible or visible. Responsibility for re-abandonment costs may be affected by the choices made by the local

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permitting agency, property owner, and/or developer in considering the general advice set forth in this letter. The PRC continues to define the person or entity responsible for reabandonment as:

1. The property owner - If the well was plugged and abandoned in conformance with Division requirements at the time of abandonment, and in its current condition does not pose an immediate danger to life, health, and property, but requires additional work solely because the owner of the property on which the well is located proposes construction on the property that would prevent or impede access to the well for purposes of remedying a currently perceived future problem, then the owner of the property on which the well is located shall obtain all rights necessary to reabandon the well and be responsible for the reabandonment.

2. The person or entity causing construction over or near the well - If the well was plugged and abandoned in conformance with Division requirements at the time of plugging and abandonment, and the property owner, developer, or local agency permitting the construction failed either to obtain an opinion from the supervisor or district deputy as to whether the previously abandoned well is required to be reabandoned, or to follow the advice of the supervisor or district deputy not to undertake the construction, then the person or entity causing the construction over or near the well shall obtain all rights necessary to reabandon the well and be responsible for the reabandonment.

3. The party or parties responsible for disturbing the integrity of the abandonment - If the well was plugged and abandoned in conformance with Division requirements at the time of plugging and abandonment, and after that time someone other than the operator or an affiliate of the operator disturbed the integrity of the abandonment in the course of developing the property, then the party or parties responsible for disturbing the integrity of the abandonment shall be responsible for the reabandonment.

No well work may be performed on any oil, gas, or geothermal well without written approval from the Division. Well work requiring approval includes, but is not limited to, mitigating leaking gas or other fluids from abandoned wells, modifications to well casings, and/or any other re-abandonment work. The Division also regulates the top of a plugged and abandoned well's minimum and maximum depth below final grade. CCR §1723.5 states well casings shall be cut off at least 5 feet but no more than 10 feet below grade. If any well needs to be lowered or raised (i.e. casing cut down or casing riser added) to meet this regulation, a permit from the Division is required before work can start.

The Division makes the following additional recommendations to the local permitting agency, property owner, and developer:

1. To ensure that present and future property owners are aware of (a) the existence of all wells located on the property, and (b) potentially significant issues associated with any improvements

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near oil or gas wells, the Division recommends that information regarding the above identified well(s), and any other pertinent information obtained after the issuance of this letter, be communicated to the appropriate county recorder for inclusion in the title information of the subject real property.

2. The Division recommends that any soil containing hydrocarbons be disposed of in accordance with local, state, and federal laws. Please notify the appropriate authorities if soil containing significant amounts of hydrocarbons is discovered during development.

As indicated in PRC § 3106, the Division has statutory authority over the drilling, operation, maintenance, and abandonment of oil, gas, and geothermal wells, and attendant facilities, to prevent, as far as possible, damage to life, health, property, and natural resources; damage to underground oil, gas, and geothermal deposits; and damage to underground and surface waters suitable for irrigation or domestic purposes. In addition to the Division's authority to order work on wells pursuant to PRC §§ 3208.1 and 3224, it has authority to issue civil and criminal penalties under PRC §§ 3236, 3236.5, and 3359 for violations within the Division's jurisdictional authority. The Division does not regulate grading, excavations, or other land use issues.

If during development activities, any wells are encountered that were not part of this review, the property owner is expected to immediately notify the Division's construction site well review engineer in the Northern district office, and file for Division review an amended site plan with well casing diagrams.

The District office will send a follow-up well evaluation letter to the property owner and local permitting agency.

Should you have any questions, please contact me at (916) 203-7734 or via email at [email protected].

Sincerely,
Erwin Sison
Senior Oil and Gas Supervisor
cc: Timothy Maier - Plan Checker

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State of California – Natural Resources Agency GAVIN NEWSOM, Governor DEPARTMENT OF FISH AND WILDLIFE CHARLTON H. BONHAM, Director Bay Delta Region
2825 Cordelia Road, Suite 100
Fairfield, CA 94534
(707) 428-2002
www.wildlife.ca.gov
Conserving California’s Wildlife Since 1870
January 10, 2024
Tim Maier, Senior Planner
City of Santa Cruz, Planning and Community Development Department 809 Center Street, Room 101
Santa Cruz, CA 95060
[email protected]
Subject: Santa Cruz City Schools Educator Housing, Initial Study/Mitigated Negative Declaration, SCH No. 2024120753, City of Santa Cruz, Santa Cruz County Dear Tim Maier:

The California Department of Fish and Wildlife (CDFW) has reviewed the Initial Study/Mitigated Negative Declaration (IS/MND) from the City of Santa Cruz (City) for the Santa Cruz City Schools Educator Housing (Project) pursuant the California Environmental Quality Act (CEQA). 1
Thank you for the opportunity to provide comments and recommendations regarding those activities involved in the Project that may affect California fish and wildlife.

Likewise, we appreciate the opportunity to provide comments regarding those aspects of the Project that CDFW, by law, may be required to carry out or approve through the exercise of its own regulatory authority under the Fish and Game Code.

CDFW ROLE
CDFW is California’s Trustee Agency for fish and wildlife resources and holds those resources in trust by statute for all the people of the State. (Fish & G. Code, §§ 711.7, subd. (a) & 1802; Pub. Resources Code, § 21070; CEQA Guidelines, § 15386, subd. (a).) CDFW, in its trustee capacity, has jurisdiction over the conservation, protection, and management of fish, wildlife, native plants, and habitat necessary for biologically sustainable populations of those species. (Id., § 1802.) Similarly, for purposes of CEQA, CDFW is charged by law to provide, as available, biological expertise during public agency environmental review efforts, focusing specifically on projects and related activities that have the potential to adversely affect fish and wildlife resources.

CDFW is also submitting these comments as a Responsible Agency under CEQA. (Pub. Resources Code, § 21069; CEQA Guidelines, § 15381.) CDFW expects that it may need to exercise regulatory authority over the Project pursuant to the Fish and Game Code. As proposed, for example, the Project may be subject to CDFW’s Lake 1 CEQA is codified in the California Public Resources Code in section 21000 et seq. The “CEQA Guidelines” are found in Title 14 of the California Code of Regulations, commencing with section 15000.

Docusign Envelope ID: 52FDE3B3-7E84-4530-AAD1-E2681268E306

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Tim Maier
Santa Cruz City Schools
January 10, 2025

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and Streambed Alteration (LSA) regulatory authority. (Fish & G. Code, § 1600 et seq.) Likewise, to the extent the Project may result in “take,” as defined by State law, of any species protected under the California Endangered Species Act (CESA) (Fish & G.

Code, § 2050 et seq.), related authorization as provided by the Fish and Game Code will be required.

REGULATORY REQUIREMENTS
California Endangered Species Act
Please be advised that a CESA permit must be obtained if the Project has the potential to result in “take” of plants or animals listed under CESA, either during construction or over the life of the Project. Issuance of a CESA permit is subject to CEQA documentation; the CEQA document must specify impacts, mitigation measures, and a mitigation monitoring and reporting program. If the Project will impact CESA listed species, early consultation is encouraged, as significant modification to the Project and mitigation measures may be required in order to obtain a CESA permit.

Lake and Streambed Alteration
CDFW requires an LSA Notification, pursuant to Fish and Game Code section 1600 et seq., for any Project activities that will substantially divert or obstruct the natural flow; change or use material from the bed, channel, or bank including associated riparian or wetland resources; or deposit or dispose of material where it may pass into a river, lake, or stream. Work within ephemeral streams, washes, watercourses with a subsurface flow, and floodplains are generally subject to notification requirements. CDFW, as a Responsible Agency under CEQA, would consider the CEQA document for the Project.

CDFW may not execute a final LSA Agreement until it has complied with CEQA (Pub.

Resources Code § 21000 et seq.) as the Responsible Agency.

Raptors and Other Nesting Birds
CDFW has authority over actions that may result in the disturbance or destruction of active nest sites or the unauthorized take of birds. Fish and Game Code sections protecting birds, their eggs, and nests include §§ 3503 (regarding unlawful take, possession or needless destruction of the nests or eggs of any bird), 3503.5 (regarding the take, possession or destruction of any birds-of-prey or their nests or eggs), and 3513 (regarding unlawful take of any migratory nongame bird). Migratory birds are also protected under the federal Migratory Bird Treaty Act.

PROJECT DESCRIPTION SUMMARY
Proponent: Trevor Miller, Santa Cruz City Schools (Applicant) Docusign Envelope ID: 52FDE3B3-7E84-4530-AAD1-E2681268E306

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Tim Maier
Santa Cruz City Schools
January 10, 2025

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Description and Location: The Project site is located at 313 Swift Street, in the City of Santa Cruz, in Santa Cruz County; APN: 003-16-132.

The proposed Project is located on a 4.08-acre site that will demolish two existing single-story office buildings and two portable, modular classroom buildings. A new fourstory, approximately 120,604 square-foot multifamily educator workforce housing project, encompassing approximately 100 residential units, approximately 119 parking spaces, new landscaping, and associated site modifications will be constructed.

Additionally, the Project will remove twelve trees, including five heritage trees.

SPECIES POTENTIAL
Threatened, endangered, and other special-status species that are known to occur, or have the potential to occur in or near the Project site, include, but are not limited to the species listed below and in Table 1:
• Monarch butterfly (Danaus plexippus); FC
• Nesting birds
FC = Federal Candidate

COMMENTS AND RECOMMENDATIONS
CDFW offers the below comments and recommendations to assist the City in adequately identifying and/or mitigating the project’s significant, or potentially significant, direct and indirect impacts on fish and wildlife (biological) resources.

COMMENT 1: Nesting Bird Surveys
Issue: Proposed nesting bird “standard condition of approval,” would not adequately reduce impacts to nesting birds to a less-than-significant level, as the proposed survey details are not adequately described to ensure detection of all nesting birds which may be impacted by Project activities.

Recommendation: CDFW recommends the nesting bird “standard condition of approval” in the Project MND be updated to the recommended mitigation measure below to mitigate impacts to less-than-significant levels.

Recommended Nesting Bird Mitigation Measure: If project grading or construction is scheduled to take place between February 1 – September 15, a preconstruction survey of the project vicinity for nesting birds shall be conducted by a qualified biologist experienced with the nesting behavior of bird species of the region. The survey shall determine if active nests are present within the planned area of disturbance or within Docusign Envelope ID: 52FDE3B3-7E84-4530-AAD1-E2681268E306

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Tim Maier
Santa Cruz City Schools
January 10, 2025

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250 feet for non-raptors and 1,000 feet for raptors. The survey shall be performed no more than 14 days prior to the commencement of construction activities, and a second focused survey shall be conducted within 48 hours prior to construction activities that would occur during the nesting/breeding season. If ground disturbance activities are delayed following a survey, then an additional preconstruction survey shall be conducted such that no more than two weeks will have elapsed between the last survey and the commencement of ground disturbance activities. If a lapse of Project-related activities of seven days or longer occurs, another focused survey will be conducted before Project activities can be reinitiated.

If an active bird nest is found within the survey radii, species-specific measures shall be prepared by a qualified biologist and implemented to prevent abandonment of the active nest. A protective buffer distance shall be established by a qualified biologist based on the site conditions such as whether the nest is in a line of sight of the construction and the sensitivity of the birds nesting. Typical protective buffers are as follows: 1) 1,000 feet for large raptors such as buteos, 2) 500 feet for smaller raptors such as accipiters, and 3) 250 feet for passerines. No Project personnel or equipment shall be allowed to enter the protective buffer until the Qualified Biologist determines that the young have fully fledged and will no longer be adversely affected by the Project.

A Qualified Biologist shall observe any identified active nests prior to the start of any construction-related activities to establish a behavioral baseline of the adults and any nestlings, and the nest site(s) shall be monitored by the biologist periodically to see if the birds are stressed by the construction activities and if the protective buffer needs to be increased. The perimeter of the nest setback zone shall be fenced or adequately demarcated with stakes and flagging at 20-foot intervals, and construction personnel and activities restricted from the area. A survey report by a qualified biologist verifying that no active nests are present, or that the young have fledged, shall be submitted prior to initiation of grading in the nest-setback zone. The qualified biologist shall serve as a biological monitor during those periods when construction activities occur near active nest areas to ensure that no inadvertent impacts on these nests occur. All buffers shall be shown on all sets of construction drawings.

COMMENT 2:Monarch Butterfly Overwintering
Issue: Although the Project site is primarily developed, the Project IS/MND does not identify if removal of 5 heritage trees could cause impacts to over-wintering Monarch butterflies or their habitat. Loss of Monarch roosting trees used for over-wintering should be considered a significant impact to the species.

Evidence: The Project site is located approximately 0.5 miles from Natural Bridges State Beach, a known overwintering site for monarch butterflies (Danaus plexippus), which rely on the coastal environment, including eucalyptus, cypress, pine trees for Docusign Envelope ID: 52FDE3B3-7E84-4530-AAD1-E2681268E306

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Tim Maier
Santa Cruz City Schools
January 10, 2025

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shelter during the migratory season and native milkweed. The western monarch population has declined by 95 percent (Crone et al. 2019, Schultz et al. 2017) and has dropped an additional less than one percent of their historic size (Pelton et al. 2019).

Milkweed is a commonly known nectar plant for their role as larval food plants for monarch butterflies. The loss of milkweed and overwintering habitat have caused the monarch populations to severely decline (Fallon et al. 2015). Pesticides, such as insecticides and herbicides, are contributing factors to the decline of monarch butterflies and other butterfly species in California and the United States (Pelton 2020).

Recommendation: CDFW recommends the Project avoid impacts to known and potential monarch roost habitat including buffer trees and nectar resources. Trees selected for removal shall be evaluated by a qualified biologist for potential impacts to monarch roost habitat. Alternatives to tree removal such as tree limbing should be considered prior to tree removal to minimize potential impacts. Where tree removal cannot be avoided, CDFW recommends a Monarch Roost Site Mitigation Plan is developed and included as part of the final MND.

ENVIRONMENTAL DATA
CEQA requires that information developed in environmental impact reports and negative declarations be incorporated into a database which may be used to make subsequent or supplemental environmental determinations. (Pub. Resources Code, § 21003, subd. (e)). Accordingly, please report any special-status species and natural communities detected during Project surveys to the CNDDB. The CNDDB field survey form can be found at the following link: https://wildlife.ca.gov/Data/CNDDB/SubmittingData#44524420-pdf-field-survey-form. The completed form can be mailed electronically to CNDDB at the following email address: [email protected]. The types of information reported to CNDDB can be found at the following link:
https://wildlife.ca.gov/Data/CNDDB/Plants-and-Animals.

FILING FEES
The Project, as proposed, would have an impact on fish and/or wildlife, and assessment of filing fees is necessary. Fees are payable upon filing of the Notice of Determination by the Lead Agency and serve to help defray the cost of environmental review by CDFW. Payment of the fee is required in order for the underlying Project approval to be operative, vested, and final. (Cal. Code Regs., tit. 14, § 753.5; Fish & G. Code, § 711.4; Pub. Resources Code, § 21089).

CONCLUSION
CDFW appreciates the opportunity to comment on the IS/MND to assist the City in identifying and mitigating Project impacts on biological resources.

Docusign Envelope ID: 52FDE3B3-7E84-4530-AAD1-E2681268E306

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Tim Maier
Santa Cruz City Schools
January 10, 2025

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Questions and coordination pertaining to this letter should be directed to Alexis Harrison, Environmental Scientist, at (707) 815-2779 or [email protected]; or Wes Stokes, Senior Environmental Scientist (Supervisory), at (707) 339-6066 or [email protected].

Sincerely,
Erin Chappell
Regional Manager
Bay Delta Region
ec: Office of Planning and Research, State Clearinghouse (SCH No. 2024120753) Craig Weightman; CDFW Bay Delta Region - [email protected]

REFERENCES
Crone, E. E., Pelton, E. M., Brown, L. M., Thomas, C. C., & Schultz, C. B. 2019. Why are monarch butterflies declining in the West? Understanding the importance of multiple correlated drivers. Ecological Applications, 29(7), 1–13. https://www.jstor.org/stable/26797133
Fallon, C., Borders, B., Lee-Mäder, E., Black, S. H., Xerces Society, U.S. Fish and Wildlife Service, Monarch Joint Venture, USDA’s Natural Resources Conservation Service, Alice C. Tyler Perpetual Trust, The Bay and Paul Foundations, Endangered Species Chocolate, LLC, Turner Foundation, Inc., & Xerces Society members. (2015). Milkweeds and monarchs in the west.https://xerces.org/sites/default/files/2019-10/MonarchsandMilkweedwebsec_May29.pdf Pelton, E. M, Schultz, C. B., Jepsen, S. J., Black, S. H. and Crone, E. E., Pinheiro, J. 2019. Western Monarch Population Plummets: Status, Probable Causes, and Recommended Conservation Actions. Frontiers in Ecology and Evolution 7:258 https://doi.org/10.3389/fevo.2019.00258
Schultz, C. B., L. M. Brown, E. Pelton, and E. E. Crone. 2017. Citizen science monitoring demonstrates dramatic declines of monarch butterflies in western North America. Biological Conservation 214:343–346.
[USFWS] U.S. Fish and Wildlife Service. 2023. Western Monarch Butterfly Conservation Recommendations.

Docusign Envelope ID: 52FDE3B3-7E84-4530-AAD1-E2681268E306

16.1698
Tim Maier
Santa Cruz City Schools
January 10, 2025

Page 7 ends

Xerces Society. 2020. Western Monarch Butterfly Population Still at Critical Level. https://xerces.org/press/western-monarch-butterfly-population-still-at-criticallevel. Accessed December 31, 2024 Xerces Society Website 2023. https://xerces.org/western-monarch-call-to-action.

Accessed December 30, 2024
Xerces Society Western Monarch Thanksgiving Count. 2019. Western Monarch Thanksgiving Count Data from 1997–2018. Available online at:
www.westernmonarchcount.org
Docusign Envelope ID: 52FDE3B3-7E84-4530-AAD1-E2681268E306

16.1699
404 Modesto Avenue
Santa Cruz, California 95060
January 15, 2025
Timothy Maier, Senior Planner
City of Santa Cruz Planning and Community Development Department City of Santa Cruz
Re: 313 Swift Street Project - Santa Cruz City Schools (SCCS) Educator Housing ISMND Thank you for the opportunity to review and comment on the ISMND for the Santa Cruz City Schools (SCCS) Educator Housing project. I have lived in the lower Westside neighborhood for many years, and I have some observations and recommendations for off-site improvements that I believe would improve the quality and acceptability of the project. The recommendations will be presented as mitigation ideas, to dovetail into the CEQA process which provides our platform here.

First, I want to complement the report writers for a thorough job. I appreciate the objective of this project - to provide deed-restricted housing opportunities for our public education providers.

The design of the project is generally appealing as well, and the formalization of the public access through the site to Derby Park is to be commended.

I am going to focus my comments on two CEQA topic areas: aesthetics and transportation.

Aesthetics: I understand that the removal of trees, including 5 heritage trees, is stated to be mitigated by the planting of numerous new trees - far exceeding the required number. My observation is that the trees present do not provide any important habitat for fauna that cannot be replicated by new trees. However, from an aesthetic perspective, the mature cypress do currently provide an important visual feature, both from Swift Street itself and from Derby Park.

In particular, the mature cypress trees identify the site as part of the Monterey Bay area bioregion. I did not notice mention of tree species to be planted for the project, but it would be helpful - and advantageous for the site and neighborhood - if species native to our region were planted. Specifically, Monterey Cypress, Coast Redwood, and Coast LIve Oak. These species are not only beautiful and grow to impressive sizes (perhaps in the case of the Redwoods possibly exceeding, eventually, the four story height of the structures), but they strengthen the sense of place and region.

Such a planting palate would tend to relate and enhance nearby Derby Park - to which the project will provide improved pedestrian access from Swift Street. Several years ago, Derby Park was the recipient of 50 young redwood trees as part of a state grant program related to addressing carbon emissions. These trees are for the most part now established, and bring a place-making, place-confirming aesthetic to the park. The use of these tree species as a component of the project mitigation planting would then connect to Derby, and also relate to the

16.1700
iconic Natural Bridges State Beach and the Antonelli Pond land trust preserve, a few blocks west on Delaware.

A second part of the recommendation for the trees is to employ them in part to enhance other parts of the larger SCCS property - the Gateway School campus and playfields. There are two parts of the campus public-realm interface that could benefit greatly from tree plantings to better buffer the school parking lot and security lighting from the adjacent Swift Street and Merced Street residential neighborhoods. One is a turf lawn area on the Gateway campus just west of the southeast building extension. This area could easily accommodate eight or more redwoods, cypress, or oaks. The second is the landscaped buffer just south of the school parking lot, abutting single family homes that front Swift and Merced streets. Again, four of five trees there would make a very positive neighborhood impact. Please consider these planting areas in the mitigation scheme, as they would assist in buffering intrusive light and glare from current uses.

Consider them valuable ‘off-site improvements’ that would build good will in the neighborhood for the school district. The fact is, such a planting plan would and really benefit all residents and visitors who use the Swift Street corridor.

Transportation. There are a number of issues concerning this analysis, primarily related to the lack of analysis of impacts to active transportation modes and facilities, and the lack of any cumulative analysis. Hundreds of dwelling units are being built within a mile of this site, including on parcels further north on Swift, and on Almar near Mission.

Regarding active transportation, the bias toward vehicle use is embedded in the project description itself, which focuses on vehicular access to the site and the number of parking spaces to be provided onsite (119). There is no mention of facilities accommodating cyclists.

Pedestrian activity is acknowledged twice: improved through-project access to Derby Park, and a mention of improving a sidewalk on Delaware.

It is worth mentioning that the ISMND appears to have missed an important planning document that would inform design of this site and its environs. Missing from Section V. References and Data Source list, section 2, Adopted City of Santa Cruz Adopted Plans and Studies, is a master plan document prepared for the City of Santa Cruz Public Works Department: The 2015 Santa Cruz City Schools Complete Streets Master Plan. This 255-page document is a community-based transportation plan that was funded in 2013 by Caltrans, and provides prescriptive steps for improvements and redesign of the street system for each of the 10 Santa Cruz City Schools within the city to enable safe and efficient access for pedestrians, bicyclists, motorists, and transit riders. These recommendations were made in response to conditions 10-years ago, and did not foresee large new automobile trip generators - such as the proposed project - being added to the mix.

The report included 10 recommendations associated with the Gateway School, and by proximity, the project site. These include:

16.1701

1. Convert Alta Avenue/Chase Street to a bicycle boulevard, with traffic calming, sharrows, and enhanced crossings at major streets

2. Install curb extensions at all corners of Swift Street and Chase Street. Install advance stop line on all three legs. Add a crosswalk to the south leg.

3. Install curb bulb outs at Swift Street/Wanzer/Modesto

4. Install curb extension at Mission/King to improve visibility Other features that would enhance the active mobility design in the impact area include:

1. Contribute to a roundabout installation at Swift Street and Delaware Avenue

2. Provide protected bike lanes along Delaware

3. Install curb bulb outs at all corners of Swift Street and Delaware Avenue The introduction of 100 dwelling units and 119 vehicle parking spaces will certainly affect the traffic movement and safety patterns at the Swift/Delaware intersection and other nearby local streets. Since these streets were originally designed solely with automobiles in mind, they are not currently safe or inviting for active transportation use (as the 2015 Master Plan acknowledges). Accordingly, the School District should follow its own plan from 2015, and implement safety features for the benefit of everyone.

Prior to the adoption of this ISMND, some corrections appear to be warranted. And in the nomenclature of CEQA, a few additional mitigation measures are warranted. In fact, these are offsite improvements that would enable the project to contribute to the improvement of the surrounding neighborhood system, rather than further impact it. Thank you again for the opportunity to provide input on this important project.

Sincerely,
Stephen Svete

16.1702
Brittany Inclan
From: Casey Beyer <[email protected]>
Sent: Monday, February 24, 2025 12:18 PM
To: Fred Keeley; Shebreh Kalantari-Johnson; Renee Golder; Sonja Brunner; Scott Newsome; Susie O'Hara; Gabriela Trigueiro
Cc: City Council; Bonnie Bush
Subject: #16 City Council Agenda" 313 Swift Street Education Workforce Housing Project 2/25/25
Attachments: # 16 City Council Agenda 313 Swift Street Workforce Housing Project 22525.docx Dear Mayor Keeley, Vice Mayor Kalantari-Johnson, and Council members Brunner, Golder, Newsome, O’Hara and Trigueiro:

I am writing in support of the 313 Swift Street Education Workforce Housing Project, Item #16 on the February 25, 2025 City Council Agenda. Attached please find my letter of support of this project. Thank you for considering my views on this project.

Casey Beyer
[email protected]

16.1703
February 24, 2025
Santa Cruz City Council
City Hal, 810 Center Street
Santa Cruz, CA 95060
RE: # 16 City Council Agenda: 313 Swift Street Education Workforce Housing Project 2/25/25
Dear Mayor Keeley, Vice Mayor Kalantari-Johnson, and Councilmembers Brunner, Golder, Newsome, O’Hara and Trigueiro:

I am writing as a private citizen and former resident in Santa Cruz County to support the 313 Swift Street Workforce Housing Project. During my tenure as a representative of the Santa Cruz Chamber of Commerce, we followed this project from initial concept to the current proposed project.

At a time when access to housing, and especially affordable housing, has been a deterrent to keep local professionals in our community, a workforce housing project dedicated toward Santa Cruz City School District employees is critical to ensure that teachers and faculty have a place to call home.

As with any local land use decision, there are numerous permits required in the process (acceptance of a Mitigated Negative Declaration, a Monitoring and Reporting program, an approved Planned Unite development permit, a Coastal Permit, Design Permit and Heritage Tree Removal Permit — the project should meet those standards to allow construction of a new, four-story, approximately 120,604 square-foot multifamily educator workforce housing project encompassing approximately 100 residential units.

During the Santa Cruz City Planning Commission meeting, a friendly motion was added to the conditions of approval:
• Applicant shall enter into a contract with Santa Cruz Metropolitan Transit District (Santa Cruz Metro) to provide unlimited local transit passes for all residents.
• For multi-family rental projects with common laundry rooms, all washing machines provided for common use among tenants shall be equipped with micro-plastic filters to reduce plastic pollution.

These additional conditions of approval appear to be well intended and environmentally appropriate. However, the costs for setting aside a contract with METRO for unlimited local transit passes for all residents and inclusion of washing machines equipped with micro-plastic filters to reduce plastic pollution were not factored into the project’s financial analysis. These costs will unduly

16.1704
burden the applicant and most likely be included in the monthly rental cost to each resident.

This posses two questions: Has the Planning Commission or City Council required these two specific additional conditions to any affordable housing project? Was a financial analysis conducted to include those costs in the preparation of a proposed project?
i encourage the City Council to look at this project with a wholistic approach to supporting and approving an affordable multifamily education workforce project that has been the subject of discussion at the school district dating back many years. Let’s not place an additional burden with upfront cost to this project.

Respectfully submitted.

Casey Beyer

16.1705
Brittany Inclan
From: Carol Polhamus <[email protected]>
Sent: Monday, February 24, 2025 3:59 PM
To: City Council
Subject: Item 16, 313 Swift Street, Educator Workforce Housing Dear Mayor Keeley, Vice Mayor Kalantari-Johnson, and Council Members Brunner, Golder, Newsome, O'Hara and Trigueiro:

I am writing in strong support of the proposed educator housing project at 313 Swift Street. As a former teacher and school administrator, I understand the significant barrier that affordable housing presents to recruiting and retaining excellent teachers and school staff to serve in positions in our local schools. I believe we need to do all we can to support our community's teachers and school staff, and that any upfront investment will result in many long term benefits to our children and our community.

I watched the Planning Commission meeting where city staff and the developer presented the plans. I was impressed at the setback of the project from Swift Street, the preservation of the existing buildings, and the addition of the exit onto Delaware, all of which will minimize visual and traffic impacts to the local neighborhood. This project is thoughtfully designed.

I do have one concern. My understanding is that an additional condition was added to the Conditions of Approval requiring the school district to provide unlimited Metro bus passes to all residents. Although I support the intention of this condition, I am concerned that the additional annual cost to the district of these bus passes will make the housing more expensive, which is at cross purposes to the goal of making this housing as affordable as possible. Is it possible to reconsider this idea, or to make it contingent on a request by the tenant rather than provided for all? Just a thought.

Thank you for considering my input, and thank you for your service to our city.

Yours,
Carol Polhamus

16.1706
City Council

AGENDA REPORT
DATE: 02/20/2025
AGENDA OF: 02/25/2025
DEPARTMENT: City Attorney
SUBJECT: Ordinance Amending Chapter 21.07 of the Santa Cruz Municipal Code to Create a Process Guaranteeing a Fair Rate of Return to Landlords of Properties With Expiring Affordability Agreements (CA)
LOCATION: Citywide
RECOMMENDATION: This item is continued to the March 11th Council meeting and will not be discussed on February 25th.

17.1 City Council

AGENDA REPORT
DATE: 02/06/2025
AGENDA OF: 02/25/2025
DEPARTMENT: Economic Development and Housing
SUBJECT: Resolution to Accept and Appropriate the Award from the State Affordable Housing Sustainable Communities (AHSC) Program for the Downtown Library and Affordable Housing Project (EDH)
LOCATION: District 4
RECOMMENDATION: Motion to adopt a resolution authorizing the City Manager, or the Economic Development and Housing Director, to accept, and appropriate grant funds from the California Strategic Growth Council (SGC), as awarded, through the Round 7 State Affordable Housing and Sustainable Communities Grant Program (AHSC); and, to negotiate, execute, enter into, and deliver any necessary contracts, agreements, documents, amendments, in a form to be approved by the City Attorney; and take any other actions necessary to implement the grant funded project, in an aggregate amount(s) not to exceed the grant award of $33,502,820.

BACKGROUND: Efforts leading to the proposed development of the subject site began over a decade ago with the Santa Cruz Public libraries initiating a comprehensive facilities master planning process culminating in a Library Master Plan in 2014. Between 2014 and 2021, numerous council advisory and sub committees reviewed and provided guidance for the future mixed-use project and ultimately directed the City to build a new Library on the downtown lot between Lincoln and Cathcart streets, commonly known as Lot 4, instead of rehabbing the existing downtown library located on Church Street. Following the culmination of multiple public meetings and hearing, the City Council approved the Downtown Library and Affordable Housing Project ("DLAHP" or "Project"), a mixed-use project including 124 units of affordable housing with a mix of affordability for households with an average median income that does not exceed 60% of area median income for our area.

In 2021, the City released a request for proposal (“RFP”) to solicit an affordable housing developer partner and selected a joint proposal from For The Future Housing and Eden Housing to build the Project. For the Future Housing and Eden Housing partnered to form DTLMU Investors L.P., a California limited partnership, as a joint venture to serve as the developer (“Developer”).

On March 14, 2023, City Council approved several entitlements related to the DLAHP, located at 113 & 119 Lincoln Street to develop 124 units of affordable housing, a new downtown branch library, parking garage, childcare center, and commercial uses. The permits approved included a

18.1 nonresidential demolition authorization permit, special use permit, heritage tree removal permit, design permit, density bonus request, and lot line adjustment. The City has fee simple interest of the parcels at 119 Lincoln Street (APN 005-141-21) and 113 Lincoln Street (APN 005-141-11).

The City and/or the Project has received grant funding including the State Housing & Community Development’s Local Housing Trust Fund ($3.805 million), Permanent Local Housing Allocation ($1.75 million), Central Coast Community Energy Grant ($240,000.00), an Affordable Housing Sustainable Communities (“AHSC”) award ($33.5 million), a Regional Early Action Planning Grant (REAP 2.0) award ($169,380.00), a US Department of Housing and Urban Development (HUD) CHDO HOME award ($1,700,621.00) and a Fiscal Year 2023 federal budget appropriation of ($2 million). Per State funding requirements, the City needs to enter into a lease(s) with the Developer to use the awarded funds and to apply for any future funds.

On March 28, 2023, City Council Resolution No. NS- 30,125 was adopted authorizing the City Manager to enter into lease(s) and authorizing the Economic Development and Housing Director to execute any amendments or documents needed thereto of a non-substantive nature, in forms approved by the City Attorney, for real property located at 119 Lincoln Street (APN 005-141-21) between the City of Santa Cruz and DTLMU Investors, L.P. (a California Limited Partnership), and/or or its affiliate(s), for the previously approved Downtown Library Affordable Housing Project on the site. The City then entered into an Option to Lease Agreement for the purposes of applying for the California Strategic Growth Council (SGC), Round 7 State Affordable Housing and Sustainable Communities Grant Program (AHSC) grant as a co-applicant with the Developer and the Santa Cruz Metropolitan Transit District (METRO) along with any future grant opportunities. The Project received an AHSC award for $33,502,820 million in August of 2023.

Following acquisition of 113 Lincoln Street and to maintain compliance with funding awards inclusive of the AHSC award; on May 14, 2024, City Council Resolution No. NS-30,331 was adopted ratifying the Amended and Restated Option to Lease Agreement, authorizing the City Manager to enter into lease(s) once terms of the Option Agreement have been satisfied by the developer; and authorizing the Economic Development and Housing Director to execute any amendments or documents needed thereto of a non-substantive nature, in forms approved by the City Attorney, for real property located at 119 Lincoln Street (APN 005-141-21) and 113 Lincoln Street (APN 005-141-11) between the City of Santa Cruz and DTLMU Investors, L.P. (a California Limited Partnership), and/or or its affiliate(s), for the previously approved Project.

The Department of Housing and Community Development (HCD) is ready to move forward with execution of the AHSC grant award agreements requiring a resolution from two of the coapplicants, the City of Santa Cruz and METRO respectively.

DISCUSSION: Affordable Housing and Sustainable Communities (AHSC) Grant:

The California Strategic Growth Council (SGC) and HCD issued a Notice of Funding Availability (NOFA) dated February 4, 2022, for the availability of approximately $750 million in funding for Round 7 of the AHSC Program.

The AHSC Program funds loans or grants, or a combination thereof, to projects that achieve significant greenhouse gas emission reductions, particularly through increasing accessibility to affordable housing and key destinations via low-carbon transportation, such as transit, walkable

18.2 neighborhoods, and bikeways or trails. AHSC funding is highly competitive each round requiring projects to score full points and meet tiebreaker requirements to qualify for funding.

The Project received an AHSC award for $33,502,820 in August 2023. Under the AHSC Program the Project was awarded a Program loan to the Developer in an amount not to exceed $22,500,000 for Affordable Housing Development and Housing Related Infrastructure and a Program grant in an amount not to exceed $11,002,820 to the City and METRO for transit infrastructure, anti-displacement funding and related sustainable active transportation infrastructure for an aggregate amount not to exceed $33,502,820.

City Council approval would allow staff to accept, and to appropriate the awarded grants funds and to enter into any necessary agreements for the AHSC Grant as required by HCD.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: On June 26, 2012, City Council certified the CEQA Environmental Impact Report for the City’s General Plan 2030 (“General Plan EIR”). On November 14, 2017, the Council certified a supplemental CEQA Environmental Impact Report for amendments to the Downtown Plan (“Downtown Specific Plan EIR”) to address additional environmental impacts specific to downtown development. Following these certifications, on March 16, 2023, the City of Santa Cruz filed a CEQA Notice of Exemption (“NOE”) for the Downtown Library and Affordable Housing Project with both the Clerk of the Board for Santa Cruz County and the Office of Planning and Research. This NOE affirmed that the Project is exempt from further environmental review under CEQA. The approval of this Resolution is consistent with the approvals for the Project, including the bases for determining the entirety of the Project activities are categorically exempt from CEQA.

HEALTH IN ALL POLICIES (HiAP): HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars: equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The DLAHP supports the pillar of equity by providing a destination public facility, childcare, commercial facility, and affordable residential rental units on a site in the City’s downtown urban core, in an area that is improved with sidewalks and street trees near public transportation, commercial goods and services, and recreational areas.

With the Project located downtown, it encourages a sustainable and healthy lifestyle by allowing residents to walk, cycle, and ride to the job center and commercial uses in the downtown vicinity. By providing 100% affordable rental apartments, this will not only help the City with a more sustainable supply of rental housing but will also help create a more inclusive equitable FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: There is no impact to the General Fund by the approval of the recommended actions. Once the development is complete, significant enhancement to the downtown urban core will be achieved including improved sidewalks and bikeways adjacent to

18.3 the project, a childcare facility, new commercial spaces, replacement parking supply, a new modernized accessible Downtown Library, and much-needed affordable housing; achieving many policy goals of the City Council to enhance the vitality and economy of downtown. The City will receive increased revenue from future commercial tenants in the Project and the Downtown Parking District will receive a revenue stream from the managed parking supply.

Additionally, the awarded AHSC grant funds will go towards the City related Sustainable Transportation Infrastructure, Transportation Related Amenities, and Housing Project Programs, as identified in the grant award and this will be budgeted in the FY 2026 budget process. A budget adjustment is not being attached to this Council item as EDH staff will coordinate with PW staff to budget for City Projects and Programs funded by AHSC in the regular FY26 budget cycle.

Prepared By:

Brian Borguno
Development Manager
Submitted By:

Bonnie Lipscomb
Economic Development and
Housing Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION - AHSC STATE FUNDING.DOCX

18.4 RESOLUTION NO. NS-30,XXX

RESOLUTION FOR THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

AUTHORIZING THE CITY OF SANTA CRUZ TO EXECUTE AND APPROPRIATE THE

GRANT AWARD FOR THE DOWNTOWN LIBRARY AFFORDABLE HOUSING PROJECT

FOR LOAN AND GRANT FUNDS FROM THE STATE AFFORDABLE HOUSING AND

SUSTAINABLE COMMUNITIES (AHSC) PROGRAM IN AN AGGREGATE AMOUNT NOT TO EXCEED $33,502,820
All or a necessary quorum and majority of the City Council of the City of Santa Cruz, a California Municipal Corporation, (“Applicant”) hereby consents to, adopts and ratifies the following resolution:

WHEREAS, the Affordable Housing and Sustainable Communities (AHSC) Program, established under Division 44, Part 1 of the Public Resources Code section 75200 et seq., provides grants and/or loans that will achieve greenhouse gas emissions reductions and benefit disadvantaged communities by increasing accessibility of affordable housing and sustainable transportation; and
WHEREAS, the AHSC Program is administered by the Strategic Growth Council (SGC) and implemented by the California Department of Housing and Community Development (Department); and
WHEREAS, the State of California, SGC, and the Department issued a Notice of Funding Availability under the AHSC Program dated February 4, 2022, with an application deadline of April 4, 2023; and
WHEREAS, DTLMU Investors, L.P. a California limited partnership (Developer), or its designee, will be the managing general partner of Developer’s applied for a maximum award not to exceed $33,502,820 in AHSC Program funds with the City of Santa Cruz (City) and the Santa Cruz Metropolitan Transit District (METRO) as joint applicants (Applicants), of which up to $22,500,000 will be requested as a loan to Developer (or its Project development designee) for the Project (AHSC Loan) and up to $11,002,820 will be requested as a grant to the City for Sustainable Transportation Infrastructure (STI), Transit-Related Amenities (TRA) or Program (PGM) activities (collectively, “AHSC Grant”), as defined in the AHSC Program Guidelines and NOFA; and
WHERAS, The Project and Applicants received an AHSC award from SGC in August 2023 for an aggregate amount of $33,502,820 and working with the Department on implementation.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CRUZ DOES HEREBY FIND, DETERMINE, RESOLVE AND DIRECT AS FOLLOWS:

Section 1. Applicant is hereby authorized and directed to accept and appropriate the award, with METRO and Developer or its designee or assignee, from the Department and the

18.5 AHSC Program as detailed in the Application and in the NOFA dated February 4, 2022, for Round 7 in a total amount not to exceed $33,502,820, of which up to $22,500,000 was awarded as an AHSC Loan to Developer (or its Project development designee) for the Project, up to $11,002,820 was awarded as an AHSC Grant to the City for grant-eligible purposes. The Applicant is hereby authorized and directed to enter into, execute, and deliver a State of California Standard Agreement (Standard Agreement), and any and all other documents required or deemed necessary or appropriate to secure the AHSC Program funds from the Department, and all amendments thereto (collectively, the “AHSC Documents”).

Section 2. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement. Funds are to be used for allowable capital asset project expenditures to be identified in Exhibit A of the Standard Agreement. The application in full is incorporated as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the application are enforceable through the Standard Agreement.

Section 3. The City Manager, currently Matt Huffaker, or Director of Economic Development and Housing, currently Bonnie Lipscomb, or their designees are authorized to execute in the name of the City the AHSC Documents, including any agreements, amendments, contracts, or other such documents as required by the Department for participation in the AHSC Program or for implementation of the Grant Project.

PASSED AND ADOPTED this 25th day of February, 2025 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ________________________________
Fred Keeley, Mayor
ATTEST: ________________________________
Bonnie Bush, City Clerk Administrator

18.6 DOWNTOWN LIBRARY
& AFFORDABLE HOUSING PROJECT
Affordable Housing Sustainable Communities (AHSC)
Award Overview 2.25.2025

18.7 PROJECT TEAM

DOWNTOWN LIBRARY &

AFFORDABLE HOUSING PROJECT
Affordable Housing Developer Partners
Architect Teams
Lead Agency

18.8 AGENDA
◼ Highlights of Recent Progress
◼ AHSC Award Overview
◼ Today’s Action & Next Steps

DOWNTOWN LIBRARY &

AFFORDABLE HOUSING PROJECT

18.9 HIGHLIGHTS OF RECENT PROGRESS
 Final stages of Building Permit/ Plan Check Review
 Relocation of 113 Lincoln Street (Toadal Fitness)
 CA Tax Credit Allocation Committee Award received in December 2024  Finalizing Agreements for Various Funding Sources (preparing for financial closing)  Readying for Bond issuance (Parking Revenue Bonds & Remaining Measure S Bonds)  Continued Coordination with the Farmers Market on their new location  Targeted Construction Start May/June 2025

DOWNTOWN LIBRARY &

AFFORDABLE HOUSING PROJECT

18.10 AHSC Award Overview

DOWNTOWN LIBRARY &

AFFORDABLE HOUSING PROJECT
 Development Team Eden Housing and FTF Housing Lead Application  City and The METRO were co-applicants
 Total Award $33,502,820 million, awarded in August of 2023  $22.5 million direct program Loan to the Affordable Housing Developer  $11,002,820 million to City and METRO projects and programs:
 Bay Street Complete Streets (PW project)
 Riverwalk and Laurel Street Sustainable Transportation Infrastructure (PW project)  CoSC Anti Displacement Program
 CoSC Workforce Development Program
 METRO new ZEV Bus purchases & Bus stop upgrades

18.11 Today’s Action & Next Steps

DOWNTOWN LIBRARY &

AFFORDABLE HOUSING PROJECT
Today:
 Adopt a Resolution to authorize executing AHSC
agreements
Project Next Steps:
 Ready for Bond Issuance
 Prepare/Mobilize for Construction of Phase 1
 Finalize Phase 2 Construction documents
 Prepare RFP for Phase 2
 Finalize funding sources and budget projections based on Construction Documents for Phase 2

18.12 DOWNTOWN LIBRARY
& AFFORDABLE HOUSING PROJECT
Thank you !

18.13

← All documents from this meeting