Santa Cruz City Council
May 13, 2025

City of Santa Cruz
Downtown Plan
Development Standards and Design Guidelines 4
A. ALL CENTRAL BUSINESS DISTRICTS

LAND USES
All new construction shall require approval of a Design Permit, regardless of type of use.

1. Prohibited Uses
The uses described in subsection (a) below, are deemed inconsistent with the goals, policies and objectives of the Downtown Plan and are, therefore, prohibited within the Downtown Plan (Plan) portion of the Central Business District as either a stand-alone use or an accessory or temporary use. Such uses that lawfully existed within the Plan area prior to the adoption of this provision are deemed non-conforming and may continue only at the same location at the same intensity or less for a period of no more than 20 years from the effective date of the Zoning Ordinance amendment (October 10, 2000), after which time the use shall be completely removed or converted to a conforming use. The uses described in subsection (b) below shall be deemed a public nuisance and shall be immediately abated according to the provisions of the Zoning Ordinance or other applicable City Codes or Ordinances.

Uses that are prohibited within any of the Downtown Plan subdistricts. a. Uses not permitted include, but are not limited to, the following: medical and recreational cannabis provider dispensaries; rent, sales or service of automobiles, trucks, recreational vehicles, motorcycles or trailers; sale of firearms; general advertising signs; sale of alcoholic beverages for off-site consumption requiring ABC liquor license Numbers 20 or 21 (liquor stores), with the exception of the sale of alcohol for off-site consumption that is clearly incidental to other principally permitted uses, that represents less than fifteen percent of the total shelf space in the business, and that complies with the operational criteria specified in Table 4-1 of Chapter 4, herein, inclusive of the additional regulations referenced in said table; drive-up facility; or drive-through facility. b. Nuisance Activities. No use, even though listed as a permitted use or otherwise allowed, shall be permitted which, by reason of its nature or manner of operation, is deemed by the Zoning Administrator to be creating a condition that is hazardous, noxious, or offensive through the emission of odor, fumes, smoke, cinder, dust, gas, vibration, glare, refuse, water-carried waste, or excessive noise. Such use shall be subject to violation abatement procedures, which may result in revocation of the use permit.

2. Accessory Uses
Accessory uses, as defined in Section 24.22.013 of the Zoning Ordinance, shall be limited to the use of no more than one quarter (¼) of the total floor area occupied by the permitted use.

3. Temporary Uses

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Downtown Plan
Temporary uses, as defined in Section 24.22.879 of the Zoning Ordinance, shall be limited to the following activities and standards:
a. The following activities if they are sponsored by a government entity or an organized group of businesses, property owners or residents of the CBD:
i. Neighborhood, District or Citywide-oriented carnival, circus, street fair, exhibition, celebration or festival;
ii. Booth for educational, charitable, patriotic or welfare purposes; iii. Open air sale of agricultural products, including seasonal decorations. iv. Open air sporting event;
v. Arts or crafts sale or artistic performance event; or vi. Surface parking open to the public.
b. The following activities if they secure the proper permits, if applicable, from City agencies: Parades, civic events, and advertised citizen gatherings.

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Downtown Plan
Figure A-1: Complete Downtown Plan Boundary and Subareas

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Downtown Plan
TABLE 4-1: Central Business Districts Use Allowances — Ground Floor (Street Level) P = Principally Permitted
A = Administrative Use Permit
S = Special Use Permit
“—” = Not Permitted
Use Categories Pacific
Avenue
Retail
Front
Street
Riverfron
t
Cedar
Street
Village
North
Pacific
South
of
Laurel
Additional
Regulation
s
Residential
Community Care
Residential Facility
P P P P P (1)
Dwellings, Multiple and
Townhouse, lobbies,
leasing offices, and
associated uses
A A A A A (2)
Dwellings, One-Family &
Two-Family
— — P — — (2)
Dwellings, Flexible Density
Unit Housing
A A A A A (2)
Dwellings, SRO Single
Room Occupancy Housing
A A A A A (2)
Family Day Care Homes,
Small or Large, in existing
residential units
—P P P P —P (1)
Supportive and Transitional
Housing
A A A A A (2)
Supportive and Transitional
Housing, in existing
residential units
P P P P P (1), (2)
Commercial (3)
Banks and Financial
Institutions
A P A P A (4)
Business Support Services A P P P A
Eating and Drinking
Establishments
- Bar, Tavern A A S A A (5)
- Brewpubs A A A A A (5)
- Bona Fide Restaurant P P P P P (5)
- Tasting Rooms A A A A A

23.78 Development Standards and Design Guidelines

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Downtown Plan
TABLE 4-1: Central Business Districts Use Allowances — Ground Floor (Street Level) P = Principally Permitted
A = Administrative Use Permit S = Special Use Permit
“—” = Not Permitted
Use Categories Pacific
Avenu
e
Retail
Front
Street
Riverfro
n t
Cedar
Street
Villag
e
North
Pacific
South
of
Laure
l
Additional
Regulation
s
- Breweries,
Distilleries and Wineries
A A A A A (6)
General Market P/A P/A P/A P/A P/A (7)
Hotels / Motels A P A P A (8)
Instructional Services
- Schools, Business
and Technical
A A A A P (9)
Live/Work Quarters A A A A A (10)
Nightclubs and
Live Entertainment
S S S S S (11)
Offices, Professional A A A P A (12)
Parking Facilities,
Surface and Structured
A A A A A (13)
Personal Services
- General Personal
Services
A A A P A (14)
- Health/Fitness Studio A P P P A (15)
Retail Sales P/A P/A P/A P/A P/A (7), (16),
(19)
Sports/Multipurpose Arena - - - - S (20)
Theaters/Commercial
Entertainment, Arcade,
Billiard Halland
Recreational,
Experiential, or
Commercial Interactive
Venues and other Indoor
Recreation Uses
P P A P P (19)
Thrift Stores/Pawn Shops P/AS P/A S P/A S P/A S (7), (16), (17), (19)
Institutional and Community
Facilities (3)
Community/Religiou
s Assembly

A A A A A

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Downtown Plan
TABLE 4-1: Central Business Districts Use Allowances — Ground Floor (Street Level) P = Principally Permitted
A = Administrative Use Permit
S = Special Use Permit
“—” = Not Permitted
Use Categories Pacific
Avenue
Retail
Front
Street
Riverfron
t
Cedar
Street
Village
North
Pacific
South
of
Laurel
Additional
Regulation
s
Day Care Centers A A A A A
Government Buildings P P P P P
Medical Centers and
Clinics
A A A A A (12)
Museums/Galleries/Cultura
l Institutions
A A A A A (18)
Social Service Centers A A A A A
Industrial and Other
Artist Studio A A A A P
Bakery, microbrewery,
handicrafts or similar light
manufacturing and
assembly use associated
with retail sales/services

P P P P P
Other Similar Uses as
Determined by the Zoning
Administrator to be
consistent with the purpose
of the subdistrict

P/A/S P/A/S P/A/S P/A/S P/A/S
Additional Regulations – Ground Floor Uses.
(1) Community Care Residential Facilities. Facilities with fewer than 7 persons are principally permitted uses in the Cedar Street Village District. Facilities with 7 or more persons require approval of an Administrative Use Permit (AUP). Supportive and Transitional Housing facilities are allowed with only those restrictions that apply to similar residential uses. (2) Multi-Family Housing. (Including Single-Room Occupancy, Supportive and Transitional Housing, and Flexible Density Unit Housing projects subject to standards set forth in SCMC

24.12.) In all districts where multi-family housing requires an AUP, common residential lobbies for upper-level residences are allowed at ground level with active ground level common spaces publicly visible. In the Pacific Avenue Retail District and along Pacific Ave and Spruce St in the South of Laurel Area, residential lobbies and leasing offices shall

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Downtown Plan
cumulatively be a maximum of 30 feet in width across the building frontage or a maximum of 15 percent of the building frontage, whichever is less, for a depth of 75 feet from Pacific Avenue or Spruce Street/Spruce Street Plaza. Amenity spaces are prohibited in these areas on the ground floor. In the South of Laurel Area, the Pacific Avenue Retail District, and the Front Street Corridor, ground floor area shall not be used for private building amenities including gyms, mailrooms, meeting space, or other areas reserved exclusively for building residents and their guests within 20 feet of any street frontage. No first story or ground-level residential units are allowed along a public right-of-way in the Downtown Plan area, unless otherwise specified below. Within the Cedar Street Village, ground-level residential uses are permitted on the side streets west of Cedar Street and also along Center Street. Direct access between individual townhouse units and the street are strongly encouraged through the use of porches and front "stoops". In the Front Street/Riverfront Corridor and North Pacific Area, first floor units are permitted when elevated above the sidewalk level 5 feet. For Front Street/Riverfront Corridor, allow for ground level residential uses provided that such uses are internal to a block and do not face Front Street, Laurel Street, Cathcart Street, Soquel Avenue, River Street, North Pacific, or any public pedestrian paseo or lane. Individual housing unit entrances with direct access to Front Street are prohibited within 60 feet of Front Street from Soquel Avenue to the intersection with Pacific Avenue and Laurel Streets and along the frontages of all public passageways between Front Street and the Riverwalk including the Spruce Street Plaza. (3) Commercial and Non-Residential Uses. These uses adjacent to public passageways in the Front Street/Riverfront Corridor shall be accessible from Front Street and the Riverwalk.

Large Non-Residential Ground-Level Uses. These uses exceeding sixteen thousand (16,000) gross square feet per single-tenant/establishment require approval of a Special an Administrative Use Permit (SUP AUP) by the City Council Zoning Administrator after review and recommendation by the Planning Commission. This section shall not apply to the Arena facility in the South of Laurel Area District. In addition to the findings for SUP AUP issuance required under Section 24.08.050, a SUP an AUP required by this subsection shall not be issued unless the following additional criteria, findings and conditions related to the public benefits provided by the proposed project are made by the hearing body. by the City Council.

1. The use adds a desired, “targeted” business to the Downtown, which would serve to diversify the Downtown Plan area ground-level business base;

2. The use provides a public benefit and contributes to an appropriate balance of local or non-local businesses. For the purposes of this finding, it shall be presumed that local businesses serve to sustain the authenticity and unique retail character of the downtown business mix. However, non-local businesses may add to retail draw and contribute to overall downtown vitality in certain circumstances;

3. The use contributes to an appropriate balance of small, medium and large-sized businesses in the downtown area to diversify the ground-level business mix; to insure the maintenance of the “Santa Cruz” identity, unique character and authenticity; to seek to reduce economic “leakage” of sales out of the City and County; and to induce local investment and employment to the downtown area;

4. The design of the façade of the proposed use meets the design standards and guidelines of the Downtown Plan and is not restricted by corporate standardized or trademarked exterior design, signage, materials, color or other visual treatments;

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Downtown Plan

5. The proposed use would be a good neighbor and contribute to the community life of the downtown by participating in such community activities as: (1) Membership in downtown merchant, resident, neighborhood improvement organizations and/or assessment districts; (2) to the greatest extent feasible, hiring local residents; and (3) hosting or participating in downtown festivals, fairs, benefit events and similar neighborhood activities; and

6. If applicable, all food and/or beverage service activities shall be conducted in accordance with the following “good neighbor operating procedures” for such uses. i. Sufficient trash and recycling receptacles shall be provided and shall be regularly maintained;
ii. All debris boxes shall be screened and kept on the premises in a designated or approved location;
iii. The operator shall be responsible for cleaning the sidewalk within fifty (50) feet horizontal distance from the premises during the hours of operation to maintain the sidewalk free of paper, spillage or other litter; and
iv. Noise, glare and odors shall be contained within the premises so as not to be a nuisance to neighbors. Under no circumstance shall the ventilation outlets or motors cause emission of objectionable odors or noise directed toward neighbors. (4) Banks and Financial Institutions. These uses may be allowed when there is no other bank within the contiguous block.
(5) Eating and Drinking Establishments. All uses within this category shall be subject to City and State alcohol regulations. When applicable, all fast food and/or beverage establishments (defined in the Zoning Ordinance) shall be conducted in accordance with the “good neighbor” operating procedures listed in Section 3.f.
(6) Breweries, Distilleries and Wineries. These manufacturing uses are allowed in these districts only when they contain at least 25% of floor area devoted to retail and/or tasting of the product manufactured on the premises. Street-oriented active store frontage is required. (7) Sale of Alcohol for Offsite Consumption. Retail establishments with the Department of Alcoholic Beverage Control license numbers 20 and 21 including general markets may sell alcohol for offsite consumption with approval of an administrative use permit if the sale of alcohol is clearly incidental to other principally permitted uses and represents less than fifteen percent of the total shelf space in the business; the business conforms with Section

24.12.1106(10) of the Santa Cruz Municipal Code; the hours of alcohol sales are limited to 7:00 a.m. to 12:00 a.m.; security mitigations approved by the Police Department to help prevent theft and sale of alcohol to minors, including but not limited to the potential for requiring alcohol to be located where it can be monitored by store personnel or security cameras, are provided; and single-serving alcohol containers other than beer are not provided for sale. This exception to the prohibition on single-serving alcohol containers does not include malt liquor, which remains prohibited.

Existing businesses that were approved to sell alcohol for offsite consumption prior to the enactment of the operational criteria are not required to obtain new administrative use permits but are required to comply with the operational criteria by October 10, 2020.

If the sale of alcohol for offsite consumption use is determined by the Planning or Police Departments to be a nuisance or to otherwise frustrate the intent of the Downtown Plan, the

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City may initiate proceedings to revoke to the right to sell alcohol per Section 24.12.1112 and Title 4 of the Santa Cruz Municipal Code.
(8) Hotels/Motels. These uses are allowed as principally permitted uses along the east side of Front Street. No hotel rooms are allowed the ground level frontages or along the Riverwalk level frontage.
(9) Instructional Services - Schools, Business and Technical. Schools and studios for arts and crafts, photography, music and dance provided that such establishments are not located along Pacific Avenue frontage or east-west street frontage north of Laurel Street. A Special Use Permit is required (1) when located along Pacific Avenue frontage or (2) if located along eastwest street frontage, provided the following conditions are met:

7. Any such establishment will not occupy more than 50 linear feet of frontage space;

8. Such establishment is compatible with nearby residential uses;

9. Such space is in compliance with the storefront and façade design and development standards; and

10. Such space is capable of being converted into retail use in the future.

These uses are permitted in the South of Laurel Area District subject to all other relevant storefront and building design standards.
(10) Live/Work Quarters. This use is not permitted within 50 feet of Pacific Avenue north of Sycamore. The residential component of a Live/Work space shall not be located on the ground level, unless the residence is located in the interior of the lot; i.e., the non-residential component of the space must have frontage on the public right-of-way or publicly accessible passageway. The non-residential component of the space must have a minimum frontage depth of 30 20 feet. These uses shall also comply with the Building Façade and Storefront Standards and Guidelines for each district.
(11) Nightclubs, Establishments Providing Live Entertainment. These uses with stage/performance areas greater than 80 square feet or permitting dancing, and establishments serving alcoholic beverages not ancillary to food service will be considered for the ground level, subject to the following operating conditions:
a. Acoustical studies indicating that such uses can achieve the City's existing noise abatement standards;
b. The provisions of Part 12 of the Zoning Ordinance (for High Risk or Low Risk Alcohol Outlets) are met;
c. The establishments shall conduct business in accordance with the following “good neighbor operating procedures” as described in Section 3.f above. d. The storefront adjacent to the street is designed in compliance with the storefront and building façade standards and guidelines and includes active people-oriented activities of visual interest to the pedestrian (e.g., food service/restaurant seating, retail frontage, queuing areas or artwork) and in no case shall the storefront occupy more than 50 linear feet of street frontage;
e. Such establishments are compatible with adjacent residential uses; and f. Such space is capable of being transformed into retail use in the future. (12) Medical Centers/Clinics and Professional Offices. Professional, editorial, real estate, insurance and other general business offices including space for non-profit organizations; medical and

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Downtown Plan
dental offices; and medical, optical and dental clinics will be considered for the ground level subject to the following criteria. These uses:
a. Are prohibited along Pacific Avenue frontage (75 feet perpendicular to Pacific frontage property line and within 40 feet perpendicular to the east-west street property line), except when limited to interior ground floor space not fronting the street. b. Must be compatible with existing and planned ground-level and upper-level permitted uses; and
c. Must be in compliance with the storefront and building façade guidelines and standards, and capable of being transformed into retail use in the future. (13) Parking, Surface or Structured. Allow for the use of parking lifts within the required envelope of any parking garage. See subdistrict development standards for other specific parking criteria.
(14) Personal Services. Uses such as barber shops, laundry and clothes cleaning establishments; administrative, executive and financial services; and technology-related services are allowed with an AUP for the ground level in the Pacific Avenue Retail district and by right in the other subdistricts if it can be demonstrated that:
a. Such establishments are not located along Pacific Avenue frontage or along eastwest street frontage (75 feet perpendicular to Pacific frontage property line and within 4020 feet perpendicular to the east-west street property line) from Water Street to Laurel Street and are, therefore, limited to the interior ground floor space. This requirement may be met within the business establishment by providing a retail use in the front 4020 feet of the space, with the personal service use provided in the area beyond that 4020 feet of retail space. Businesses that can provide a retail use in the front but cannot meet the 4020-foot requirement may apply for an administrative use permit for alternate space design provided that: 1) the business can demonstrate that there is a physical difference in the space that dictates the need for the exception, or 2) the business would contribute to the overall character and mix of uses in the downtown and would be expected to create a significant local or regional draw to the downtown. b. Such establishments are compatible with existing and planned ground-level and upper-level permitted uses; and
c. Such establishments are in compliance with the storefront and building façade guidelines and standards, and capable of being transformed into retail use in the future without extensive remodeling.
(15) Health and Fitness Studios. These uses will be considered for ground-level use, provided that:
a. The storefront adjacent to the street is designed in compliance with the storefront and building façade standards and guidelines and active people-oriented uses are located adjacent to the street (e.g., retailing component); in no case shall the storefront occupy more than 50 linear feet of street frontage or, in the South of Laurel Area, frontage

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adjacent to and oriented toward Santa Cruz Riverwalk;
b. Such establishments are compatible with adjacent residential uses; and c. Such space is capable of being transformed into retail use in the future. (16) Retail. The store space along the frontage of North Pacific Avenue, River Street and Water Street shall have the minimum perpendicular depth of forty (40) feet; however, such use may vary in depth along these streets provided that each street maintains an average retail depth of twenty five (25) feet.
(17) Thrift Stores or pawn shops with onsite donation operations. These uses are prohibited along Pacific Avenue frontage (75 feet perpendicular to Pacific frontage property line and within 40 feet perpendicular to the east-west street property line). The sale of second-hand goods is a permitted retail use, and these establishments will be subject to the same standards that apply to other establishments selling new goods of a similar nature. Thrift stores and other stores that accept donations or purchase goods from consumers for sale must limit these activities to no more than 20% of the floor area of the establishment, and can only accept goods during business hours.
(18) Art Galleries and Museums. These uses shall be open to the public. (19) Recreational, Experiential Commercial Uses. Recreational uses or other active ground floor uses shall be visible from the street frontage.
(20) Sports/Multiuse Arena. One multiuse sports arena is permitted in the Downtown Plan Area. Details on use and design requirements found in Subsection K and in Appendix 8, Section 8.4.2.

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Downtown Plan
TABLE 4-2: Central Business Districts Use Allowances — Upper Floors (Includes Riverwalk Level)
P = Principally Permitted
A = Administrative Use Permit S = Special Use Permit
“—” = Not Permitted
Use Categories Pacific
Avenue
Retail
Front
Street
Riverfront
Cedar
Street
Village
North
Pacific
South of
Laurel
Additional
Regulations
Residential
Community Care
Residential Facility
P P P/A P P (1)
Dwellings, Multiple and
Townhouse
P P P P P (2)
Dwellings, One-Family &
Two-Family
— — P — — (2)
Dwellings, Flexible
Density Unit
Housing
P P P P P (2)
Dwellings, SRO
Single Room
Occupancy
Housing
P P P P P (2)
Family Day Care
Homes, Small or
Large
— P P P P (1)
Supportive and
Transitional Housing
P P P P P (2)
Commercial
Banks and Financial
Institutions

A P A P P
Business Support Services A P P P P
Eating and Drinking
Establishments
- Bar, Tavern A A S A A (3)
- Brewpubs A A A A A (3)
- Bona Fide Restaurant P P P P P (3)
- Tasting Rooms A A A A A (3)
- Breweries,
Distilleries and
Wineries
A A A A A (6)
General Market P P P P P
Hotels/Motels A P A P P (4)

23.86 Development Standards and Design Guidelines

City of Santa Cruz
Downtown Plan
TABLE 4-2: Central Business Districts Use Allowances — Upper Floors (Includes Riverwalk Level)
P = Principally Permitted
A = Administrative Use Permit S = Special Use
Permit
“—” = Not Permitted
Use Categories Pacific
Avenue
Retail
Front
Street
Riverfront
Cedar
Street
Village
North
Pacific
South of
Laurel
Additional
Regulations
Instructional Services
- Schools, Business and
Technical
A A A A A (5)
Live/Work Quarters A A A A A
Nightclubs and Live
Entertainment
S S S S S (7)
Offices, Professional P P P P P (8)
Parking Facilities,
Surface and
Structured
A A A A A (9)
Personal Services
- General Personal
Services

P P P P P
- Health/Fitness Studio A A A A A (10)
Retail Sales
including Thrift
Stores/Pawn
Shops
P P P P P (11)
Theaters/Commercial
Entertainment, Arcade,
Billiard Hall and
Recreational,
Experiential, or
Commercial Interactive
Venues and other Indoor
Recreation Uses

P P S P P
Thrift Stores/Pawn Shops S S S S S
Institutional and Community Facilities (3)
Community/Religious
Assembly

A A A A A
Day Care Centers A A A A A
Government Buildings P P P P P
Medical Centers and
Clinics
A A A A A (8)

23.87 Development Standards and Design Guidelines

City of Santa Cruz
Downtown Plan 23.88
Development Standards and Design Guidelines

City of Santa Cruz
Downtown Plan
TABLE 4-2: Central Business Districts Use Allowances — Upper Floors (Includes Riverwalk Level)
P = Principally Permitted
A = Administrative Use Permit S = Special Use
Permit
“—” = Not Permitted
Use Categories Pacific
Avenue
Retail
Front
Street
Riverfront
Cedar
Street
Village
North
Pacific
South of
Laurel
Additional
Regulations
Museums/Galleries/
Cultural Institutions
A A A A P (12)
Communication Facilities P P P P P (13)
Industrial and Other
Artist Studio A A A A P
Bakery, microbrewery,
handicrafts or similar
light manufacturing and
assembly use associated
with retail sales/services

P P P P P
Other Similar Uses as
Determined by the
Zoning Administrator to
be consistent with the
purpose of the
subdistrict

P/A/S P/A/S P/A/S P/A
/S
P/A/S
Additional Regulations – Upper Floor Uses.
(1) Community Care Residential Facilities. Facilities with fewer than 7 persons are principally permitted uses in the Cedar Street Village District. Community Care Residential Facilities with 7 or more persons require approval of an AUP. Supportive and Transitional Housing facilities are allowed with only those restrictions that apply to similar residential uses. (2) Multi-family Housing. Residential uses shall incorporate sound attenuation space planning designs and construction materials and methods in accordance with General Plan requirements such that noise from nearby commercial activities do not unduly disturb occupants of new dwelling units. For properties east of Front Street between Soquel Avenue and Laurel Street, housing shall be at least 60% of the total floor area of any mixed-use housing project. This requirement does not apply to projects within 75 feet of Laurel Street or Soquel Avenue or projects where the primary use is visitor-serving. (3) Eating and Drinking Establishments. All uses within this category shall be subject to City and State alcohol regulations. When applicable, all fast food and/or beverage establishments (defined in the Zoning Ordinance) shall be conducted in accordance with the previously described “good neighbor operating procedures” previously described in section

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Downtown Plan

3.f. of the Ground Floor Uses. Eating and drinking establishments are encouraged on the Riverwalk level to publicly activate the Riverwalk and connections to the Riverwalk and east/west publicly accessible spaces in the Pacific Avenue Retail District and South of Laurel Area. Outdoor rooftop dining is allowed when associated with an upper-level restaurant/eating and drinking establishment.
(4) Hotels/Motels. These uses are allowed as principally permitted uses along the east side of Front Street and do not require the incorporation of upper-level housing. No hotel rooms are allowed along the ground floor frontages or along the Riverwalk level frontage. (5) Instructional Services - Schools, Business and Technical. Schools and studios for arts and crafts, photography, music and dance provided that such establishments are compatible with nearby residential uses.
(6) Breweries, Distilleries and Wineries. These manufacturing uses are allowed in these districts only when they contain at least 25% of floor area devoted to retail and/or tasting of the product manufactured on the premises.
(7) Nightclubs, Establishments Providing Live Entertainment. These uses with stage/performance areas greater than 80 square feet or permitting dancing, and establishments serving alcoholic beverages not ancillary to food service, are subject to the following operating conditions:
a. Acoustical studies indicating that such uses can achieve the City's existing noise abatement standards;
b. The provisions Part 12 of the Zoning Ordinance (for High Risk or Low Risk Alcohol Outlets) are met;
c. All such establishments are conducted in accordance with the previously described “good neighbor operating procedures”; and
d. Such establishments are compatible with nearby residential uses. (8) Medical Centers/Clinics and Professional Offices. Professional, editorial, real estate, insurance and other general business offices including space for non-profit organizations; medical and dental offices; and medical, optical and dental clinics will be considered for upper levels subject to the following criteria. These uses must be compatible with existing and planned ground-level and upper-level permitted uses. (9) Parking, Surface or Structured. Allow for the use of parking lifts within the required envelope of any parking garage. See subdistrict development standards for other specific parking criteria.

23.90 Development Standards and Design Guidelines

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Downtown Plan
(10) Health and Fitness Studios. These uses will be considered for upper level use, provided that such establishments are compatible with adjacent residential uses. (11) Retail Sales. In the Pacific Avenue Retail District, second level retail sales are allowed subject to the approval an Administrative Use Permit when the second level is connected to the same business on the ground floor, subject to being compatible with and minimizing impacts to nearby residents. Riverwalk retail is allowed subject to the approval of an Administrative Use Permit to publicly activate the Riverwalk. Retail space should be evaluated in the context of adjacent projects to ensure uses are compatible, active and enhance the Riverwalk.
(12) Art Galleries and Museums. These uses shall be open to the public. (13) Communication Facilities. Uses are subject to the regulations in Part 15 of Chapter 24.12.

23.91 Development Standards and Design Guidelines

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Downtown Plan
B. PACIFIC AVENUE RETAIL DISTRICT

DEVELOPMENT STANDARDS

1. Building Height
The intent of the development standards in the Downtown Plan is to create an urban core with efficient, intensified land uses. The following height standards shall apply to all development within the Pacific Avenue Retail District, including frontage along Pacific Avenue and the east-west streets within the subarea. All buildings must conform to the Base Height requirements, except for provisions for additional height within the “Additional Height Zone A”, or by compliance with any density bonus program or provisions available in state or local law. The intent of the standards is not to create a five-story downtown, but rather to preserve the overall character and scale of the historic core while allowing some intensification and increased height on larger parcels. Given the highly urbanized nature of the downtown with the most intensive land uses in the City, building heights exceeding base height standards are not expected to create any coastal resource impacts as a result of the increased intensity.
a. Floors. No new building shall be less than two stories in height. The second story shall be at least 50 percent of the first ground floor area and shall be located toward the street frontage. An exception may be made for building recessed breaks as described for the Additional Height Zones.
b. Floor-to-Floor Height. The first ground floor uses must have a minimum floor-tofloor height of 18 feet for properties north of Cathcart Street and 15 feet minimum south of between Cathcart Street and Laurel Street. Any mezzanine shall be set back at least 3020 feet from the building line on the street and shall occupy no more than one-third half of the area of the first floor.
c. Base Height and Floors. No new development shall exceed a Base Height of 55 feet (measured to the top of parapet or eaves), except as provided for in the “Additional Height Zone A”. Within this Base Height, no more than 3 floors of upper-level uses above the ground-level retail use will be permitted within the maximum 55 feet Base Height. (See Figure B-14.)

2. Floor Area Ratio
The Downtown Plan Area includes two standards for Floor Area Ratio (FAR) which represent the maximum building volume that may be developed on any property within the Downtown Plan Area, except by compliance with any density bonus program or provisions available in state or local law. See Figure B-5. North of Laurel Street, sites may develop up to 5.0 FAR of building area; South of Laurel Street, sites may develop up to 3.5 FAR of building area. FAR is calculated for a site prior to subtracting any required public dedications. FAR will be calculated consistent with the standard definitions and requirements of the zoning ordinance, except that required ground floor commercial space is counted once regardless of interior height.

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Figure B-1: Downtown Plan Area Maximum Building Heights * See following figures for further detail on building heights.

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Downtown Plan
Figure A-1 B-2: Downtown Plan Height, North of Laurel Street *An additional 15-feet of height above the height limit indicated is allowed for activated roof top amenity structures pursuant to the standards listed in Section J.16 (ALL CENTRAL BUSINESS DISTRICTS OTHER DEVELOPMENT STANDARDS AND DESIGN GUIDELINES).

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Figure B-3: Downtown Plan Height, South of Laurel Street *An additional 15-feet of height above the height limit indicated is allowed for activated roof top amenity structures pursuant to the standards listed in Section J.16 (ALL CENTRAL BUSINESS DISTRICTS OTHER DEVELOPMENT STANDARDS AND DESIGN GUIDELINES).

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Figure B-4: Maximum Building Heights and Floors, north of Laurel Street.

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Downtown Plan
Figure B-5: Downtown Plan Floor Area Ratio Limits
*Floor Area Ratio is a relationship between allowable interior, above-ground building square footage, and size of the developable area of the parcel. This map shows the maximum allowed FAR absent any incentives or state density bonus.

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Downtown Plan
a. Mechanical Penthouses. Uninhabitable mechanical penthouses will be permitted above the Base Height to by a maximum height of 65 20 feet, provided that such penthouses are set back a minimum of 15 feet from any exposed face of the buildings, unless such penthouses are architecturally integrated into the building façade design. b. Sloping Roofs. (45 degrees/1:1 pitch or flatter) shall be permitted up to a maximum height of 60 feet, measured to the top of the sloping roof. For projects not eligible for the Additional Height, street wall heights shall not exceed the base height limit of 55 feet.
c. Visual Impact Study. Any site that is located where the east-west street does not cross Pacific Avenue (sites with frontage on Locust, Church, Walnut, Lincoln, Soquel, Elm, and Maple and Sycamore Streets) must prepare a visual impact study to determine how the proposed building would be viewed from the east-west street from a pedestrian eye-level.

2. Build-to Lines and Setbacks
To ensure that Pacific Avenue and the east-west streets are spatially well defined, all development shall be built to the property line of the street. The following exceptions to this condition are noted:
a. Active Outdoor Uses. Setbacks of up to 12 feet in depth are permitted along the northern property line of Cathcart Street, if such setbacks are intended to provide active outdoor uses (e.g., outdoor dining or public seating) oriented to the street. b. Laurel Street Sidewalk. Require any development along either the north or south side of Laurel Street between Pacific Avenue and Front Street to dedicate sufficient property to result in a sidewalk depth of at least 12 feet. The precise dedication shall be consistent with the final Laurel Street design and shall be established with a buildto line. c. Front Street Sidewalk. Require any development along the west side of Front Street between Cathcart Street and Laurel Street Pacific Avenue to dedicate sufficient property to result in a sidewalk depth of at least 12 feet. d. Recessed Storefronts. Minor gGround-level storefront setbacks are permitted and encouraged permitted within the provisions of the storefront and building façade standards and guidelines. Recessed storefronts up to six feet in depth and twenty-five feet in length may occur where a designated outdoor use, such as an outdoor café, is an integral part of the retail business.

3. Public and Private Parking Facilities
The Pacific Avenue Retail District is within the Downtown Parking District #1 and, as such, shall comply with all parking requirements set forth within that district. On-site parking will not be permitted unless it meets one or more of the following conditions:

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Downtown Plan
a. Below Grade Parking and Access Driveways. Parking is provided completely below grade, and access driveways to the parking facility do not conflict with the movement of pedestrians or vehicles within the area. No driveways shall be permitted along Pacific Avenue.
b. Visual Screening. Surface or above-grade structured parking can be provided if the parking is visually screened and separated from Pacific Avenue and east-west streets by retail development and if such parking can be accessed from an east-west street or rear service lane.
c. West Side Front Street. Allow parking facilities along the west side of Front Street south of Soquel Avenue where only one driveway curb cut shall be permitted per facility per street frontage; the parking facility shall not extend to street corners; and the parking facility shall be architecturally integrated within the overall building composition.

4. Driveways and Curb Cuts
No driveways shall be permitted along Pacific Avenue or Spruce Street. Limit on-site driveways along Front Street and the southern portion of Pacific Avenue after the intersection of Pacific Avenue and Front Street to a maximum of one driveway per property or at a spacing of at least 200 feet; driveways should be no more than 24 feet in width and to the extent practicable should be spaced from an adjacent driveway by at least 200 feet. Wider driveways may be considered based on a demonstrated need to accommodate specific vehicle operations of a proposed development.

5. Special Conditions for Maple Street Fronting Parcels 005-152-08, 005-152-17, 005- 152-18, and 005-152-22.

Buildings fronting the 10-foot Maple Street alley between Pacific Avenue and Front Street shall be set back 20 feet to provide for a 50-foot wide public paseo, lane or street. If the above aggregated parcels are redeveloped together, the aggregated parcel size prior to the dedication exceeds the 15,000 square feet threshold to qualify for heights above the 55 foot base height, and shall be developed in conformance with the Additional Height Zone A performance standards. As a result of the required dedication, development on these aggregated parcels shall not be required to provide on-site parking. Developers of the aggregated parcels may pay parking fees to the Downtown Parking District in lieu of meeting the on-site parking requirements. A parking credit shall be applied to the project based on the amount of land dedicated to the City to expand the alley.

6. Special Conditions for Elm Street Pedestrian Connection (Parcel 005-152-31, 005- 152-30, 005-152-05, 005-152-32, and 005-152-33).

Development of the above parcels shall include a 30-foot wide publicly accessible pedestrian connection between Pacific Avenue and Front Street. The public passageway shall be located in the vicinity of Elm Street (within approximately 50 feet of Elm Street extension). The passageway shall be integrated into the design of the development.

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C. PACIFIC AVENUE RETAIL DISTRICT
BUILDING FAÇADE STANDARDS AND GUIDELINES
The intent of the urban design standards and guidelines for the Pacific Avenue Retail District is to reinforce the unique townscape qualities of the downtown, to introduce diversity and variety that will enhance the visual interest and comfort of the pedestrian, and to extend the landscape qualities of the streetscape into the private realm. The building facades of the downtown have a significant effect on the public identity and character of the downtown and, as such, need to be carefully considered.

1. Building Facades.

Building facades shall should respond to the character and composition of existing commercial buildings along Pacific Avenue. More specifically, facades shall be composed with 3 clearly distinct zones: the storefront, up to 18 feet in height or 15 feet south of Cathcart Street up to the required minimum heights based on location; the upper two to three stories of the facade to the established parapet height Base Height (e.g., 50/55/70/85 feet); and the roof and cornice treatment, which includes the visible portions of any additional height permitted above the Base Height of 55 feet established base height, based on location. This compositional approach is consistent with the existing building facades along Pacific Avenue, as well as the desire to reinforce the pedestrian realm and avoid the creation of monolithic vertical walls along the street edge. A separation of treatment shall be clearly established between the ground-level storefront and the upper building levels, utilizing a strong belt course or architectural line, and through the specific storefront treatment described below. Similarly, a strong cornice line or roof treatment is encouraged to promote variety and a distinctive silhouette along the street.

2. Adjacent Buildings.

The composition of building facades shall should also be considered in relation to adjacent buildings of historic or architectural value. While it is not the intent to maintain a consistent treatment along the street edge, the composition of new development shall seek to be harmonious and compatible with elements of adjacent structures, such as window proportions, the design of horizontal belt courses and cornice treatments, building materials and architectural elements.

3. Upper-Level Facades. (i.e., the two to three levels of building wall above the ground floor up to the 55-foot Base Height)
Upper-level facades shall should provide a counterpoint to the storefronts below and provide a visually interesting and varied edge to the public space of the street. In general, the upperlevel façade shall should be built to the property line and consist of carefully composed “punctured openings” within a richly detailed wall. A variety of treatments shall be introduced to create richness in both the horizontal and vertical planes, including:
 balconies
 bay windows
 flower boxes
 awnings

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 cornice and belt courses
 building modulation as described in SCMC 24.12.185., etc.

4. Streetwall.

To create a visually interesting “streetwall” with a rhythm and cadence that is reflective of the pattern of development along Pacific Avenue, building facades shall introduce variation at general intervals of 25 to 50 feet horizontal distance with the use of:
 fenestration,
 architectural elements,
 building materials, and/or
 building planes.

Large, uninterrupted expanses of horizontal or vertical wall surface shall be avoided.

Regardless of property lines, the appearance shall be of a street with varying architectural treatments at intervals of no more than 50 to 75 feet. The multiple rhythms shall be created through the careful design of building elements and three-dimensional articulation of building elements sufficient to mitigate the presence of long, blank walls along Pacific Avenue, Front Street, and Cedar Street, the Spruce Street Plaza, the east-west streets, and the alleys.

Elements that make up the rhythmic variation may include, but are not limited to:
 recessed windows as described in SCMC 24.12.185;
 projecting windows;
 bay windows;
 structural elements;
 surface textures, patterns and colors;
 trim elements;
 balconies;
 belt-cornices;
 cornices;
 building modulations as described in SCMC 24.12.185;
 awnings and shutters; and
 landscape elements including living walls or vines.

5. Cornices and Belt Courses.

Overhead horizontal projections (providing at least 8 feet of clearance above grade) of a purely architectural or decorative character such as cornices, eaves, sills and belt courses shall define the building elements (base, middle and top) and create three-dimensional interest in the façade, provided that they do not project more than:
a. At roof level, 3 feet into the public right-of-way or a designated setback area. b. At every other level, 1 foot into the public right-of-way or designated setback area.

6. Windows.

Building walls shall be punctured by well-proportioned openings that provide three dimensional relief, detail, interest and rhythmic variation on the facade. Variation in rhythm shall be provided both horizontally and vertically. Large expanses of glass on the upper levels

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shall be considered only where activities of interest to the pedestrian can be highlighted, and in such cases, the design of these openings shall be carefully integrated within the overall facade composition. Windows shall be recessed a minimum of six inches from the face of the wall to emphasize the thickness of the wall consistent with the historical, traditional and newer buildings on Pacific Avenue; or windows other than bay windows may project from the wall six inches maximum into the public right-of-way. Windows shall be of high quality and shall be operable at the upper level and composed of elements that emulate the size and detail of the windows on Pacific Avenue. Window moldings and/or shutters with projections up to six inches are encouraged to provide detail, shade and articulation to building facades.

7. Upper Level Bay Windows and Balconies.

Bay or projecting windows and balconies are encouraged and may be permitted on upper levels of buildings, provided that a minimum of 10 feet of clearance is provided to grade and that the following provisions are met:
a. The projection into the public right-of-way or designated setback area is no more than 3 feet; where sidewalks are less than 10 feet in depth, this projection shall be limited to 2 feet; along alleys, no projection shall be closer than 8 feet to the centerline of any alley.
b. The glass area of the bay window, and the open portions of each balcony, shall not be less than 50 percent of the total area of the vertical surfaces of the projection. c. Bay windows and balconies shall "punctuate" rather than dominate the facade; to this end, the maximum length of bay windows shall be 15 feet at the property line or setback line; this width shall be reduced to a maximum width of 9 feet at the full projection of 3 feet, by means of 45 degree angles at the sides of all projecting bay windows. Perpendicular bay windows and balconies (or projections at a different angle) may be permitted, provided that they remain within the outside dimensions described above. Unless balconies are used as a means of distinguishing the storefront area from the upper-level facades, they shall be generally 15 feet in width or less.
d. The minimum horizontal separation between bay windows, between balconies, and between bay windows and balconies shall be three feet as measured from the face of the building wall along the property line or setback line. A bay window or balcony shall not occur within two feet of the building edge. The intent of this guideline is to ensure that bay windows and balconies do not visually dominate the building wall.

8. Skyline Architectural Variations.

Special attention shall be paid to the articulation of the top portion of buildings such as variation in height, massing, materials, horizontal bands, cornices and parapets. Rooflines shall be broken at intervals no greater than 50 to 60 feet by roof elements or step backs to reinforce the predominant building increment along Pacific Avenue. Interesting and varied roof forms are encouraged. Rooftop equipment shall be completely concealed from view and integrated within the architectural vocabulary of the building. The use of landscaped roof terraces and gardens is also recommended. Refer to Section H. Additional Height Zones for further

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regulations and guidelines related to tops of buildings in those mapped areas.

9. Building Materials.

To extend the character of the existing downtown, building materials shall evoke honesty, durability and solidity. Stone, brick, and triple-layer stucco and other marine-grade materials, richly detailed to provide visual interest and variation, are encouraged as the predominant building materials. While wood and metal are desirable materials for window casings and trim, large expanses of wood or metal siding are discouraged as the predominant building materials.

Such materials are considered appropriate for ornamental elements on the facade. Applied brick tiles that attempt to give the appearance of genuine masonry are also discouraged as the predominant building material. Decorative ceramic tiles are encouraged, however, as accent features. Reflective glass is prohibited. Living walls, as defined and regulated in SCMC Section 24.12.185 shall also be permitted as either a predominant or accent material.

10. Colors.

Materials shall be relatively light in color. To create a lively visual environment, earth tones, terra-cotta, pastels or whites, accented with dark or bright colors, are recommended. Roofing materials and accenting features such as canopies, cornices, tile accents, etc. shall also offer color variation. The color scheme for the building shall be compatible in color and value with the adjacent structures and shall be compatible with and sympathetic to the overall color palette of the buildings in the block and the downtown.

11. Landscape Provisions.

To promote a unique image and identity of downtown in its coastal setting, buildings shall incorporate provisions for planting, including flower boxes, topiary planting, and climbing vines. Plant materials within the planters, planting beds, flower boxes and flower pots shall provide color and variety throughout the year. The use of artificial plants shall not be permitted.

At least two of the following landscape concepts shall be incorporated into each Pacific Avenue or East-West Streets, including the Spruce Street Plaza, façade design (or 30 feet of retail frontage). In general, the landscape shall aggregately cover a minimum of 25 percent of the length of the storefront:
a. Landscape setbacks up to 18 inches in depth.
b. Landscape planters recessed into Pacific Avenue sidewalk, up to 18 inches into the public right-of-way.
c. Planter boxes no more than 24 inches in height may be permitted to project into the public right-of-way up to 18 inches. Window boxes also may be permitted to project from bay windows and balconies by 18 inches. Planter and window boxes shall provide internal and concealed drains connected to roof drains to avoid overflow to

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the street; they shall also be designed with high quality durable materials that are compatible and integral with the building façade.
d. Hanging flower pots may project into the public right-of-way up to 18 inches and shall have a minimum 8-foot clearance within the public right-of-way unless hanging directly above planter boxes.
e. Trellis structures supporting climbing vines that may project up to six inches into the public right-of-way or, where more than eight feet above the sidewalk, may project up to 18 inches into the public right-of-way.
f. Living Walls, a minimum of 4 feet wide and 8 feet in height, as defined in SCMC Section 24.12.185.

12. Rear Service Alleys.

Upper-level facade treatments adjacent to the rear service lanes shall be consistent in quality and design with treatments adjacent to public streets and rights- of-way. The use of planting (e.g., planter and window boxes, trellises, topiary) on building facades adjacent to the service lanes is particularly encouraged to enhance the visual and pedestrian character of the alley.

13. Exterior Lighting.

Buildings shall provide warm (color temperature equal to incandescent), low-level lighting from sundown to 10:00 PM nightly as an integral part of the façade design to add to the nighttime ambient light level in the downtown and to add nighttime visual interest to the buildings. Accent lighting using warm, low-level energy efficient light sources is encouraged as an integral part of the facade design.

14. Property Line Walls.

Where a building shares a property line with an adjacent property or building, mitigate the potential for large blank walls as follows:
a. Where the adjacent building is lower than the proposed building, the property line wall shall be set back from the property line sufficient to allow windows in the new wall; or
b. The applicant shall seek an easement from the adjacent property owner to allow windows (subject to the future redevelopment of the adjacent property). Mitigation measures shall be incorporated to allow windows under the Building Code. c. This provision may be modified by the Planning Director, subject to the preparation of a visual computer simulation of the building in context of the building viewed from key points at pedestrian eye level down Pacific Avenue and key intersecting streets.

The applicant may pursue the option of adding murals or other artistic decoration in collaboration with the City’s Arts Commission when authorized by the Planning Director.

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D. PACIFIC AVENUE RETAIL DISTRICT

STOREFRONT STANDARDS AND DESIGN GUIDELINES
All storefront improvements with an improvement cost of more than $10,000 require a Design Permit. All storefronts in a new building or re-developed building shall conform to the following storefront design standards:

1. Primary Entrance. All buildings with frontage along Pacific Avenue shall have a primary entrance on Pacific Avenue.

2. Blank Walls. All buildings with frontage on Pacific Avenue or the East-West streets shall not have blank walls exceeding ten (10) feet in length. Blank walls shall be mitigated with trellises and/or climbing plants or other architectural, artistic, or landscape elements.

3. Door Entry Frequency. Establishments with frontage along Pacific Avenue shall provide door entries no further distant than 50 feet along the Pacific Avenue or east-west street frontage.

4. Open Entries to Street. Street front entries shall remain unlocked and unblocked and shall remain in use during store hours.

5. Unique Entrances. The ground floor frontage along Pacific Avenue shall be modulated, articulated, textured, colored and given such other architectural treatment to provide a visually differentiated store "front” every 25 to 50 feet.

6. Entrance Design. Storefronts shall incorporate at least two of the following design concepts into the storefront designs.
a. Bay Windows. Provide bay windows up to 12 feet in length that may project up to 12 inches into the public ROW - where the bay window has glazing on all projecting faces.
b. Porticos. Provide porticos around the entry door that may project up to 12 inches into the public ROW.
c. Awnings. Provide awnings that may overhang the sidewalk a maximum of 6 feet with a vertical clearance above the sidewalk between 8 feet and 14 feet. d. Marqueesis. Provide permanent marquisee structures or canopies that project from the building at entries (maximum 10 feet in length, minimum height 8 feet above the sidewalk and maximum projection of 6 feet into the ROW). e. Signs. Provide decorative signs that project into the ROW per Central Business District sign ordinance.
f. Glazing. The use of reflective or tinted glass in ground level show windows is prohibited.
g. Store Displays. Store displays shall be configured in such a way as to allow pedestrians to

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see into the store from the sidewalk. Goods, posters, photos or other visual images shall be placed a sufficient distance from the store windows to enable pedestrians to see clearly into the store.

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E. FRONT STREET/RIVERFRONT CORRIDOR

DEVELOPMENT STANDARDS AND DESIGN GUIDELINES

1. Height and Stepback Requirements
Figure E-1: Proposed base and additional height and stepback requirements along the Front Street/ Riverfront Corridor. Does not apply South of Laurel Street. a. Base Height and Floors. No new development shall exceed a base height of 50 feet (measured to the top of parapet or eaves on the highest floor), except by compliance with any density bonus program or provision of state or local law, or where Additional Height Zone B applies (See Section H: Additional Height Zones). Within this base height, no more than 3 floors with a mix of uses above the ground-level retail use will be permitted within the maximum base height of 50 feet. Given the highly urbanized nature of the downtown with the most intensive land uses in the City, building heights exceeding Base Height standards through use of a density bonus provision of law, are not expected to create any coastal resource impacts as a result of the increased intensity.
b. Mechanical Penthouses. Uninhabitable mechanical penthouses will be permitted above the base height by a maximum height of 60 20 feet, provided that such penthouses are set back from the face of buildings by a minimum of 15 feet and that sloping roofs meet the provisions of c. below, unless the penthouse is architecturally integrated into the building facade.

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c. Upper Level Stepbacks from Streets and Public Passageways. In order to promote a pedestrian scale, to increase light to the street, and to reduce overall building mass and scale, development above 50 feet in height shall be required to step back from the Front Street façade a minimum of 10 feet. At least 50% of building frontage along Front Street and Soquel Avenue shall step back 10 feet above the height of 50 feet.

Buildings adjacent to River Street, east-west streets, and publicly accessible passageways shall step back at least 10 feet from the street for any height above 35 feet.
d. Upper Level Stepback from River. Along the west side of the Riverwalk, development shall step back 10 feet from the exterior wall face above the 50 foot height level as measured from Front Street sidewalk elevation. Allow up to 25% of the length of the Riverwalk building frontage to encroach into or eliminate the required 10-foot stepback area to provide for massing variation. (See Figure E-1).

2. Build-to Lines and Setbacks.

In order to promote well-defined streets, development shall generally be required to be built to the property line adjacent to public streets. The following exceptions to this condition are noted:
a. Sidewalk Width. In locations where the sidewalk is less than 12 feet wide, development shall be set back from the property line to create a 12-foot sidewalk. Development along Laurel Street and Front Street shall dedicate sufficient property to result in a sidewalk depth of at least 12 feet. The precise dedication shall be consistent with the final Laurel Street design and shall be established with a build-to line. b. Gateway Landscaping. New development along Water Street (south side), Laurel Street (north side), and Soquel Avenue shall be set back from the sidewalk by 10 feet to allow for generous gateway landscaping treatment. Additional considerations for the South of Laurel Area District are in discussed in Appendix 8. c. Building Length. Between Soquel Avenue and Laurel Street, limit the length of individual buildings along Front Street to a maximum of 300 feet of lineal street frontage, subject to the performance criteria for improved public access to the Riverwalk from Front Street at the key connection points of Cathcart Street, near Elm Street and Maple Street. (See Figure E-2)
d. Riverwalk Property Line. No setback from the Riverwalk property line is required. e. Encroachments. Development along the Riverwalk shall not encroach beyond the property line of the parcel, except in cases where levee-facing “people- oriented” commercial activities incorporate public access points to the Riverwalk. Top floor cantilevered portions of the building are allowed to encroach over the property line a maximum of 5 feet in order to provide architectural interest to the façade. Such cantilevered encroachment over the property line shall not exceed 25 percent of the total building frontage along the riverfront.

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Figure E-2: Proposed building massing and public access requirements along Front Street and the riverfront.

3. Storefront Treatment.

While it is recognized that the Front Street/Riverfront Corridor is less pedestrian intensive than the Pacific Avenue District, the ground-level treatment of commercial buildings and parking structures within the area shall generally comply with those the standards and guidelines established for the Pacific Avenue Retail District in Section D: Pacific Avenue Retail District Storefront Standards and Design Guidelines except as noted below. in terms of: storefront access, transparency and variation; and the use of awnings and canopies. Special attention shall be given to the treatment of intersections, to reinforce their gateway role to Pacific Avenue and to create a high level of interest and activity along the street. The following features shall be regulated differently than prescribed in Section D: Pacific Avenue Retail District Storefront Standards and Design Guidelines for portions of buildings located adjacent to the Front Street/Riverfront Corridor:
a. Blank Walls: Building walls within 25 feet of the Front Street right-of-way shall be broken by a massing break, entryway or fenestration (including bay windows) a minimum of every 25 feet. Blank walls shall be mitigated with trellises and/or climbing plants or other architectural, artistic, or landscape elements. Landscape elements such as Living Walls a minimum of 4 feet wide and 8 feet in height, as defined in SCMC Section 24.12.185, are particularly encouraged. b. Door Entry Frequency: Building facades along Front Street, shall incorporate door entries at least every 100 feet.

4. Riverwalk Promenade.

The Riverwalk Promenade is the paved bicycle and pedestrian path on top of the river levee.

The interface between the public Riverwalk and the adjacent private development is a vitally important element of the Downtown Plan. As such, all development along the Riverwalk will involve some form of public/private partnership and cooperation. Key performance criteria include:

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a. Riverwalk Setback. Residential or outdoor commercial uses adjacent to the Riverwalk shall be no closer than 10 feet from the western edge of the physical walkway, except where “people-oriented” commercial uses incorporate public access points to the Riverwalk. South of Laurel Street ground floor uses shall incorporate “peopleoriented” uses such as, but not limited to, dining establishments, entertainment uses, and drinking establishments.
b. Levee Fill. All development shall fill the western slope of the levee (which may include both public and private property) as directed by the City of Santa Cruz and Army Corps of Engineers to create a level condition between the Riverwalk and the adjacent building. The filled area may terrace up from the maximum 24-inch wall to the finished floor of the development in a way that allows for the outdoor spaces to be publicly accessible. (See Figure E-1.)
c. Retaining Wall at Property Line. Design the wall of the ground level of the building to structurally support fill material, and to provide appropriate under-drainage. d. Landscaping. Landscaping this private and public space shall incorporate trees and vegetation appropriate to the river environment. Walls along the Riverwalk shall not exceed 24 inches in height and shall be set back from the promenade by at least 10 feet.

Other than trees, landscaping shall not exceed 42 inches in height above grade. Trees planted as part of the San Lorenzo Flood Control Improvement Project should be maintained and incorporated into new development where feasible and where not in conflict with the required fill or publicly accessible amenities. e. Extension Area License Agreement for Public Space. The City shall consider negotiated Extension Area license agreements on the publicly owned land on the west side of the Riverwalk for open space purposes that promote activity and overlook the Riverwalk and river. The publicly accessible open space area shall be visually open and accessible from the Riverwalk, but may be delineated with a low fence or hedge no more than 42 inches in height.
f. Commercial Criteria. In the case of commercial development, the area subject to the license agreement may be terraced and shall be designed to accommodate outdoor eating or public seating, and shall be within 24 inches of the Riverwalk elevation. g. Public/Private Interface. In the case of residential development, the area subject to the license agreement and associated private yard shall be designed as a visually accessible garden space that provides a transition to the public Riverwalk. Residential entrances facing the river shall be elevated at least 18 inches, but no more than 5 feet above the Riverwalk to create privacy and differentiation of public and private spaces.

Residential development is not permitted at the Riverwalk level south of Laurel Street.
h. Entrances Along Riverfront. Entries, either to individual residential units or common entrances, or to commercial establishments, shall be provided along the riverfront promenade at intervals no greater than 75 feet. No individual residential units are allowed to connect directly with the riverfront south of Laurel Street. Common entrances for residential uses will be permitted.

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i. Fencing. Fencing shall be decorative, visually open rail material, creating a visual connection between the private and public spaces.
j. Visually Open Development. Solid vegetation in the form of a visual screen or hedge is prohibited and views to the Riverwalk from private open spaces are required. Line of sight views between the development and the Riverwalk are intended to ensure a safe and interesting environment to joggers, walkers and cyclists.

5. Access to the Riverwalk.

Between Soquel Avenue and Laurel Streets along Front Street, new development shall provide east-west public access between the Riverwalk and the Front Street sidewalk at or near the extension of Cathcart Street, Elm Street and Maple Street. Developers of riverfront properties shall be required to physically and/or financially contribute their fair share through conditions of approval, an Improvement District, Development Agreement, or similar mechanisms to the improvement of these publicly accessible connections. South of Laurel Street, the development of the parcels adjacent to the Riverwalk and directly north and south of Spruce Street right-of-way shall be required to physically and/or financially contribute their fair share through conditions of approval, an Improvement District, Development Agreement, or similar mechanisms to the improvement of these publicly accessible connections. The development of the Spruce Street right-of-way shall be consistent with performance standards found in Appendix 8. Development of the passageways north of Laurel Street shall be consistent with the following performance standards:
a. Publicly Open Passageways. Such access shall be open to the public during daylight hours.
b. Pedestrian Focus. Such publicly accessible connections shall be predominantly pedestrian in nature and located within 50 feet of the Front Street intersections at the terminus of Cathcart Street and the extensions of Maple and Elm Streets. In addition to the pedestrian access, bicycle access shall be provided at the extension of Elm Street, which will serve as the primary bicycle access to the Riverwalk between Soquel Avenue and Laurel Street.
c. Passageway Widths. The width of these publicly accessible pedestrian connections shall be no less than the following: 60 feet at or near the terminus of Cathcart Street; 50 feet at or near the terminus of Maple Street; and 30 feet at or near the extension of Elm Street.
d. Vertically Open Passageways. These passageways shall be open to the sky, provide a high quality accessible path of travel between the Front Street sidewalk and the Riverwalk, and provide clear building breaks that avoid the walling off of the river from downtown.
e. Pedestrian Oriented Uses. The pedestrian passageways shall be lined with active pedestrian-oriented uses that create a safe and interesting environment, including commercial uses, outdoor cafes, resident-serving amenities, building entries and/or lobbies. Such uses, particularly restaurants and outdoor cafes, are strongly encouraged to provide direct frontage and active outdoor areas along both the pedestrian passageway and the Riverwalk.

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6. Upper-Level Facade Treatment.

The treatment of upper-level facades shall generally comply with the guidelines requirements found in for the Section C: Pacific Avenue Retail District Building Façade Standards and Guidelines in terms of building rhythm, corner treatment, windows, roof treatment, building materials, colors and planting, and rear service lanes.

7. Gateway Treatments.

New development that occurs at key gateway intersections to the downtown (e.g., River- Water; Pacific-Front at the north end of downtown; Cooper-Front; Soquel-Front; Cathcart- Front; Laurel-Front, Pacific-Spruce, Front-Spruce) shall be articulated to accentuate this condition.

Treatments could include corner towers or turrets, setbacks, distinctive changes in fenestration and materials, chamfered building corners, etc.

8. Riverfront Residential.

Residential development occurring along the Front Street/Riverfront Corridor, or future residential development that may occur as part of a mixed-use development on the northeast corner of the Front/Soquel intersection, shall be highly articulated and expressive of the individual units within the complex. The use of sloping roofs, recessed loggias and balconies, bay windows, dormers and chimneys shall be carefully composed to create an intricate composition that expresses individual unit modules to the maximum extent practicable. A variety of building materials is encouraged, including the building materials recommended for the Pacific Avenue district above (e.g., stucco, brick, and stone). To avoid the creation of a "wall" of development along the riverfront between Soquel and Laurel Streets, development shall be highly articulated with variation in height. The required 10-foot sideyard setbacks shall also serve to break up the mass of development along this important edge.

9. Public and Private Parking Facilities.

The Front Street/Riverfront Corridor north of Laurel Street is within the Downtown Parking District #1 and development shall comply with all parking requirements set forth within that district.
a. Surface Lot Landscaping. Existing and/or expanded surface parking lots within the Front Street/Riverfront Corridor shall be well landscaped. In addition to the landscaped area requirements for surface parking provided in the zoning ordinance, surface lots shall provide at least one tree for every four parking spaces, distributed throughout the lot.

Surface lots shall be screened from the public sidewalk with low walls, planters, or hedges.
b. West Side of Front Street. Allow parking facilities along the west side of Front Street south of Soquel Avenue, where only one driveway curb cut shall be permitted per parking facility per street frontage; the parking facility shall not extend to street corners; and the parking facility shall be architecturally integrated within the overall building composition.

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c. Structured Parking Design. Above-grade structured parking should be visually separated at the ground level from all public sidewalks and streets by means of active storefront uses as described above. Such parking should be accessed, to the maximum extent possible, from east-west streets or rear service lanes. d. Structured Parking Facades. Parking structure facades shall be designed as compatible visual extensions of other multi-story buildings.
e. Structured Parking Rear Façade. Special attention shall also be given to the design of parking structure facades adjacent to rear service lanes, to reinforce their attractiveness for pedestrian use. The use of integrated trellis structures and planters along the service lanes is recommended.
f. Screens and Trellises. Decorative screen and trellis elements of durable, high-quality materials are also encouraged to provide variation and interest on the facade. g . Garage Ramp Visibility. Sloping floor elevations shall not occur within 10 feet of the adjacent public street.
h . Wrap Garage with Commercial. Where parcel depth permits, the face of the parking structure shall be set back from ground floor commercial uses. i . Garage Openings. Openings shall be carefully composed within the building wall to appear as well-proportioned windows, rather than continuous strips; variation in the dimension and proportion of openings and in the horizontal and vertical planes of the facade shall be provided to create visual interest and to reduce the massiveness of the parking structure.
j. Entrances and Stairways. Entryways and stairways shall be located along the street edge; they shall be well lit and visible from the street to promote security and a feeling of comfort.
k. Top Deck Elevation. The top deck of all structured and encapsulated parking shall be constructed to an elevation no greater than 5 feet above that of the Riverwalk promenade and shall be screened from public view. Parking garages may exceed the maximum building length of 250 feet if they are lower than 5 feet above the adjacent levee elevation.

10. Driveways and Curb Cuts.

Limit on-site driveways along Front Street and the southern portion of Pacific Avenue after the intersection of Pacific Avenue and Front Street to a maximum of one driveway per property or at a spacing of at least 200 feet; driveways should be no more than 24 feet in width and to the extent practicable should be spaced from an adjacent driveway by at least

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200 feet. Wider driveways may be considered based on a demonstrated need to accommodate specific vehicle operations of a proposed development.

11. Guidance for Bird Safe Structures Along the San Lorenzo River.

In addition to the standard requirements for Bird Safe Development found in SCMC Section

24.12.127, the The following measures shall be incorporated into all development projects that are located between Front Street and the San Lorenzo River.  Minimize the overall amount of glass on building exteriors facing the San Lorenzo River.
 Avoid mirrors and large areas of reflective glass.
 Avoid transparent glass skyways, walkways, or entryways, free-standing glass walls, and transparent building corners.
 Utilize glass/window treatments that create a visual signal or barrier to help alert birds to presence of glass. Avoid funneling open space to a building façade.  Strategically place landscaping to reduce reflection and views of foliage inside or through glass.
 Avoid up-lighting and spotlights. Turn non-emergency lighting off (such as by automatic shutoff), or shield it, at night to minimize light from buildings that is visible to birds, especially during bird migration season (February-May and AugustNovember).

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F. CEDAR STREET VILLAGE CORRIDOR

DEVELOPMENT STANDARDS AND DESIGN GUIDELINES

1. Height and Stepback Requirements.
a. Base Height and Floors. The maximum height of all development within the Cedar Street Village Corridor shall be 35 feet (3 floors maximum). East of Cedar Street, development may be allowed to exceed 35 feet on a discretionary basis to a maximum height of 50 feet (4 floors maximum). The granting of additional height above thirty-five (35) feet is discretionary and requires a Design Permit with the recommendation of the Planning Director to the City Council, which must approve the additional height, unless such height is the result of compliance with any density bonus program or provision of state or local law. Given the highly urbanized nature of the downtown with the most intensive land uses in the City, building heights exceeding base height standards are not expected to create any coastal resource impacts due to the increased intensity.

2. Storefront Treatment.

The ground-level treatment of buildings and parking structures within the Cedar Street subarea shall generally comply with guidelines for the Pacific Avenue retail subarea, in terms of storefront access, transparency and variation, and the use of landscaping, awnings and canopies.

However, it is recognized that Cedar Street has a more informal character than Pacific Avenue and, as such, more variation of ground-level treatment is envisioned and encouraged. The use of porches and terraced gardens as an intermediate space between the ground floor use and the sidewalk is permitted, as long as the finished floor elevation of the ground floor use is no more than four feet above or below the sidewalk level, and accessibility requirements are met.

3. Upper-Level Facade Treatment.

The treatment of upper-level facades shall generally comply with the guidelines for the Pacific Avenue Retail District in terms of building rhythm, corner treatment, windows, roof treatment, building materials, colors and planting. In recognition, however, of the area's village character, several special conditions are noted:
a. Architectural Elements. The use of architectural elements that promote the village character of the street is encouraged. Such elements could include sloping roofs, chimneys, bay windows, dormers, recessed loggias, balconies, and porches. b. Articulation. Facades shall be highly articulated and varied; the introduction of moldings and trims, and changes in horizontal and vertical planes are strongly encouraged to create visual interest and variation in light and shadow. Residential development shall be highly articulated and expressive of the individual units within the complex.
c. Building Materials. Building materials can be more diverse and residential in character than those recommended for the Pacific Avenue Retail District. The use of wood as a siding material is encouraged.

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d. Flowers and Landscaping. The use of planters, trellises and topiary treatment of buildings is encouraged to further enliven the area and to promote its unique village qualities.

4. Public and Private Parking Facilities.

Parking structure facades shall be designed as compatible visual extensions of other multi- story buildings. Sloping floor elevations shall not occur adjacent to public streets. Where parcel depth permits, the face of the parking structure shall be set back from ground floor commercial uses.

Openings shall be carefully composed within the building wall to appear as well-proportioned windows, rather than continuous strips; variation in the dimension and proportion of openings and in the horizontal and vertical planes of the facade shall be provided to create visual interest and to reduce the mass of the parking structure. Decorative screen and trellis elements of durable, high-quality materials are also encouraged to provide variation and interest on the facade. Special attention shall also be given to the design of parking structure facades adjacent to rear service lanes, to reinforce their attractiveness for pedestrian use. The use of integrated trellis structures and planters along the service lanes is recommended. Entries and stairwells within parking structures shall be located adjacent to public streets and designed to be visually open, to promote a feeling of security and comfort.

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G. NORTH PACIFIC AREA

DEVELOPMENT STANDARDS AND DESIGN GUIDELINES

1. Height and Stepback Requirements
a. Base Height and Floors. The maximum height of all development within the North Pacific subarea shall be 35 feet (3 floors maximum). However, within this 35 foot Base Height, east of North Pacific Avenue, development may be allowed on a discretionary basis to a maximum height of 50 feet (4 floors maximum). The granting of additional height above 35 feet is discretionary and requires a Design Permit with the recommendation of the Director of Planning to the City Council, which must approve the additional height, unless such height is the result of compliance with any density bonus program or provision of state or local law. .
b. Minimum Floor Height. The first floor uses must have a minimum floor-to-floor height of 14 feet.
c. Visual Analysis and Criteria for Exceeding Base Height. Proposed development above 35 feet, up to 50 feet, must prepare a detailed visual analysis of the building to determine the visual impact. The visual impact analysis must consider the views from the mid-point of the Water Street Bridge looking toward the Mission Hill, from Mission Hill and other key locations within the City. The additional building height shall not obstruct views of the profile of the top of the grade of Mission Hill as viewed from the crest of the Water Street Bridge;
i. Additional height above 45 feet, up to a maximum of 50 feet, must demonstrate that the building creates a superior gateway entrance to Pacific Avenue and the Downtown; and
ii. The building height above 35 feet shall be stepped back a minimum of ten (10) feet from the 35 foot Base Height. The additional height shall be highly articulated and the upper level shall gently transition to surrounding development. iii. Uninhabitable mechanical penthouses will be permitted above the Base Height to by a maximum height of 5 20 feet above the permitted building height, provided that such penthouses are set back a minimum of 15 feet from any exposed face of the buildings and are out of the pedestrian's view, unless such penthouses are architecturally integrated into the building façade design.

2. Build-to Lines and Setbacks.

To promote well-defined streets, development shall generally be required to be built to the property line adjacent to public streets. The following exceptions to this condition are noted:
a. Sidewalk Width. In locations where the sidewalk is less than 12 feet, development shall be set back from the property line to create a 12-foot sidewalk. b. Gateway Landscaping. Within this subarea, new development along Water Street (north side) and River Street (west side) shall be set back from the property line by 10 feet to allow for generous gateway landscaping treatment. Buildings along River

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Street may project into this setback with approval of a landscape plan provided that the average setback along that street remains 10 feet.
c. Non-Residential Elevation. Along Pacific Avenue and Water Street, ground level uses shall not be located more than one foot above the elevation of the adjacent curb. d. Residential Elevation. Along River Street, the first occupied residential floor level shall not be higher than five feet above the adjacent curb. For each one foot above the adjacent curb, an additional one foot of landscape setback shall be required.

3. Gateway Intersections.

The intersections of Water and River Streets, and River Street and North Pacific Avenue, are important gateways to the downtown. New development that occurs at these key gateway intersections shall be designed to accentuate this condition. Treatments shall include corner towers or turrets, setbacks, distinctive changes in fenestration and materials. The design of the ground level of the buildings at these intersections shall be articulated to reinforce the gateway significance utilizing corner setbacks, small plazas, large display windows, distinctive entrance features and canopies.

4. Building Facades.

The treatment of upper-level facades shall generally comply with the guidelines and standards for the Pacific Avenue Retail District in terms of building rhythm, articulation, corner treatment, windows, roof treatment, building materials, colors and planting.

5. Ground-Level Storefronts.

The design of the ground-level of buildings facing North Pacific Avenue, River Street and Water Street shall generally follow the guidelines and standards described for the Pacific Avenue Retail District to the south (e.g., access and transparency, storefront variation and treatment, awnings, canopies).

6. River Street.

The setback area described above for River Street shall include a well-designed landscape concept to enhance the gateway role and appearance of River Street and to create a transition between private development and the street. This landscaped area shall be broken at intervals to provide entrances to adjacent ground-level uses.

7. River Street Residential.

If residential development occurs along the River Street Corridor, it shall be highly articulated and expressive of the individual units within the complex. The use of sloping roofs, recessed loggias and balconies, bay windows, dormers, and chimneys shall be carefully composed to create an intricate and pleasing composition. Clapboard wood siding is encouraged, in addition to the building materials recommended for the Pacific Avenue Retail District above (e.g., stucco, brick, and stone).

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8. Town Clock Park/Scope Park.

New development occurring adjacent to Town Clock Park (Knight Street right-of-way) or Scope Park shall have a strong ground-level orientation to these public open spaces. Buildings along Knight Street shall be built to the property line to maintain the spatial quality of Town Clock Park and to reinforce the civic importance of the Water-Pacific-Front intersection.

Ground-level uses shall be pedestrian-oriented, and the treatment of storefront facades shall correspond with the guidelines described for the Pacific Avenue Retail District.

9. Public and Private Parking Facilities.

For properties in the North Pacific subarea which are not within the downtown Parking District #1, new development must comply with the City's general standards related to parking. a . Surface Parking Lots. Existing and/or expanded surface parking lots within the North Pacific area shall be well landscaped, with at least one tree for every four parking spaces, and screened from the public sidewalk with low walls, planters or hedges. b. Structured Parking. Parking structures in the North Pacific Area shall be an integral part of the development that it serves, either in below-grade structures or above- grade structures that are sensitively encapsulated within the overall building form. c. Location of Structured Parking. Exposed parking structures shall be limited to the interior of the block or to Bulkhead Street.
d. Parking Structure Façade. Where parking is exposed as a facade, such facades shall be designed as an integral extension of the overall building facade. e. Garage Ramps. Sloping floor elevations shall not occur within 10 feet of the adjacent public street.
f. Garage Openings. Openings shall be carefully composed within the building wall to appear as well-proportioned windows, rather than continuous strips; variation in the dimension and proportion of openings and in the horizontal and vertical planes of the facade shall be provided to create visual interest and to reduce the mass of the parking structure.
g. Screens and Trellises. Decorative screen and trellis elements of durable, high-quality materials are also encouraged to provide variation and interest on the facade. h. Wrap Garage with Commercial. Above-grade structured parking facing River Street, Water Street or North Pacific Avenue shall be visually separated from all public sidewalks at the ground level by means of active ground-level uses as described above.

Such parking shall be accessed, to the maximum extent possible, from east-west streets (e.g., Bulkhead Street). New access driveways along North Pacific Avenue, River and Water Streets shall be avoided.

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H. ADDITIONAL HEIGHT ZONES
In 1991 when the original Downtown Recovery Plan was being developed, the community was concerned about the impact of four and five-story buildings on the predominantly one and twostory downtown. Since 1991, there has been significant infill development that has diversified the mix and intensity of downtown uses, with upper level office and residential uses. No longer is Downtown Santa Cruz and Pacific Avenue a one- and two-story downtown; it has evolved into a vibrant three to seven story district.

As such, the Additional Height Zone A is extended to eligible sites south of between Cathcart Street and Laurel Street along the west side of Front Street; and Additional Height Zone B is established along the Front Street/Riverfront Corridor south of Soquel Avenue to Laurel Street. (See Downtown Plan Height Figures diagram) The City also wishes to promote uses that foster activity and a sense of stewardship, allowing the area to evolve from a service district to an integral part of the overall downtown. In order to achieve this goal, residential uses are generally considered highly desirable upper-level uses, with active commercial and people-oriented uses at street level, in addition to visitor-serving uses along Front Street between Soquel and Laurel. It is recognized that smaller parcels may need to be assembled and consolidated to create viable areas for redevelopment, but development of assembled properties shall be done in a way that maintains the town scale and character of the downtown, with its diverse mix of small- and medium-sized buildings, its pedestrian orientation and, its block pattern that provides multiple street and walkway connections.

The scale of blocks and parcels is a critical component, contributing to the town scale and pedestrian orientation of downtown Santa Cruz. In the areas south of Cathcart Street and Soquel Avenue, the larger block sizes make it particularly important to create additional pedestrian connections between Pacific Avenue and Front Street, and between Front Street and the Riverwalk.

This has been a community vision, dating back to the original Downtown Recovery Plan and reinforced with the 2010 River/Front and Lower Pacific Design Guidelines and Development Standards. However, regulations alone cannot be expected to accomplish such transformational change, which will involve public improvements and strong public/private partnerships. Financing tools for the implementation of enhanced pedestrian linkages to the river, and for improved bicycle and pedestrian amenities along Front Street, shall be considered to leverage increased land values in the area and to provide for equitable contributions from the private sector.

In establishing the development standards for the Additional Height Zones, it is important to make sure that the standards reflect the unique conditions and opportunities of the area. It is necessary to avoid the creation of large, monolithic buildings that are out of scale with the finer-grained development pattern of the downtown.

Buildings of additional height above the Downtown’s dominant three to four-stories may depart from the tri-partite facades of the historic downtown, but shall be designed in a manner that creates a positive relationship and an appropriate scale transition to the existing fabric. In addition to the volumetric standards set forth as a basis for additional height in Additional Height Zone A, building stepbacks, belt courses, material, plane and/or fenestration changes are design strategies that should be employed to create compatible architectural and scale relationships with adjacent buildings of lower height. A strong and well detailed storefront and building base is critical to the continuity of the retail and pedestrian environment of the Downtown; intermediate floors should be composed with window openings, balconies or projections that provide visual interest and a

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scale relationship with adjacent buildings; and the top most floor(s) should contribute to the overall silhouette and spatial form of the street with reduced floor plates, cornices, projecting canopies or other special architectural elements.

Rather than relying on building stepbacks and terracing to achieve an appropriate scale transition to smaller buildings, the standards call for horizontal and vertical variation to create the appearance of multiple buildings that are more in keeping with the surrounding area. Additional height – even up to 85 feet in the Additional Height Zone A – can be absorbed appropriately if it is confined to a portion of a property, rather than as a massive block, terraced back from the street.

1. Additional Height Zone A.

Properties on Pacific Avenue and within 150 feet of Pacific Avenue between Water and Lincoln Streets, and within 200 feet of Pacific Avenue between Lincoln and Laurel Streets (as measured perpendicular from the property line along Pacific Avenue) , certain properties located on the east side of Cedar Street between Mission Street and Ocean Alley, and the west side of Front Street between Cathcart and Laurel Streets shall be considered within the “Additional Height Zone A", within which additional height above the 55 foot Base Height limit may be requested for buildings meeting certain criteria (See Figure A-1: Downtown Plan Heights). The intent of the Additional Height Zone A is to preserve the overall character of the existing development pattern, while allowing a discretionary intensification of use and increased height to maintain a compact urban core. For eligible development projects that overlap the Base Height and Additional Height Zone boundary, all portions of the project exceeding the 55 foot base height shall be located within to the Additional Height Zone as shown in Figure A-1.
a. Eligible Development Projects. The granting of building height above the 55 foot Base Height limit is discretionary and requires a Design Permit with the recommendation of the Planning Commission to the City Council, which must approve the additional height. To achieve approval, the applicant must demonstrate that the proposed project meets the criteria described below. Applicants for development within the Additional Height Zone A may request additional height as indicated below, if one of the following conditions is met:
i. The aggregate parcel size is greater than 15,000 square feet, which may include land not located within the Additional Height Zone;
ii. The frontage along Pacific Avenue is greater than 150 feet, or at least 100 feet with 150 feet of frontage along an east-west street;
iii. The parcel is located between adjacent structures of four or more floors in height; or b. Additional Height Criteria for Project Approval. The development project shall be found consistent with the following overarching City objectives:
i. The additional height will help to achieve the First Principles of the Downtown Plan (e.g. form, housing, accessibility and open space). ii. The additional height will contribute to an improved social and economic environment.
iii. The form of the development promotes the appearance of a grouping of buildings rather than large, monolithic building masses.
iv. The development receiving additional height will physically and/or financially

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contribute its fair share (through an Improvement District, Development Agreement or similar mechanisms) to the implementation of internal pedestrian connections between Pacific Avenue and Front Street.
v. The additional height will help to meaningfully achieve one or more of the following key community objectives, including but not limited to: Economic Development Contributions to the Downtown, Affordable Housing, Day Care Center, exceed Green Building minimums, Incubator Space for Small Business, Public Access Easements, Public Right-of-way Improvements, Publicly Accessible Open Space, Structured or Shared Parking, and Transportation Demand Management concepts.
vi. Affordable Housing Public Benefit Fee For Non-Residential Projects. An application for additional height is voluntary. Because an applicant requesting additional height is receiving a benefit in the form of increased height and intensity, and to ensure that non-residential projects which are granted additional height reasonably contribute to the City’s need for affordable housing, nonresidential projects that are granted additional height shall be required to pay an in-lieu public benefit fee in the amount of $5.00 per square foot of gross floor area occurring above the 55-foot Base Height limit (i.e., the additional gross floor area occurring within the project on levels that exceed the 55-foot Base Height limit).

The fee shall be paid prior to occupancy of the project. All fees provided collected under this section shall be deposited the City of Santa Cruz’s affordable housing trust fund.
c. Zone A Maximum Height and Floors. The buildings shall conform to the adopted building codes in effect at the time of building permit application to achieve the following height limits.
i. For development projects on aggregated parcels between 15,000 square feet and 50,000 square feet, the maximum height shall be 75 feet and the maximum number of floors shall be 5 floors above the required ground floor commercial use. ii. For development projects on aggregated parcels larger than 50,000 square feet, the maximum height shall be 85 feet and the maximum number of floors shall be 6 floors above the required ground floor commercial use.
iii. Uninhabitable mechanical penthouses will be permitted to project 20 feet above the approved additional height of building, provided that such penthouses are set back a minimum of 15 feet from any exposed face of the building, unless architecturally integrated into the building façade design.
iv. Architectural features at prominent gateway corners may exceed the maximum heights above when required findings are made.
d. Performance Criteria. The following criteria are intended to promote the appearance of multiple buildings of varying heights, and to avoid the development of monolithic buildings:
i. Maximum Height and Footprints. For sites which are eligible for additional height, the footprint of portions of the building at or below 55 feet shall be at least 40% of the total site area; portions of the building footprint above 55 feet to a height of 75 feet may comprise up to 60% of the site area. For assembled sites greater than 50,000 square feet in area, buildings may achieve an 85-foot height for up to 20% of the total site area. (See Figure H-1)

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ii. Architectural Features. Taller building masses shall be located on portions of the site that are adjacent to street corners or in areas that will result in minimal shading of adjacent streets and sidewalks.
iii. Pacific Avenue Building Length. Along Pacific Avenue, portions of buildings that exceed the maximum base height of 55 feet may occupy up to 55% of the length of the property line along the street or 200 feet, whichever is less. Any additional height above the base height must be set back from the building wall by at least 15 feet. (See Figures H-2 and H-4)
iv. Front Street Building Length. Along Front Street, portions of buildings that exceed the maximum base height of 55 feet may occupy up to 60% of the length of the property line along the street or 180 feet, whichever is less. Any additional height above the base height must be set back from the building wall by at least 15 feet. (See Figure H-3)
Figure H-1: Distribution
percentage of additional height for
sites 15,000–50,000 sq. ft.

Distribution percentage of additional
height for sites larger than 50,000 sq. ft.
v. Laurel, Cathcart and Soquel Building Lengths. Along Laurel Street, Cathcart Street and Soquel Avenue, portions of buildings that exceed the maximum base height of 55 feet may occupy up to 60% of the length of the property line or 150 feet, whichever is less. Any additional height above the base height must be set back from the building wall by at least 15 feet. (See Figure H-2) vi. Maple Street Stepbacks. Along the Maple Street extension, the building frontage shall step back by 10 feet above a height of 50 feet; In addition to the ‘build to’ line The Maple Street building face shall incorporate at least one recessed break,

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open to the sky, no less than 25 feet wide and no less than 10 feet in depth from Maple Street . (See Figure H-3)
Figure H-3: Example of possible distribution of frontage heights along Front Street and the Maple Street Paseo.

Figure H-2: Example of possible distribution of frontage heights along Pacific Avenue and Laurel Street.

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vii. Building Recessed Breaks. Any building mass that exceeds the maximum base height of 55 feet must establish a separation or break that is open to the sky, measuring at least 25 feet along the streetfront property line, with a depth no less than 15 feet as measured perpendicular from the streetfront property line. For buildings along Maple Street, the recessed break shall be a minimum of 10 feet in depth. (See Figures H-3 and H-4)
(1) The recessed breaks must provide a clear visual break between building volumes, but at the same time contribute to a positive streetscape environment. (2) The recessed spaces shall be open to the sky above the ground level. A lightweight sheltering structure, distinct from the architecture of the principal building (e.g., steel and glass trellis, awning, canopy, or single-level storefront) may be incorporated within the recessed space to provide activity along the street and protection to the ground level activity. This structure may encroach into the public right-of-way by at least 1 foot and no more than 2 feet and shall extend horizontally on either side of the recessed space by two feet to interlock with the principal building. The structure may include sliding doors or gates that can be secured at night, provided that they are accessible and visible during daytime business hours. (See Figure H-5)
(3) These recessed spaces along the streetfront shall be considered as an opportunity for creative solutions that enhance the streetscape environment. They must be designed and programmed to be purposeful and meaningful places that support positive activity and preclude anti-social behavior. They could include building entries, cafes or retail extension areas. Courtyards and paseos are particularly encouraged as a way of separating building volumes and in creating unique public spaces that connect to Pacific Avenue. The recessed spaces may be gated. (See Figure H-5)
Figure H-4: Example of horizontal massing variation and recessed break in building.

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Figure H-5: Recessed spaces along the streetfront must provide a clear visual break between building volumes, while creating a positive streetscape environment. Three examples of potential treatments. ix. Two-Story Variation. To establish the appearance of a distinct grouping of buildings, a minimum two-story variation shall be provided between building masses along each of the street fronts. (See Figure H-6) Figure H-6: Example of vertical massing variation.

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e. Application Requirements. The following materials shall be submitted with all applications for proposed buildings taller than 55 feet. i. Visual Analysis. A detailed visual analysis of the proposed buildings to determine the visual impact of the development shall be submitted. The visual impact analysis must consider the views from key locations within the City and the views from Pacific Avenue and from the east-west streets.
ii. Program Statement. A Program Statement shall be submitted indicating details of public amenities to be included in the project. The Program Statement shall specify the participation either through funding and/or land contribution, construction, and/or maintenance of the Maple Street paseo or lane. The Program Statement shall include the private funding mechanism for on-going management and maintenance of the exterior common areas, including public and private spaces along the Maple Street paseo or lane between Pacific Avenue and Front Street. The Program Statement shall specify the method of participation in the City’s affordable housing program, if applicable The Program Statement items will be the basis of conditions of project approval.

2. Additional Height Zone B.

The Additional Height Zone B includes properties located on the east side of Front Street between Soquel Avenue and Laurel Street.
a. Eligible Development Projects. The granting of building height above the 50-foot Base Height limit is discretionary and requires a Design Permit with the recommendation of the Planning Commission to the City Council, which must approve the additional height.

To achieve approval, the applicant must demonstrate that the proposed project meets the criteria described below. Applicants for development within the Additional Height Zone B may request additional height as indicated below if one of the following conditions is met:
i. The aggregate parcel size is greater than 15,000 square feet; ii. The frontage along Front Street is greater than 100 feet; iii. The parcel is located between adjacent structures of three or more floors in height; or
b. Additional Height Criteria for Project Approval. The development project shall be found consistent with the following overarching City objectives:
i. The additional height will help to achieve the First Principles of the Downtown Plan (e.g. form, scale, housing, accessibility and open space); ii. The additional height will contribute to an improved social and economic environment;
iii. The form of the development promotes the appearance of a grouping of buildings rather than large monolithic building masses;
iv. The development receiving additional height will physically and/or financially contribute its fair share (through an Improvement District, Development Agreement

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or similar mechanisms) to the implementation of internal pedestrian connections between Front Street and the Riverwalk;
v. The additional height will help to meaningfully achieve one or more of the following key community objectives, including but not limited to: Economic Development Contributions to the Downtown, Affordable Housing, Day Care Center, exceed Green Building minimums, Incubator Space for Small Business, Public Access Easements, Public Right-of-way Improvements, Publicly Accessible Open Space, Structured or Shared Parking, and Transportation Demand Management concepts. vi. Clear demonstration of the public benefit relating to two principal objectives: high quality public access between Front Street and the river, and the appropriate treatment of the riverfront edge along the Riverwalk.
vii. Affordable Housing Public Benefit Fee For Non-Residential Projects. An application for additional height is voluntary. Because an applicant requesting additional height is receiving a benefit in the form of increased height and intensity, and to ensure that non-residential projects which are granted additional height reasonably contribute to the City’s need for affordable housing, nonresidential projects that are granted additional height shall be required to pay an in-lieu public benefit fee in the amount of $5.00 per square foot of gross floor area occurring above the 50-foot Base Height limit (i.e., the additional gross floor area occurring within the project on levels that exceed the 50-foot Base Height limit).

The fee shall be paid prior to occupancy of the project. All fees provided collected under this section shall be deposited the City of Santa Cruz’s affordable housing trust fund.
c. Zone B Maximum Height and Floors. The buildings shall conform to the adopted building codes in effect at the time of building permit application to achieve the following height limits.
i. For development projects on aggregated parcels larger than 15,000 square feet, the maximum height shall be 70 feet and the maximum number of floors shall be 5 floors above the required ground floor commercial use.
ii. Uninhabitable mechanical penthouses will be permitted to project 5 20 feet above the approved additional height of building, provided that such penthouses are set back a minimum of 15 feet from any exposed face of the building, unless architecturally integrated into the building façade.
iii. Uninhabitable architectural features at prominent gateway corners may exceed the maximum heights above for a total of no more than 15 percent of the building footprint.
d. Performance Criteria. In addition to meeting the Front Street/Riverfront Corridor Development Standards and Design Guidelines, the project shall meet the following criteria, which are intended to promote the appearance of multiple buildings of varying heights, and to avoid the development of monolithic buildings:
i. Building Recessed Breaks. In order to break down the mass of buildings along Front Street and to promote the appearance of multiple buildings, require any portion of the building mass that exceeds the maximum base height of 50 feet to establish a separation or break that is open to the sky, measuring at least 15 feet along the

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streetfront property line, with a depth no less than 10 feet as measured perpendicular from the streetfront property line. (See Figures H-5 and H-7) The recessed breaks must provide a clear separation between building volumes, but at the same time contribute to a positive streetscape environment. The recessed space should be open to the sky above the ground level. A light-weight sheltering structure, distinct from the architecture of the principal building (e.g., steel and glass trellis, awning, canopy, or single-level storefront) may be incorporated within the recessed space to provide activity along the street and protection to the ground level activity.

This structure may encroach into the setback zone by up to two feet and should extend horizontally on either side of the recessed space by at least 1 foot, but not more than 2 feet to interlock with the principal building. The structure may include sliding doors or gates that can be secured at night, provided that they are accessible and visible during daytime business hours.

Figure H-7: Example of distribution of frontage heights and horizontal massing variation along Front Street.
ii. Skyline Architectural Variation. To promote skyline variation, the top floor of any building shall not exceed 60% of the floor area below or 60% of the building length as measured along Front Street or the Riverwalk, unless the project incorporates planned publicly accessible pedestrian passageways between Front Street and the Riverwalk (in the proximity of the extensions of Cathcart Street, Maple Street, and Elm Street). For projects that incorporate other publicly accessible connections, variation to the 60% floor area standard may be permitted with a recommendation from the Planning Commission and final approval by the City Council provided a finding can be made that the project includes adequate variation/breaks in massing, including as provided by the pedestrian passageways between building, paseo, etc.
iii. Integrated Rooftop Design. Rooftops shall be fully designed and creatively integrated into the function of the building. Rooftops provide opportunities including, but not limited to, usable residential or commercial open spaces, activated

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amenity spaces such as rooftop bars and pools, community gardens, rainwater retention facilities, green-roof landscaping, solar panel facilities as shade structures, building mechanical equipment and other uses. These spaces shall be thoughtfully and creatively designed as part of the initial project application. e. Application Requirements. The following materials shall be submitted with all applications for proposed buildings taller than 50 feet. i. Visual Analysis. A detailed visual analysis of the proposed building including threedimensional perspectives to determine the visual impact of the development shall be submitted. The visual impact analysis must consider the views from key locations within the City, the views from Front Street and from the Soquel and Laurel bridges and the levee opposite the project site from a pedestrian level view. ii. Roof Design Plan. A detailed and fully integrated roof design plan that includes details of open space uses and amenity uses, landscaping, solar facilities, drainage, and mechanical equipment.
iii. Grading and Landscape Plan. A comprehensive grading and landscape plan for the filled area of the river levee.
iv. Passageway Plan. For projects adjacent to the proposed publicly accessible passageways between Front Street and the Riverwalk (in the proximity of the extensions of Cathcart Street, Maple Street and Elm Street), a scaled plan shall be provided with adequate details, section drawings and other drawings that describe how the project will achieve high quality public access to the riverfront from Front Street and how the riverfront edge will be designed to reinforce the amenity value and safety of the Riverwalk. Drawings shall describe the relationship of publicly accessible spaces with adjacent proposed development activities, grading, landscape and paving materials and treatments. iii. Program Statement. A Program Statement shall be submitted indicating details of public amenities to be included in the project. The Program Statement shall specify the private funding mechanism for on-going management and maintenance of the exterior common areas, including public and private spaces between the Riverwalk and the development and any adjacent paseo or passageway from Front Street to the Riverwalk. The Program Statement shall specify the method of participation in the City’s affordable housing program, if applicable.

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I. ALL CENTRAL BUSINESS DISTRICTS

STOREFRONT STANDARDS AND GUIDELINES
The intention of the storefront guidelines is to promote variety and individuality along the street while complementing the scale and design character of the streetscape, reinforce the pedestrian environment, and allow for the landscape character of the downtown to extend into the private realm. The storefront guidelines encourage both setbacks from, and encroachments into, the public right-of-way, where such measures will serve to enrich the visual diversity and life of the street.

1. Storefront Projections and Setbacks. In addition to landscape elements, storefronts are encouraged to introduce architectural variation at the pedestrian level in order to create a diverse building edge between the public and private realms, and the total linear measurement of all facade elements should exceed the length of the property line by 5% or more. More specifically:
a. Bay Windows. Storefront bay windows may project up to 12 inches into the public right-of-way, if such windows maintain glazing on all projecting faces, and if the windows do not exceed 15 feet in width. A clearance of at least 12 inches between the bottom of the projecting bay and the sidewalk is recommended. b. Porticos. Entry porticos may project up to 12 inches into the public right-of-way. c. Entry Setbacks. EntryEntries shall be setbacks may be permitted up to 48 no less than 36 inches from the property line, as part of a door yard. d. Marqueeis and Canopies. Permanent marquis structures or canopies that project from the buildings are encouraged, but shall be confined to entry lobbies leading to upperlevel residential or office uses, or to public-oriented passages that provide for pedestrian access through the block. They shall be designed as an attractive and integral part of the overall facade design, shall project no more than 6 feet from the face of the building, take up no more than 10 feet of frontage, and maintain a clearance of at least 8 feet above the sidewalk surface. No column supports shall be permitted within the public right-of-way.
e. Projecting Signs. Projecting signs are encouraged on storefronts consistent with the sign regulations for the Central Business District in the Zoning Code. f. Awnings. Awnings overhanging the sidewalk are also encouraged to further enhance the life and variety of the street. The preferred material for awnings is canvas, but other materials will be considered if they are light in character and can be architecturally integrated with the building facade. Awnings shall be maintained at least 8 feet above the sidewalk surface, and shall be carefully designed to complement the overall facade design. Under standard conditions (e.g., not within retail extension zones), storefront awnings shall not project more than 6 feet into the public right-of-way, and generally shall not be higher than 14 feet above the sidewalk. Awnings above 14 feet in height shall not project more than 3 feet into the public right-of-way.

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2. Storefront Variation and Craftsmanship. The visual experience of moving along the street shall be enjoyable and varied. Changes in treatment (e.g., the use of porticos, setbacks, architectural elements, landscape treatments, etc.), within the standards and guidelines are outlined above and below. Particular attention shall be given to the craftsmanship and detailing within the pedestrian's range of touch and view. The use of special materials (e.g., stone, brass, bronze, terra cotta, ceramic, wood) for storefront ornamentation is strongly encouraged, particularly around windows and entries and at the base of building walls.

3. Retractable Storefronts. Where appropriate, the use of retractable storefronts is encouraged to create a direct relationship between sidewalk activity and the commercial establishment; this treatment is particularly encouraged for restaurants where outdoor seating is proposed, or for retail establishments that include an extension area within the public rightof-way.

4. Storefront Landscape Elements. The introduction of plant materials on the building face and storefront is strongly encouraged to reinforce and extend the landscape identity of Pacific Avenue and the downtown. More specifically:
a. Storefront Setbacks. Storefront setbacks of up to 18 inches may be permitted for the introduction of low planters of up to 12 inches in height below storefront windows. b. Sidewalk Planting. The sidewalk paving along Pacific Avenue may be designed to allow for planting beds at sidewalk level to encroach into the public right-of-way up to 18 inches. Such planting beds shall include durable curbing (up to 3 inches in height) to provide a clear visual separation.
c. Planter and Window Boxes. Planter and window boxes may be allowed to project into the public right-of-way up to 18 inches, with a maximum height of 24 inches above the sidewalk level. It is recommended that window boxes maintain a clearance of 12 inches above the sidewalk, not including decorative support braces. Window boxes shall be designed as a compatible and integral extension of the storefront window casing; materials shall be durable and of high quality. Planter and window boxes shall also provide for internal drainage connecting to roof drain lines. d. Hanging Flower Pots. Hanging flower pots may project into the public right-of-way up to 12 inches and shall have a minimum 8-foot clearance within the public right-of-way unless hanging directly above planter boxes.
e. Trellises. Trellis structures supporting climbing vines are encouraged against blank building walls, both at the storefront and upper levels. At the storefront level, trellises shall be allowed to project into the public right-of-way up to 6 inches; above 8 feet in height, overhanging arbor or trellis structures shall be allowed to project up to 18 inches into the right-of-way.
f. Living Walls. When installed consistent with the requirements of SCMC Section

24.12.185, living walls will be an allowable component of storefront landscaping provided they are a minimum of 4 feet wide and 8 feet tall.

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g. Plant Types. Plant materials within planters, planting beds, flower boxes and flower pots shall provide color and variety throughout the year. The use of non-flowering shrubs or plant materials is discouraged, unless they are part of a planned pattern of landscape to that creates interest on the street.

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J. ALL CENTRAL BUSINESS DISTRICTS

OTHER DEVELOPMENT STANDARDS AND DESIGN GUIDELINES

1. Design Variation. The Downtown Plan contains development standards, which when implemented, are intended to achieve the First Principles of the Plan and public objectives for the downtown. While every effort has been made to thoughtfully produce clear and concise standards for the community, the Plan can never address or respond to all development scenarios and circumstances. Therefore, projects that closely conform to the development standards, but with slight variations may be considered upon demonstration that the resulting project will better achieve stated Plan and community objectives. Such variations shall be minor in nature and must receive a positive recommendation from the Planning Director, with final approval by the City Council.

2. Storefront Setbacks. Minor ground-level storefront setbacks are permitted within the provisions of the storefront and building façade standards and guidelines discussed below.

Recessed storefronts up to six feet in depth and twenty-five feet in length may occur where a designated outdoor use, such as an outdoor café, is an integral part of the retail business.

3. Roof Top Mechanical Equipment. The design of roof top mechanical equipment and related structures is an important aesthetic consideration when viewing the downtown skyline.

The arrangement of roof top equipment, elevator penthouses, mechanical penthouses and enclosures, safety rails, inside faces of parapets, roofing surfaces, architectural elements, and other mechanical or electrical equipment, including telecommunications equipment, shall be designed, installed and painted to be visually unobtrusive and to create a unified, coherent whole. These roof top features shall be incorporated into the building design at the Planning approval stage of the project. Additional visual simulations may be required to demonstrate that the project provides for architecturally interesting and varied skyline views, with specific attention given to integrating these rooftop features into the overall building design.

4. Permanent Projections into the Public Right-of-Way. It is not the intent of the Plan to create a hard edge between the public and private realms. Rather, building facades and storefronts that are varied and that promote activity and interest are encouraged.

5. Café and Retail Extension Zones. Pacific Avenue and some of the east-west streets (e.g., Church Street, Walnut Avenue, Cathcart Street, and any pedestrian paseo or lane such as pedestrian-oriented portions of Plaza Lane, Pearl Alley, and Frazier Lewis Lane.) will include opportunities for the extension of retail and restaurant activities into the public right-of-way.

These extension areas will be managed by the City and its designated agent through revocable licenses [See Extension Area requirements in section 24.10 of the Zoning Ordinance]. The following guidelines shall govern the physical design of these extension areas:
a. Types of Uses. Designated extension areas shall be confined to uses that add activity and color to the urban environment. Permitted uses shall be limited to outdoor cafes, food kiosks or carts, or the selling of flowers, produce, and newspapers/magazines goods belonging to an established adjacent commercial use, unless otherwise approved by the City Council Planning Director or its their designated agent.
b. Outdoor Cafes. The extension area for cafes shall project no more than 12 feet

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from the property line into the public right-of-way or into any area of private or city-owned property dedicated for public pedestrian use, and in no case shall a cafe extension area result in a public walkway of less than 128 feet wide. The elevation of the extension area shall be the same as the public sidewalk or surrounding pedestrian area, and shall meet ADA accessibility standards. A canvas awning will be permitted to extend over the full depth of the cafe extension area; no columns or supporting poles will be permitted within the public right-of-way. Awnings shall comply with the design and height guidelines prescribed below. The use of removable umbrellas within sidewalk the extension areas is also encouraged, provided that seven feet of vertical clearance is provided from the sidewalk or walkway.
i.Within Public Sidewalks: No permanent structures will be allowed within the public right-of-way, with the exception of ADA-complaint barriers. If a separation between the cafe and the promenade a sidewalk is desired, this shall be achieved through low planters that could contain colorful flowers or a low hedge not permanently affixed to the sidewalk; the maximum height of such planters (including the planting) shall be no more than four feet. Planters shall consist of high-quality, durable materials of a weight and mass that will discourage theft, vandalism or easy movement. Removable wind screens that are of a transparent material and that are an integral part of the planter will be permitted to extend the seasonal use of the cafe area.

Such screens shall not exceed a height of six feet and shall be separated from the awning to provide for air movement.
ii. Within Pedestrian Lanes or Alleyways: No planters or permanent or semipermanent separation between extension areas and walkways will be allowed in pedestrian lanes, in order to ensure access by maintenance vehicles as necessary. Furnishings and equipment in extension areas occupying pedestrian lanes should be lightweight and moveable to ensure short-notice vehicular access to the area can be provided. c. Retailing Uses. Retailing uses within extension zones shall be limited to the sale of newspapers and magazines, flowers and produce, unless otherwise approved by City Council or its designated agent. Such Retail extension areas shall not exceed 6 feet in depth, unless it is determined by the Planning Director or their designated agent that such depth is necessary to achieve the desired pedestrian objectives for the street, and in no case shall an extension area result in a public promenade that is less than 12 feet in depth on Pacific Avenue and no less than 8 feet in depth on Front Street and, Laurel Street, or any pedestrian lane. Merchandise shall be displayed against the shop front and be oriented toward the street adjacent walkway on tables or stands that do not exceed four feet in height. No separation (e.g., planters or low walls) between the merchandise and the street shall be permitted. d. Furniture. All furniture (e.g., tables, chairs, retailing stands) shall be durable, well-maintained, and of a high quality, suitable for outdoor use; such furniture shall be light, not heavy or massive in nature, to ensure that it does not visually dominate the street surroundings. All furniture shall be approved by City Council or its designated agent.
e. Design Materials. The design materials and colors used for chairs, tables, display stands, lighting, and other fixtures (including umbrellas and awnings) shall

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be generally consistent with both the architectural style and colors used on the building facade and the quality of fixtures along Pacific Avenue. f. Lighting. Lighting shall be incorporated into the facade of the building and shall complement the style of the building. Lights on buildings shall not be glaring to pedestrians and shall illuminate only the extension area and the activities within.

General illumination shall be at 5 foot-candles, with a maximum of 10 foot-candles.

Table lamps or candles are encouraged in cafe areas. Wired electrical fixtures will be allowed outside the face of the building, if contained within the semi-permanent barrier allowed for cafe extension areas and if installed by a licensed electrician. A lighting plan must be approved by the City Council or its designated agent. i. Within pedestrian lanes overhead lighting such as string lights or similar will also be permitted so long as a minimum clearance of 10 feet is maintained to ensure access by maintenance vehicles as necessary.
g. Sidewalk Cleaning. The sidewalk or pedestrian lane area within the Café or Retail Extension Zone shall be cleaned and maintained by the licensee. The area shall be cleaned, at a minimum, daily and shall be steam cleaned as needed and appropriate, to maintain a clean, sanitary and attractive environment.

6. Distinctive Architectural Elements. Towers, cupolas, chimneys, dormers, spires, flag poles and other architectural elements will be allowed on a conditional basis, if they can meet the following criteria:
a. Key Locations. Such elements occur at significant locations within the downtown (e.g. key corners, street termini, downtown gateways), and provide landmarks that will reinforce the overall sense of place;
b. Architectural Integration. Such elements have been architecturally integrated within the building design and contribute positively to the overall harmony, composition and articulation of the facade and building mass;
c. Solar Access. Such elements do not significantly affect solar access objectives for the west- facing sidewalk of Pacific Avenue or the south-facing sidewalks of east-west streets; and
d. No Habitable Space. Such elements do not add habitable space above the prescribed height limits set forth above.

7. Accessibility. The Plan recognizes that accessibility permeates all elements of urban design, and requires that access be aesthetically integrated within all public and private development in the downtown. The Americans with Disability Act, passed by Congress in 1990, confirms that accessibility is a civil right and not a luxury or option. The Plan endorses this position, and requires that new development strive to achieve an "optimum state" of accessibility, beginning with compliance with both the State of California's Title 24 Accessibility Requirements and the Uniform Federal Accessibility Standards (UFAS). This requirement shall govern all subdistricts within the downtown.

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8. Pedestrian Passages. While sideyard spaces are discouraged in favor of contiguous building facades, public-oriented passages that provide pedestrian access through a development parcel to parking facilities, interior courtyards, and/or other developments are encouraged. These passages shall comply with Californian Building Code, et seq., dimensional requirements, and include provision of natural (as well as electrical) light and active uses along their length. To the maximum extent practicable, adjacent development shall establish a relationship to these passages with entries and storefronts, to promote a secure and interesting environment.

9. Interior Courtyards. Santa Cruz has a tradition of interior courtyards and gardens that provide attractive places to sit and relax, and a spatial counterpoint to the street experience. If provided, courtyards or interior gardens shall be designed to include: direct publicly-oriented linkages to Pacific Avenue and/or to other public streets or lanes; activities that do not reduce the principal objective of activating Pacific Avenue; and generous solar access throughout the year.

10. Intersection Treatment. High activity-generating uses are especially encouraged at the Pacific Avenue intersections. Minor corner setbacks in conjunction with storefront entries are also encouraged at these locations.

11. Corner Treatment. Corner parcels are encouraged to incorporate special features such as rounded or cut corners, articulated corner entrances, display windows, corner roof features, etc.

12. "T" Intersections. New development that occurs at the "T" intersections along Pacific Avenue (Cooper-Church-Locust; Soquel-Walnut-Lincoln; Elm-Maple-Pacific) are encouraged to accentuate the unique spatial characteristics of this condition, through corner treatments as described above, and through special facade treatments at the visual terminus of the east-west streets (e.g., towers, distinctive change in fenestration, roof profile, building material, etc.). Buildings located at the “T” intersections are required to prepare a visual impact analysis to determine the visual impact from the east-west street.

13. Ground Level Treatment. Along rear parking lots and service lanes, rear alleys are envisioned as attractive pedestrian places as well as service spaces. Where the back of development is adjacent to a public alley or surface parking lot, the ground level shall be designed to include architectural interest and detail on the rear façade. At a minimum, a usable and operable rear entrance shall be provided and, to the maximum extent practicable, views into the retailing activity shall be provided from the rear of the building.

14. Off-site Parking and Parking Structures. Required residential and commercial parking may be provided off-site, provided that such parking is located within the parking District No.

1. Publicly available parking structures shall conform to height limits of this Plan, but are not required to adhere to a maximum floor-area-ratio limit.

15. Service Access. Parcels adjacent to rear alleys must maintain service access from the rear and provide attractive rear entrances. Trash storage areas shall be internal to the building or completely enclosed and screened from view, as required by City ordinance. Trash or loading areas shall not, to the maximum extent practicable, be located adjacent to Pacific Avenue, North

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Pacific Avenue, Front Street or Water Street. Required grease trap interceptors shall be maintained within the property. On a conditional basis, the City will consider their location within public alleys or within the street right-of-way, if there is no feasible alternative within the property.

16. Activated Roof Top Amenities. Because the Plan contemplates that rooftops provide opportunities for usable residential or commercial spaces, community gardens, other common or community amenities including rooftop bars and pools, shade structures, and associated access facilities, rooftop improvements will be permitted to:
 Extend no more than 15 feet above the otherwise maximum allowable height limit;  Shall be setback at least 15 feet from the edge of the roof, provided that they are found to better achieve stated Plan and community objectives;  Are architecturally integrated into the building design; and  Structures above the height limit are limited to not more than 50% of the gross rooftop area.

Such variations shall be minor in nature and must receive a recommendation from the Planning Commission, with final approval by the City Council. These exceptions are in addition to additional height allowances found in Section 24.12.150 of the Zoning Ordinance.

17. Development Review. Coordinate interdepartmental City review of new development projects to evaluate ways in which public safety and community access to public spaces can be supported, for example, through physical design, security, exterior lighting, programming, and maintenance requirements. This review will consider, in particular, the exterior of the building and how it interacts with the surrounding public rights of way, and may condition a project to provide accommodation for features that support and enhance those interactions.

18. Resiliency Requirements. Due to the potential for floodwater intrusion in the Downtown, all new development will be required to comply with the standards for floodplain development as established by the California Building Standards Code and the more restrictive of either the most updated mapping data published by FEMA, or any Letter of Map Revision (LOMR) submitted to FEMA for review, based upon the timing of building permit submittal.

19. Outdoor Lighting. Review lighting along the San Lorenzo River to ensure consistency with the guidelines in place to protect the riparian environment, such as shielding individual lights to direct light downward, maintaining intensity less than 1,260 lumens and ensuring a color temperature no more than 3000 Kelvin.

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K. SOUTH OF LAUREL AREA

DEVELOPMENT STANDARDS

1. Applicability
In general, the guidelines and standards established in Section B. Pacific Avenue Retail District - Development Standards, Section C. Pacific Avenue Retail District - Building Façade Standards and Guidelines, Section D. Pacific Avenue Retail District - Storefront Standards and Design Guidelines and Section E. Front Street/Riverfront Corridor - Development Standards and Design Guidelines will apply in the South of Laurel Area, with the standards for each area extending south to the point where Pacific Avenue and Front Street meet. Beyond that point the remainder of the South of Laurel Area District shall be generally subject to the standards established in Section E. Front Street/Riverfront Corridor - Development Standards and Design Guidelines. Exceptions to these general provisions are shown here. Where this section includes guidelines or standards that conflict with the above referenced sections, this section shall supersede for property within the South of Laurel Area.

2. Floodplain Development
All new buildings in the South of Laurel Area shall be constructed in compliance with the standards for floodplain development as established by the California Building Standards Code and the more restrictive of either one of the following, based upon the timing of building permit submittal:
a. the most updated mapping data published by FEMA, or
b. any Letter of Map Revision (LOMR) submitted for review that postdates the published map applicable to the development site.

3. Building Height
The following height standards shall apply to all development within the South of Laurel Area. All new development must conform with the Base Height requirements, unless pursuing a City or State Density Bonus and requesting a waiver or concession for building height.
a. Base Height and Floors. No new development shall exceed the base height of 85 feet, 70 feet, or 50 feet (as indicated in Figures B-1 and B-3) except as the result of compliance with any density bonus program or provision of state or local law. i. Areas shown in Figure B-3 as “Reduced Height Overlay Zones” shall be limited to no more than 70 feet in height in order to provide some transition in height adjacent to Beach Hill.
b. Floor-to-Floor Height. Parcel frontages located on the west or north side of Pacific Avenue or on Center Street must have a minimum ground floor height of 15 feet.

Exclusive of commercial ground floor requirements, parcel frontages along the south side of Laurel Street must have a minimum ground floor height of 11 feet six inches.

All other parcel frontages in the South of Laurel Area must have a minimum ground floor height of 18 feet. Any mezzanine incorporated into the first story shall be set back at least 20 feet from the building frontage on the street and shall occupy no more than one half of the area of the floor below.

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i. Floor-to-Floor heights for mechanical, electrical, trash, or utility rooms located on the ground floor can be lower than the above standards.

4. Commercial Ground Floors.
a. Ground floors along Pacific Avenue, Laurel Street, and Spruce Street must be dedicated to commercial space with minimum of depth of 20 feet. b. Residential lobbies consistent with the requirements of that land use as defined with the Uses Chart in the Downtown Plan will be the only exceptions to this standard. c. Buildings adjacent to Activity Nodes identified in Appendix 8, Figure 8.4-6, Gateways and Nodes, will be required to dedicate ground floors to commercial space.

Commercial spaces will have a minimum length of 50 feet of total frontage and a depth no less than 20 feet.

5. Upper-Level Tapering (supersedes all stepback requirements from subsection E (1)). In order to promote a pedestrian scale, to increase light to the street, and to reduce overall building mass and scale of development on sites over one-half acre in size and with a street frontage dimension of 150 feet or more shall be required to taper above 55 feet. See Figure K-1. Tapering shall be consistent with the following:
a. The stories containing interior finished floor above 55 feet in height shall be no more than 90% of the interior finished floor area of the highest finished floor below 55 feet. b. The first floorplate above 75 feet in height shall be no more than 75% of the floor area of the highest floor below 55 feet.
c. Any floorplate above 85 feet in height added through density bonus application shall be no more than 35% of the floor area of the highest floor below 55 feet in height.

6. View Corridor Setbacks. The block of land identified in Appendix 8 as Redevelopment Block ‘D’ located south of Spruce Street, north of Beach Hill, and between the Santa Cruz Riverwalk and Front Street, shall be developed in a manner that maintains the public view from the Cliff Street Stairs toward the San Lorenzo River by setting back all stories above 35’ from grade level. The required setback will taper from 75 feet at the southern end to 35’ at the north end of the parcel, measured from the western edge of the existing Riverwalk path.

7. Visual Simulation Requirement. All new development and redevelopment proposals must prepare a visual rendering from a pedestrian eye-level, showing the proposed development in context of surrounding buildings and streetscape features.

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Figure K-1: Maximum Building Heights and Floors, south of Laurel Street. *Number 1 above applies only to sites with 85’ height standard as shown in in Figure B-3.

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8. Activated Roof Top Amenities. Because the Plan contemplates that rooftops provide opportunities for usable residential or commercial spaces, community gardens, other common or community amenities including rooftop bars and pools, shade structures, and associated access facilities, rooftop improvements will be permitted to:
a. Extend no more than 15 feet above the otherwise maximum allowable height limit; b. Shall be setback at least 15 feet from the edge of the roof, provided that they are found to better achieve stated Plan and community objectives; c. Are architecturally integrated into the building design; and d. Structures above the height limit are limited to not more than 50% of the gross rooftop area.

Such variations shall be minor in nature and must receive a recommendation from the Planning Commission, with final approval by the City Council. These exceptions are in addition to allowances found in Section 24.12.150 of the Zoning Ordinance.

9. Upper-Level Facades. (i.e., the levels of building wall above the ground floor). Upperlevel facades should provide a counterpoint to the storefronts below and provide a visually interesting and varied edge to the public space of the street. In general, the upper-level façade should consist of carefully composed “punctured openings” within a richly detailed wall. A variety of treatments shall be introduced to create richness in both the horizontal and vertical planes, including:
 windows with sills a minimum of six inches in depth,
 articulation through variation in facade depth,
 balconies,
 bay windows,
 flower boxes,
 awnings,
 cornice and belt courses, and/or
 massing breaks as described in SCMC 24.12.185.

10. Streetwall. To create a visually interesting “streetwall” with a rhythm and cadence that is reflective of the pattern of development along Pacific Avenue, building facades shall introduce variation at general intervals of 25 to 50 feet horizontal distance with the use of:
 fenestration;
 architectural elements
 building materials, and/or
 building planes.

Large, uninterrupted expanses of horizontal or vertical wall surface shall be avoided.

Regardless of property lines, the appearance shall be of a street with varying architectural

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treatments at intervals of no more than 50 to 75 feet. The multiple rhythms shall be created through the careful design of building elements and three-dimensional articulation of building elements sufficient to mitigate the presence of long, blank walls along Pacific Avenue, Front Street, Cedar Street, the Spruce Street Plaza, the east-west streets, and the alleys. Elements that make up the rhythmic variation may include, but are not limited to:
 recessed windows as described in SCMC 24.12.185,
 projecting windows,
 bay windows,
 structural elements,
 surface textures, patterns and colors,
 trim elements,
 balconies,
 belt-cornices,
 cornices,
 massing breaks as described in SCMC 24.12.185,
 awnings and shutters; and/or
 landscape elements including Living Walls a minimum of 4 feet wide and 8 feet in height and as defined in SCMC Section 24.12.185.

11. Public and Private Parking Facilities. The South of Laurel Area is outside of Downtown Parking District #1 and parcels in this area are not eligible for inclusion in that District and access to the allowances and requirements of that District unless annexed. On-site parking will not be permitted unless it meets the conditions otherwise required by Section B part 3 or by Section E part 9, respectively, based on location as defined above. a. Any parking provided for residential units shall be provided in an unbundled fashion, separating the cost of parking from the cost to purchase or rent housing. In no case will a residential tenant or owner be required to purchase any amount of parking space in order to own or rent a housing unit.
b. Any parking facilities associated with a sports arena will be permitted to exceed the limits on the number of driveways but shall still seek to minimize curb cuts on Front Street, while accommodating the loading and parking needs of the use. A sports arena shall have no curb cuts on Pacific Avenue.
c. Standards for bicycle storage and parking shall be as required in SCMC Chapter

24.12. i. In the South of Laurel Area, new residential development may provide up to 30% of required Class 1 bike storage spaces within residential units. The remainder of required bike facilities will be provided consistent with the requirements of the Municipal Code.

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i.ii.

12. Transportation Demand Management.

New development projects will meet the requirements of SCMC Chapter 10.46, Citywide Trip Reduction Program, and in the South of Laurel Area will also be required to provide the following:
a. When more than 50 residential units are proposed, shared electric bicycles shall be provided for resident use at the following ratios. In no case shall less than one electric bicycle be provided when any fraction is required, and building management shall be responsible for ongoing maintenance, replacement, etc.
i. Up to 50 units – 1 bicycle
ii. 51 to 80 units – 2 bicycles
iii. 81-110 units – 3 bicycles
iv. 111 and greater – 4 bicycles

13. Events Arena.

The SOLA District allows for the construction of a new sporting and events arena, which may be located either on the south side of the block of Spruce Street between Pacific Avenue and Front Street, or on the south side of the block of Spruce Street between Front Street and the Santa Cruz Riverwalk. In either location, the following development standards and guidelines shall apply to that development.
a. The arena should seek to incorporate durable, high-quality materials (e.g., brick, stone, steel, glass, triple-layer stucco etc.) and serve as a distinctive architectural landmark to the greater downtown area.
b. The arena building façade should include windows and other pedestrian-friendly materials to create an inviting streetscape.
c. Building massing along Front Street shall incorporate pedestrian-friendly design features such as windows, articulated facades (i.e., setbacks), door entrances, planter boxes, etc. Long continuous walls without articulation should be avoided. d. Incorporate ground-floor active commercial uses (e.g., restaurants, box-office) fronting portions of the Spruce Street Plaza to the greatest extent possible. Semiprivate use of the portion of the Spruce Street Plaza fronting the arena for outdoor dining, pre- and post-event gatherings, etc. is permitted and encouraged. e. Active commercial ground-floor uses are encouraged on Front Street (if arena is on Block D) and required on Pacific Avenue (if arena is on Block C) to create an engaging, lively, and pedestrian-friendly civic space.
f. If the arena is constructed on Block D, portions of the eastern boundary shall include active uses that complement and integrate with the Santa Cruz Riverwalk. This shall include levee-oriented commercial space, (e.g., restaurants). g. The arena could incorporate other community-serving amenities such as an abovegrade terrace affording views of the San Lorenzo River and cityscape, or other community serving amenities. Any such uses that are directly adjacent to the arena building may be closed to the public as needed.

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h. The use of large-format digital screens and/or image projection on the arena building façade to promote sporting and other entertainment events is encouraged, while considering its location, intensity, time of illumination, and positioning, consistent with environmental conditions.
i. “Back-of-house” service access shall be either via the new Laurel Street Extension to the south (if the arena is on Block D) or from Front Street or a new service alley accessed from Front Street (if the arena is on Block C).

14. Downtown Density Bonus
All parcels within the South of Laurel Area are eligible to pursue development incentives for additional height and/or Floor Area Ratio for buildings meeting certain criteria. The purpose of the Downtown Density Bonus (DDB) is to support a compact urban core while achieving a higher-than-average rate of below-market-rate housing units, promoting high-quality design, and generally encouraging building heights of twelve stories or less. Applications for a Downtown Density Bonus will be processed as part of the Design Permit when requested by qualifying development project.
a. Bonus Development Density. Development proposals meeting any one of the qualifying criteria are eligible to select either one of the options for bonus density as follows:
i. Option A: Bonus Floor Area Ratio (FAR). Up to 75% additional FAR on top of the base FAR, and up to an additional 75% in height not to exceed 145 feet.

Projects may choose to use some or all of any bonus for which they qualify. ii. Option B: Waiver of Unlimited Floor Area Ratio (FAR). For development proposals that limit height to the height limits of the Downtown Plan (50, 70, 85 feet), excluding noted exceptions to height limits as consistent with the Downtown Plan or SCMC Section 24.12.150 - Height Limit Modifications, a waiver elimination of the maximum FAR standard.
b. Qualifying Development. Applicants for development within the South of Laurel Area of the Downtown Plan qualify for bonus density under this section when all the following conditions are met:
i. The proposal is for a mixed-use or fully residential, rental housing development.

The Downtown Density Bonus is not available to for-sale residential development proposals.
ii. The floor area of the proposed development consists of 2/3 or more residential dwellings, while ensuring that the ground floor frontage is reserved for commercial and active, public-facing uses consistent with Sections A and K of Chapter 4 of the Downtown Plan.
iii. The proposed development meets the required development standards as delineated below in parts h and i and complies with the requirements for Architectural Review as described in part j.
iv. The development proposal meets one of the following criteria, with any fractional

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obligation being rounded up to the next whole number:
(1) On-site option: If below-market-rate units are provided on the same site as the market rate units projects must meet the following minimum standards:
(a) Provide 13.4% of the total dwelling units, inclusive of any and all density bonus units, to Low-Income households at a Low-Income affordable rent, consistent with part k below. Deeper levels of affordability will also qualify; and
(b) Provide 8% of the total dwelling units, inclusive of any and all density bonus units, to Moderate-Income households at a Moderate-Income affordable rent, consistent with part k below. Deeper levels of affordability will also qualify
(2) Off-site Option: If below market rate units are provided off-site from the market rate units and consistent with criteria in parts 4, 5, and 6 d, e, and f, as applicable, projects must meet the following minimum standards:
(a) Provide a number of bedrooms equating to at least 26.7% of the total bedrooms, inclusive of bedrooms in any and all density bonus units, on the DDB site as part of a development project at a low-income affordable rent, as defined in SCMC 24.16.015 consistent with part 10 below. Deeper levels of affordability will also qualify; and
(b) Provide a total square footage of dwelling unit area in the off-site project that is not less than 75% of the total dwelling unit area of the DDB project multiplied by 26.7%. Common areas such as corridors, stairwells, community rooms, etc. are not counted toward this amount, only square footage within dwelling units. For instance, if a DDB project contains 100,000 square feet of dwelling unit area the required off-site project square footage of dwelling unit area would be a minimum of 20,025 square feet (100,000 x 26.7% = 26,700 and 26,700 x 75% = 20,025). (c) These bedrooms and dwelling unit area may be arranged into any size or number of dwelling units.
(3) Fee Option: If a fee is provided in lieu of construction of the required below market rate units on or off site, said fee will be calculated at a rate of $60 per square foot of in-dwelling-unit leasable area to be paid to the City of Santa Cruz Affordable Housing Trust Fund. The fee will be expended consistent with part gh below. The amount of the required fee will be adjusted annually beginning on January 1, 2026, consistent with the Consumer Price Index. (4) Land Dedication Option: If land is dedicated to the City consistent with parts d and g, parcels must meet the following minimum standards:
(a) Parcels shall be entitled for development of below-market rate housing alone or in combination with ground-floor commercial uses, prior to issuance of a building permit for the market rate project, except that the Planning and Community Development Director shall have the discretion to issue the building permit for the market rate project if it is determined that diligent progress is being made on the entitlements, which at a

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minimum includes submittal of a substantially complete application and plan set.
(b) Entitled projects on land to be dedicated will provide a total square footage of dwelling unit area that is not less than 75% of the total dwelling unit area of the DDB project multiplied by 40%. Common areas such as corridors, stairwells, community rooms, etc. are not counted toward this amount, only square footage within proposed dwelling units. For instance, if a DDB project contains 100,000 square feet of dwelling unit area the required entitled project on the parcels to be dedicated will include dwelling unit area that is a minimum of 30,000 square feet (100,000 x 75% = 75,000 and 75,000 x 40% = 30,000).
(c) The square footage may be arranged into any size or number of dwelling units.
(5) Combination Option: A combination of qualification options may be approved by the City Council based upon the favorable recommendations of the Directors of Planning & Community Development and Economic Development & Housing, if Council finds that the combination of approaches provides an equivalent or greater affordable housing benefit to the community.
c. Additional Criteria for Project Approval.
i. In pursuing a DDB, the developer will permanently forgo any State Density Bonus or other City Density Bonus for which the development might otherwise be eligible. No other state or local development incentives may be combined with use of the Downtown Density Bonus.
ii. Any properties pursuing a DDB that trigger requirements under state or local law for replacement housing will be responsible for providing such housing consistent with those regulations. Required replacement units may be counted towards meeting the City’s inclusionary requirement and/or qualifying for a DDB provided that the level of subsidy and duration of affordability meet the criteria of this policy. The number of bedrooms in the affordable replacement units will be deducted from the number of bedrooms needed in the off-site affordable units. (1) For sites using the off-site option: Any existing units on the site identified for the off-site below-market rate units that are subject to replacement requirements for lower-income residents by state law must be provided in addition to the total required number of bedrooms and square footage in lower-income affordable units needed to qualify for the DDB; an individual unit or bedroom cannot be counted toward both obligations. iii. Prior to Building Permit issuance, developers using the DDB must complete an affordable housing agreement with the City that enumerates the following items:
(1) the specific number, location, and depth of affordability of all below market rate units to be constructed or any in-lieu fees to be paid; (2) the on-site affordable housing or in-lieu fee requirements that will apply

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should an off-site option be selected but not achieved within specified timelines; and
(3) that all below market rate housing units created as a result of a DDB project shall be perpetually restricted, unless subordinate to secured state or federal affordable housing restrictions, to the income level required under part b. d. Selection of Sites for Off-Site Below-Market Rate Units or Land Dedication. i. Any off-site below-market rate units must be built on, or on land dedicated to the City in order to qualify for a DDB, must consist of, a parcel or parcels within the City of Santa Cruz that are either:
(1) within a half-mile radius of the South of Laurel Area of the Downtown Plan; or
(2) within the Downtown Plan area; or
(3) within the Coastal Zone.
ii. More than one DDB site may contribute bedrooms in off-site units as part of a larger project, provided that the total number of bedrooms required in belowmarket rate units is not reduced. iii. More than one DDB site may contribute land to a single land dedication action as part of a larger project, provided that the total amount of land required for dedication is not reduced.
iv. The site or sites must be large enough to accommodate the required square footage and/or number of bedrooms, as a part of housing units, in addition to any required replacement units that redevelopment of the receiving site would trigger. v. Multiple sites, contiguous or otherwise, may be utilized to meet the off-site obligation for below-market rate units, or the land dedication option, and all sites must comply with these locational criteria.
vi. If it is indicated by an applicant or determined by staff that state or federal funding for financing will be needed then the site or sites must be located in areas deemed by the Economic Development Director to be highly competitive for State and Federal housing grant funding opportunities, in order to encourage timely completion of the proposed affordable housing development(s). e. Additional Criteria for construction for off-site below-market housing together with market rate housing development
i. If an applicant proposes to incorporate the off-site below-market rate units into a project that is anything other than a 100% below-market-rate development, excepting manager units, the bedrooms and units that are being used to qualify for the DDB must be in excess of any inclusionary or replacement below-market rate units otherwise required for the market rate project on the receiving site, and cannot be counted toward qualifying for any State Density Bonus. The amount of below-market rate housing on the site will not be less than the total of all of the following:
(1) the number of bedrooms and square footage required under part b;

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(2) the number of units required as replacement units under state law, if any; and (3) the number of units required for compliance with the City’s inclusionary housing ordinance on the site, consistent with applicable state laws. ii. For this option, the developer of the site seeking the DDB will either identify and acquire a site suitable for development or will identify a development partner already engaged in development of a suitable site where additional affordable units will be added pursuant to other provisions in this section, and ensure entitlement and completion of construction of a project that will meet or exceed the requirements of part b.
iii. To approve this option, the affordable housing agreement for the DDB site will stipulate the following:
(1) A substantially complete development entitlement application for the receiving site or a substantially complete building permit application in the case of a ministerial project, as determined by the City, shall be submitted for City review prior to issuing Building Permits for DDB site. (2) Prior to issuing a Certificate of Occupancy to the site utilizing the DDB, the developer of the DDB site or a development partner shall commence construction on the housing units proposed to meet the qualification criteria for the DDB.
(3) Compensation or securities must be provided by the developer of the DDB site for any bedrooms for lower-income households not available for occupancy as part of the off-site project at the time of issuance of the Certificate of Occupancy to the DDB site. Such compensation or securities shall be provided in one of the following ways:
(a) The required number of off-site bedrooms can be provided at the DDB site to lower-income households at an affordable rent as defined in part k; or (b) A bond in an amount equivalent to the amount of in-lieu fee that would have qualified the project for a DDB shall be required to be submitted to the City. The bond will be returned to the developer if the affordable units have been constructed and occupied within two years of the date that the DDB project is occupied.
(c) If the Directors of Planning and Community Development and Economic Development and Housing determine that the off-site project has not made sufficient progress to meet the timing expectations of this section, the City reserves the right to require full payment of in-lieu fees immediately and inclusive of a 10% penalty. The determination of the directors is appealable to the City Council, with the applicant responsible for covering City costs associated with bringing such an appeal to hearing. (4) Variation from timing standards may be sought for good cause by the developer of either the DDB site or the off-site project and shall require the approval of the City Council with an affirmative recommendation from the Directors of both Planning and Community Development and Economic Development and Housing.

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f. Additional Criteria for construction of off-site below-market rate units as part of a 100% below-market rate project
i. If an applicant proposes to incorporate the off-site below-market rate units into a project that is a 100% below-market-rate development, excepting manager units, the bedrooms and units that are being used to qualify for the DDB must be in excess of any inclusionary or replacement below-market rate units otherwise required on the receiving site, but may contribute toward qualifying for a State Density Bonus.
ii. The developer of the site seeking the DDB will provide a suitable site for development of below-market-rate housing as approved by the Directors of Planning and Community Development and Economic Development and Housing. The Directors shall approve the site based on the relevant provisions of this section, including with the intent of this Policy for the off-site option to increase the number of 100% affordable projects beyond the number that would occur absent the DDB. The developer will then either proceed with entitlement and development of the site, or will engage with a City-approved affordable housing partner as part of a City-approved transaction to pursue entitlement for and complete construction of a development project of sufficient size to meet or exceed the requirement for bedrooms and square footage in below-market rate units established by part b above.
iii. To approve this option, the affordable housing agreement for the DDB site will stipulate the following:
(1) A complete development application for the receiving site or a complete building permit application in the case of a ministerial project, shall be accepted for City review prior to issuing Building Permits for DDB site. (2) Prior to issuing a Certificate of Occupancy to the site utilizing the DDB, the developer of the DDB site or a development partner shall commence construction on the housing units proposed to meet the qualification criteria for the DDB.
(3) Compensation or securities must be provided by the developer of the DDB site for any bedrooms for lower-income households not available for occupancy as part of the off-site project at the time of issuance of the Certificate of Occupancy to the DDB site. Such compensation or securities shall be provided in one of the following ways:
(a) The required number of off-site bedrooms can be provided at the DDB site to lower-income households at an affordable rent as defined in part k, or (b) A Bond in an amount equivalent to the amount of the in-lieu fee that would have qualified the project for a DDB shall be required to be submitted to the City. The bond will be returned to the developer if the affordable units have been constructed and occupied within two years of the date that the DDB project is occupied.
(c) If the Directors of Planning and Community Development and Economic

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Development and Housing determine that the off-site project has not made sufficient progress to meet the timing expectations of this section, the City reserves the right to require full payment of in-lieu fees immediately and inclusive of a 10% penalty. The determination of the directors is appealable to the City Council, with the applicant responsible for covering City costs associated with bringing such an appeal to hearing. (4) Variation from timing standards may be sought for good cause by the developer of either the DDB site or the off-site project and shall require the approval of the City Council with an affirmative recommendation from the Directors of both Planning and Community Development and Economic Development and Housing.
(5) Following completion of construction, the developer will transfer ownership of the property to the City of Santa Cruz unless alternative agreements are negotiated with the Economic Development and Housing Department. Subject to City approval, the developer may lease and operate the below market rate housing development or may transfer the lease for the housing units to a Cityapproved affordable housing partner. (a) As part of the affordable housing agreement, the developer of the DDB site will identify the preferred option for achieving compliance with this requirement, selecting from the following options:
(i) Only the land is transferred to the City, the developer holds the units and operates the below market rate project.
(ii) Both the land and the housing units are transferred to the City, and the City selects an affordable housing partner to operate and manage the housing.
(b) The developer of the receiving site is a City-approved affordable housing partner, who retains ownership of both the land and the housing units. The land and the affordable units shall be subject to a covenant ensuring perpetual affordability of the units to lower-income households at an affordable rent, as defined in part k, which shall be recorded on the property at the time of the transfer. The covenant shall clarify that the land will be reserved for housing affordable to lower-income households in perpetuity. This covenant shall be recorded in a priority lien position that shall survive a foreclosure event.
g. Requirements for Land Dedication for off-site below market rate units i. Approval will be based upon conformance with the following minimum requirements and approval by the Directors of Planning and Community Development and Economic Development and Housing:
(1) The parcels to be dedicated will provide sufficient land area to provide a minimum of 50% more square footage of housing than the amount that would otherwise be required under the option to provide off-site construction of below-market rate housing.
(2) The applicant for the DDB will provide the City with financial compensation

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for the City costs of completing development of the site(s) with an affordable housing project. For purposes of this section, the amount of compensation shall be equal to one year of staff salary and benefits costs for a Development Manager.
(3) The applicant shall enter into an affordable housing agreement with the City prior to issuance of a building permit for the DDB site. Among other things, the affordable housing agreement will specify requirements for relocation of any tenants prior to the land being dedicated to the City, consistent with applicable laws.
(4) The land to be dedicated will be fully entitled for development at the time of dedication to the City.
(5) Dedication of land and required financial contribution to the City for staff costs must be completed prior to issuance of the Certificate of Occupancy for the DDB site.
(6) As an alternative to dedicating the land to the City, with an affirmative recommendation from the Directors of both Planning and Community Development and Economic Development and Housing, the City Council may approve an alternative dedication that still provides the requisite affordable housing, such as dedication of the land to an affordable housing developer, coupled with an affordable housing deed restriction. (7) To facilitate development of the off-site affordable housing project or the provision of other affordable housing in the City, prior to occupancy of the market rate project, the developer of the DDB site shall contribute money to the City’s Affordable Housing Trust Fund in the amount of $9.54 per square foot of off-site affordable housing dwelling unit area that the developer would be required to provide under this land dedication option. The amount of the required contribution will be adjusted annually beginning on January 1, 2026, consistent with the Consumer Price Index.
(8) Credit for Excess Off-Site Land Capacity. If a developer dedicates land that generates more affordable housing dwelling unit area than is required for the market-rate project, then the developer may claim affordable housing square footage credits towards a future DDB project if all of the following criteria are met:
(a) The project and resident amenities in the entitled affordable housing project must be comparable to or exceed those of other recent City-led affordable housing projects.
(b) Only the dwelling unit area square footage in excess of that otherwise required may be considered for credit towards a future project. (c) The excess square footage credits may not be sold or transferred. Only the market rate DDB project applicant or their affiliate may use the credits towards a separate, future DDB project. For purposes of this section, an affiliate means any current or future entity that is directly or indirectly owned, operated, or controlled by the developer or by any person or entity that directly or indirectly controls the developer.
(d) Credit Expiration.
(i) The credit will expire seven years from the date that final occupancy is granted for the residential portion of the initial market rate project, unless a formal application for a new project that will utilize the credit has been submitted.

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(ii) The applicant must diligently pursue permit approvals for and, following any necessary entitlements, diligently pursue construction of the alternative site seeking to utilize the credits. Expiration of credits may result through action of the City Council if diligent pursuit is not maintained.
(iii)The City Council may extend the expiration of credits beyond seven years from the date that final occupancy is granted for the initial project if the Council finds that extenuating circumstances exist, such as market or economic conditions that prevent housing construction. h. Requirements for in-lieu Fees
i. To approve this option, the affordable housing agreement for the DDB site will stipulate the following:
(1) The total amount of the in-lieu fee will be calculated based on the expected date of building permit issuance.
(2) The fee will be paid to the Affordable Housing Trust Fund in no more than two installments:
(a) At least 50% of the fee will be paid prior to issuance of building permits; and
(b) Any remaining in-lieu fee will be paid prior to issuance of Temporary Certificate of Occupancy or Certificate of Occupancy.
ii. All fees collected from DDB projects will be expended on projects that create or preserve permanently affordable housing for lower-income households (1) A minimum of 50% of funds resulting from any DDB in-lieu fee will be spent on projects inside the Coastal Zone or within the Downtown Plan area. The administrators of the Affordable Housing Trust Fund shall maintain accounting of the expenditures to ensure compliance with this provision. i. Maximum Height with DDB
i. For sites utilizing Option A: Bonus FAR
(1) Special attention shall be paid to the structure to address issues such as massing, building shadows, and views of the skyline from a distance. One way to address these issues would be to have no more than 35% of the site area exceed 85’ in height. The Architectural Review Committee shall review proposals.
(2) The tallest portion of the structures, measured to the top plate, shall be no more than 12 stories and 145’ tall. Rooftop structures may exceed this height limit in accordance with the allowances established in SCMC Section

24.12.150 and in the Downtown Plan Chapter 4.
(3) Based upon a request by the developer and a recommendation from the Planning Commission, the City Council may approve greater heights or stories in order to achieve superior building design, such as improved skyline aesthetics, enhanced rooftop access, improved solar access, or other similar features, as demonstrated at a public hearing and when approved by a majority of City Council.

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ii. For sites utilizing Option B: Waiver of Unlimited FAR (1) Height will be measured consistent with the standards and allowances of Chapter 4 of the Downtown Specific Plan, inclusive of allowances for elements exceeding base height.
(2) Based upon a request by the developer and a recommendation from the Planning Commission, the City Council may approve greater heights in order to achieve superior building design, particularly in terms of improved skyline aesthetics, enhanced rooftop access, improved solar access, or other similar features, as demonstrated at a public hearing and approved by a majority of City Council.
j. Development Standards, Waivers, and Concessions
i. The development standards regulating height, FAR, setbacks, upper-story stepbacks, for sites in the South of Laurel Area of the Downtown Plan will not apply as objective standards for projects utilizing the DDB consistent with accommodating the incentive granted per parts a, b, and h above, and may be used as guidelines during development review. All other requirements for design and development of buildings in the South of Laurel Area will continue to be applied to projects pursuing a DDB.
ii. Discretionary review can deny waivers, concessions and incentives but the standards applied shall not be more stringent than those that would apply to the site absent the application of the DDB (i.e. those found in the Downtown Plan Chapter 4, applicable General Plan and Zoning policies, etc.), though additional minor variations can be made consistent with Subsection J of Chapter 4. iii. All building designs will be considered by the Architectural Review Committee, with a recommendation to staff about how to proceed with requested waivers and concessions.
k. Architectural Review Committee Process
i. All applications for DDB projects agree to provide a site plan, floorplans, elevation drawings for all building facades with exterior materials identified, renderings of all building facades that show three-dimensional characteristics of the designs, at least three cross-sections showing key areas of the full building, conceptual landscape plans, conceptual lighting plans, and sufficient building details to show depths of façade elements or other key building features to the City for use in the Architectural Review Committee (ARC) process.
ii. The Planning and Community Development Department will be responsible for selecting a committee of three licensed architects to conduct collaborative review of a DDB development application. This may occur as part of a formal application process or as part of a preliminary application review process. iii. The ARC will review the DDB project application consistent with part i above, and in relation to the ARC Review Guidelines established by the Planning and

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Community Development Director in consultation with the Planning Commission or a subcommittee of the Planning Commission. These administrative guidelines will be published on the City’s website.
iv. The ARC will meet with the project applicant and City staff to review and critique building design proposals.
v. Applications triggering ARC review will be acted on by the Planning Commission and may be appealed to the City Council, unless another requisite entitlement triggers the need for Council review, in which case the Planning Commission will make a recommendation to the City Council. Planning staff will incorporate a summary of the ARC discussion into the Planning Commission staff report for the Design Permit review.
vi. City staff reserves the right to extend or repeat the ARC review process, if needed, should issues arise such as a request for extensive redesign or persistent disagreements on design of the proposal.
vii. The Planning and Community Development Director, or his/her designee, may establish additional procedures and requirements related to the ARC process. viii. Any project developed using a DDB will be subject to a review of selected exterior materials at the time of Building Permit Plan Check process. This review will be conducted by a subcommittee of the City Planning Commission in consultation with the Planning and Community Development Director or his or her designee.
l. Below-market Rate Housing Requirements
i. With the exception of the method of calculating the number of inclusionary units required, the City’s standard inclusionary housing requirements regulated by SCMC Sections 24.16.010 through 24.16.025 and 24.16.040 through 24.16.045 will apply to all low-income or moderate income housing that is produced as a result of projects using the DDB, including but not limited to income limits, affordable rent payment standards, and equivalence between market and belowmarket rate housing units for units built on-site with the DDB project. (1) Because there may be a difference in the type of unit proposed in the DDB project and an off-site below market rate project, the requirements of

24.16.025.4 relating to the average size of inclusionary units will not apply to off-site below market rate projects developed as part of a DDB project. ii. Below-market rate units for Moderate-income households will be subject to the following standards and requirements:
(1) Maximum monthly rent will be calculated in compliance with the applicable definition of affordable rent and requirements per SCMC 24.16.015 and

24.16.045.
(2) Residents of units reserved for moderate-income households will be required to verify a household income that complies with the applicable definition and requirements in SCMC 24.16.015 and 24.16.045.

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Appendix 8
South of Laurel Area
Public Review Draft - January 2025

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Table of Contents

8.1 Introduction ............................................................................................................. 2

8.1.1 Context and Background ........................................................................................... 2

8.1.2 South of Laurel Area Objectives and Guiding Principles .......................................... 6

8.2 South of Laurel Area Development Plan .................................................................... 8

8.2.1 Development Plan Overview .................................................................................... 8

8.2.2 SOLA Redevelopment Parcels ................................................................................. 11

8.3 Private Property Development ............................................................................... 13

8.3.1 Introduction ............................................................................................................ 13

8.3.2 Allowed Uses ........................................................................................................... 13

8.3.3 Development Standards and Design Guidelines .................................................... 13

8.3.4 Anti-Displacement Policy ........................................................................................ 13

8.3.5 Downtown Density Bonus....................................................................................... 13

8.4 Public Spaces .......................................................................................................... 14

8.4.1 The Role of Public Spaces ....................................................................................... 14

8.4.2 Community Spaces .................................................................................................. 16 Introduction ...................................................................................................................... 16 Spruce Street Plaza ........................................................................................................... 20 Santa Cruz Riverwalk ......................................................................................................... 24 Pacific Avenue ................................................................................................................... 28 Front Street ....................................................................................................................... 29 Laurel Steet Extension ...................................................................................................... 30 Pacific Avenue / Front Street Roundabout ....................................................................... 31 Arena ................................................................................................................................. 32

8.4.3 Streetscape and Circulation .................................................................................... 34 Introduction ...................................................................................................................... 34 Pedestrian and Bicycle Circulation .................................................................................... 36 Streetscape Design............................................................................................................ 41 Street Types .................................................................................................................. 5857

8.5 Sustainability and Resiliency ................................................................................ 7574

8.5.1 Sustainability and Resiliency Policies .................................................................. 7776 Citywide Plans ............................................................................................................... 7776

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Santa Cruz Municipal Code Sections ............................................................................. 7776

8.6 Infrastructure and Public Services ........................................................................ 7877

8.7 Implementation .................................................................................................. 8079

8.7.1 Financing Plan ..................................................................................................... 8079

8.7.2 Potential for Special-Purpose Financing Districts ............................................... 8180

8.7.3 Ongoing Funding for Public Services and Facilities ............................................. 8180

8.7.4 Land Dedication for Public Realm and Utility Infrastructure .............................. 8281 Property Owner Coordination ...................................................................................... 8281 Timing of Dedication ..................................................................................................... 8281

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List of Figures
Figure 8.1-1 South of Laurel Area District ...................................................................................... 3 Figure 8.2-1 SOLA Conceptual Plan ................................................................................................ 9 Figure 8.2-2 SOLA Redevelopment Blocks ................................................................................... 12 Figure 8.4-1 Community Spaces .................................................................................................. 17 Figure 8.4-2 Existing and Proposed Circulation ........................................................................... 19 Figure 8.4-3 Existing Bike Circulation ........................................................................................... 37 Figure 8.4-4 Proposed Bike Circulation ........................................................................................ 38 Figure 8.4-5 Proposed Pedestrian Circulation ............................................................................. 39 Figure 8.4-6 Gateways and Nodes ........................................................................................... 5352 Figure 8.4-7 Beach Connectivity Conceptual Plan ................................................................... 5554 Figure 8.4-8 Cross-Sections Key Map ....................................................................................... 5958 Figure 8.4-9 Laurel Street Between Cedar Street and Pacific Avenue (1) ............................... 6261 Figure 8.4-10 Laurel Street Between Pacific Avenue and Front Street (2) .............................. 6362 Figure 8.4-11 Front Street Between Laurel Street and Spruce Street (3) ............................... 6463 Figure 8.4-12 Front Street Between Spruce Street and Laurel Street Extension (4) ............... 6564 Figure 8.4-13 Pacific Avenue at Hill (5) .................................................................................... 6665 Figure 8.4-14 Center Street at Depot Park (6) ......................................................................... 6766 Figure 8.4-15 Pacific Avenue South of Laurel Street (7) .......................................................... 6867 Figure 8.4-16 Spruce Street Between Pacific Avenue and Front Street (8) ............................. 6968 Figure 8.4-17 Spruce Street Plaza (9) ....................................................................................... 7069 Figure 8.4-18 Laurel Street Extension (10) .............................................................................. 7170 Figure 8.4-19 Cliff Street Between Third Street and Trinity Street (11) .................................. 7271 Figure 8.4-20 Cliff Street Between First Street and Beach Street (12) .................................... 7372 Figure 8.4-21 Santa Cruz Riverwalk (13) .................................................................................. 7473 Figure 8.5-1 FEMA Flood Hazard in the SOLA .......................................................................... 7675 Figure 8.6-1 Existing Infrastructure ......................................................................................... 7978

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Conceptual Rendering of Spruce Street Plaza,
connecting Pacific Avenue and the Santa Cruz Riverwalk.

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8.1 Introduction
This appendix describes the development policies and objectives for the South of Laurel area (the SOLA), the fifth district of the Santa Cruz Downtown Plan. It includes policies, development standards, and design guidelines to guide future planned public space improvements including circulation for cars, bikes, and pedestrians, streetscape and open space, beach connectivity and implementation. Development of housing and commercial structures on private property is governed by the standards, policies and design guidelines for the South of Laurel Area found in Chapter 4 of the Downtown Plan.

8.1.1 Context and Background
As shown in Figure 8.1-1 South of Laurel Area District, the area consists of approximately 29 acres in downtown Santa Cruz and is generally bound by Laurel Street, the San Lorenzo River, Front Street, and Center Street. This neighborhood is located in the Coastal Zone and was formerly part of the Beach and South of Laurel Plan Area.

South of Laurel contains a variety of commercial and multi-family residential land uses. This includes the temporary Kaiser Permanente Arena, various ground-floor commercial retail, food service, and entertainment uses, multi-family housing, and at-grade paved parking lots with associated areas of landscaping.

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Figure 8.1-1 South of Laurel Area District

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The SOLA is also located adjacent to residential uses to the west, including the multi-family Sycamore Street Commons, which are located in the Neighborhood Conservation Overlay District (NCOD, Santa Cruz Municipal Code Chapter 24 Part 31).

Being located between the downtown and the Beach Area, the neighborhood serves an important role in linking these two areas. This link includes Front Street and Pacific Avenue, the Laurel Street Extension, and the steps to Beach Hill from the Santa Cruz Riverwalk toward Cliff Street and down to the Beach Area (including the Santa Cruz Beach Boardwalk, Main Beach, the Santa Cruz Wharf, the Beach Flats, and the neighborhood of Beach Hill).

The San Lorenzo River bends from a southerly to easterly direction here providing particularly scenic views of the San Lorenzo River, the Laurel Street Bridge, the San Lorenzo Riverside Gardens Park and the surrounding neighborhood on the east side of the San Lorenzo River.

Relevant City planning documents that influence future development in this southern-most neighborhood of the Downtown:
 General Plan 2030 (2012)
 Local Coastal Program (1994)
 Downtown Site Furnishing Standards (2022)
 Community-wide Climate Action Plan for 2030 (2022)
 San Lorenzo Urban River Plan (2003)
 Riverfront and Lower Pacific Design Guidelines & Development Incentives (2010)  City of Santa Cruz Active Transportation Plan (2017)

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 Santa Cruz Municipal Code
 Various infrastructure master/management plans
South of Laurel Today

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8.1.2 South of Laurel Area Objectives and Guiding Principles The following objectives provide the basis for guiding the future development in the SOLA, consistent with the City’s General Plan.
 Increase the total number of housing units that can be built in the City by adding capacity for multi-family housing.
 Better connect downtown with the San Lorenzo River and Beach Areas, in order to:
o Give the community better access to the river and beach. o Help visitors see more of Santa Cruz, including its local businesses and entertainment destinations.
 Work with the Santa Cruz Warriors to establish design standards and use allowances that accommodate potential development of a permanent arena.  Generate new tax revenue for the City.
 Create new economic opportunities for local businesses and workers.  Create opportunities for public amenities and infrastructure including parks, the Santa Cruz Riverwalk trail, or other spaces for community use.

A street-width plaza is envisioned.

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Based on community and stakeholder feedback, the following guiding principles are designed to re-enforce and further articulate these objectives.

1. Create an active, inviting, safe and comfortable place for residents and visitors of all ages.

2. Encourage the development of affordable housing to the greatest extent feasible.

3. Through creative urban design, distinctive architecture, high-quality urban amenities, and appropriately scaled public gathering spaces, support change in the South of Laurel Area to create a regional destination for residents and visitors.

4. Maximize opportunities for outdoor dining and ground floor retail uses, particularly along Pacific Avenue and Spruce Street.

5. Create an integrated bike and pedestrian network with appropriate wayfinding throughout the neighborhood, helping visitors and residents access the Beach, San Lorenzo River, and downtown.

6. Create a neighborhood with well-designed public spaces and amenities that enhances the pedestrian experience and complements and integrates with the greater downtown and adjacent neighborhoods.

7. Plan for a total of 1,600 residential units.

8. Provide 20% of the total number of units (320 units) built as permanent below market-rate affordable housing, inclusive of a 50% density bonus.

9. To accommodate the City’s future affordable and market-rate housing needs, support and accommodate the construction of higher-density building elements on Blocks A, B, C and D that are strategically designed to relate to the riverwalk and public spaces and create an interesting and varied skyline.

10. Preserve view corridors in building layout and landscaping, particularly in relation to the San Lorenzo River.

11. Use distinctive architectural and design features at key nodal points and gateways to the SOLA.

12. Create vitality in design that integrates and encourages pedestrian and bicycle connectivity with the downtown and surrounding neighborhoods.

13. Create building transitions, setbacks, landscaping, and other design features to minimize development impacts on existing residential uses in the Neighborhood Conservation Zone.

14. Encourage the use of a development agreement, memorandum of understanding, or other contracts between developers and the City on development applications that include larger parcels and/or more than one block, to help guide future development requirements and plan for community benefits.

15. Maintain and/or improve existing infrastructure commensurate with future development.

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8.2 South of Laurel Area Development Plan

8.2.1 Development Plan Overview
As stated in the Guiding Principles above, the SOLA can be redeveloped over time to achieve community goals relating to housing, mobility, economic development and recreation.

As further described below and illustrated in Figure 8.2-1 SOLA Conceptual Plan and Figure 8.4- 2 Existing and Proposed Circulation, redevelopment of the SOLA creates the opportunity for the realignment and reconfiguration of the circulation pattern to improve connectivity to the Santa Cruz Riverwalk and San Lorenzo River, create an enhanced public streetscape, and improve connectivity to the Beach Area.

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Figure 8.2-1 SOLA Conceptual Plan

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As an anchor to this neighborhood, a new arena for the Santa Cruz Warriors is envisioned on Block C between Front Street and Pacific Avenue or on Block D between Front Street and the Santa Cruz Riverwalk, both south of Spruce Street (See Figure 8.2-2 SOLA Redevelopment Blocks). This arena will have a capacity of approximately 3,200 fixed seats for sporting events and approximately 4,000 fixed and temporary seating for other events such as musical concerts or shows. Ancillary uses include a practice court, locker/team support facilities, food service/merchandising, and administrative support services. Complimenting and supportive of the new arena, a series of public realm improvements are envisioned that will create new significant community gathering spaces, particularly along Spruce Street, Pacific Avenue, and the Santa Cruz Riverwalk.

This concept requires closing Spruce Street to vehicular traffic from Front Street if the arena is developed on Block D, and from Pacific Avenue if the arena is developed in Block C, to the Santa Cruz Riverwalk to create a public plaza (Spruce Street Plaza). This would coincide with relocating the Laurel Street Extension to the south, along the base of Beach Hill. Additionally, to strengthen the connection between the downtown and the beach, a number of mobility improvements are identified, including rebuilding the steps from the Santa Cruz Riverwalk up to Cliff Street and improving the streetscape (sidewalks, street trees, lighting) from the top of Cliff Street south to the Beach Area.

A pedestrian plaza connects commercial and residential uses.

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8.2.2 SOLA Redevelopment Parcels
Redevelopment potential is typically understood to be a result of existing building age and intensity of use, parcel size, ownership status. Based on these factors, and to help communicate future development principles and concepts, Blocks A through H have been identified as likely to redevelop within the next 15 to25-years, as shown in Figure 8.2-2 SOLA Redevelopment Blocks. This plan does not dictate the timing of any specific development, and the City cannot require the development of specific uses on specific sites. This plan sets the parameters under which redevelopment may take place and creates allowances for the types of uses and levels of vitality the City wants to encourage.

The amount and type of development allowed in this neighborhood has been planned consistent with the Objectives and Guiding Principles found in Section 8.1.2 of this Appendix.

Increasing the amount of housing and commercial space that can be created, as well as identifying sites appropriate for the development of a multiuse arena are the defining features of private property development in this area. The development regulations that will govern the private development in the area are addressed in Section 8.3 - Private Property Development.

Outdoor gathering spaces.

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Figure 8.2-2 SOLA Redevelopment Blocks

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8.3 Private Property Development

8.3.1 Introduction
Development of the area’s Private Realm will be shaped by the following form-based design standards and design guidelines, defining building form first by maximum height. Setback regulations, followed by a variety of mass reduction strategies shall be used to further define building form. Wide sidewalks are required in building setbacks where active ground floor uses occur to contribute to a neighborhood with vibrant pedestrian zones and gracious, well-framed community spaces.

8.3.2 Allowed Uses
For a description of Prohibited Uses, Accessory Uses, Temporary Uses, and Additional Regulations – Ground Floor Uses, see Chapter 4 Development Standards and Design Guidelines, Section A: All Central Business Districts Land Uses.

8.3.3 Development Standards and Design Guidelines
All buildings shall conform to the development standards and design guidelines as described in Chapter 4 Development Standards and Design Guidelines.

8.3.4 Anti-Displacement Policy
The City is working to expand anti-displacement policies such as the current local preference policy in SCMC 24.16.045 consistent with all relevant state and federal laws, as expanded by SB 649 (2022) with a focus specifically on households at elevated risk of displacement, and development proposals will be subject to those standards from the time they take effect following future City Council action. Additionally, state regulations (i.e., California Health and Safety Code - Section 17975-17975.10 :: Article 2.5. Tenant Relocation Assistance and California Civil Code – Section 1946.2) require one-to-one replacement of existing housing units currently or recently occupied by lower income households, in conjunction with relocation expenses and first right of refusal requirements for existing tenants.

8.3.5 Downtown Density Bonus
For a description of the Downtown Density Bonus available to properties in the SOLA, see Chapter 4 Development Standards and Design Guidelines, Section K: South of Laurel Area Development Standards.

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8.4 Public Spaces

8.4.1 The Role of Public Spaces
The community’s development fabric is
composed of two distinct, yet inter-related
components: public spaces and private
property development. The public spaces
consist of the publicly owned street rightsof-way and open space such as parks (i.e., the San Lorenzo Riverfront), and public
plazas, courtyards, and alleys. The private
property is made up of privately-owned
areas, in large part developed with
buildings and associated improvements,
and can be more limited in accessibility to
the public.

Public spaces set a stage on which
community life unfolds. The design of
streets, the plaza, and other public spaces
will help determine much of what this
neighborhood becomes over time. With
thoughtful design and careful
programming, streets and public spaces can
address complex challenges relating to
mobility, economic vitality, greening
strategies, and community activities.

From the perspective of community
identity, enhanced public spaces provide a
way to establish this area as a
neighborhood that is an integral
component of the greater downtown. The
public spaces and private property
development interact and relate to one
another, and both components are
necessary to create successful, lively,
engaging places to meet community needs.

Appropriately scaled pedestrian pathways with landscaping.

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Public space plays a critical role in the SOLA’s character and function, serving overlapping roles, including:
 Circulation and Access. The public street rights-of-way provide for circulation within and through the community – accommodating pedestrians, bicycles, and buses, in addition to vehicles.
 Development Framework. The public street rights-of-way provide the fundamental structure that contains and organizes incremental redevelopment into a cohesive whole.
 Public Open Space. In addition to parks and plazas, public street rights-of-way, including public sidewalks, can play an important role as public open space—allowing for light, air, landscaping within developed areas, and serving as the “living room” for community life—places where people meet, interact, and linger.
 Visual Character. The physical design of the public realm and the design elements such as landscaping, art, and infrastructure is critical in generating a sense of place and creating a welcoming atmosphere for all users.

Multi-use plaza for community events.

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For the SOLA, the following section covering ideas and requirements for the public realm is organized accordingly; Community Spaces, Streetscape and Circulation.

8.4.2 Community Spaces
Introduction
Community spaces in this neighborhood include existing and planned public streets and the Santa Cruz Riverwalk, all designed to accommodate public gatherings and events such as preand post-arena events, holidays and festivals events, and informal gatherings. As shown in Figure 8.4-1 Community Spaces and described below, primary community spaces include Spruce Street (the Spruce Street Plaza), the Santa Cruz Riverwalk, and Pacific Avenue.

Secondary community spaces include Front Street, the Laurel Street Extension, the Pacific Avenue / Front Street Roundabout, and the arena.

Cross-sections for the public rights of way are described and shown in Section 8.4.3 Streetscape and Circulation / Street Types.

Activated and inviting public spaces.

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Figure 8.4-1 Community Spaces

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As shown in Figure 8.4-2 Existing and Proposed Circulation, the following roadway changes are envisioned as part of the creation of the community spaces as shown in Figure 8.4-1 Community Spaces:
 Create a new Spruce Street Plaza along Spruce Street by permanently closing Spruce Street to vehicular traffic east of Front Street to the Santa Cruz Riverwalk. Emergency, maintenance, and delivery vehicle access shall be maintained through the use of removable barriers or bollards.
 To create better opportunities for the public to engage with the San Lorenzo River, realign the connection to Laurel Street Extension to the base of Beach Hill, just north of the Cliff Street stairs. This improvement can only be initiated after existing residents and support facilities have been relocated, consistent with City policies and State law.  Consider removing the existing surface parking and northern end of the existing Laurel Street Extension, creating a more developable Block B. Permanent access to the City Pump Station No. 1 will be maintained at an alternative location to ensure adequate access.
 Construct a new roundabout and associated pedestrian and bicycle improvements at the southern convergence of Pacific Avenue and Front Street.  As redevelopment proceeds, the City will further evaluate and discuss with the community the possibility of closing Spruce between Pacific and Front Street to auto traffic.

A discussion of these public improvements follows. The narrative discussion and associated polices for each area shall be considered in association with the streetscape polices described in Section 8.4.3. Streetscape and Circulation, below.

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Figure 8.4-2 Existing and Proposed Circulation

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Spruce Street Plaza
Spruce Street is envisioned to
become an active public plaza for
community gathering, outdoor
dining, and a non-vehicular
connection to the Santa Cruz
Riverwalk. It will also serve as an
important “front door” to the
permanent arena. As new
development takes place, and as
soon as the roadway realignment of
Laurel Street Extension is completed,
Spruce Street will be closed to
automobile traffic east of Front
Street and reserved for pedestrians
and bicycles.

This concept requires closing Spruce Street to vehicular traffic from Front Street if the arena is developed on Block D, and possibly from Pacific Avenue if the arena is developed in Block C, to the Santa Cruz Riverwalk to create a public plaza (Spruce Street Plaza). This would coincide with relocating the Laurel Street Extension to the south, along the base of Beach Hill. Improvements should include enhanced paving, clustered seating areas, one or more sculptural art features, street trees, bike racks, high-quality trash and recycling receptacles, permanent and removable bollards, and wayfinding signage. If feasible, the Spruce Street Plaza will be designed to meet the top of the levee at grade. Amenities will be incorporated to accommodate outdoor dining and include appropriately spaced electrical outlets and other features supportive of civic activities such as vendor kiosks, tree lighting, etc.

Public space for pre- and post-arena events.

Ground-floor retail that activates the public realm.

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Conceptual rendering of Spruce Street Plaza looking east from Front Street.

The following policies shall apply to future development of the Spruce Street Plaza:
 Utilize the public right-of-way and building setbacks to create a seamless and unencumbered pedestrian connection on Spruce Street from Front Street (and potentially from Pacific Avenue if the arena is constructed on Block C) east to the Santa Cruz Riverwalk that is permanently closed to vehicular through traffic. Where not permanently closed, allow temporary street closures for special events.  When the street has been closed to through traffic, create a dynamic public space suitable for pre- and post-arena events and informal congregation, as well as community events such as seasonal festivals and celebrations, outdoor markets, foodtruck gatherings, etc. Community events should be prioritized in programming to ensure a lively, activated space throughout the week and year that is available to and used by a broad cross section of the Santa Cruz Community.
 When the street has been closed to through traffic, incorporate high-quality hardscape materials and finishes such as pavers or bricks, extensive seating, special lighting, an interactive art feature(s), and other entertainment-focused amenities.

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 Prior to development of the Spruce Street Plaza and improvements to the Riverwalk, the City and any adjacent private developers shall collaborate with the community to develop a specific landscape design plan for the plaza and riverwalk in this area, identifying location and design of all relevant infrastructure elements and finishes, as well as the location of any significant features and spaces intended to engage visitors to the space, and assigning maintenance responsibility for all elements.  Include public art in a meaningful way by working with the City Arts Commission. Spaces for performing arts, as well as the installation of interactive art, should be considered as part of a design plan, to be prepared prior to build-out of the Spruce Street Plaza.  Require greater building setbacks at the intersections of the plaza and Front Street and Pacific Avenue to increase the amount of ground-level public gathering space.  Because the intersections of Spruce Street with Pacific Avenue and Front Street serve as important gateways, special design features and space for art could be incorporated at both of these intersections. See also Section 8.4.3. Streetscape and Circulation / Gateways and Nodes, below.
 Incorporate appropriate infrastructure (i.e., electrical outlets) located to support a variety of event functions.
 Whether publicly and/or privately maintained, portions of the plaza space shall be made available for private outdoor restaurant use. Maintenance should prioritize maintaining a safe and clean environment for all members of the community and ensuring a positive civic atmosphere.

Informal and flexible gathering spaces.

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Ongoing maintenance of the plaza and any considerations around access control shall be addressed between the relevant City Departments and any adjacent property owners prior to development entitlements.
 Building massing on Spruce Street and adjacent streets could be designed to accommodate special lighting effects (e.g., 3-D image projection) and well as largescreen illumination / projection. As an extension to this theme, the incorporation of interactive lighting through sculptural features, streetscape lighting and furniture, etc. is strongly encouraged.
 The City shall retain maintenance access to underground utilities in the existing Right-ofWay. Landscaping, art elements and programming described in the design plan must accommodate needs for sufficient clear space for entry, exit, and operation of necessary equipment for maintenance of these underground utilities.

An appropriately sized plaza that supports community events.

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Santa Cruz Riverwalk
Located at the eastern terminus of Spruce Street, the Santa Cruz Riverwalk provides an important public access linkage for non-vehicular access north to the rest of the downtown, and south to the Beach Area.

The policies below guide future redevelopment fronting the Santa Cruz Riverwalk to promote river-oriented mixed-use development that is activated with restaurants, public gather spaces, benches, and other public amenities, and provides direct pedestrian access to the Santa Cruz Riverwalk.

New development adjacent to the Santa Cruz Riverwalk should be consistent with recommendations identified in the River/Front & Lower Pacific Design Guidelines & Development Incentives (May 2010), and the San Lorenzo Urban River Plan (2003), and comply with any applicable U.S. Army Corps of Engineers requirements.

To improve access and better utilize land adjacent to the Santa Cruz Riverwalk, the City’s surface parking lot north of Spruce Street (Block B) and the Laurel Street Extension south of Spruce Street (east side of Block D) should be vacated as part of any future development. This will allow a higher and better use of the land and improve visual and physical connections to the San Lorenzo River.

Creative design solutions should also be considered to create a public space at the northern end of Block B while maintaining equipment access to the crucial infrastructure that is City’s Pump Station No. 1. This could include cooperation between private developers on the southern portion of the block and the City, to negotiate an exchange of land that will allow access to the Santa Cruz Riverwalk today.

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pump station from the northern end of the block on the Front Street frontage, in exchange for some portion of the existing City parking facility on the east side of the block, the creation of additional public space which accommodates maintenance access as part of the gateway treatment at the corner of Laurel and Front, enhanced landscaping, murals and other artistic treatments of the equipment, and educational signage about the City’s flood control systems.

Furthermore, building design and pedestrian connection to the adjacent Laurel Street Bridge should be distinctive to create a positive gateway experience into the downtown.

Improvements to the Riverwalk could include enhanced sidewalk paving, viewpoints showcasing the San Lorenzo River, extensive seating, and low-profile landscaping with an emphasis on native plants. Improvements should be designed in coordination with the adjacent private property owners and the U.S. Army Corps of Engineers to provide a coordinated design response with the appropriate level of public benefits and amenities.

Conceptual rendering looking south along the Santa Cruz Riverwalk.

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The following policies shall apply to redevelopment of the Santa Cruz Riverwalk:
 Incorporate hardscape and landscape amenities along the Santa Cruz Riverwalk that are inviting and attractive. Features should include seating areas, a small public gathering space at the intersection of the Riverwalk and Spruce Plaza, or adjacent to a new arena (if arena is built on Block D), artwork, and interpretive signage (referencing local history and culture).
 Provide pedestrian access to the Santa Cruz Riverwalk from adjacent buildings.  Maintain solar access to the Santa Cruz Riverwalk to the greatest extent feasible.  Through interpretive signage and other means, create awareness and education regarding the natural habitat features of the San Lorenzo River corridor.  Telecommunications and energy utilities shall be located underground. Where other utility structures must be located above ground (i.e., pump station), incorporate aesthetically appropriate screening (e.g., wood fencing, stone wall, etc., no chain link fencing) to minimize their visual presence.
 Incorporate wayfinding signage, landscaping, paving and consistent design treatments along the Santa Cruz Riverwalk to create a visual and physical connection to the planned Spruce Street Plaza. See also 8.4.3 Streetscape and Circulation / Signage below.

Conceptual rendering looking west from the east side of the San Lorenzo River.

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 Prior to development of the Spruce Street Plaza and improvements to the Santa Cruz Riverwalk, the City and any adjacent private developers shall collaborate with the community to develop a specific landscape design plan for the plaza and riverwalk in this area, identifying location and design of all relevant infrastructure elements including pavers, railings, planters, landscaping materials, benches or other seating, bike, pedestrian, and wheelchair-accessible paths of circulation; location of any significant features such as performance space, water features, sculpture, play equipment, or other elements intended to engage visitors to the space, and assigning maintenance responsibility for all elements.
 Reconstruct the stairs and adjacent open space connecting the Santa Cruz Riverwalk and Beach Hill, exploring options for possibly incorporating public art, improving stability on the stair surface, adding pedestrian scale lighting as necessary, and exploring options for seating taking advantage of the public view from the top of the stairs.

An example of an activated riverfront adjacent to an urban area.

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Pacific Avenue
Serving as an extension to the
existing Pacific Avenue retail and
entertainment corridor north of
Laurel Street, Pacific Avenue is
envisioned to be an active and
vibrant mix of retail, entertainment
and residential uses that serves as
linkage between the downtown and
the Beach Area and serve as an
anchor to the permanent arena and
the greater SOLA neighborhood.

The following policies shall apply to
future redevelopment of Pacific
Avenue:
 Incorporate traffic control
features (e.g., removable
bollards, “curb less” or
“flush” curbs) to allow Pacific
Avenue to be periodically
closed for community
events, outdoor dining, and
other civic activities.
 Incorporate a “shared curb
space” on the west side of
Pacific Avenue to
accommodate drop-off /
pickup vehicles (particularly if
the arena is located on Block
C).
 Design sidewalks to accommodate outdoor restaurant use.  Streetscape improvements should include enhanced sidewalk paving, street trees including planting beds surrounded by decorative fencing (as currently present at the north end of Pacific Avenue) benches, bike racks, and high-quality trash and recycling receptacles.

See also Section 8.2.2 Community Spaces / Arena discussion below if the arena is developed on Block C.

Pacific Avenue today.

An example of sidewalk dining.

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Front Street
Front Street shall be maintained as a street that accommodates through traffic for automobiles, transit, bicyclist, and trucks travelling between downtown and the Beach Area, with a greater focus on automobile traffic in contrast to the proposed changes to Pacific Avenue.

The following policies shall apply to future redevelopment of Front Street:
 Ground floor commercial uses are envisioned to include uses that service the adjacent residents and community at large.
 A curb management program should be instituted to provide shared curb space that accommodates drop-off/pickup vehicles near the arena.
 Vehicular access to buildings shall be consolidated to locations where turn lanes are available. (see cross section)
See also Section 8.4.2 Community Spaces / Arena discussion, below.

Existing arena and Front Street today.

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Laurel Steet Extension
Laurel Street Extension shall be re-aligned to the south end of Block D along the toe of Beach Hill prior to reconstruction of the Spruce Street Plaza. This new street will maintain one-way access from Front Street to Beach Hill and Beach Flats; and will provide “back of house” twoway access to any new development on this block, either the new arena or other mixed-use buildings.

The following policies shall apply to future development of the Laurel Street Extension:
 The re-alignment shall occur only after the relocation of residents and closure of the Front Street Residential Care facility (owned by Santa Cruz County and managed by Front St. Inc.), located at 126 Front Street, consistent with all relevant City and state regulations.
 At such time that the Front Street Residential Care facility has been successfully relocated, the City and the County shall conduct an interagency transfer to establish the Laurel Street Extension right-of-way, making the remainder public parcel less than onehalf acre in size and thereby exempting it from the surplus land act.  Improvements should include sidewalk paving on the north side of the street, street trees, and appropriate lighting.
 In coordination with Beach Hill residents and business owners, the City will periodically review options for limiting cut-through traffic from the downtown to Beach Hill.

An example of a narrow one-way street that is amenable to vehicles, pedestrians and bicyclists.

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Pacific Avenue / Front Street Roundabout
A new roundabout is envisioned for the intersection of Pacific Avenue and Front. The following policies shall apply to its design and construction:
 Provide separated one-way bike lanes and pedestrian crossings.  As a gateway to the SOLA and downtown, incorporate a significant art sculpture, tree, or other monument as a centerpiece of the roundabout.
 Incorporate pavers, landscaping, and other design features to create a memorable gateway experience into the SOLA.
 The City shall work with adjacent affected private landowners regarding a land dedication trade for the additionally needed right-of-way.  Construction of the new roundabout is envisioned to occur concurrently with redevelopment of the southerly end of Block C, or as Capital Improvement Planning allows.

Conceptual rendering looking north toward proposed Pacific Avenue / Front Street Roundabout.

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Arena
As an anchor to the neighborhood a new multipurpose sports and entertainment arena is envisioned on Block C between Front Street and Pacific Avenue and south of Spruce Street or Block D, between Front Street and the Santa Cruz Riverwalk, the site of the current temporary arena . While privately owned and operated, the arena is included as a “public space” based on its unique land use and function.

The new arena is planned to have the capacity of approximately 3,200 fixed seats (e.g., for basketball games), and approximately 4,000 fixed and temporary seating for other entertainment events such as musical concerts. Ancillary uses include a secondary practice court, locker/team support facilities, food service/merchandising, and administrative support services. This would replace the existing 35,000 sf. temporary arena with 2,475 fixed seats and 3,100 fixed and temporary seating for other entertainment events.

The Santa Cruz Warriors will be the main tenant. There will be additional college, high school and youth sporting events and tournaments (e.g., basketball, volleyball etc.), and other similar competitive sport uses.

The new arena may also host the Santa Cruz Symphony as well as other entertainment performances (i.e., musical concerts, comedy shows, etc.). The arena will also have the capability to host conventions, corporate events, trade shows, galas, community and civic events, and other similar events.

Santa Cruz Warriors basketball game.

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The new arena is envisioned as a marquee building opening onto a new Spruce Street Plaza and incorporates durable, high-quality materials (e.g., brick, stone, steel, glass, etc.) to serve as a distinctive architectural landmark to the downtown area. The Santa Cruz Warriors could consider the use of large-format digital screens and/or image projection on the arena building façade to promote sporting and other entertainment events. The developers of the arena will be encouraged to incorporate interactive art sculpture(s) located in the Spruce Street Plaza near the entrance of the arena as a component of community engagement. Finally, the arena building should evaluate options for curving, chamfering, or stepping back a corner of the arena building to create a larger public space at the adjacent intersection with either Pacific Avenue Front Street, or the Santa Cruz Riverwalk, to emphasize that space as a destination and gateway.

As a part of event programming, consider opportunities to collaborate with community organizations such as the Bike Church to provide bicycle valet service, in addition to public bike racks adjacent to the arena facility.

See also Section 8.4.2 Community Spaces / Spruce Street Plaza discussion, above, as well as Downtown Plan Chapter 4 Development Standards and Design Guidelines.

An example of an arena using high-quality materials and finishes. (Washington Mystics Entertainment and Sports Arena)

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8.4.3 Streetscape and Circulation
Introduction
The streetscape and pedestrian
realm is the community public
space where people of all ages
move and interact. It is a critical
space that supports the pedestrian
access to/from the SOLA
neighborhood, supports the
entertainment and retail focus, and
makes it easy for people to
navigate the area.

The Downtown Plan area north of
Laurel Street, particularly along
Pacific Avenue, has a strong sense
of place and an appealing
pedestrian environment that has
been created through streetscape
elements like lighting, street trees,
wide sidewalks, seating, and
outdoor eating areas. The concept
for the SOLA is to extend these
existing features and create a lively
mixed-use neighborhood, with a
focus on entertainment and visitor
uses, that is anchored by a new
arena with a high-quality
streetscape that is based on the
familiar and beloved elements of
Pacific Avenue. These tried and
tested street features will help to
meet the objective of creating an
integrated (inside/outside)
entertainment experience that will
attract visitors at all times of day,
and whether or not they are
attending a specific event at the
arena. The aim is to create familyfriendly environments where users of all ages feel safe and welcome.

Wide pedestrian sidewalk with seating and landscaping.

Urban density with pedestrian- and bike-friendly public realm.

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The streets will be designed to be safe and comfortable for walking, bicycling, and shared mobility; will provide for convenient access to transit and local destinations; and to support community activity. Ample sidewalks will be created that provide continuous path of pedestrian travel and provide space for trees, outdoor dining, bicycle parking, and landscape, as appropriate. Traffic lanes will be designed to accommodate yet slow traffic flows, reduce pedestrian crossing distances, and create human-scaled environments, maintaining ease of flow for all mobility modes and civic activities.

Design of the streetscape will incorporate a “complete streets” approach that prioritizes creation of a truly multi-modal transportation system. This is consistent with the City’s General Plan goals and policies that encourage providing infrastructure and design features into street design that are safe, comfortable, and convenient for walking, bicycling and public transportation.

The following policies apply to all streetscape features:
 Assure that new development along Front Street supports transit use and work with Santa Cruz Metro to ensure that roadway improvements are transit compatible.  Accommodate shuttles and ride-share pickup and drop off zones that promote sharedtransit options such as shuttles, car share, rideshare, and/or other alternative-mobility options by incorporating designated places for pick-up and drop off, aka shared curb space.
 Install high visibility crosswalks on Laurel Street, Front Street, and Pacific Avenue to make the crosswalks more visible to both pedestrians and motorists.  Service driveways should be screened from view from public roadways to the greatest extent possible but of sufficient width and vertical clearance to allow for large vehicle access, such as garbage trucks and delivery vehicles. Driveways are not allowed along Pacific Avenue or within the Spruce Street Plaza east of Front Street.

See also the latest version of the City’s Downtown Site Furnishing Standards.

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Pedestrian and Bicycle Circulation
Redevelopment of private property
in the SOLA will expand and
significantly enhance opportunities
for pedestrian and bicycle circulation
that is integrated within the broader
circulation network.

As shown in Figure 8.4-3 Existing
Bike Circulation, the existing bike
network consists of bike lanes on the
arterial streets with the exception of
Pacific Avenue which is designated
as a bike route.

As shown in Figure 8.4-4 Proposed
Bike Circulation, the bike network
within the SOLA will be expanded to
include separated bike lanes on
Laurel and Front Streets, the Laurel
Extension, along Pacific Avenue
(south of the new Front/Pacific
roundabout), and Center Street.

As shown in Figure 8.4-5 Proposed
Pedestrian Circulation, sidewalks will
be widened through SOLA, including
the creation of a new sidewalk and
multi-use path along the realigned
Laurel Street Extension. A portion of
Spruce Street will become a public
plaza, and the Santa Cruz Riverwalk
will be improved with wider
pathways and gathering spaces to
support users of all ages.

Design elements like on-street
parking, curb bulb-outs, and lane
markings (e.g., sharrows, bike boxes)
will encourage safe, mixed vehicle
and bike movement.

Examples of pedestrian and bicycle improvements and amenities.

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Figure 8.4-3 Existing Bike Circulation

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Figure 8.4-4 Proposed Bike Circulation

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Figure 8.4-5 Proposed Pedestrian Circulation

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The following policies apply to pedestrian and bicycle circulation:
 Provide a network of connections for pedestrian and bicyclist including sidewalks, crosswalks, separated bike lanes, bike lanes, and multi-use consistent with that shown in Figure 8.4-4 Proposed Bike Circulation and Figure 8.4-5 Proposed Pedestrian Circulation.
 Facilitate pedestrian circulation within and adjacent to the SOLA to minimize automobile trip generation.
 Improve walkability by Incorporating mid-block crossings where block length exceeds 300’.
 In the event of significant redevelopment on redevelopment Block C, incorporate a pedestrian lane connecting Pacific Avenue and Front Street , in line approximately with Sycamore St and the relocated Laurel Street Extension.
 Provide short-term bicycle parking at grade level that is conveniently located near key destinations to serve bicyclists.
 Provide long-term bicycle parking in parking lots and parking structures that serve employees and others who generally stay for longer periods of time.  Consider options for event-based bike valet service, potentially in collaboration with local community organizations such as the Bike Church.
 Create a bike circulation network connected to the existing and planned greater downtown bicycle network.
 Dedicate sufficient space to rights of way to support sidewalk-separated bike lanes where appropriate, as indicated in the roadway cross sections below. Additional dedication may be required at intersections.
 Create and seamless connection between the levee path and roadway bike and pedestrian facilities. Ensure that bikes and pedestrians can pass one another in a safe manner.

Example of a separated bike lane.

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Future Pedestrian, Bike, and Transit Enhancements
The SOLA will continue to change over time. As properties redevelop and as transportation modes shift, or as the City seeks to further promote active transportation and discourage single-occupant vehicles, the conceptual cross sections included in the plan may need to shift.

The City will continue to assess how to support transit, bicycle, and pedestrian travel through a variety of means, such as:
 Enhancing transit service along the Font Street/Pacific Avenue corridor by adding features such as in-lane boarding islands, queue jump lanes, or transit signal priority in place of the on-street parking or center turn lanes provided in the cross sections;  Including transit-priority corridors, such as on Front Street;  Creating pedestrian-only or bicycle/pedestrian shared use segments, such as on Pacific Avenue or Spruce Street; or
 Further enhancing the visibility of, and pedestrian and bike connections between, the Beach Area and SOLA.

The assessment of these changes will need to evaluate implications for the broader transportation network, and it should also consider implications for access to Beach Hill by residents and businesses.

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Streetscape Design
In addition to community spaces policies described above, the following streetscape design polices are required to make streets suitable for pedestrians and bicyclists with the same care given to motorists. They shall be incorporated where appropriate as part of future development projects or through the City’s Capital Improvement Program.

Streetscape treatments and street furnishings should be designed to create a sense of place and encourage public gathering and interaction. Streetscape furnishings on Pacific Avenue and Front Street will follow the recommendations identified in the City’s Downtown Site Furnishing Standards. Furnishings, lighting, and landscape elements in the Spruce Street Plaza may also conform to these existing standards or may incorporate other furnishings to create a unique identity; based on review and approval by the City.

As shown in the respective street sections described below in Street Types, the use of curb zones shall be incorporated into the streetscape. The curb zone is generally a four-foot-wide buffer on the sidewalk at the curb edge. In addition to accommodating streetscape infrastructure such as light poles,
seating, signage, trash receptors,
landscaping, etc., they provide a
buffer from vehicles and thereby
improve pedestrian safety, while
also creating a sense of enclosure
to the roadway, potentially
helping to calm automobile
traffic and reduce speeds.

The curb zone also provides
room for vehicular driveways to
slope up gradually from the
street to the sidewalk without
the use of accessibility ramps in
the sidewalk.

ADA parking standards shall be
required for all public streets,
consistent with City standards.

Example of a curb zone (Matthew Thompson Architect).

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The following polices shall apply to all streetscapes:

Street Furnishings
 Locate street furnishings in the curb
zone and adjacent to buildings to
maintain a minimum 8-foot
pedestrian clear zone for walking.
 Outdoor dining shall be permitted in
outdoor extension areas in the
sidewalk and/or curb zone, in
accordance with the allowances of
SCMC 24.12.192.
 Use removable outdoor dining
furnishings that are coordinated in
their design and are made of durable
high-quality materials that can
withstand constant use and exposure
to the elements. Furnishing may
include, but not limited to; seating, tables, trash/recycle receptacles, service carts and pedestrian barriers.
 Umbrellas and outdoor heating devices are permitted on sidewalks provided they do not obstruct pedestrian mobility.
 Use high quality free-standing planters that will withstand adverse weather and attempts at vandalism.
 Bicycle parking should be placed frequently and located to avoid conflicts with pedestrian flow.

Examples of traditional wood & steel, wood slat, and metal powder coated benches.

Example of raised landscape planter on Pacific Avenue today.

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 Provide innovative, efficient, and attractive designs for bike parking areas such as stacked racks etc.
 Evaluate the efficacy of porous pavers, pervious paving techniques, or other viable Low Impact Development (LID) techniques for stormwater infiltration in this neighborhood.  In compliance with the Street Tree Master Plan, provide adequate soil volume in all tree planting spaces to foster healthy root growth for street trees. Innovative use of subgrade structural elements and suspended paving is encouraged to provide sufficient soil volume while accommodating pedestrian traffic.
 Consider use of accent paving to highlight important places such as building entrances, tree planting spaces, pedestrian street crossings, and separation between bicycle and pedestrian uses.
 Construct ground-level utility access doors using accessibility compliant, slip resistant surfaces that are flush with adjacent paving and attractively incorporated into the design of the pavement.
 Streetscape features, including street trees, furnishings, etc. should be constructed consistent with the design standards as described in the City’s Downtown Site Furnishings Standards and the Street Tree Master Plan and Approved Street Tree List, or as otherwise permitted by the City.

Example of high-quality pedestrian pathway with pavers, seating, landscaping and signage.

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Landscaping
Adjacent to public roadways landscaping should generally be limited to street trees and raised or protected permanent planting beds. Tree Species should be selected from the City’s Approved Street Tree List or governing Area Plan. In general, landscaping should include the following objectives:
 Provide appropriate shade according to solar orientation, seasonality, and streetscape function.
 Require minimal maintenance.
 Be native to the Santa Cruz region, and/or drought resistant.  Be consistent in height and tree canopy spread with other street trees in the downtown.  Consistent with City standards, incorporate Low Impact Development (LID) techniques for sustainable stormwater management such as pervious pavement and bioretention or biofiltration planters, where site conditions allow.

All landscaping plans shall be approved by City staff (including the Parks and Recreation Department) prior to installation.

Example of a high-quality sidewalk with pavers, hard-edge landscaping, and outdoor dining.

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Lighting
 Lighting fixtures should direct
illumination downward to
minimize light impacts on
surrounding areas. Up-lighting,
spot-lighting, and decorative
color lighting may be
appropriate for prominent
buildings, signage, landscaping,
and other features.
 Marquee lighting, digital
screens, etc. are allowed so
long as they do not cause
excessive glare or spillover into
adjacent areas.
 As determined by the City in
consultation with adjacent
neighborhoods, it may be
appropriate to limit the
luminosity of certain lighting or
signage, and/or provide
structural or vegetative
screening from sensitive uses.
 Incorporate special lowintensity lighting (possibly with programable functionality)
along key pedestrian corridors
(e.g., the Santa Cruz Riverwalk,
Pacific Avenue, Front Street,
and Cliff Street) that serve to
improve pedestrian safety and
create visual wayfinding cues
that link the downtown to the
Beach Area.

Conceptual image of pedestrian-friendly lighting suitable for an entertainment district.

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 Bollard lighting is encouraged to
illuminate walkways and gathering
spaces, while avoiding spillover into
adjacent areas.
 Consider opportunities to incorporate
site lighting into hardscape elements
such as steps, railings and paving to
illuminate the pedestrian areas.
 Seasonal lighting (e.g., holiday display)
is allowed on Pedestrian-Oriented
Streets (defined below), including the
Spruce Street Plaza, Pacific Avenue,
and the Laurel Street Extension.

Example of an interactive illuminated art installation.

Example of appropriately-scaled bollard lighting along pedestrian pathway.

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Artwork
 Include public art installations, including interactive sculpture features, as part of public spaces and the streetscape.
 Foster opportunities to extend existing art and culture festivals by incorporating options for lighting, electrical outlets for performances/ amplification and space for art installations and events, (e.g., MAH’s Frequency: A Festival of Light, Sound & Digital Culture) in the SOLA that serves as a draw for residents and visitors.  Consider options to incorporate interactive art features, night-sky compatible lowintensity illumination, three-dimensional image projection, and other means to create opportunities for public engagement and entertainment.
 The City should work with the Arts Commission and local artists to encourage various and emerging forms of art including digital media, sculpture, painting, murals, digital displays, performance art, and other forms of artistic expression.  Locate art in prominent places within primary pedestrian corridors such as the Spruce Street Plaza, the Santa Cruz Riverwalk, and Pacific Avenue.  Public art may include a historical display or local historical interpretive works.

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Signage
 All signage should be designed
consistent with the wayfinding signage
system utilized throughout the City or
should be graphically complementary to
the architectural aesthetic of the
environment.
 Signage shall be implemented through
compliance with Municipal Code
Chapter 24.12 Community Design, Part 4
Advertising Devices, Signs, and
Billboards, which includes a Master Sign
Program under Section 24.12.317
Master Sign Program.

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Intersections
Intersections are a critical aspect of street design as the point where motorist, bicycle, and pedestrian movements converge. Successful intersection design should address all mobility and safety goals and enhance the public realm.

Corner radii directly impact vehicle turning speeds and pedestrian crossing distances.

Minimizing the size of a corner radius is critical to creating compact intersections with safe turning speeds (15 mph or less). Where existing intersections are reconstructed, or for new intersections, the corner radii should not exceed 15 feet, where appropriate.

Illustrative example of appropriate intersection geometry (NACTO, Urban Street Design Guide)

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 Major Intersections will be designed with pedestrian and bicyclist connectivity, convenience and safety by including design guidance from NACTO. Intersection features may include leading pedestrian intervals, accessible pedestrian signals, protected intersections, and pedestrian scrambles among other appropriate interventions.  On east-west side streets and Pacific Avenue use raised intersections or crosswalks to prioritize pedestrians.
 Consider enhanced paving or other visually distinctive features to highlight the pedestrian connections across Front Street, where raised intersections would interfere with bus transit.

Illustrative example of appropriate intersection geometry (NACTO, Urban Street Design Guide.)

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Gateway and Nodes
A gateway is an entrance or gathering place which acts as a transition between different spaces. It typically signifies the arrival point at a destination. The goal of a gateway is to create a sense of arrival and a positive image of the place.

As shown in Figure 8.4-6 Gateways and Nodes, a significant gateway is recommended at the intersection of Pacific Avenue and Spruce Street, as well as the newly proposed roundabout at the convergence of Pacific Avenue and Front Street. Visual methods to create the gateway could include an arch or vertical column element, landscaping, special pavement treatment, etc.

As shown in Figure 8.4-6 Gateways and Nodes, nodes are spaces that are designed to create a sense of place and are effective in wayfinding. They can include signage, sculptural art features, special lighting, benches, etc. Recommended nodal points include the intersections of Pacific Avenue and Front Street, the Santa Cruz Riverwalk at the terminus of the Spruce Street Plaza, and at a point along the re-aligned Laurel Street Extension adjacent to the rock hillside of Beach Hill. A node is also identified at the lookout at the top of stairs and northerly terminus of Cliff Street.

Example of district gateway signage.

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Figure 8.4-6 Gateways and Nodes

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Beach Connectivity
One of the primary objectives of the
Downtown Plan is to improve connectivity
between the downtown and the beach. This
linkage is important for economic reasons as
a significant number of visitors come to the
Beach Area, but do not frequent the
downtown. Additionally, better pedestrian
and bicycle linkages can help to reduce traffic
congestion, especially during the busy
summer tourist season.

Given the topography, pedestrians and
bicyclists must either go over or around
Beach Hill. The multi-use Santa Cruz
Riverwalk provides access to Liebrandt and
Riverside Avenues to the Santa Cruz
Boardwalk. Pacific Avenue also provides
pedestrian and bicycle access to the beach
and Municipal Wharf. However, both routes,
while flat, are circuitous and not
pedestrian/bike friendly.

To improve non-vehicular connectivity, this plan recommends re-construction of the Cliff Street stairs, creating a new vista lookout at the top of the stairs and improving Cliff Street from the lookout to Beach Street. See Figure 8.4-7 Beach Connectivity Conceptual Plan.

Looking north from the top of Cliff Street stairs.

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Figure 8.4-7 Beach Connectivity Conceptual Plan

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The following policies shall apply when designing and constructing new infrastructure to improve beach connectivity.
 Redesign the Cliff Street stairs and
adjacent public property with a new
stairway, lighting, landscaping, and
signage to encourage pedestrian and
bike access (e.g., a bike ramp on the
stairs) to Cliff Street and the Beach
Area.
 Create a new public viewpoint at the
northern end of Cliff Street that
capitalizes on views of the San
Lorenzo River, downtown, and the
Santa Cruz Mountains.
 Prepare a streetscape plan for the
Cliff Street corridor that considers
the following:
o Reconfigure the roadway
travel lanes and parking
configuration on Cliff Street
to create a more consistent
and safer circulation pattern.
o Construct “bulb-outs” or other similar traffic calming methods to enhance pedestrian safety along Cliff Street at the intersections of Third, Trinity, Second, and First Streets.
o Install street trees with similar stature and form and a consistent landscape palette along Cliff Street to create a “boulevard” effect and thereby improve the street’s visual appearance.

Cliff Street stairs.

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o Incorporate signage and street lighting to improve pedestrian wayfinding and safety.
o Underground the dry utility services.

Work with property owners to improve pedestrian and bicycle circulation along lower Pacific Avenue (south of Front Street). Improvements should include reducing the number of curb cuts, improving sidewalks and crosswalks for safer pedestrian mobility, landscaping, installing street lighting on the east side of lower Pacific Avenue (south of Depot Park), and landscaping.

Conceptual rendering looking north from the top of the Cliff Street stairs.

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Street Types
Defining the character and configuration of public streets within the SOLA t will help to establish a high-quality public realm that accommodates all types of mobility create highquality public spaces and enhance wayfinding.

Two street types are described below, namely: 1) Multimodal Streets and 2) PedestrianOriented Streets. Cross-sections for each street type are shown below, and their locations are identified in Figures 8.4-8 Cross-Sections Key Map.

The following roadway cross-sections used to determine the required dedications for public rights of way when new development or redevelopment is proposed within the SOLA. The allocation of space within the established right of way width may shift over time and along the length of a given roadway section based on evolving community needs and shifts in travel behavior. Additional dedication for right of way may be required at intersections.

Example of wide sidewalk with seating.

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Figure 8.4-8 Cross-Sections Key Map

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Multimodal Streets
Through corridors support higher volumes of vehicular traffic and transit while also accommodating pedestrians and bicyclists. Within the SOLA these include Laurel Street, Front Street, Lower Pacific Avenue, and Center Street. These roadways generally incorporate separated bike lanes, 6’-12’ sidewalks, street trees, and pedestrian-scale lighting. Conceptual cross sections for each street are shown in Figures 8-4-9 through 8.4-14.

Pedestrian-Oriented Streets
Pedestrian-oriented streets generally support one lane of traffic in each direction, parking, and wide sidewalks. With in the SOLA, these include portions of Pacific Avenue, Spruce Street, and Cliff Street, as well as the Santa Cruz Riverwalk. With lower and slower traffic volumes, these roadways may use paint-only bike lanes, sharrows, 6’-16’ sidewalks with space for outdoor dining and retail extension areas where appropriate, and additional street furnishing as appropriate. Conceptual cross sections are shown in Figures 8.4-15 through 8.4-20.

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-61
Santa Cruz Riverwalk
The Santa Cruz Riverwalk supports non-vehicular travel along the San Lorenzo River. A crosssection of the Santa Cruz Riverwalk within the boundary of this portion of the Downtown Plan Area is shown in Figure 8.4-21.

View looking southeast of Santa Cruz Riverwalk and Laurel Street Extension.

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-62
Figure 8.4-9 Laurel Street Between Cedar Street and Pacific Avenue (1)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-63
Figure 8.4-10 Laurel Street Between Pacific Avenue and Front Street (2)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-64
Figure 8.4-11 Front Street Between Laurel Street and Spruce Street (3)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-65
Figure 8.4-12 Front Street Between Spruce Street and Laurel Street Extension (4)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-66
Figure 8.4-13 Pacific Avenue at Hill (5)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-67
Figure 8.4-14 Center Street at Depot Park (6)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-68
Figure 8.4-15 Pacific Avenue South of Laurel Street (7)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-69
Figure 8.4-16 Spruce Street Between Pacific Avenue and Front Street (8)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-70
Figure 8.4-17 Spruce Street Plaza (9)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-71
Figure 8.4-18 Laurel Street Extension (10)
Notes:

1. Two-way access permitted from Front
Street to first driveway providing
ingress/egress service access to Block D.

2. As an optional design, the intersection of
Front Street and the Laurel Street
Extension may need to be designed at
90-degrees to address potential sight
clearance requirements.

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-72
Figure 8.4-19 Cliff Street Between Third Street and Trinity Street (11)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-73
Figure 8.4-20 Cliff Street Between First Street and Beach Street (12)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-74
Figure 8.4-21 Santa Cruz Riverwalk (13)

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-75

8.5 Sustainability and Resiliency
Consistent with the City’s General Plan, Community-wide Climate Action Plan for 2030, and other policy documents including the requirements of the CALGreen Building Standards Code and the City’s Green Building Program, future development in the SOLA will incorporate a range sustainability features intended to reduce energy and greenhouse gas emissions, promote water-use efficiency, and minimize waste. The area will also be built as required to withstand the potential for inundation, since the project area, like much of the Downtown, is located within the flood areas mapped by the Federal Emergency Management Agency (FEMA) as shown in Figure 8.5-1 FEMA Flood Hazard in the SOLA. All new development in this area will be required to comply with the standards for floodplain development as established by the California Building Standards Code and the most updated mapping data published by FEMA.

Being located adjacent to the San Lorenzo River, future development will also need to carefully consider and minimize any potential adverse biological and hydrologic effects including water quality, aquatic and riparian plant and animal species, and migratory birds. The Environmental Impact Report will carefully evaluate the potential for any such effects and mitigation measures will be incorporated as necessary.

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-76
Figure 8.5-1 FEMA Flood Hazard in the SOLA

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-77

8.5.1 Sustainability and Resiliency Policies
The City of Santa Cruz has a long-standing commitment to environmentally sound development and many existing policies and plans support the City’s long-term resilience to a changing climate. The 2030 General Plan includes this statement regarding sustainability of Land Use choices in the City:

Environmental quality, land uses, and development are inexorably linked. By providing for the city’s continued economic growth and high quality of life without compromising the needs of future generations, sustainable land uses respond to environmental values widely held in the community.

At the heart of [the City of Santa Cruz 2030 General Plan] is sustainable development. In its broadest sense, it promotes harmony among people and between humanity and nature. Also, because development cannot subsist on a deteriorating environmental or economic base, sustainable development maintains or enhances economic opportunity and community well-being, while protecting and restoring the natural environment upon which people and economies depend.

Consistent with these sentiments and City of Santa Cruz policy, all new development in the South of Laurel Area shall be consistent with relevant and applicable City plans and policies.

Those relevant policies include, but are not limited to:

Citywide Plans
 The Community-wide Climate Action Plan for 2030 (2022, as amended)  The Citywide Creeks and Wetlands Management Plan (2006, as amended)  Local Coastal Program (1992, as amended)
Santa Cruz Municipal Code Sections
 Green Building Program, as codified in SCMC Chapter 24.15  Water Waste Prohibition, as codified in SCMC Chapter 16.02  Water-Efficient Landscaping standards, as codified in SCMC Chapter 16.16  Bird-Safe Building Design standards, as codified in SCMC Subsection 24.12.127  Environmental Resource Management including specifically Drainage Control standards and Floodplain Management regulations as codified in SCMC Chapter 24.14

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-78

8.6 Infrastructure and Public Services
Implementation of the SOLA plan will require the construction of infrastructure and provision of public services and utilities in accordance with the development program described in Section

8.2 SOLA Development Plan.

As shown in Figure 8.6-1 Existing Infrastructure, the City of Santa Cruz owns and operates potable water, sanitary sewer and storm drainage in the SOLA. The City of Scotts Valley and the Santa Cruz County Sanitation District also own and operate underground sanitary sewer utilities that pass through this area. Dry utilities (e.g., electrical, natural gas, communications) are provided by the respective utility providers.

Redevelopment in the SOLA will create additional demand for water, sewer, electricity, gas and communications services. Infrastructure, services and utilities should be designed to meet the standards of the City of Santa Cruz and other utility agencies with oversight authority.

Following the approach described in Section 8.7 Implementation, the City and respective property owners and developers shall collaborate to fund and implement infrastructure improvements . Underground utilities should be included as part of street development where feasible. Specific requirements regarding timing and sizing of some infrastructure, such as onsite electrical needs, will be determined by the City as part of the development review process for each development application.

In particular, a significant amount of underground infrastructure extends along the ROW on Spruce Street. This includes a stormwater pump station at the easterly edge, adjacent to the San Lorenzo River which importantly provides stormwater drainage for the entire Downtown, as well as significant sanitary sewer facilities belonging to the City of Scotts Valley and to the Santa Cruz County Sanitation District.

Relevant public services, including police and fire protection, are provided by the City of Santa Cruz. Any increased demand on public services associated with implementation of this Plan shall be financed through development fees and the payment of annual property taxes associated with new development.

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-79
Figure 8.6-1 Existing Infrastructure

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-80

8.7 Implementation
This section addresses the actions that are necessary to support the desired features of this plan by the City of Santa Cruz, other agencies, and future project applicant(s) to achieve the goals and objectives as described above.

8.7.1 Financing Plan
Public improvement costs will be funded through a variety of funding mechanisms and resources. Appropriate funding sources will reflect the specific nature of the public improvement required as well as funding availability, timing, beneficiaries, and other factors.

New development will be required to make contributions that improve public infrastructure in ways that promote alternative transportation modes (walking, biking & transit), promote environmental sustainability (green infrastructure and green building performance), and provide for orderly and attractive change within the SOLA over time.

New development is expected to improve adjacent streets, dedicate land for the creation of new streets and public spaces, make fair-share contributions through the methods mentioned in the following sections or others, or possibly pay infrastructure impact fees for downtown improvements to create and improve streets and public spaces.

Specifically, development will contribute toward build-out of community amenities such as:

1. Spruce Street Plaza from Front Street to Riverwalk

2. New Roundabout at Pacific Avenue/Front Street/Third Street

3. Raised crossings on Pacific Avenue

4. Utility Upgrades

5. Existing and required new traffic signal equipment

6. Spruce Street Plaza from Pacific Avenue to Front Street 1 Unless otherwise negotiated with the City, for example as part of a fair share contribution towards future improvements, development projects will be required to include build-out of improvements on all public frontages, specifically:

1. Sidewalks

2. Bike Facilities
1 This section of roadway may or may not be built out as a public plaza, depending on future development and the location of the Arena.

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-81

3. Riverwalk Improvements

4. Utility upgrades or relocations

5. Undergrounding of any aerial utilities

8.7.2 Potential for Special-Purpose Financing Districts The City retained the consulting firm Kosmont Companies to evaluate the feasibility of various forms of financing districts to assist in addressing existing and potential future infrastructure needs. One specific tool that was evaluated in detail was enhanced infrastructure financing districts (EIFDs).

EIFDs can employ tax increment financing (TIF) as a form of value capture, where a lead agency (such as the City) designates a boundary around specific parcels (i.e., the “TIF district”) positioned for new development or investment. The assessed property value within the TIF district is “frozen” at the time of formation as the “baseline” of assessed value for the TIF district. Over time, as new development or investment occurs and new property value is added to properties within the TIF district, participating taxing entities such as the City and County can dedicate all or a portion of the new incremental property tax from values above the baseline (“property tax increment”) to the TIF district with a dedicated purpose, such as of funding infrastructure. The property tax increment may be used on a pay-as-you-go basis or leveraged in the form of bond issuances.

Very importantly, TIF districts do not create a new or increased tax, nor do they encumber any existing agency revenues or resources. Much of the potential benefit for the City in utilizing TIF as part of an EIFD would be to potentially attract matching funding from another taxing entity such as the County, increase scoring for third party grant funding, and to induce private sector funding for infrastructure that can be partially or wholly reimbursed by the EIFD. EIFD’s can fund a variety of infrastructure and public improvement costs, such as mobility improvements, utility capacity enhancements, flood control, parks and open space, and other infrastructure.

If the City ultimately implements an EIFD, an Infrastructure Financing Plan would be prepared that outlines the specific funding arrangement, targeted facilities to be funded, relevant fiscal impacts, and other details. The Infrastructure Financing Plan would be noticed publicly and then a series of public meetings and hearings would be convened to vet the proposed plan, including an opportunity for public protest. The typical formation process for an EIFD is approximately 12 to 18 months.

8.7.3 Ongoing Funding for Public Services and Facilities The primary source of ongoing funding for the City’s public services and facilities is tax revenue that accrues to the City’s General Fund. This revenue comes from property taxes, user fees, sales taxes, and transient occupancy taxes, among others.

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-82
If the City determines that additional funding is required to support non-standard features such as plazas, stormwater treatment facilities, pedestrian-oriented lighting, special paving, wayfinding signage, and others, these features should be privately funded and maintained through a maintenance agreement as a condition of approval.

Financing districts such as EIFDs (discussed above) would additionally have capacity on an ongoing basis to fund maintenance of public facilities, in addition to initial capital expenditures.

In some cases, funding capacity for ongoing maintenance and services are augmented with tools such as community facilities districts (CFDs) and business improvement districts (BIDs).

Such tools are not being contemplated at this time, but would involve a public outreach and hearing process, including approval by relevant landowners and/or businesses.

8.7.4 Land Dedication for Public Realm and Utility Infrastructure The creation of new or expanded public streets and open spaces will rely on the dedication of land by property owners, including the City, typically as part of development.

Property Owner Coordination
 The City should work diligently with the respective property owners and developers for orderly creation of street rights-of-way and public space, while maintaining development feasibility on adjacent parcels. During the development review process, the City will contact affected property owners to discuss land dedication expectations and potential for land development on the remaining parcel.  The City will work with property owners/developers to adjust property lines or assemble land, where the location of public streets, in-ground infrastructure, flood control infrastructure, and public spaces might result in parcel remnants that are too small to develop effectively.
 The City should encourage developers and contractors to evaluate hiring local labor, hiring from or contributing to apprenticeship programs, increasing resources for labor compliance, and providing living wages.

Timing of Dedication
 Land for future streets and public space shall be dedicated as a condition for development approval, as determined above and as shown on the respective street cross-section as shown in Section 8.4.3 Streetscape and Circulation / Street Types  The location of private alleys and walkways with public access and the option to place utilities in a public access easement if needed shall also be established at the time of development approval.
 Interim improvements should be provided within established easements for public access. The City may purchase additional easements, where such an access or utility easement is not already present and where the City finds that an interim improvement

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City of Santa Cruz APPENDIX 8: South of Laurel Area
Downtown Plan Page 8-83
is essential to downtown’s circulation network. The phasing of the roadway network may also require interim roadway measures to be constructed to ensure viable emergency vehicle access.

23.242
1 RESOLUTION NO. NS-XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING

THE BEACH/SOUTH OF LAUREL COMPREHENSIVE AREA PLAN TO REMOVE A

PORTION OF THE SOUTH OF LAUREL DISTRICT FROM THE PLAN BOUNDARY WHEREAS, the City adopted the Beach/South of Laurel Comprehensive (B/SOL) Area Plan on October 20, 1998 as part of the City’s Local Coastal Program; and WHEREAS, proposed amendments will modify the boundary of the B/SOL Area Plan in order to remove a portion of the Plan (called the South of Laurel Area) from it and allow that South of Laurel Area to become part of the expanded boundaries of the Downtown Plan; and WHEREAS, by removing this subject area from the jurisdiction of the B/SOL Plan, certain text is made obsolete or redundant, and is therefore proposed for amendment or deletion; and WHEREAS, the City Planning Commission held a public hearing on April 17, 2025 and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered with the adoption of the B/SOL Plan amendments; and that the proposed amendments are in general conformance with the principles, policies and land use designation set forth in the 2030 General Plan and Local Coastal Land Use Plan, as amended; and WHEREAS, the City Council conducted a public hearing on May 13, 2025 and now finds:

1. That the public necessity, and the general community welfare, and good zoning practice shall be served and furthered with the amendments to the B/SOL Plan Local Coastal Program; and that the proposed amendments are in general conformance with the principles, policies, and land use designation set forth in the General Plan, Local Coastal Program and Downtown Plan specific plan, as amended.

2. The proposed Downtown Plan amendments are determined to be in the public interest.

3. The proposed Downtown Plan amendments are consistent and compatible with all elements of the adopted General Plan 2030 and associated implementation programs.

4. In accordance with the California Environmental Quality Act (CEQA), the potential impacts of the proposed amendments have been assessed. Pursuant to the analysis contained in the Subsequent EIR to the Program EIR (certified by City Council by Resolution NS-29,324 on November 14, 2017) prepared by the City in accordance with CEQA Guidelines sections 15162 and 15164: 1) the Project’s impacts have been fully analyzed, 2) Significant and unavoidable impacts to Historic Resources have been considered by the City, 3) a Findings of Fact and Statement of Overriding Considerations has been adopted, and 4) a Mitigation Monitoring and Reporting Program has been adopted.

23.243
RESOLUTION NO. NS-XX,XXX
2 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that the referenced B/SOL Plan amendments as shown in the Exhibit, with text to be added shown in underline and text to be deleted shown in strikeout, are adopted.

PASSED AND ADOPTED this 13th day of May 2025, by the following votes:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

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Beach/South of Laurel Comprehensive Area Plan Text Amendments All are also proposed amendments to the Local Coastal Program (LCP). Proposed amendments are shown in underline and strikeout. Text in green indicates changes to the proposal since the publication of the Draft Environmental Impact Report.

Introduction and Purpose
Add page vii(a), showing map and footnote:

Map to be added: Beach/South of Laurel Plan Boundary
Footnote to new map:
*The Beach/South of Laurel Plan Area was amended to adjust the boundaries between the Downtown Plan and the B/SOL plan. Any conflicts between the two plans will be resolved based on the adjusted boundaries, with the Downtown Plan superseding the B/SOL plan for the portion of the South of Laurel Area that was added to the Downtown Plan.

Section II South of Laurel
Subsection X. Recommendations: Land Use & Zoning – South of Laurel B. Planning Policy and Goals

2. Residential Policy Framework and Goals
f. Encourage mixed-use development in the residential sections of the South of Laurel area on major arterials by overlaying the mixed-use zoning district on appropriate areas. (P. 144) The remainder of this part XB2, and any points not listed, shall remain unchanged.

3. Commercial Policy Framework and Goals
a. Establish the southern end of Pacific Avenue below Laurel Street as an extension of the Downtown Recovery Plan policies for Pacific Avenue with an emphasis on mixed residential development above ground floor retail and other uses. Maintain a CBD zone that uses the same village design and use policies as the Cedar Street area of the Downtown Recovery Plan. (P. 144) c. Establish the area South of Laurel adjacent to the river as a high-density mixed-use area that will can provide new market rate housing and commercial uses. (P. 144) d. Emphasize Front Street as the secondary access route to the Beach by creating a streetscape that clearly identifies the route as a beach access. This should be established by planting palm trees along the route between Soquel Avenue and the Union Pacific site as recommended by the Downtown Recovery Plan. (P. 144)
f. Reduce or eliminate the requirement to provide parking on lots 40 feet wide or less along lower end of Pacific Avenue, if an in-lieu fee is paid to allow the vacant lots to be developed.

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The remainder of this part XB3, and any points not listed, shall remain unchanged.

Proposed Amendments to the Beach/South of Laurel Area Plan Design Guidelines Section D. South of Laurel
Part 2. Goal and Objectives
Goal:
• Improve the quality of life for the existing residents and businesses in the area through integrating appropriate visitor serving and commercial uses that serve to connect the Downtown and Beach Areas.

Objectives:
• Establish the southern end of Pacific Avenue below Laurel Street as an extension of the Downtown Recovery Plan policies for Pacific Avenue with an emphasis on mixed residential development above ground floor retail and other uses. Create a CBD zone that uses the same village design and use policies as the Cedar Street area of the Downtown Recovery Plan.
• Establish a two story minimum for commercial development along Pacific Avenue. • Establish the area adjacent to the river as a high-density mixed-use area that will can provide new market rate housing and commercial uses.
• Identify the Spruce/sycamore, Washington Street and Myrtle Street neighborhoods as “Conservation Areas” in which historic homes will be preserved and new and remodeled homes will adhere to historic compatibility guidelines. • Encourage mixed-use developments that will serve as a transition between the residential neighborhoods and commercial areas.
• Establish a strong sense of place, with edges which have a beginning and an end, and with gateways and intimate residential streets clearly defined. • Enhance the entries to the neighborhood at definable intersections to strengthen the residential quality of the neighborhood and improve the appearance of the area. • Maintain commercial buildings facing and in close proximity to the street and locate parking and utilitarian areas behind main structures.
• Enhance pedestrian and bicyclist safety and comfort with improved streetscapes including bike paths, sidewalks, street trees, landscaping, and other amenities.

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3RD ST

FRONT ST

PACIFIC AV

BEACH ST
2ND ST

CENTER ST
BAY ST

CEDAR ST

WEST CLIFF DR

CHESTNUT ST

OCEAN ST

MYRTLE ST

BARSON ST

CLIFF ST

WALNUT AV

LINCOLN ST
ELM ST

MAIN ST

LIBERTY ST

WASHINGTON ST

GHARKEY ST

MUNICIPAL WHARF ST

BROADWAY

LIGHTHOUSE AV

EAST CLIFF DR

LEIBRANDT AV

PARK PL

MAPLE ST

SANTA CRUZ ST

SOQUEL AV

LAUREL ST

PEARL ST

CLAY ST

OCEAN VIEW AV

MONTEREY ST
1ST ST

OREGON ST

BIXBY ST

SPRUCE ST

RAYMOND ST

WAVE LN

BLACKBURN ST

JENNE ST KAYE ST

CATHCART ST

RIVERSIDE AV

JESSIE ST

CANFIELD ST

NEVADA ST
NEW ST

WINDSOR ST

CAMPBELL ST

BIRCH LN

YOUNGER WY

TRINITY ST

COWELL ST

SAN LORENZO BL

TAYLOR ST

HOLDEN ST

SYCAMORE ST

EVERSON DR

ROBERTS AV

UHDEN ST

MANOR AV WEST

PEARL AL

VIADUCT ST

CHESTNUT ST

LAUREL ST

BROADWAY

RIVERSIDE AV

JESSIE ST
Beach South of Laurel
Plan Area
Existing Beach South of Laurel 0 250 500 1,000 Feet
Plan Area

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3RD ST

FRONT ST

PACIFIC AV

BEACH ST
2ND ST

CENTER ST
BAY ST

CEDAR ST

WEST CLIFF DR

CHESTNUT ST

OCEAN ST

MYRTLE ST

BARSON ST

CLIFF ST

WALNUT AV

LINCOLN ST
ELM ST

MAIN ST

LIBERTY ST

WASHINGTON ST

GHARKEY ST

MUNICIPAL WHARF ST

BROADWAY

LIGHTHOUSE AV

EAST CLIFF DR

LEIBRANDT AV

PARK PL

MAPLE ST

SANTA CRUZ ST

SOQUEL AV

LAUREL ST

PEARL ST

CLAY ST

OCEAN VIEW AV

MONTEREY ST
1ST ST

OREGON ST

BIXBY ST

SPRUCE ST

RAYMOND ST

WAVE LN

BLACKBURN ST

JENNE ST KAYE ST

CATHCART ST

RIVERSIDE AV

JESSIE ST

CANFIELD ST

NEVADA ST
NEW ST

WINDSOR ST

CAMPBELL ST

BIRCH LN

YOUNGER WY

TRINITY ST

COWELL ST

SAN LORENZO BL

TAYLOR ST

HOLDEN ST

SYCAMORE ST

EVERSON DR

ROBERTS AV

UHDEN ST

MANOR AV WEST

PEARL AL

VIADUCT ST

CHESTNUT ST

LAUREL ST

BROADWAY

RIVERSIDE AV

JESSIE ST
Proposed Beach South
of Laurel Plan Area
Proposed Beach South of Laurel 0 250 500 1,000 Feet
Plan Area

23.248
ORDINANCE NO. 2025-___

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE SECTIONS 24.10.2300 - PURPOSE, CENTRAL BUSINESS DISTRICT (CBD), 24.10.2301 - USES, DEVELOPMENT STANDARDS, AND DESIGN GUIDELINES,

24.12.250 - BIKE PARKING REQUIREMENTS, 24.12.290 - VARIATIONS TO REQUIREMENTS, AND THE ZONING MAP AND DELETING PART 24(A) - CBD SUBDISTRICT E – LOWER PACIFIC AVENUE IN IT’S ENTIRETY, TO IMPLEMENT

THE EXPANSION OF THE BOUNDARY OF THE DOWNTOWN PLAN AND REZONE THE PARCELS IN THE SOUTH OF LAUREL AREA (CEQA: PROJECT STUDIED IN AN EIR)
WHEREAS, the Downtown Plan was initially adopted as part of the recovery process from the Loma Prieta Earthquake and is implemented through various Parts of the Santa Cruz Municipal Code; and
WHEREAS, in December 2020 the City Council selected the boundary of the area to be studied for potential expansion of the Downtown Plan and directed staff to pursue grant funding to support a project to expand the Downtown; and
WHEREAS, the work to consider the expansion of the Downtown Plan has included multiple community meetings, surveys, and focus groups as well as public hearings with both the City Council and the City Planning Commission; and
WHEREAS, in June 2022, January 2023, and June 2024 the City Council and the City Planning Commission provided direction to staff regarding the form of development and level of development intensity that should be studied for the South of Laurel Area; and WHEREAS, amendments to the Santa Cruz Municipal Code are required in order to implement the expansion of the Downtown Plan boundary as currently proposed; and WHEREAS, at its April 17, 2025 meeting, the City Planning Commission reviewed the proposed additions, modifications including rezonings, and deletions to the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and WHEREAS, the proposed amendments and additions to the Santa Cruz Municipal Code have been analyzed as part of an Environmental Impact Report on the project to expand the boundary of the Downtown Plan and
WHEREAS, at its April 17, 2025 meeting the City Planning Commission passed a motion that recommended the City Council certify the associated Draft and Final Environmental Impact Report and approve the proposed additions, modifications including rezonings, and deletions to the Santa Cruz Municipal Code.

23.249
ORDINANCE NO. 2025-___
2 NOW THEREFORE BE IT ORDAINED THAT the proposed zoning map amendments, as shown in the Exhibits Existing and Proposed Zoning Maps and Exhibit List of Parcels Proposed for Rezoning are approved; and
BE IT FURTHER ORDAINED by the City of Santa Cruz as follows:

Section 1. Section 24.10.2300 - Purpose of Part 24: Central Business District (CBD) of the Santa Cruz Municipal Code regarding the Central Business District Zone District is hereby amended to read as follows:

24.10.2300 PURPOSE.

This part implements the Land Use Plan, Development Standards and Design Guidelines of the Downtown Plan (Plan), a specific plan. It is intended to refine the Plan in the area of land use and regulations. It supports the purpose of the Plan, in the context of the General Plan, which aims to maintain downtown the urban center of the city, with the many functions a city center serves. This chapter of the Zoning Ordinance is also part of the Local Coastal Implementation Plan.

The Central Business District Zone of the Downtown Plan is divided into five subareas, in order to enhance the character of each by special consideration of the character of each.

Section 2. Section 24.10.2301 - Uses, Development Standards, and Design Guidelines of Part 24: Central Business District (CBD) of the Santa Cruz Municipal Code regarding the Central Business District Zone District is hereby amended to read as follow:

24.10.2301 USES, DEVELOPMENT STANDARDS AND DESIGN GUIDELINES Chapter 4 of the Downtown Plan, as amended, is hereby adopted by reference, and the planning and community development department shall maintain copies of the Downtown Plan in both hard copy and electronic form, for use and examination by the public. The policies and regulations set forth in Chapter 4 of the Downtown Plan shall control all uses in the CBD, Central Business District, and its five subdistricts: Pacific Avenue Retail District; Front Street Riverfront Corridor; South of Laurel Area; Cedar Street Village Corridor; and North Pacific Area.

Section 3. Part 24(A) - CBD Subdistrict E – Lower Pacific Avenue, of Chapter 24.10 - Land Use Districts, is hereby deleted in its entirety.

Section 4. Section 24.12.250 - Bike Parking Requirements of Chapter 24.12 - Community Design, of the Santa Cruz Municipal Code is hereby amended to read as follows:

23.250
ORDINANCE NO. 2025-___
3 24.12.250 BIKE PARKING REQUIREMENTS.

1. Bicycle parking facilities shall be provided for any new building, addition or enlargement of an existing building, or for any change in the occupancy.

2. Bike Spaces and Type Required. Bicycle parking facilities’ quantity and type shall be provided in accordance with the following schedule, with fractional quantity requirements for bike parking over one-half to be rounded up. Each bicycle parking space shall be no less than six feet long by two feet wide and shall have a bicycle rack system in compliance with the bike rack classifications listed in subsection (4).

Example
Number of Bicycle
Parking Spaces
Required
Classification
Class 1 = LongTerm
Class 2 = ShortTerm
Industrial Warehousing,
manufacturing
1 per 7,500 square
feet, minimum 2
spaces
80% Class 1
20% Class 2
Office and financial
institutions
General office,
medical, clinic,
research and
development, banks
1 per 1,500 square
feet, minimum 2
spaces
20% Class 1
80% Class 2
Retail/service or
other commercial
Grocery store,
hardware store,
personal services,
handicraft
1 per 1,000 square
feet, minimum 2
spaces
20% Class 1
80% Class 2
Restaurant/bar Restaurant, deli,
coffee shop,
bar/tasting rooms
1 per 500 square feet,
minimum 2 spaces
20% Class 1
80% Class 2
Multifamily
residential
(3 or more units)
Housing
developments with 3
or more units
See classification
column
Class 1 – 1 space per
unit – garages or
secure accessible
indoor areas count
Class 2 – 1 space per 4
units, minimum 2
spaces
Commercial
recreation
Sports arenas, theaters See classification
column
Class 1 – 1 per 10,000
square feet
Class 2 – 1 per 40
seats, minimum 10

23.251
ORDINANCE NO. 2025-___
4 Civic uses (civic,
cultural, public, and
religious assembly)
Library or museum,
places of public or
religious assembly
1 per 1,000 square feet 10% Class 1
90% Class 2
Schools 1 per 5 students 20% Class 1
80% Class 2*
*Must be in secure
area such as bike cage
or within gated school
grounds, preferably
with weather
protection such as roof
Park-and-ride lots 1 per 10 auto parking
spaces, minimum 2
spaces
100% Class 1
Transit centers See classification
column
30 Class 1 spaces
12 Class 2 spaces
Lodging Hotel, motel 1 per 5 rooms/units 10% Class 1
90% Class 2
Commercial parking 1 per 10 auto parking
spaces
100% Class 1
Downtown Plan
Area– Residential
uses
Multifamily housing See classification
column
1 Class 1 bicycle
parking space per unit
1 Class 2 bicycle
parking space per 15
units
Downtown Plan
Area– Nonresidential
uses
Any nonresidential
uses in district
1 per 1,000 square feet 25% Class 1
75% Class 2
The Class 2 spaces
shall be publicly
accessible, and the
style shall be inverted
U.

Emergency shelters See Section

24.12.1610
1 per 3 occupants 25% Class 1
75% Class 2
The Class 2 spaces
shall be publicly
accessible, and the
style shall be inverted
U.

23.252
ORDINANCE NO. 2025-___
5 3. For projects requiring twenty or more bike parking spaces, a bike fix-it station is required. A fix-it station shall include at a minimum a bicycle pump; 2.5, 3, 4, 5, 6, and 8 mm Allen wrenches; 8, 9, 10, 11, 15, and 32 mm box wrenches; two tire levers; and a Phillips and flat head screwdriver. For projects requiring twenty or more bicycle parking spaces, a minimum of five percent of required bicycle parking spaces must have a larger footprint of three feet by ten feet, which must be provided in a horizontal, floor level rack. These spaces will be available for larger bicycles such as e-bikes, cargo bikes, bikes with trailers, and other larger bicycles.

4. Classification of Facilities.
a. “Class 1 bicycle facility” means a locker, individually locked enclosure or supervised area within a building providing protection for each bicycle therein from theft, vandalism and weather. Class 1 facilities are intended for long-term storage. b. “Class 2 bicycle facility” means a stand or other device constructed so as to enable the user to secure by locking the frame and one wheel of each bicycle parked therein. Racks must provide two points of contact to bicycle frames, so that they are easily usable with both U-locks and cable locks. Racks should support the bikes in a stable upright position so that a bike, if bumped, will not fall or roll down. The preferred Class 2 bike rack style is an inverted U, which meets code requirements. Racks that support a bike primarily by a wheel, such as standard “wire racks,” are damaging to wheels and thus are not acceptable. Class 2 facilities are intended for short-term storage.

5. Location and Design of Facilities.
a. Bicycle parking shall be located in well-lit locations within forty feet of the building’s entrance and clustered in lots not to exceed sixteen spaces each. b. Bicycle parking facilities shall provide two points of contact to bicycle frames to support bicycles in a stable position without damage to wheels, frame or other components. c. Bicycle parking facilities shall be located in highly visible, well-lit areas to minimize theft and vandalism.
d. Bicycle parking facilities shall be securely anchored to the lot surface so they cannot be easily removed and shall be of sufficient strength to resist vandalism and theft. e. Bicycle parking facilities shall not impede pedestrian or vehicular circulation, and should be harmonious with their environment both in color and design. Parking facilities should be incorporated whenever possible into building design or street furniture. f. Racks must not be placed close enough to a wall or other obstruction so as to make use difficult. There must be sufficient space (at least twenty-four inches) beside each parked bike that allows access. This access may be shared by adjacent bicycles. An aisle or other space shall be provided to bicycles to enter and leave the facility. This aisle shall have a width of at least six feet to the front or rear of a bike parked in the facility.

23.253
ORDINANCE NO. 2025-___
6 g. Paving is not required, but the outside ground surface shall be finished or planted in a way that avoids mud and dust.
h. Bike parking facilities within auto parking areas shall be separated by a physical barrier to protect bicycles from damage by cars, such as curbs, wheel stops, poles or other similar features.
i. Any bicycle parking provided in double-decker bicycle racks shall have a lift-assist mechanism to aid the user in parking their bicycle on the upper rack. j. If vertical wall hanging bicycle racks are used for Class 2 bicycle parking, thirty percent of required Class 2 bicycle parking must be provided in racks that meet Class 2 requirements in subsection (4)(b) at ground level.
k. If required Class 2 bicycle parking is not clearly visible to bicyclists approaching from adjacent public roadways or paths, signs shall indicate the locations of the facilities on the exterior of the building at each major entrance and in other appropriate locations. Where necessary, additional directional signage to the bicycle parking area shall be provided.

6. Variation to Requirements.
a. Substitution of Car Parking With Bike Parking. New and preexisting developments may reduce up to ten percent of their parking requirement with the provision of unrequired additional bike parking, as long as the spaces are conveniently located within forty feet of a building entrance. This parking reduction must yield at least six bike parking spaces per converted auto space. These bike parking spaces shall be in addition to the bike parking facilities required by this section, and provided in the same ratio of Class 1 and Class 2. The total available parking reduction granted shall be calculated in conformance with the city parking reduction worksheet in effect at the time a complete planning application is submitted.
b. Where the provision of bike parking is not feasible, the requirements may be waived or reduced to a feasible level by the zoning administrator in accordance with city bike parking standards.
c. Downtown Plan Area – All Nonresidential Uses. Businesses and developments within Parking District No. 1 are not required to provide Class 2 bicycle parking on site if adequate on-site space is not available, as determined by the planning director. The city shall permit required bicycle parking within the public right-of-way for the downtown parking district area in locations and amounts determined by the director of public works.

Section 5. Section 24.12.290 - Variations to Requirements of Chapter 24.12 - Community Design of the Santa Cruz Municipal Code is hereby amended to read as follows:

23.254
ORDINANCE NO. 2025-___
7 24.12.290 VARIATIONS TO REQUIREMENTS.

The off-street parking requirements of this part may be satisfied or modified in the following ways:

1. Parking District Number 1. If the property being occupied or proposed to be occupied is in Parking District Number 1 and requires a number of parking spaces greater than the existing use, and not otherwise accommodated on the site, an in-lieu fee shall be assessed as identified in the Downtown Parking resolution.

Section 6. The City Council finds and determines that the adoption of this ordinance is considered a “project” under California Code of Regulations, Title 14, section 15378(a)(1) of the California Environmental Quality Act (CEQA) Guidelines, and has, as part of the larger package of items being considered at its May 13, 2025 public hearing, certified an Environmental Impact Report addressing this item.

Section 7. If any section or portion of this ordinance is found to be invalid by a court of competent jurisdiction, such finding shall not affect the validity of the remainder of the ordinance, which shall continue in full force and effect.

Section 8. This ordinance shall take effect and be in full force thirty (30) days after final adoption for areas of the City outside the Coastal Zone and shall take effect and be in full force upon certification by the California Coastal Commission for areas of the City located within the Coastal Zone.

PASSED FOR PUBLICATION this 13th day of May 2025, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

23.255
ORDINANCE NO. 2025-___
8 PASSED FOR FINAL ADOPTION this _____day of _______, 2025 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

23.256

FRONT ST

PACIFIC AV
3RD ST
2ND ST

CENTER ST

MAIN ST

CLIFF ST

CEDAR ST
1ST ST

LAUREL ST

SPRUCE ST

MAPLE ST

BIRCH LN

YOUNGER WY

WEST CLIFF DR

SYCAMORE ST

BARSON ST

SAN LORENZO BL

BEACH ST

DRIFT WY

RIVERSIDE AV

TRINITY ST

WAVE LN

WESTBROOK ST

WASHINGTON ST

VILLA MAR VISTA

LAUREL ST
Downtown Expansion
Area
2030 General Plan
Very Low Density
Residential (.1-1 DU/
Acre)
Mixed-Use Visitor
Commercial (MXVC), 1.0
to 2.75 FAR, 0 to 55
DU/AC
Mixed-Use High Density
(MXHD), 1.0 to 2.75
FAR, 10 to 55 DU/AC
Mixed-Use Medium
Density (MXMD), 0.75
to 1.75 FAR, 10 to 30
DU/AC
Low Density Residential
(1.1-10 DU/acre)
Low Medium Density
Residential (10.1-20
DU/acre)
Medium Density
Residential (20.1-30
DU/acre)
High Density Residential
(30.1-55 DU/acre)
Neighborhood
Commercial
Office
Community Commercial
Regional Visitor
Commercial
Industrial
Community Facilities
U.C.S.C. Development
Coastal Dependent
Coastal Recreation
Agriculture / Grazing
Parks
Parks/Community
Facilities
Natural Areas
0 125 250 500 Feet
Existing General Plan Land Use
Designations Downtown Plan Area

23.257

FRONT ST

PACIFIC AV
3RD ST
2ND ST

CENTER ST

MAIN ST

CLIFF ST

CEDAR ST

LAUREL ST
1ST ST

SPRUCE ST

MAPLE ST

BIRCH LN

BEACH ST

YOUNGER WY

WEST CLIFF DR

BARSON ST

SYCAMORE ST

DRIFT WY

SAN LORENZO BL

TRINITY ST

WAVE LN

WESTBROOK ST

VILLA MAR VISTA

WASHINGTON ST

LAUREL ST
Downtown Expansion
Area
Proposed General
Plan
Agriculture / Grazing
Coastal Dependent
Community Facilities
Community Commercial
Coastal Recreation
High Density Residential
(30.1-55 DU/acre)
Industrial
Low Density Residential
(1.1-10 DU/acre)
Low Medium Density
Residential (10.1-20
DU/acre)
Medium Density
Residential (20.1-30
DU/acre)
Mixed-Use High Density
(MXHD), 1.0 to 2.75
FAR, 10 to 55 DU/AC
Mixed-Use Medium
Density (MXMD), 0.75
to 1.75 FAR, 10 to 30
DU/AC
Mixed-Use Visitor
Commercial (MXVC), 1.0
to 2.75 FAR, 0 to 55
DU/AC
Natural Areas
Neighborhood
Commercial
Office
Parks
Parks/Community
Facilities
Regional Visitor
Commercial
U.C.S.C. Development
Very Low Density
Residential (.1-1 DU/
Acre)
0 125 250 500 Feet
Proposed General Plan Land Use
Designations Downtown Plan Area

23.258
List of Parcels Proposed for Redesignation in the General Plan Parcel
Number Street Address
Existing
General Plan
Proposed
General Plan
007-023-27 140 CENTER ST M RVC
007-032-01 220 FRONT ST H RVC
007-033-01 140 FRONT ST H RVC
007-033-02 203 LAUREL ST H RVC
007-033-03
203 LAUREL STREET
EXT 10 M RVC
007-033-04 126 FRONT ST M RVC
General Plan and LCP Land Use Designation abbreviations:

M: Residential Medium Density
H: Residential High Density
RVC: Regional Visitor Commercial

23.259
1 Municipal Code Amendments, strikeout and underline
Part 24: CENTRAL BUSINESS DISTRICT (CBD)

24.10.2300 PURPOSE.

This part implements the Land Use Plan, Development Standards and Design Guidelines of the Downtown Plan (Plan), a specific plan. It is intended to refine the Plan in the area of land use and regulations. It supports the purpose of the Plan, in the context of the General Plan, which aims to maintain downtown the urban center of the city, with the many functions a city center serves. This chapter of the Zoning Ordinance is also part of the Local Coastal Implementation Plan.

The Central Business District Zone of the Downtown Plan is divided into four five subareas, in order to enhance the character of each by special consideration of the character of each. A fifth area, CBD Subdistrict E, Lower Pacific Avenue, implements the policies of the Beach and South of Laurel Plan and is separate from the Downtown Plan.

24.10.2301 USES, DEVELOPMENT STANDARDS AND DESIGN GUIDELINES.

Chapter 4 of the Downtown Plan, as amended, is hereby adopted by reference, and the planning and community development department shall maintain copies of the Downtown Plan in both hard copy and electronic form, for use and examination by the public. The policies and regulations set forth in Chapter 4 of the Downtown Plan shall control all uses in the CBD, Central Business District, and its four five subdistricts: Pacific Avenue Retail District; Front Street Riverfront Corridor; South of Laurel Area; Cedar Street Village Corridor; and North Pacific Area.

Part 24(A): CBD SUBDISTRICT E – LOWER PACIFIC AVENUE

24.10.2360 PURPOSE.

The purpose of the Lower Pacific Avenue Subdistrict Zone is to encourage the development/redevelopment of the Lower Pacific corridor between Laurel and Front Streets as an important linkage between the Downtown and the Beach. Its intent is to extend the commercial and mixed use developments of the Downtown along Lower Pacific Avenue in a manner that is compatible with and linked to the regional tourist serving uses of the Beach.

23.260
2 24.10.2361 PRINCIPAL PERMITTED USES.*

1. The following uses are allowed outright in the Lower Pacific Avenue Subdistrict, subject to a design permit and other requirements of the Municipal Code (numerical references at the end of these categories reflect the general use classifications listed in the city’s Land Use Codes.

Further refinement of uses within these categories can be found in the Land Use Codes, but they are not intended to be an exhaustive list of potential uses):
a. Acting/art/music/dance school and studios (610);
b. Apparel and accessory stores (250);
c. Eating and drinking establishments (excepts bars, fast food), subject to live entertainment and alcohol regulations of Chapter 24.12 (280); d. Educational facilities (public/private) (510);
e. Food and beverage stores (except liquor and convenience stores) (240); f. General retail merchandise (drug and department stores) (230); not exceeding 16,000 square feet per individual store;
g. Home furnishing stores (270);
h. Lodging (300);
i. Multiple dwellings or condominiums or mixed use residential and commercial developments when multiple dwelling or condominium units are located above the first floor of commercial uses, subject to the minimum land area (net) per dwelling unit of the R-M District (830, 840);
j. Museums and art galleries (600);
k. Repair, alterations, and maintenance services for household items (except boat repair) (340);
l. Small community care residential facilities;
m. Small preschool/childcare (12 or fewer) (510A);
n. Specialty retail supply stores (290);
o. Theaters (620);

23.261
3 p. Video rental (360B).

24.10.2365 ACCESSORY USES.

Other uses and buildings customarily appurtenant to a permitted use, subject to the provisions of Section 24.12.140, Accessory buildings, and Section 24.10.730.

24.10.2370 USE PERMIT REQUIREMENT.

1. The following uses are subject to approval of an administrative use permit in the Lower Pacific Avenue Subdistrict and possibly other requirements of the municipal code (numerical references at the end of these categories reflect the general use classifications listed in the city’s land use codes. Further refinement of uses within these categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):
a. Auto supply stores (260C);
b. Bakery, microbrewery (subject to alcohol regulations in Part 12 of Chapter 24.12), handicrafts or similar light manufacturing and assembly uses associated with retail sales, if floor area is less than seven thousand square feet and retail sale or service area occupies at least thirty percent of the floor area;
c. Brewpubs, subject to alcohol regulations in Part 12 of Chapter 24.12; d. Churches (500);
e. Communication and information services (550);
f. Community organizations, associations, clubs, and meeting halls (570); g. Developed parks (710);
h. Fast-food restaurants or drive-in eating facilities subject to performance standards in Section 24.14.290 and subject to alcohol regulations in Part 12 of Chapter 24.12 and Section 24.14.290 (280H);
i. Financial, insurance, real estate offices (420);
j. Financial services (320);
k. Flexible density unit (FDU) housing (fifteen units or less) as part of a mixed-use project; l. Foster family homes;

23.262
4 m. Government and public agencies (530);
n. Medical/health offices (except veterinarians and ambulance services) (410); o. Off-site public/private parking facilities (930);
p. Professional offices (400);
q. Professional/personal services (except contractors’ yards and mortuaries) (310); r. Recycling collection facilities;
s. Sports, recreation and entertainment facilities subject to alcohol regulations in Part 12 of Chapter 24.12 (720);
t. Temporary structures and uses;
u. Utilities and resources (540);
v. Veterinarians (410A);
w. Wireless telecommunications facilities, subject to the regulations in Part 15 of Chapter

24.12. 2. The following uses are subject to approval of a special use permit and design permit in the Lower Pacific Avenue Subdistrict and possibly other requirements of the municipal code (numerical references at the end of these categories reflect the general use classifications listed in the city’s land use codes. Further refinement of uses within these categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):
a. Bar and cocktail lounges, subject to alcohol regulations in Part 12 of Chapter 24.12 (280C);
b. Community care facilities;
c. Community care residential facilities;
d. Contractor/building (310E);
e. Convenience/liquor stores, subject to alcohol regulations of Part 12 of Chapter 24.12 (240B);
f. Flexible density unit (FDU) housing (sixteen units or more) as part of a mixed-use project;

23.263
5 g. Nightclubs (amplified live entertainment), subject to alcohol regulations of Part 12 of Chapter 24.12 (630);
h. Single-room occupancy (SRO) (860);
i. General retail merchandise (drug and department stores) exceeding sixteen thousand square feet (230);
j. Smoking lounges as defined in Section 24.22.748.2 and subject to siting criteria and performance standards in Chapter 5.54.

24.10.2375 USE DETERMINATION.

Any other use or service establishment determined by the zoning administrator to be of the same general character as the foregoing uses, and which will not impair the present or potential use of adjacent properties, may be permitted. If the zoning administrator determines that the proposed use is more in character with the conditional uses for this zone, then a use permit shall be required and processed pursuant to Part 1, Chapter 24.08, Use Permits. The decision as to whether the use determination requires an administrative use permit or a special use permit shall be based on the use category that is most similar to the proposed use as determined by the zoning administrator.

24.10.2380 LOWER PACIFIC AVENUE SUBDISTRICT REGULATIONS.

1. Height and Stepback Requirements. The maximum height of development throughout this subarea shall be 35 feet or three stories with a minimum height of two stories for buildings along Pacific Avenue. Provision for sloping roofs and mechanical penthouses will be allowed to a maximum height of 40 feet, provided that penthouses are stepped back at least 20 feet out of sight from pedestrian view. The second story shall be at least 50% of the first floor and shall be located toward the street frontage.

2. Build to Lines and Setbacks. New development along Pacific Avenue shall be set back from the property line to create a side-walk depth of at least 12 feet. New development along Front Street shall be set back from the property line to create a sidewalk depth of at least 10 feet.

Additional setbacks are permitted to provide landscaped or paved extensions of the side-walk area, gardens, out-door seating, or cafes. No side yard setbacks are required. Building design at the corners of Pacific Avenue and Front Street should include strong architectural elements (such as a tower) at the corners to emphasize the entrance to Pacific Avenue.

23.264
6 3. Parking. Parking requirements set forth in Part 3 of Chapter 24.12 of the Zoning Ordinance shall apply, with the exception noted in subsection (c) below. a. Surface parking lots within the South of Laurel subarea shall be well landscaped, and parking shall be visibly screened from the public sidewalk with low walls, planters, or hedges, and shall comply with other landscaping requirements of the zoning regulations. b. Surface parking should be located to the rear of buildings or facing side streets.

Driveways should be consolidated as much as possible, and cooperative easements should be formed to allow parking access at the rear of buildings. c. Parking Waiver Provision. Undeveloped lots, 40 feet in width or less located along Lower Pacific Avenue, may meet established parking requirements off-site, based on specific building permit review and approval, identification of receiving parking resource, and payment of a yearly parking deficiency fee. The fee structure may reflect the deficiency fees established for the adjacent CBD.

4. All new development adjacent to a “CON – Neighborhood Conservation District” overlay zone shall comply with Section 24.10.4060 standards for new construction on sites abutting overlay district boundaries, to ensure compatibility with the established district.

24.10.2385 LOWER PACIFIC AVENUE DESIGN GUIDELINES.

1. Storefront Treatment. The ground-level treatment of buildings and parking structures within the Lower Pacific Avenue subarea should generally comply with the guidelines for the Pacific Avenue retail subarea listed on pages 41 through 45 of the Downtown Plan, in terms of:
storefront access, transparency, and variation; and the use of landscaping, awnings, and canopies. However, it is recognized that the Lower Pacific Avenue subarea has a more informal character than Pacific Avenue, and as such, more variation of ground-level treatment is envisioned and encouraged. The use of porches and terraced gardens as an intermediate space between the ground floor use and the sidewalk is permitted, as long as the finished floor elevation of the ground floor use is not more than four feet above or below the sidewalk level and accessibility requirements are met.

2. Ground Level Residential. Within the Lower Pacific Avenue subarea, ground level residential uses are permitted in all areas and floors. Direct access between individual units and the street is strongly encouraged through the uses of porches and front “stoops.”

3. Upper Level Facade Treatment. The treatment of upper level facades should generally comply with the guidelines of the Pacific Avenue retail district in terms of building rhythm, corner treatment, windows, roof treatment, building materials, colors, and planting. In recognition, however, of the area’s village character, several special conditions are noted:

23.265
7 a. Architectural Elements. The use of architectural elements that promote the village character of the street is encouraged. Such elements could include, sloping roofs, chimneys, bay windows, dormers, recessed loggias, balconies, and porches. b. Articulations. Faces should be highly articulated and varied; the introduction of moldings and trims, and changes in horizontal and vertical planes are strongly encouraged to create visual interest and variation in light and shadow. Residential development should be highly articulated and expressive of the individual units within the complex. c. Wood. Building material can be more diverse and residential in character than those recommended for the Pacific Avenue District. The use of wood as a siding material is encouraged.
d. Flowers and Planting. The use of significant planters, trellises, and topiary treatment of buildings is encouraged to further enliven the area and to promote its unique village qualities.

4. Parcels that are undeveloped at the time of the ordinance shall be well maintained; including landscaping and/or appropriate screening subject to the approval of the director of planning at the street frontages, within six months of adoption of the ordinance codified in this part.

24.12.250 BIKE PARKING REQUIREMENTS.

1. Bicycle parking facilities shall be provided for any new building, addition or enlargement of an existing building, or for any change in the occupancy.

2. Bike Spaces and Type Required. Bicycle parking facilities’ quantity and type shall be provided in accordance with the following schedule, with fractional quantity requirements for bike parking over one-half to be rounded up. Each bicycle parking space shall be no less than six feet long by two feet wide and shall have a bicycle rack system in compliance with the bike rack classifications listed in subsection (4).

Example
Number of Bicycle
Parking Spaces
Required
Classification
Class 1 = Long-Term
Class 2 = ShortTerm

23.266
8 Industrial Warehousing,
manufacturing
1 per 7,500 square
feet, minimum 2
spaces
80% Class 1
20% Class 2
Office and financial
institutions
General office,
medical, clinic,
research and
development, banks
1 per 1,500 square
feet, minimum 2
spaces
20% Class 1
80% Class 2
Retail/service or
other commercial
Grocery store,
hardware store,
personal services,
handicraft
1 per 1,000 square
feet, minimum 2
spaces
20% Class 1
80% Class 2
Restaurant/bar Restaurant, deli,
coffee shop,
bar/tasting rooms
1 per 500 square feet,
minimum 2 spaces
20% Class 1
80% Class 2
Multifamily
residential
(3 or more units)
Housing
developments with 3
or more units
See classification
column
Class 1 – 1 space per
unit – garages or
secure accessible
indoor areas count
Class 2 – 1 space per 4
units, minimum 2
spaces
Commercial
recreation
Sports arenas,
theaters
See classification
column
Class 1 – 1 per 10,000
square feet
Class 2 – 1 per 40
seats, minimum 10
Civic uses (civic,
cultural, public, and
religious assembly)
Library or museum,
places of public or
religious assembly
1 per 1,000 square
feet
10% Class 1
90% Class 2
Schools 1 per 5 students 20% Class 1
80% Class 2*
*Must be in secure
area such as bike cage
or within gated school
grounds, preferably
with weather
protection such as
roof

23.267
9 Park-and-ride lots 1 per 10 auto parking
spaces, minimum 2
spaces
100% Class 1
Transit centers See classification
column
30 Class 1 spaces
12 Class 2 spaces
Lodging Hotel, motel 1 per 5 rooms/units 10% Class 1
90% Class 2
Commercial parking 1 per 10 auto parking
spaces
100% Class 1
Downtown Plan
AreaParking District
No. 1 – Residential
uses
Multifamily housing See classification
column
1 Class 1 bicycle
parking space per unit
1 Class 2 bicycle
parking space per 15
units
Downtown Plan
AreaParking District
No. 1 –
Nonresidential uses
Any nonresidential
uses in district
1 per 1,000 square
feet
25% Class 1
75% Class 2
The Class 2 spaces
shall be publicly
accessible, and the
style shall be inverted
U.

Emergency shelters See Section

24.12.1610
1 per 3 occupants 25% Class 1
75% Class 2
The Class 2 spaces
shall be publicly
accessible, and the
style shall be inverted
U.

3. For projects requiring twenty or more bike parking spaces, a bike fix-it station is required. A fix-it station shall include at a minimum a bicycle pump; 2.5, 3, 4, 5, 6, and 8 mm Allen wrenches; 8, 9, 10, 11, 15, and 32 mm box wrenches; two tire levers; and a Phillips and flat head screwdriver. For projects requiring twenty or more bicycle parking spaces, a minimum of five percent of required bicycle parking spaces must have a larger footprint of three feet by ten feet, which must be provided in a horizontal, floor level rack. These spaces will be available for larger bicycles such as e-bikes, cargo bikes, bikes with trailers, and other larger bicycles.

4. Classification of Facilities.

23.268
10 a. “Class 1 bicycle facility” means a locker, individually locked enclosure or supervised area within a building providing protection for each bicycle therein from theft, vandalism and weather. Class 1 facilities are intended for long-term storage. b. “Class 2 bicycle facility” means a stand or other device constructed so as to enable the user to secure by locking the frame and one wheel of each bicycle parked therein. Racks must provide two points of contact to bicycle frames, so that they are easily usable with both U-locks and cable locks. Racks should support the bikes in a stable upright position so that a bike, if bumped, will not fall or roll down. The preferred Class 2 bike rack style is an inverted U, which meets code requirements. Racks that support a bike primarily by a wheel, such as standard “wire racks,” are damaging to wheels and thus are not acceptable.

Class 2 facilities are intended for short-term storage.

5. Location and Design of Facilities.
a. Bicycle parking shall be located in well-lit locations within forty feet of the building’s entrance and clustered in lots not to exceed sixteen spaces each. b. Bicycle parking facilities shall provide two points of contact to bicycle frames to support bicycles in a stable position without damage to wheels, frame or other components.
c. Bicycle parking facilities shall be located in highly visible, well-lit areas to minimize theft and vandalism.
d. Bicycle parking facilities shall be securely anchored to the lot surface so they cannot be easily removed and shall be of sufficient strength to resist vandalism and theft. e. Bicycle parking facilities shall not impede pedestrian or vehicular circulation, and should be harmonious with their environment both in color and design. Parking facilities should be incorporated whenever possible into building design or street furniture. f. Racks must not be placed close enough to a wall or other obstruction so as to make use difficult. There must be sufficient space (at least twenty-four inches) beside each parked bike that allows access. This access may be shared by adjacent bicycles. An aisle or other space shall be provided to bicycles to enter and leave the facility. This aisle shall have a width of at least six feet to the front or rear of a bike parked in the facility. g. Paving is not required, but the outside ground surface shall be finished or planted in a way that avoids mud and dust.

23.269
11 h. Bike parking facilities within auto parking areas shall be separated by a physical barrier to protect bicycles from damage by cars, such as curbs, wheel stops, poles or other similar features.
i. Any bicycle parking provided in double-decker bicycle racks shall have a lift-assist mechanism to aid the user in parking their bicycle on the upper rack. j. If vertical wall hanging bicycle racks are used for Class 2 bicycle parking, thirty percent of required Class 2 bicycle parking must be provided in racks that meet Class 2 requirements in subsection (4)(b) at ground level.
k. If required Class 2 bicycle parking is not clearly visible to bicyclists approaching from adjacent public roadways or paths, signs shall indicate the locations of the facilities on the exterior of the building at each major entrance and in other appropriate locations. Where necessary, additional directional signage to the bicycle parking area shall be provided.

6. Variation to Requirements.
a. Substitution of Car Parking With Bike Parking. New and preexisting developments may reduce up to ten percent of their parking requirement with the provision of unrequired additional bike parking, as long as the spaces are conveniently located within forty feet of a building entrance. This parking reduction must yield at least six bike parking spaces per converted auto space. These bike parking spaces shall be in addition to the bike parking facilities required by this section, and provided in the same ratio of Class 1 and Class 2.

The total available parking reduction granted shall be calculated in conformance with the city parking reduction worksheet in effect at the time a complete planning application is submitted.
b. Where the provision of bike parking is not feasible, the requirements may be waived or reduced to a feasible level by the zoning administrator in accordance with city bike parking standards.
c. Downtown Plan Area Downtown Parking District – All Nonresidential Uses. Businesses and developments within Parking District No. 1 are not required to provide Class 2 bicycle parking on site if adequate on-site space is not available, as determined by the planning director. The city shall permit required bicycle parking within the public right-of-way for the downtown parking district area in locations and amounts determined by the director of public works.

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12 24.12.290 VARIATIONS TO REQUIREMENTS.

The off-street parking requirements of this part may be satisfied or modified in the following ways:

1. Parking District Number 1. If the property being occupied or proposed to be occupied is in Parking District Number 1 and requires a number of parking spaces greater than the existing use, and not otherwise accommodated on the site, an in-lieu fee shall be assessed as identified in the Downtown Parking resolution. the downtown commission shall review the project and advise the decision-making body as to whether the parking district is capable of providing adequate parking for the new use and existing uses in the vicinity.

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Block
Parcel Address
Size (gross
sf)
Current
GPLU
Max.
du/ac
Potential
Housing
Proposed
GPLU
FAR limit
Potential
Housing
Difference
H 140 CENTER ST   33,323 M 30 23 RVC   3.5 97 74
B 220 FRONT ST   19,558 H 55 25 RVC   3.5 87 62
D 140 FRONT ST   50,007 H 55 63 RVC   3.5 115 52
D 203 LAUREL ST   27,486 H 55 35 RVC   3.5 63 28
D
203 LAUREL STREET
EXT 10
5,488 M 30 4 RVC   3.5 13 9
D 126 FRONT ST   23,261 M 30 16 RVC   3.5 53 37
TOTAL 165 428 263
Table of Housing Development Capacity for No Net Loss Analysis

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Pacific Avenue south of Laurel Street, Alternative Cross Section

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City Council

AGENDA REPORT
DATE: 6/8/2022
AGENDA OF: 6/14/2022
DEPARTMENT: Planning and Community Development
SUBJECT: Downtown Plan Expansion, Preferred Development Scenario for Study under CEQA (PL)
RECOMMENDATION: Motion to direct staff to initiate work on an Environmental Impact Report (EIR) relating to the area identified for expansion of the boundary of the Downtown Plan, and provide that the preferred development scenario include the following: a minimum of 1,800 housing units; maximum heights of 225 feet for one taller building element, 185 feet for three taller elements, and 145 feet of one taller element, with each height being inclusive of anticipated height increases associated with a 50% density bonus and with the taller building elements comprising only a portion of shorter podium building forms; an option for auto circulation including the permanent closure of Spruce Street east of Pacific Avenue; the creation of new civic space in the closed Spruce Street right of way; enhanced pedestrian connections between the Downtown and the beach; and options for the location of a permanent arena facility for the Santa Cruz Warriors, with a preferred location being on the south side of Spruce Street between Pacific Avenue and Front Street.

BACKGROUND: The Downtown Plan was first adopted as the Downtown Recovery Plan in 1991 in aftermath of the 1989 Loma Prieta Earthquake. The plan has been amended since, including in 2017, when it was renamed to the Downtown Plan. The 2017 amendments included measures that encourage new development along Front Street and Pacific Avenue between Soquel Avenue and Laurel Street, including increased height limits in some areas of the Downtown. Following these amendments, there was an increase in the number of housing applications in the downtown, including new deed-restricted affordable housing and supportive housing units.

Staff has continued to address local housing needs and take advantage of statewide funding opportunities to further this success. In October of 2020, the City Council directed staff to apply for a Regional Early Action Planning (REAP) grant to expand the current boundaries of the Downtown Plan as a means to accommodate additional residential and commercial development capacity. The project proposal met the main goal of the REAP grant funding source to accelerate housing production and received the full funding allocation of $300,000 in January of 2021. An additional $150,000 in project funding was also approved through the Local Early Action Planning grant (LEAP).

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Prior to beginning the consultant procurement process for the current project, staff sought direction from the City Council in March 2021 on a draft expansion boundary. The selected project boundary extends the Downtown Plan south from Laurel Street to the intersection of Pacific Avenue and Center Street, down both sides of Pacific Avenue, and east to the San Lorenzo River levee. The project boundary and was selected based on the goals for the project together with the existing zoning, General Plan, and physical conditions in the area. Below are the current goals for the expansion of the Downtown Plan, which continue to be refined during the process:

1. Add capacity for multi-family housing.

2. Create opportunities for public amenities and infrastructure including parks, the Santa Cruz Riverwalk trail, or other spaces for community use.

3. Better connect downtown with the river and beach areas.

4. Create new economic opportunities for local businesses and workers.

5. Generate new tax revenue to support City services.

6. Improve the pedestrian & bicycle experience.

7. Incorporate a permanent, financially-viable Warrior’s arena into the plan.

Following a standard purchasing process, Kimley-Horn Associates (KHA) was selected as the prime consultant to lead this project at the Council meeting on June 22, 2021. The Councilapproved Scope of Services and Schedule are included in the attachments. The first phase of the project involved the consultant team conducting an existing conditions analysis to understand the relevant physical, financial, and legal characteristics of the project area. Coordination with key stakeholders such as the Warriors began during this phase and an initial community outreach meeting was then held on November 13, 2021 to hear from the community and establish a vision for the neighborhood as redevelopment takes place. The work from this phase is summarized in the attached Real Estate Market Overview Report and Community Outreach Report.

DISCUSSION:

Development Scenarios
The second phase of the project built on the initial community feedback and stakeholder input as well as the established project goals. Three preliminary development scenarios were created to show three different levels of new housing capacity that could be incorporated into the expanded downtown area. The current housing capacity in the project area is around 930 housing units, of which fewer than 200 currently exist. The three development scenarios considered meeting a modest to significant amount of the City’s projected housing needs by increasing that number to just over 1,300, 1,500, or 1,700 new units, respectively. In addition to housing capacity, the preliminary scenarios also include ideas for many other project features such as improved streetscape and circulation, beach connectivity, civic spaces, resiliency, and considerations for a new Santa Cruz Warriors arena. These draft project ideas and development scenarios were presented to the public in an open house format on April 20, 2022. They were then presented to the Planning Commission on May 5, 2022 and to the Downtown Commission on May 12, 2022.

Additional details and illustrative materials can be found in the attached Planning Commission Staff Report.

Circulation and Beach Connectivity

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The project team showed a proposal for altering the existing roadways to realign the connection from Front Street to Laurel Street Extension to move the one-way roadway to the base of the cliff, allowing the closure of portions of Spruce Street and a portion of the existing Laurel Street Extension to provide additional space for civic amenities and housing. Removing a road that currently exists between the expansion area and the San Lorenzo River could open up possibilities for new public space to better engage with the river.

For beach connectivity, the team has considered all three ways that connect the project area to the beach area. Two of these ways are around the hill as is most often used currently. The third was is over the hill and the team has put more thought into the pedestrian experience between the project development, the Cliff Street stairs, and the Boardwalk. A new connection incorporating artistic lighting and appropriate street trees between an overlook at the top of the Beach Hill stairs and the Boardwalk would help beach visitors make the short walk up Beach Hill to take in a view of the San Lorenzo River or the ocean. From there, lighting and wayfinding signage can help them find places to eat and other activities to explore in the downtown, without needing to drive between the beach and downtown.

Resiliency
Planning for a significant amount of new housing also means the City is considering the effects of new demand on the planned water supply. The City’s Water Department has planned for growth and continues to look for ways to improve the City’s water storage despite climate change threats to supply. Additional storage capacity identified in existing aquifers, together with potential new supply sources such as Pure Water Soquel, provide sufficient water to meet the planned and projected population growth over the next 20 years, particularly given the significant water efficiency of new multi-family development.

Arena and Civic Space
One of the primary goals of this planning process is to incorporate a land use plan that accommodates a possible location for a new, permanent, arena for the Santa Cruz Warriors GLeague basketball team. A permanent arena facility would likely be somewhat larger than the existing temporary facility in order to incorporate permanent office space for operations staff, league-standard locker rooms, and modern practice facilities, all of which are not present or below standard in the current facility. A somewhat higher seating capacity and an eye for designing the arena with multi-purpose use in mind (i.e., better acoustics) could create an events venue that is not currently available in the Monterey Bay Area, drawing all kinds of new activity to Santa Cruz. In terms of whether such a facility can be built as a privately funded endeavor, the plan for the project area includes significant development intensity in order to off-set arena construction costs by providing return on investment into substantial residential development.

A new, permanent arena also creates a significant opportunity to create a safe, accessible, and engaging social gathering space for the community. The three development scenarios show options for two different locations for a new Warriors arena: the current location south of Spruce Street between Front Street and the river levee or on the adjacent block on the south side of Spruce Street between Pacific Avenue and Front Street. The different locations provide different opportunities for new civic spaces, a difference in heights adjacent to the San Lorenzo River, and practical considerations for the Warriors during the construction period.

The Spruce Street right of way contains significant underground utility infrastructure for the City’s flood control and wastewater systems, and therefore complete abandonment of this

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roadway is not feasible or advised. However, vehicular access could be limited to utility services and the area converted to a pedestrian plaza. By closing parts of Spruce Street to traffic, two of the development scenarios show a possible civic plaza space in its place between Pacific Avenue and Front Street. While conceptual at this point, this plaza could potentially provide space for thousands of community members and visitors to gather for a variety of events. With a successful arena project, a plaza like this could be activated by adjacent commercial uses wrapping portions of the arena exterior or on adjacent properties. A public, urban plaza of this scale could provide a powerful connection to the San Lorenzo River levee area as well. The project area is a bridge between the Downtown, the river, and the beach and it provides an opportunity to create a vibrant neighborhood inspired through art, entertainment, technology, and illumination.

Housing and RHNA
The primary goal for this project is housing production and adding housing capacity that will benefit the City not just in the near term, but also for many generations to come. The City’s draft Regional Housing Need Allocation (RHNA) was released following the start of this project and was taken into consideration in the preliminary development scenarios. The RHNA is the first step in the Housing Element cycle and is intended to ensure that housing is planned for where it is most needed. Factors used by the Association of Monterey Bay Area Governments (AMBAG) in considering the distribution of housing requirements across the region included: the regional growth forecast, a jurisdiction’s share of jobs in the region, the jobs/housing ratio, existing transit routes, wildfire and sea level rise risk, race and affluence concentration, and State of California opportunity mapping. The final draft RHNA would require the City to plan for 3,736 housing units. By comparison, the current cycle of the RHNA required the City to accommodate 747 new housing units between 2015 and 2023.

While more detailed analysis will take place in the beginning phases of the Housing Element Update (slated to start by the summer of this year), staff recognizes that the existing planned housing capacity of the adopted 2030 General Plan will not be sufficient to meet this new requirement. The City needs to identify additional locations and properties to accommodate the City’s housing obligation. By taking advantage of this project area to add more housing in an ideal downtown location, the City will be in a better position during this upcoming Housing Element Update process if sites for further housing capacity need to be identified. 180 118 136 313
747 859
562 709
1,606
3,736
0 500
1000
1500
2000
2500
3000
3500
4000
Very Low Low Moderate Above
Moderate
Total RHNA
RHNA Comparison
RHNA 2015-2023
Housing Built 2015-2021
Draft RHNA 2024-2032

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The expansion area represents a rare opportunity to plan for a significant amount of new housing in a location that is among the most sustainable sites in the region to grow based on its proximity to jobs, amenities, recreation, and transportation options. New multi-family buildings will have an expected life span of well over 60 years, which means this added capacity can help meet the housing needs of future generations of Santa Cruzans. With that in mind, while it is important to add capacity in the near term to help the City meet its upcoming 2023-2031 RHNA requirement, it is just as important to consider the medium and long term benefits of adding housing and that this housing can lay the groundwork for meeting future RHNA requirements as well.

Development Scenarios: Height
The building heights shown in the preliminary development scenarios show the addition of taller components as buildings start to exceed six or seven stories, with maximum heights between 120 and 200 feet. The proposed building form would dictate that these taller elements are limited to a certain percentage of the total building footprint and are not considered for the entirety of any of the parcels. These scenarios are an increase to the allowed maximum heights in the City and present the opportunity to create a new downtown skyline that helps define the city’s core as a distinct place with a strong urban identity. The taller buildings can also serve as a beacon for visitors to the City, drawing them to downtown where they can support local businesses. The taller building elements are proposed to be located in five distinct areas across four sites, all located away from the historic residential district to the west that is outside of the expansion area.

Open House and Commission Meetings
These development scenarios and topic areas were presented to the community at the second community open house held on April 20, 2022. Following this large community open house, the materials were presented to the Planning Commission on May 5, 2022, and to the Downtown Commission on May 12, 2022. The attached Planning Commission Staff Report of May 5, 2022 includes all the referenced materials. The purpose of the materials presented was to generate feedback and collect ideas for the project going forward and to define the preferred scenario that will become the project description for the purposes of environmental review under the California Environmental Quality Act (CEQA). The comments received at the April 20, 2022 open house event are shown in the Open House Comments attachment and are organized by topic area. The draft minutes from the Planning Commission and Downtown Commission are also attached.

Following this feedback, staff developed recommendation for the preferred development scenario detailed in the following sections. The presentation to the Council at the June 14, 2022 meeting will also provide further detail and enhanced context.

Based on feedback provided at the April 20 open house and online comments received as of this writing, community members are very supportive of the proposed concepts for changes to the roadway circulation, improved connectivity with the beach area, new civic spaces, and increased housing intensity in the project area. Participants contributed local insights and existing concerns regarding beach-bound traffic congestion and shared ideas about future programming and activation for the new civic spaces and the new arena, such as considering the acoustics of the space so it could serve the needs of the Santa Cruz Symphony. Some expressed concerns about any new development, but most showed support and enthusiasm for a significant change in the project area. Many comments also advocated for increased street closures and further limiting through traffic on Pacific Avenue, Laurel Street Extension, and Cliff Street.

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Community comments advocated for green roofs and community garden space, for making roof decks publicly accessible, and for pursuing alternative transportation options like trolleys, shuttles, and pedicabs for better mobility between the beach and downtown. Existing tenants like the Hub for Sustainable Living and existing residential tenants raised questions and concerns about how they can fit into a redeveloped neighborhood and what their options are for relocation.

Another common theme was the need for more housing options for moderate- and lower-income households and support for creating a neighborhood with housing options for all income levels.

The community reacted favorably to proposing taller buildings in order to add more housing capacity and create a new, vibrant node in Santa Cruz. Many participants in the public open house expressed a motivation to increase housing options and to make efficient use of urban land while creating the space for significant public improvements and amenities associated with new development like multi-family housing and the arena. Some community members were initially surprised by the proposed building heights and had questions about how height could be effectively regulated and why taller elements were proposed. As the project team was able to show the increase in the number of housing units, explain the reasons for pursuing taller elements situated over shorter podium building forms, and show the three-dimensional renderings of the massing for different options, many became supportive and even excited about the opportunity created by a new urban neighborhood with thousands of new residents. Some others remained skeptical about the degree of change proposed and expressed a preference for one of the more moderate development scenarios. The attachment showing the Open House Comments captures the written comments made by community members during this event.

Planning Commission
The Planning Commission discussed the various components of the development scenario during a regularly-scheduled meeting on May 5, 2022. The Commissioners reacted positively to the ideas for the civic spaces and enhanced connections to the river and beach area. The concept for the realignment of the roadway connections raised concerns among some Commissioners regarding the existing residential care facility at 126 Front Street, and Commissioners requested that the language in the Downtown Plan be clear that the roadway realignment could not take place until an alternative location for the facility could be identified. The Commissioners spent time discussing the advantages of different height limits and building forms, the right number of housing units to recommend for this neighborhood, and the best location for a potential permanent arena site. The motion that passed was passed on a 4-3 vote after some debate. The attachment showing the Planning Commission Minutes of May 5, 2022 includes the full text of the successful motion, and a separate attachment provides additional staff responses (beyond those below) to the motion.

One of the primary points of disagreement among commissioners was the appropriate height and building form of new buildings in the project area. The motion that passed recommended lower heights than even Scenario 1. However, one of the Commissioners who voted for the motion offered a friendly amendment to the motion to remove this restrictive height cap, but the friendly amendment was not accepted by the maker of the motion, and the Commissioner voted in favor of the prior motion that included the height limitations. The language regarding height in the Planning Commission recommendation was for the maximum height in the expansion area to be no taller than the Palomar building (90 feet), inclusive of the use of density bonus, so long as a maximum of 1,600 units can be achieved. Staff is opposed to part of the motion.

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The Planning Commission’s maximum height proposal, by itself, is actually more restrictive than even the current Downtown Plan, where its maximum heights are not inclusive of the density bonus. As discussed in greater detail in the height regulation section on page 10, the City would have to set base building heights in the plan even lower to account for the use density bonus.

Because the City can only use base height in the Housing Element unit count, this could require even more units to accounted for elsewhere in the City and increase the possibility of rezoning needed outside of the Downtown.

This recommendation removed all taller height elements in favor of using solid block buildings all at the same height to achieve a maximum of 1,600 units. In order to achieve this unit maximum, the building heights throughout the project area would have to all be seven stories with six floors of residential over one floor of commercial. Given current building typologies and construction cost economies of scale, it is not as likely that some buildings will even achieve that height, particularly on the smaller parcels along Pacific Avenue, reducing the realistic potential of housing development and the likelihood of full build-out of the public and private improvements desired for this area. Based on this lack of feasibility on some sites, Planning Commission’s recommendation is more likely to produce a maximum of 1,458 units. In order to achieve the full 1,600 units, additional height would be needed. An increase of one story to achieve 1,600 units (creating a neighborhood of eight-story buildings) is not likely to be economically feasible either due to the fire code constraints that appear after 75’ of floor height.

These structural requirements add significant costs to projects and would need to be off-set by a commensurate shift in returns in the form of many additional stories containing additional units.

Should it even be feasible for all buildings throughout the expansion area to achieve the maximum 90’ height that allows for seven or eight stories, there is a strong aesthetic and urban design argument in favor of taller building elements. Large blocks of buildings all at the same 90-foot height would look and feel monotonous and oppressive. Taller building elements, which will create a distinctive skyline, would actually feel lighter and allow the base portions of all buildings in the project area to be in scale with their environment, including a lower height along the west side of Pacific Avenue transitioning toward the Neighborhood Conservation zone.

Narrower but taller elements also shorten the amount of time that shade is cast on adjacent properties versus longer and wider buildings. Importantly, taller building elements would also function as a beacon and provide a strong way-finding element in the City skyline, which supports downtown businesses, improves the economic development potential of the downtown, and helps create an anchor and magnet for activity in the new civic spaces.

The Warriors and their development partners currently have some control over blocks A, B, C, and D in the expansion area that are shown in the attached development scenarios. The Planning Commission’s recommendation specifically removes the taller building elements on all of these four blocks and, therefore, removes housing development capacity that could help privately fund the arena and other public amenities. Specifically, the Planning Commission’s recommendation would accommodate approximately 894 units in total across the four blocks, while staff’s recommended Scenario 3.1 would accommodate approximately 1,239 units in total across those same blocks
The Planning Commission also raised questions about potential displacement of current City residents – both directly within the project site as redevelopment occurs and indirectly as new investment raises property values in adjacent neighborhoods. Direct displacement will be addressed under existing State law and City ordinances requiring tenant relocation assistance,

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replacement housing for any units occupied by lower-income qualifying households, and the first right of return for those displaced tenants as new affordable housing units are created. Indirect displacement is a broad and complicated issue and one for the City to consider comprehensively as housing costs continue to rise throughout the region. As an important citywide issue, it requires a comprehensive response, not one limited to the geographic area contained within the Downtown Plan Expansion area, which is what would occur if the issue were addressed through policies only applicable in the Plan area. Staff recommends that the City consider this issue on a citywide scale as part of the upcoming Housing Element update, where comprehensive analysis of both direct and indirect displacement is required by California law as part of the City’s duty to affirmatively further fair housing under AB 686 of 2018.

Similarly to Planning Commission’s concerns around displacement, the motion also included direction to pursue significantly higher inclusionary housing requirements. Increasing inclusionary housing requirements requires detailed studies and market analyses to ensure a rate that can maximize affordable housing production while also making housing development financially feasible and likely to occur. These studies can take significant time and resources.

The State of California deems inclusionary requirements a potential impediment to the development of housing and requires evidence that an inclusionary rate is not such an impediment as part of a Housing Element Update. In other words, the state seeks to ensure that inclusionary requirements are not abused to prevent or limit housing production. Given that the City is undertaking the Housing Element this summer, increasing the inclusionary rate as part of this project could complicate the Housing Element process and certification. If Council chooses to consider a higher inclusionary rate staff recommends that a separate consultant be brought on board to evaluate the implications of such a change, along with any implications an alternative rate could have on the viability of the privately-funded amenities and the overall viability of development. Staff would also recommend a presentation to Council regarding implications of such work on the Advance Planning Division’s and Economic Development & Housing Department’s respective work plans.

The Planning Commission motion also included a number of other recommendations, and responses to each of those recommendations is contained in an attachment to this report.

Downtown Commission
The Downtown Commission (DTC) discussed the preliminary development scenarios during a regularly-scheduled meeting on May 12, 2022. The DTC received the same materials presented to the Planning Commission. The discussion addressed questions relating to parking in and around the project area, programming elements relating to the proposed new commercial space in the project area, plans for affordable housing, state housing element law, and opportunities for the new civic space. The DTC was enthusiastically supportive of the concepts for the civic spaces and increasing activity and engagement in this area of downtown. Commissioners also identified the possibilities for existing local businesses as newly-built commercial space comes on to the market, noting that new development in this area could support existing businesses that are currently considering costly updates to older commercial buildings.

The DTC favored the most intense development scenario and was excited about creating a downtown expansion area with a distinct identity and skyline. The DTC noted the opportunity this project offered and expressed interest in even more intensity in this area in order to make efficient use of the land and the strengths of this area. The Commission encouraged the project

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team to capitalize on the economic opportunities facilitated by a modern sports arena and events venue and pursue more intensity in the project area.

Coastal Commission
Local staff of the California Coastal Commission (CCC) reviewed the scenarios and submitted written comments to staff which can be read in the Coastal Commission Comments from June 8, 2022 attachment. CCC recognizes the importance of this project for the City and is supportive of increased densities in the proposed project areas so long as other amenities proposed in the plan are included. CCC staff desire that attention is paid to both the river side of the project area (i.e., improved connectivity in terms of public recreational access but also aesthetic and ecological connectivity) and to siting/design measures that can reduce perceived scale (e.g., upper stories setback from lower stories, no cantilevers, and the use of cutouts, articulation, etc.). City staff agree on the importance of the river in terms of access and design. These latter, more specific design details will be developed in the next phase of the project as objective standards are created.

CCC did not provide specific direction on maximum building heights in the expansion area but did state that it will be important for the EIR and related materials to thoroughly evaluate such height and massing increases. CCC also stated that the EIR should include alternative height scenarios to ensure that any proposed massing makes sense from a coastal resource standpoint, and they also sought clarity on how the density bonus would apply in the area and within the context of the Local Coastal Program. CCC reiterated the value of visual simulations of scenario alternatives in order to understand potential coastal resource impacts whether they are visual or access-related. These comments will be reflected in the EIR scope of work. CCC stated that the EIR should also provide detailed information on the proposed treatments of the public rights of way throughout the project area to help understand how they might relate to the intensification and densification proposed. Given the programmatic level of the EIR, detailed public right of way design will not be included in the EIR itself but will be in the final plan. Staff agrees with CCC that providing such information will help ensure that public right of way improvements function seamlessly with proposed building development while enhancing multi-modal transportation (bicycle/pedestrian/transit) and vehicular access.

Recommended Development Scenario
Based on the input from all of the above sources, the project team is recommending that the City Council provide direction to study a slightly modified development scenario called Scenario 3.1.

Given the great desire for increased housing, the general interest in taller buildings, the visual draw that taller buildings can have to downtown, and the aspiration to take advantage of the rare opportunity the area presents, Scenario 3.1 was created to be like Scenario 3 in every way but with slightly higher maximum heights on the taller building elements. In Scenario 3.1, the five taller elements in Scenario 3 would be allowed an additional 25 feet in height to provide more housing capacity and allow for greater flexibility with Density Bonus calculations. Scenario 3.1 has the following features:
1) A total housing unit count of no less than 1,800 dwelling units. 2) Maximum building heights of no more than 145 feet on one taller building element, 185 on three taller building elements, and 225 feet on one taller building element. The taller building elements will be controlled to be only a small portion of a site that rises above the associated and respective podium building. This promotes a lighter and more varied feel from the ground and when viewing the skyline.

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3) A preferred circulation option that relocates the existing connection from Front Street to Laurel Street Extension to the bottom of Beach Hill, so long as that the residential care facility at 126 Front Street and any existing residents are relocated to an appropriate replacement facility elsewhere in the project area or within the County. Alternatives shall be considered should the facility and its residents not relocate. 4) Consideration for two options for the location of a permanent Warriors Arena:
a. The preferred location on the adjacent block, on the south side of Spruce Street between Pacific Avenue and Front Street; and
b. The current site of the temporary arena.
5) Permanent closure of Spruce Street to automobile traffic east of Pacific Avenue. 6) Creation of new civic spaces within the closed Spruce Street right of way and connecting to the San Lorenzo River levee.
7) Enhancement of streetscape in all areas within the project area as well as both sides of Cliff Street connecting to Beach Street.

This recommendation reflects the project team’s understanding of the community interest in focusing housing intensity into the City’s downtown and stepping down height towards the neighborhood conservation district to the west. Scenario 3.1 takes greater advantage of the opportunity for redevelopment in this area. Pursuing a building form where a taller building is situated over a smaller portion of a shorter podium building is the most feasible way to achieve housing development in the desired amount. Helping promote the likelihood of development in the expansion area also helps to privately fund the many great public benefits and public realm enhancements envisioned with this project area, including but not limited to the Warriors arena that would allow them to stay in Santa Cruz. As noted above, in expansion blocks A through D, where the Warriors development team has some partnerships, our recommended Scenario 3.1 anticipates approximately 1,239 housing units while the Planning Commission Scenario would achieve only approximately 894 units, a difference of 345 units that could help fund various public and private amenities. In addition to project feasibility, taller building forms create distinct urban design and wayfinding opportunities that would not be created by shorter, blockier buildings. By adding more height in limited locations, the City can help to create hundreds more housing units for a variety of household sizes and affordability levels, while also increasing the economic and social vitality of Santa Cruz.

Height Regulation
Like Scenario 3, Scenario 3.1 reflects what staff anticipates as the allowed heights of buildings, inclusive of the current maximum 50% Density Bonus for market rate development. There are a few options for achieving these thresholds. First, a property owner could enter into a Development Agreement (DA) with the City to cap heights at the respective 145-foot, 185-foot, or 225-foot levels (corresponding to the height limits anticipated in for different buildings in Scenario 3.1), in exchange for build out of some of the public benefits planned for the area. This option requires the City and each affected property owner where taller buildings are anticipated to agree on the terms of a contract that will apply to these sites, and once such an agreement is in place, would allow the City to count the number of housing units established in the DA toward efforts to meet the RHNA requirements. Alternatively, the City could think of these heights as the heights that would be allowed after the application for a State Density Bonus, setting the regulations in the Downtown Plan and Zoning code at a lower level of development intensity on the assumption that many of the developers will pursue bonuses. This alternative has a draw back

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in that the City cannot be sure how many developers will pursue a State Density Bonus and to what level, and, therefore, the only units that can be counted toward meeting the RHNA requirement are the units in the base plan and zoning with the lower height limits. This option would likely leave the community looking for more sites to identify for increased residential capacity as part of the Housing Element process in order to demonstrate full compliance with the state laws requiring planning for adequate housing.

The full details for Scenario 3.1 are included in the attachments, along with a three-dimensional rendering showing the overall building massing that are recommended. The project team has also modeled the Planning Commission recommendation, and these materials can also be found in an attachment to this report. Planning staff is recommending Scenario 3.1 as the superior option, because it would result in approximately 350 more units of housing compared to the development expected with the Planning Commission recommendation, it is economically more feasible, and it reshapes the Santa Cruz skyline, identifying the entire downtown as a vibrant urban center serving as an attractor and wayfinding tool for both locals and visitors alike.

Next Steps. Following direction by the City Council, staff and consultants will finalize the project description for the EIR and begin work on the required analyses. The EIR process will take approximately ten months. More specific details and policies of the plan, such as objective design standards, will be drafted during this time and will include further input from the community. Following completion of the required studies, staff will bring the proposed amendments to the Downtown Plan, General Plan, Beach/South of Laurel Plan, Local Coastal Program, Municipal Code and Zoning Maps, together with the Draft EIR, back to the Planning Commission, Downtown Commission, and City Council for recommendation and adoption in the spring and summer of 2023.

HEALTH IN ALL POLICIES. The components of the current proposal are consistent with the Health in All Policies pillars of equity, public health, and sustainabilty in that they would encourage creation of both needed housing and economic opportunities and foster greater accessibility between the Downtown, San Lorenzo River, and beach areas. Development in the Downtown area is in close proximity to transit, jobs, amenities, and a wide range of entertainment and recreational activities, making it one of the most sustainable places to grow in the region. From an equity perspective, the project area will include space for new inclusionary low-income housing, including replacement housing for any existing low- and very-low income residents. This project encourages active transportation modes that support both personal health and environmetnal sustainability.

CEQA: The Downtown Plan Expansion will require environmental review prior to Council’s final consideration. It has been determined that an EIR will be prepared for the project. As the California Coastal Commission recommended, the EIR will include analysis of height and massing alternatives as well as visual simulations of these alternatives. The final proposed amendments to the Downtown Plan, General Plan, Local Coastal Program, Beach/South of Laurel Plan, and Municipal Code, together with the Draft EIR, are anticipated to be considered by the Planning Commission for a recommendation to the City Council by the summer of 2023.

FISCAL IMPACT: This report is part of the grant-funded project to expand the Downtown Plan boundary. The total project cost is currently scoped to be $555,000. Planning was awarded two grants for this project, totaling $450,000, and general fund sources will be used to cover the full cost of the project beyond the grant amount. The City is considering creative solutions to

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allow the beneficiaries of the plan to reimburse City general fund costs towards the funding of the plan, including staffing costs associated with the development of the plan, and policies will be considered for incorporation into the final plan to address these reimbursements. Further grant funding may also be pursued, should opportunities arise.

As the project area is built out, staff anticipates that the additional property, admissions, and sales taxes, together with any special assessments elected for the project area, will have positive impacts on the City’s long-term fiscal conditions. Provision of services to the area will result in additional costs to the City, but given the location and efficiency of land uses under consideration, revenues should be expected to exceed expenses. Creating a new urban destination with distinct urban character and a major events venue of regional importance could make this project the center of a highly successful economic development endeavor, bringing residents and visitors from throughout the region into the downtown and helping them navigate between key points of interest at the beach, river levee, and Downtown. Detailed and precise information on the longer-term fiscal implications will not be fully known until new uses and buildings are constructed and operating.

Prepared by:

Sarah Neuse
Senior Planner
Matt VanHua
Principal Planner
Submitted by:

Lee Butler
Director of Planning and
Community Development
Approved by:

Matt Huffaker
City Manager
ATTACHMENTS:

1. Planning Commission Staff Report of May 5, 2022 and attachments

2. Recommended Preferred Development Scenario Materials

3. Planning Commission Preferred Development Scenario Materials

4. Minutes of the Planning Commission from May 5, 2022

5. Staff Responses to Planning Commission’s May 5, 2022 Motion

6. Action Agenda of the Downtown Commission from May 12, 2022

7. Coastal Commission Comments from June 8, 2022

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City Council

AGENDA REPORT
DATE: 1/5/2023
AGENDA OF: 1/10/2023
DEPARTMENT: Planning and Community Development
SUBJECT: Downtown Expansion Area Plan Amendment Revision (PL) RECOMMENDATION: Accept the report and consider the information as part of the evaluation of any modifications to the Downtown Plan Expansion, including consideration of staff’s recommendation to continue studying 1,800 units in the plan’s draft Environmental Impact Report.

BACKGROUND: On June 14, 2022, the City Council provided direction regarding the development approach to study as part of the proposed Downtown Plan Expansion to the south of Laurel Street. The Council direction was as follows:

Direct staff to initiate work on an Environmental Impact Report (EIR) relating to the area identified for expansion of the boundary of the Downtown Plan, and provide that the design align with development Scenario 2 to include the following:

• A minimum of 1600 housing units;
• Maximum heights not to exceed on one taller building of 175 feet and not to exceed 150 feet on remaining, with each height being inclusive of anticipated height increases associated with a 50% density bonus and with the taller building elements comprising only a portion of shorter podium building forms; • An option for auto circulation including the permanent closure of Spruce Street east of Pacific Avenue;
• The creation of new civic space in the closed Spruce Street right of way; • Enhanced pedestrian connections between the Downtown and the beach; • Options for the location of a permanent arena facility for the Santa Cruz Warriors, with a preferred location being on the south side of Spruce Street between Pacific Avenue and Front Street.

The Council direction followed multiple community outreach efforts and followed discussions with the Planning Commission and Downtown Commission. The Council action also took into consideration the 3,736 new residential units that need to be able to be built during the Sixth Housing Element Cycle (discussed below in more detail) spanning the eight years from 2024 through 2031. More information about what the Council considered in its deliberations is available in the attached agenda report from the June 14, 2022 Council meeting.

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This report is prepared in response to potential revisions to the Council’s June 14, 2022 direction, as articulated in the separate report from Mayor Keeley and Councilmember Newsome. The revisions proposed in that separate report include the following:
1) A policy that sets the maximum number of stories at 12, inclusive of density bonus (a state mandate that allows for development to exceed local regulations such as the maximum number of residential units, maximum building heights, and minimum setbacks);
2) A requirement that 20% of the total units be affordable. The City’s current requirement for affordable units that are included within new residential development projects (called the “inclusionary” requirements) calls for 20% of the units in a project to be affordable, but under state law, as discussed below in more detail, the affordability requirement does not apply to additional units that a developer receives pursuant to the state density bonus; and
3) A maximum total of 1,600 residential units, inclusive of density bonus.

DISCUSSION:
12-Story Maximum, Inclusive of Density Bonus – Legal and Practical Considerations As noted above, the Council is considering whether to modify the previously-directed height allowances in favor of buildings across the district having a maximum of 12 stories, including any additional stories that a project may achieve under the state density bonus. For market-rate residential projects (meaning non-100% affordable developments) that include specified percentages of affordable housing, state density bonus law allows for those projects to incorporate up to 50% more units than what would otherwise be allowed by the applicable local (general plan) regulations and to deviate from certain typical development standards to accommodate those additional units. So a project site that could allow for up to 100 residential units under standard rules could use the state density bonus law to include up to 150 residential units, while also deviating from standards like maximum building height or minimum setbacks.

When considering the variations (such as height or setbacks) being requested by a developer, the state law and associated case law give deference to how a project is proposed by an applicant, not how a city or neighborhood desire the development to be designed. Therefore, outside a concurrently-approved development agreement (discussed below in more detail), it will be very difficult for the Downtown Plan Expansion to ensure that the maximum number of stories on new buildings will be 12 stories. Some tools can be used to promote and encourage a maximum of 12-stories as the outcome of projects that use a 50% density bonus. However, some projects, particularly 100% affordable projects that can use density bonus for unlimited density in the plan area (as opposed to the 50% density increase limit for market-rate projects), could potentially go above 12 stories. And depending on a developer’s proposed approach to a density bonus, some market-rate project proponents could potentially go above 12 stories too, given the State’s deference to how developers propose projects pursuant to state law and case law.

Furthermore, staff can craft policies that would make 12 stories the most likely outcome for a 50% density bonus project, if a developer chooses to go above the typical maximum, 85-foot height limit for traditional wood-frame construction. (Given the cost increases associated with going above 85 feet in height due to changes in construction materials and regulations, some

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developers may choose to not exceed that height, as was the case with recent developments along Front Street and Pacific Avenue. However, with the views of the Monterey Bay, San Lorenzo River, downtown, and Santa Cruz Mountains that would be provided by taller development in the project area, it is expected that at least some developers will incur the additional development costs associated with the greater building heights, as those costs will be offset by increased rental or sales prices.)
While encouraging the 12-story maximum will be a challenging task that will likely require a variety of paths to increase the likelihood of a 12-story maximum, an approach that could definitively limit new buildings to 12 stories is a development agreement. Part 25 of Chapter

24.08 of the Zoning Code and Section 65864 of the Government Code speak to development agreements, which can be mutually agreed upon by a property owner and the City through an ordinance adopted by the City Council at a noticed public meeting and following a recommendation from the Planning Commission. Development agreements specify a range of topics, one of which could be a maximum of 12 stories, but a key factor is that the agreements must be just that – agreements. The City cannot impose a development agreement on a site, so the City and the property owners must both agree on the terms and conditions. For a property owner to be willing to agree to limit themselves to 12 stories in height, inclusive of any density bonus height allowances, they would be seeking other favorable terms from the City as part of the agreement.
12-Story Maximum, Inclusive of Density Bonus – Policy Considerations As noted above, construction costs increase above 85 feet in height. Thus, to go higher than 85 feet, many developers have traditionally wanted to include a substantial number of stories above the 85-foot threshold in order to gain more value from the sale or rent of spaces above that level.

That said, various factors can affect that traditional approach.

Conversations with potential developers will be critical to understand development feasibility of a 12-story maximum. An initial, preliminary conversation with one developer in the area alluded to the potential for 12 stories to be viable if the project were 100% market rate, with the associated affordable units provided off-site.

Variation in building heights and architectural designs at the top of buildings are key considerations of a distinct, attractive, and unique skyline that will define Santa Cruz. If all properties in the plan area were developed at the maximum 12-story limit, the lack of variation in the height of the skyline would provide a relatively monotonous feel. As discussed above, given the change in construction type above 85 feet in building height and the associated costs with that construction, some developers may choose to not exceed 85 feet. Also, as discussed above, some developers may pursue a density bonus approach that could create some variation in building height. These variations could help promote visual interest in the skyline.

Regardless of the ultimate building heights, it will be imperative for policies in the plan to require distinctive building tops to provide an attractive skyline. These policies will also be critical regardless of ultimate building heights and can hopefully help the Council and the public better visualize the ultimate outcomes. While they do not show the potential architectural character of the building tops, massing diagrams developed from three-dimensional modeling do show the concept of taller building elements being only a portion of the overall site. Those diagrams are available online at
https://www.cityofsantacruz.com/home/showpublisheddocument/88906/637868427797900000

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and
https://www.cityofsantacruz.com/home/showpublisheddocument/90256/637940209601800000. 20% of the Total Units Being Affordable – Legal and Policy Considerations As noted above, the Council is also considering whether to require that 20% of the total number of units across the project area be affordable. The City’s affordable housing (inclusionary) ordinance requires that 20% of the units in new projects are affordable to families earning 80% of the Area Median Income (AMI). Pursuant to state law and as confirmed in the Latinos Unidos del Valle de Napa vs. County of Napa, cities’ local affordable housing requirements count towards a project’s eligibility for a state density bonus.

Cities cannot require that the affordable housing necessary to achieve a state density bonus be applied on top of or in addition to the local affordable housing requirements. Instead, the two requirements (local affordable housing requirements and affordable housing requirements to be eligible for the density bonus) overlap, and they cannot be stacked on one another. (For a more detailed explanation of this topic, see the attached memo entitled “Memorandum on Inclusionary Units in a Density Bonus Project.”)
Additionally, state law requires and the City’s local affordable housing ordinance provides alternative approaches to achieving the local affordable housing requirements. Section

24.16.030 of the Zoning Code specifies nine different ways to comply with the City’s affordable housing requirements other than providing the units on-site.

Given the above, if the Council provides direction to include 20% of the total units in the project area as affordable, staff would evaluate a range of options for how either a project could achieve the full 20% of units as affordable, inclusive of density bonus units, or how the project could contribute to achieving the full 20% of the total units as affordable across the entire project area, for example, through off-site, 100% affordable housing projects. Providing a range of options will increase the likelihood that one of the options could be financially viable for a project.

Staff are preparing an analysis of housing barriers for the State Department of Housing and Community Development (HCD) as part of the mentioned Sixth Cycle Housing Element Update1
, and the timing of the housing barrier analysis is such that it will be submitted to HCD before any policy associated with the Downtown Plan takes effect. That said, HCD could, even before our next Housing Element update, require that we review whether the policy is a barrier to housing production. Regardless of HCD’s position, it will be important for the City to review, vet, and craft various approaches and the policy options carefully to ensure they are not deemed a barrier to housing production.

Maximum of 1,600 Units – Potential Policy Change in the Plan – Legal & Practical Considerations
The final policy change being contemplated under the separate and associated agenda report from Mayor Keeley and Councilmember Newsome is to have a maximum total number of units in the plan of 1,600 units. This subsection and the ensuing subsection focus on the potential 1 A required element of the City’s general plan that must be updated every eight years, per state law, to show how and where the City will accommodate the City’s Regional Housing Needs Allocation, or RHNA, as well as how the City will affirmatively further fair housing.

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policy change related to the maximum number of units included in the plan. That policy consideration is separate and distinct from the number of units evaluated in the EIR being prepared under the California Environmental Quality Act (CEQA). The CEQA approach and recommendation are evaluated under a separate subheading.

Recent state laws have invalidated cities’ growth caps. Specifically, with the Housing Crisis Act of 2019, the state legislature suspended the ability of cities and counties to establish or implement any provision that: (i) “Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the affected county or affected city,” (ii) “Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period,” or (iii) “Limits the population of the affected county or affected city.” (Government Code, § 66300, subdivision (b)(1)(D). That said, staff believes that, should the Council provide direction to reduce the number of units in the plan area to a maximum of 1,600 units, staff can generally achieve that within the confines of the state law, with two key caveats.

With direction to have a maximum of 1,600 units in the plan area, the expected approach would be to include general plan and zoning allowances for all properties throughout the plan area that accommodate a total of 1,066 units. This would assume that market-rate projects all take advantage of a 50% density bonus, thereby resulting in a total of 1,599 units. This approach should be consistent with state law; however, two key caveats apply.

First, as noted before, 100% affordable projects in this area can use the density bonus to have unlimited density. Therefore, if a 100% affordable project chose to increase its unit count by more than 50%, then the City could not stop the other sites from developing to the full potential allowed by their general plan. To do so would be equivalent to establishing a residential cap, which is not allowed per state law. Thus, the total number of units could eventually exceed 1,600 through 100% affordable projects doing more than a 50% density bonus.

Second, the development intensities for the area are currently expected to be bound by Floor Area Ratio (FAR, the ratio of building square footage to site square footage), not the number of dwelling units per acre. Use of the FAR is expected to allow for more control over the overall heights (the Council’s current direction) or the maximum number of stories (currently being considered by Council). The total building square footage that is allowed by a site’s FAR is then translated to an expected number of dwelling units based on average unit size assumptions.

While it is likely that, across the many projects in the plan area, the average unit sizes will be comparable to the assumed unit sizes, if enough projects included units that are less than the average expected unit size, then the total number of units in the project area could eventually exceed 1,600 units, and the City could not prevent the other sites from developing to the full potential allowed by their general plan.

In either of the caveats noted above, the maximum unit count in the plan would not be exceeded for many years, as most of the sites within the project area would need to redevelop, and such changes take considerable time. For comparison, the Council approved height increases in the Downtown Plan area roughly between Soquel Avenue and Laurel Streets in 2017, and of the many sites affected, only two are currently under construction with new development.

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Maximum of 1,600 Units – Potential Policy Change in the Plan – Policy Considerations The primary goal for the Downtown Expansion project is housing production, adding housing capacity that will benefit the City not just in the near term but also for many generations to come.

The City’s next Sixth Housing Element Cycle Regional Housing Need Allocation (RHNA) requires the City to plan for 3,736 housing units between 2024 and 2031. By comparison, the current cycle of the RHNA required the City to accommodate 747 new housing units between 2015 and 2023.

The City’s consultants on the Housing Element Update are still preparing the draft sites inventory that will show how and where the City will accommodate the requisite 3,736 units in a manner that affirmatively furthers fair housing. However, preliminary indications from the consultant are that the City will need to add housing capacity above and beyond what is contained in the General Plan 2030. Thus, a reduction in housing capacity in the Downtown Expansion Area will result in the need to expand housing capacity elsewhere in the City, a task that has regularly proven controversial when general plan capacity increases have been proposed and even when density bonus projects are proposed on individual sites.

The Downtown Expansion Area represents a rare opportunity to plan for a significant amount of new housing in a location that is among the most sustainable sites in the region to grow based on its proximity to jobs, amenities, recreation, and transportation options.

The grants funding a portion of the work for the Downtown Plan Expansion require that the project facilitate the production of housing. If 1,066 units are contemplated in the plan (in order for the maximum to be 1,600 units with the application of a 50% density bonus on all projects), then staff does expect that this would represent an increase in the development capacity, albeit modest, and staff expects that the increase, coupled with the plan updates and environmental work, could meet the grant requirements related to facilitation of housing production.

CEQA Analysis – Staff Recommendation
The analyses for the Downtown Plan Expansion EIR have been underway for nearly seven months. Based on the June 14, 2022 direction from the City Council, where a minimum of 1,600 units were directed and where development parameters for various buildings were provided, the CEQA consultants have been preparing technical reports based on a build-out of 1,800 units.

The EIR can continue to study the 1,800 units, which is the most expeditious and cost-effective 180 118 136 313
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way to proceed, and the Council could still choose to certify the EIR and approve the plan with an expected maximum of 1,600-units.

CEQA requires that EIRs analyze project alternatives, and a project alternative can specifically analyze the development parameters (12-story maximum, 20% of total units being affordable, and a maximum of 1,600-units) contemplated in the associated report from the Mayor and Councilmember Newsome. Keeping the EIR analyses of 1,800 units is not only the most expeditious and cost-effective approach, it also provides the City with more options as the Housing Element Update proceeds (and for the Warriors, as further discussed later). For example, if increasing housing capacity elsewhere in the City proves too challenging or controversial, any portion of the additional 200 units (the difference between the currentlystudied 1,800 units and the contemplated 1,600-unit maximum) could be considered for incorporation into the plan area as the two processes parallel one another.

For the reasons stated above, staff recommends continuing to study 1,800 units, providing important options as the Housing Element Update proceeds. Council will still have full authority to choose what it ultimately certifies for the EIR and approves for the project.

Santa Cruz Warriors Arena
While housing production is the top goal of the project, working with the Santa Cruz Warriors to develop an approach that can facilitate development of a permanent arena is another key goal.

As the project progresses, the Warriors will have more information about the viability of the arena development, particularly because it relates to many external variables such as costs of land, labor, and materials; interest rates; and the housing market. The housing market is included as a factor, because the Warriors are working with landowners and developers to have housing projects help to fund the construction of the arena. Reducing the number of units studied in the EIR would limit the future flexibility that the City may want to leverage (for example, through increased unit counts on one or more specific sites) to help the Warriors finance the construction of their arena.

Health In All Policies
The project is consistent with the Health in All Policies pillars of equity, public health, and sustainabilty in that it would encourage creation of both needed housing and economic opportunities and foster greater accessibility between the Downtown, San Lorenzo River, and beach areas. Development in the Downtown area is in close proximity to transit, jobs, amenities, and a wide range of entertainment and recreational activities, making it one of the most sustainable places to grow in the region. From an equity perspective, the project area will include space for new inclusionary low-income housing, including replacement housing for any existing low- and very-low income residents. This project encourages active transportation modes that support both personal health and environmetnal sustainability.

CEQA
The Downtown Plan Expansion will require environmental review prior to Council’s final consideration, for which the City is preparing an EIR. The direction contemplated in this report and the associated report from Mayor Keeley and Councilmember Newsome, in and of itself, does not require CEQA clearance.

FISCAL IMPACT: Staff continues to address local housing needs and take advantage of statewide funding opportunities to further this success. In October of 2020, the City Council

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directed staff to apply for a Regional Early Action Planning (REAP) grant to expand the current boundaries of the Downtown Plan to accommodate additional residential and commercial development capacity. The project proposal met the main goal of the REAP grant funding source to accelerate housing production and received the full funding allocation of $300,000 in January of 2021. An additional $150,000 in project funding was also approved through the Local Early Action Planning grant (LEAP). Because the LEAP funding requires action by September of this year, staff is coordinating with the applicable state agencies to transfer the $150,000 in LEAP funds from the Downtown Plan Expansion to the Housing Element Update. While the project to which the funds apply could change, the grant amount remains the same.

The total project cost for the Downtown Plan Expansion is currently scoped to be $555,000.

Beyond the grants awarded for this project, totaling $450,000 (or $300,000 if the LEAP money is transferred to the Housing Element Update), general fund sources will be used to cover the additional costs. The City is considering creative solutions to allow the beneficiaries of the plan to reimburse City’s general fund costs towards the funding of the plan on a pro-rated basis, including staffing costs associated with the development of the plan, and policies will be considered for incorporation into the final plan to address these reimbursements.

As the project area is built out, staff anticipates that the additional property, admissions, and sales taxes, together with any special assessments elected for the project area, will have positive impacts on the City’s long-term fiscal conditions. Provision of services to the area will result in additional costs to the City, but given the location and efficiency of land uses under consideration, revenues should be expected to exceed expenses. Creating a new urban destination with distinct urban character and a major events venue of regional importance could make this project the center of a highly successful economic development endeavor, bringing residents and visitors from throughout the region into the downtown and helping them navigate between key points of interest at the beach, river levee, and Downtown.

A reduction in the overall number of units, as considered in the related report, would result in reduced property and sales taxes. However, the City also provides services to new residents, and general fund dollars are used to provide those services. The specific net fiscal impacts of a reduction in units are unknown; however, units not provided in this central, downtown location will need to be provided elsewhere in the City (as discussed above with the RHNA analysis), and provision of services to units outside the downtown could be more costly to the City than provision of services in such a central location.

Detailed and precise information on the longer-term fiscal implications will not be fully known until new uses and buildings are constructed and operating.

Prepared & Submitted by:

Lee Butler
Director of Planning and
Community Development
Approved by:

Matt Huffaker
City Manager
ATTACHMENTS:

1. June 14, 2022 City Council Agenda Report

2. Memorandum on Inclusionary Units in a Density Bonus Project

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City Council

AGENDA REPORT
DATE: 1/5/2023
AGENDA OF: 1/10/2023
DEPARTMENT: Offices of the Mayor and City Council
SUBJECT: Downtown Expansion Area Plan Amendment Revision (CC) RECOMMENDATION:

1. Revise the building height provisions in the draft Downtown Expansion Area Plan Amendment to provide for a maximum of 1,600 dwelling units, with a 20% affordability requirement on the total number of units and with no single building be more than 12 stories, inclusive of any density bonus incentive.

2. Continue to study the 1,800 units that have been evaluated in the Environmental Impact Report (EIR) technical analyses since June of 2022, and direct Planning Department staff to study an alternative in the EIR that includes the parameters noted above in Item #1.

BACKGROUND: On June 14, 2022, a majority of the City Council approved a motion directing staff to “initiate work on an Environmental Impact Report (EIR) relating to the area identified for expansion of the boundary of the Downtown Plan.” This decision was the culmination of a planning process that began in 2020 with the objective of accommodating additional residential and commercial capacity in the area and identifying a location for a permanent facility for the Santa Cruz Warriors.

At the June 14th meeting, the Council considered several development scenarios. The staff recommendation for a preferred scenario included, among other development recommendations, a minimum of 1,800 units, a maximum height of 225 feet for one taller building element, 185 feet for three taller elements, and 145 feet for one taller element.

After receiving community input and council discussion, the approved motion incorporated the development recommendations but reduced the minimum number of dwelling units to 1,600 and reduced the building height of the one tall building to 175 feet and 150 feet for the other tall buildings.

Subsequent to the Council action, staff released the Notice of Preparation for the Downtown Expansion Area Amendment EIR on September 16th and a public scoping meeting was held soon after.

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DISCUSSION: Since the most recent City Council action, it has been reinforced that the maximum building height is unacceptable to a large number of residents.

Additionally, the community is interested in maximizing the amount of affordable housing that can be produced. Maximizing the number of affordable units must be balanced with making sure that those units can be produced in a financially-viable manner. Given the rental or sales price premium that these units will have by virtue of their prime location in downtown and close to the beach and given the proposed increase in residential capacity for the area that will also generate additional value, the City’s current 20% affordability requirement should be increased to result in 20% of the total number of units to be affordable, including density bonus units allowed under law, since state law precludes application of the City’s current 20% affordability requirement to density bonus units.

In order to address these legitimate concerns, it is recommended as follows:

1. The maximum height limit in the Downtown Expansion Plan Area be 12 stories inclusive of any density bonus incentives;

2. That 20% of the total of 1,600 housing units be affordable, inclusive of density bonuses; and,

3. The staff is directed to amend the Downtown Area Expansion Plan draft that will be presented to the Council to incorporate items 1 and 2 above.

The context in which California cities operate with respect to new housing development has changed significantly in recent years, and density bonus laws provide developers with significant flexibility in how they accommodate additional units that are allowed by said laws. Recognizing this, should Council adopt the policy recommendation cited above to limit new development in the Downtown Plan Expansion area to a maximum of 12 stories, direction to staff would be to contemplate how density bonus would likely be applied by developers and, to the maximum extent feasible, establish policies that would limit developments to 12 stories, inclusive of density bonus.

Another potential approach to ensuring that buildings reach a maximum of 12 stories is to enter into a development agreement with property owners. This would require that the two parties, the City and the affected property owners, agree upon specific development terms, one of which would be that the maximum number of stories in the respective developments be limited to a maximum of 12 stories, inclusive of density bonus. Should Council adopt the policy recommendation cited above to limit new development in the Downtown Plan Expansion area to a maximum of 12 stories, direction to staff would also be to explore the potential for development agreements with property owners in the plan area.

The recommended policy change to establish a maximum number of dwelling units at 1,600 would have implications for how the City meets its required Regional Housing Needs Assessment, under which the City must plan to accommodate 3,736 units in the next eight years.

Reduction of units in this plan area will likely mean that those units will need to be planned for through residential capacity increases elsewhere in the community.

FISCAL IMPACT: Compared to the current direction from the Council, reducing the number of units will reduce the potential property tax revenue from build-out, and sales tax revenue would be reduced with fewer resulting residents. However, residents also cost the City money

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through provision of police, fire, library, road maintenance, and various other services. Thus, the net fiscal impact is uncertain.

Prepared & Submitted by:

Mayor Keeley
Councilmember Newsome

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City Council

AGENDA REPORT
DATE: 5/30/2024
AGENDA OF: 6/18/2024
DEPARTMENT: Planning and Community Development
SUBJECT: Joint City Council and Planning Commission Study Session on the Downtown Plan Expansion Public Review Draft (PL)
RECOMMENDATION: Review the Downtown Plan Expansion draft documents and provide feedback as desired.

BACKGROUND: City planning documents have long expressed a desire to improve connections between Santa Cruz’s Downtown core to the popular destinations at the Municipal Wharf, Main Beach, and the Boardwalk. This desire for connection is one of several factors that led to the selection of the South of Laurel area as the best location to expand the boundaries of the existing Downtown Plan. By adding the identified section of the South of Laurel Neighborhood, the Downtown will expand opportunities to add housing, businesses, public spaces, a new multipurpose arena for the Santa Cruz Warriors, and enhancements to bike and pedestrian connections that have been envisioned. The expansion would open new ways for the community to engage with the San Lorenzo River and create strong connections between the downtown and beach areas.

Timeline and Council Direction
The project to expand the Downtown Plan was initiated at the end of 2021 and has involved phases of information gathering, outreach, analysis, collaboration with major property owners and the Santa Cruz Warriors, and drafting of the new sections of the Downtown Plan itself. The City Council provided direction on the effort at two points: first in June of 2022 and again in January of 2023. The most recent Council direction specified that the plan include three desired outcomes. First, the Plan area should support the addition of around 1,600 new housing units (while studying up to 1,800 units in the Environmental Impact Report). Second, of these 1,600 new units, at least 20% of them (320 units) should be available at below-market-rate rent or sale prices. Third, the land use requirements should restrict development to a maximum of twelve stories in height.

Outreach
This planning work has been influenced by a variety of community engagements since the project started nearly three years ago. In September to October of 2021, an initial community survey that also included tools to map feedback allowed the project team to identify existing

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challenges in the area and gather ideas about needs and opportunities. An online meeting held in November 2021 introduced the project to more people and helped to further refine the project objectives. The collected feedback was used to set priorities for the land use options in the area, which were presented to the community at a second community workshop in April of 2022. New concepts for the roadway realignments and a few options for the build out of the area were also presented at that meeting for public input. Following the second public workshop, a public hearing with the Planning Commission, as well as a public meeting of the Downtown Commission helped further shape the recommendation to City Council in June of 2022. During both the June hearing and then also later at a hearing in January 2023, City Council gave staff specific direction regarding development allowances as detailed above.

Since then, the project team has shifted focus to the details of the various other features in the Plan including roadways, building design, public spaces, and natural areas around the San Lorenzo River. A community survey in summer of 2023, followed by a series of focus groups in the autumn of that year, helped to refine these details, set further priorities, and identify specific land uses and design features that are most appealing to the community.

With the release of the public review draft of the Downtown Plan, the project team is already receiving further comments from the public that will inform the next iteration of the draft Plan, which will be the subject of the Draft EIR. The release of the Draft EIR will trigger another opportunity for public comment, and then those comments will become part of the Final EIR.

Necessary mitigation measures identified through the environmental review process will be integrated into the draft Plan before it is reviewed formally by the Planning Commission and City Council during public hearings in early 2025. The many opportunities for public comment mean that many voices have contributed to this current draft Plan, and there are several opportunities remaining to further integrate new ideas from the community.

The following section highlights key features of the draft Plan, detailing proposed new community spaces, improved connectivity, land use allowances, development standards, and how the draft plan is achieving the Council direction.

DISCUSSION: This public review draft includes two documents: the Proposed Appendix 8 South of Laurel Area attachment, which would be an appendix to the existing Downtown Plan, and the Proposed Amendments to the Downtown Plan attachment. The amendments to the Downtown Plan address the regulations for private property development, while the Appendix is an additional document that provides broader context for the plan, expands on the vision and guiding principles mentioned above, and details the many public infrastructure improvements and new community spaces proposed as a part of this planning effort.

New Community Spaces and Improved Connectivity
As mentioned above, the Downtown Plan Appendix 8, South of Laurel Area consists of contextsetting and introducing the policies and guidance for the many public areas that are proposed within the expansion area. These include public roadways, bike lanes, sidewalks, an expanded riverwalk area, and a new public plaza. This section will briefly introduce these planned amenities, directing readers to seek further detail in the appendix document itself.

Street Network and Public Plaza
This appendix section, starting on page 7, introduces some public enhancements in the South of Laurel Area Development Plan, consisting of three key proposed improvements: 1) relocating

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the northern-most portion of Laurel Street Extension to the south at the base of Beach Hill, which allows for 2) closing the existing portion of Laurel Street Extension between Front Street and the San Lorenzo River to create additional public/community space along the river a new public plaza between Front Street and the Riverwalk, and 3) adding a roundabout at the southerly intersection of Pacific Avenue, Front Street, and Third Street. These major changes allow for improved bicycle and pedestrian circulation and mobility, and they support the creation of a major new public feature in the Spruce Street Plaza.

Spruce Street Plaza
The proposed Spruce Street Plaza would extend from Front Street to the Riverwalk and provide a new, year-round public gathering space. The space could meet many different needs for various occasions and would support space for outdoor dining as well as gathering or simply pausing in the South of Laurel Area or along the river. (See Appendix, page 20) Riverwalk
The Santa Cruz Riverwalk will continue to provide an option for off-street biking and walking.

The Plan envisions new development engaging with the river and riverwalk by orienting development towards the river and incorporating uses like restaurants that open towards the Riverwalk. The Riverwalk will be widened on the west side of the levee to create opportunities for community space, especially around the connection with the Spruce Street Plaza, while maintaining the Riverwalk’s function as a bike and pedestrian pathway. (See Appendix, Page 24) Pacific Ave
Similar to the way Pacific Avenue functions north of Laurel Street, Pacific Avenue running through the plan area will continue to form the heart of shopping, dining, and strolling. The sidewalks will be ample enough to accommodate extensive outdoor activity, and roadway traffic will be secondary to the pedestrian experience. Lighting, landscaping, street trees, and other street furniture is envisioned to be as currently seen in the rest of Pacific Avenue in the Downtown. (See Appendix, page 27)
Front Street
The role played by Front Street differs from that of Pacific Avenue in that Front Street must accommodate not only safe and pleasant bicycle and foot traffic but must also meet community mobility needs by accommodating transit, a higher volume of automobiles, delivery trucks, and more. The focus for Front Street is ensuring that all users are accommodated with clear routes to their desired destinations. (See Appendix, page 28)
Santa Cruz Warriors Arena
The Santa Cruz Warriors plan to replace their temporary arena space with a new, multipurpose arena in the Plan area, creating a landmark building and event space that will serve as a catalyst for the development of surrounding public spaces and private development. It is anticipated that the new arena will be built on its current location but could possibly be built on the block directly west of the current location as well. In either location, this plan envisions the arena extending to and engaging with the new Spruce Street Plaza in order to provide space for arena patrons to spill out following an event or for outdoor events to take place in coordination with the arena.

The exterior design of the arena, its entrance location, and the commercial uses on its perimeter will shape the function and personality of the Spruce Street Plaza. (See Appendix, page 31) Streetscape

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The way that streets are laid out and framed by buildings is often referred to as the “streetscape.” The Appendix attachment includes extensive details on the layout of the various public rights-ofway, including dimensions of sidewalks, bike lanes, and traffic lanes. These diagrams will be used to guide future public and private investment of these streets as redevelopment occurs in the project area. The focus is on creating a highly walkable area that is welcoming for all ages and supports easy navigation and walking to nearby destinations like the Main Beach. The streetscape on Front Street and Laurel Street is a bit different, working to accommodate all modes of travel including higher volumes of auto traffic, transit, and commercial deliveries.

These streets will still have wider sidewalks, with a greater focus on connection and mobility rather than gathering and lingering, as on Pacific Avenue and Spruce Street. The Riverwalk provides a third type of right of way, one focused on the off-street movement of bicyclists and pedestrians. The plan envisions the intersection of the Riverwalk and the Spruce Street Plaza as a place that could act as a primary public gathering point, particularly if it is adjacent to the new arena. (See Appendix, page 33)
Bicycle and Pedestrian Circulation
The draft Plan details many proposed new bicycle and pedestrian connections and improvements. Readers should note that 2) the bike lanes are proposed to be sidewalk-level in many locations to improve bicyclist comfort while still accommodating auto use and 2) the Riverwalk creates an easy off-street connection to the Main Beach area for cyclists. Pedestrians are prioritized throughout the project area and will be able to access an improved stairway climbing Beach Hill and connecting to Cliff Street. Wayfinding signage will support these mobility improvements and help locals and visitors navigate the area. (See Appendix, page 35) Private Property Development Regulations
While the public infrastructure and community spaces provide the setting for most community members to experience the city, development on private property is equally important in setting the framework for homes, workplaces, and retail and restaurant destinations. To that end, the South of Laurel Area neighborhood is envisioned to be an extension of the existing downtown with similar development allowances. Given a catalyst like the new arena and analysis showing that some existing properties are reaching their intended lifespans and functional value, the area is likely to be attractive to new development in the coming years.

The current reality of housing development in California is that local jurisdictions have less discretion over the look, feel, and intensity of residential development than they have had in the past. Planning work now needs to anticipate building designs and regulate them exclusively through objective, measurable design criteria. State Density Bonus Law also must be considered, because the law is commonly used to build additional units and exceed design standards in exchange for providing some percentage of the housing units at a below-market-rate rent or sale price.

The existing Downtown Plan includes thoughtful and effective design standards which have been used to create new buildings up and down Pacific Avenue and Front Street. These standards include strong requirements for the ground floor spaces and dimensions that create attractive storefronts and space for a variety of retail and food service uses. They also include guidance for upper stories that focuses on creating variation and texture at upper levels and rooflines, as well as standards for materials, colors, and landscaping that support the existing look and feel of downtown Santa Cruz. Staff seek to carry existing Downtown Plan standards into the expansion area as well.

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Development Standards – Edits to Downtown Plan
Staff has drafted edits to the existing Downtown Plan standards that strive to keep the goal and intention of the regulations intact while extending their reach into the South of Laurel Area and while making adjustments where necessary to: 1) create objectivity from an existing subjective criteria (i.e., changing a “should” to a “shall,” etc.); 2) adjust standards for the South of Laurel Area that recognize modern uses and construction techniques (i.e., adjusting the depth of retail requirements down to 20 feet from the previously required 40 feet); 3) accommodate a unique land use in the Santa Cruz Warriors Arena (see Downtown Plan Chapter 4, Subsection K(12)); and 4) create standards to ensure a building’s ground floor area interfaces with the Riverwalk and the proposed Spruce Street Plaza in the project area (i.e., requiring that ground floor uses focus on public-facing commercial uses rather than allowing private residences at that ground level, as is allowed in the current Downtown Plan).

Height and Floor Area Ratio
The amount of total development that is allowed on a given piece of property in the Plan area is primarily governed by three key development standards: setbacks, height, and floor area ratio (FAR). The amount of required parking is typically a key piece as well, but because the Downtown falls within the one half-mile radius of the High-Quality Transit stop at the downtown Metro Station, no parking can be required as part of a development proposal per state law. Therefore, parking requirements are not a limiting factor on the total amount of built square footage that can be placed on a parcel here. The Downtown requires that buildings maintain a 0- foot setback – that they create no gap between the sidewalk and the wall of the building – in order to support the pedestrian experience. For this reason, setbacks also do not have a large effect on development potential within the Downtown Plan area.

Height limits are typically expressed in feet measured to the peak or parapet of a building. In the case of Downtown, there are different height limits in different locations, ranging from 35 feet to 85 feet. The maximum allowed height (without a density bonus) for the expansion area is proposed to be 85 feet, the same as the Additional Height Zone A located north of Laurel.

Following community feedback, the plan also proposes to limit heights to no more than 70 feet (again, without density bonus) on the southern-most portions of the blocks directly north of Beach Hill. Details are on the Height Maps found in Chapter 4, Subsection B, of the attached Downtown Plan.

The FAR is a measurement of total building volume, expressed as a ratio between built square footage and total parcel square footage. A building that is one story tall and covers the entire parcel has an FAR of 1.0. The same 1.0 FAR could also be a two-story building that covers one half of the parcel and so on.

The 2030 General Plan and the existing Downtown Plan call for an FAR of 5.0 throughout the existing downtown area, as moderated by various building heights throughout. South of Laurel, the current FAR on most parcels is 3.5, and there are three locations (the two blocks adjacent to the river – the Wheel Works site and the site of the temporary arena, as well as the parcel at 140 Center Street) that are currently regulated by residential density standards and are not governed by an FAR limit. The Plan proposes to use an FAR limit for all sites in the project area, making most of sites an FAR limit of 3.5, and then a 4.0 FAR for the four blocks bounded by Pacific Avenue, Front Street, and the San Lorenzo River. These increased FARs support the Plan’s goal to increase housing capacity, acknowledging that some of the increased housing capacity is being

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used to subsequently lower the FAR of the site a 111-119 Leonard Street, per Council direction on November 15, 2022 as part of the review of the Objective Development Standards for Multifamily Housing. See Figure B-1 in Chapter 4, Section B, in the attached Downtown Plan for further details on the FARs for the Downtown Plan area.

Increased Affordable Housing Overlay Zone
In response to the January 2023 City Council direction, staff has been working to develop a set of incentives that could effectively raise the amount of affordable housing that will be built as a result of the expansion of the Downtown Plan boundaries above the anticipated amount under current conditions. State Density Bonus Law qualifies any development that meets specified affordability levels for additional market-rate homes, i.e., bonus density. In these projects, developers are allowed to increase the number of market rate homes above local zoning maximums as an incentive for providing the below-market homes. In order to accommodate the additional housing units, local jurisdictions must waive development standards like height limits, parking requirements, minimum setbacks, and required on-site open space, among others that would preclude development from reaching the total number of housing units allowed under the State Density Bonus Law.

Because, per state law, the 20% below-market homes that are required by the City’s existing policy for the inclusionary requirement are calculated on the base project – the part of the project proposal that conforms to all local regulations regarding height, density, design, etc., the total percentage of below market rate homes in the final Density Bonus proposal typically ends up being equivalent to 13%-15% due to the additional market rate units gained from the bonus density. The State Density Bonus Law has been very attractive to developers in Santa Cruz, and as of January 2024, the state increased the standard Density Bonus option from up to 50% to up to 100%. This is a significant incentive for providing below market rate homes, one that allows development to exceed density limits but also to exceed height limits and other standards to achieve that allowed density as well. State law and case law requires local jurisdictions to review Density Bonus project proposals as submitted, and must provide requested waivers for height, setbacks, parking, FAR, etc. Thus, the City is not in a position to limit the height of proposed Density Bonus projects, and it is possible under current development allowances for proposals using these bonuses to exceed the desired 12-story height maximum. This will remain the case following any land use changes associated with the Downtown Plan Expansion, as the projects will still be eligible for the State Density Bonus, unless they choose to forgo its use, either by not pursuing a State Density Bonus or by voluntarily choosing to use the City’s new affordable housing density bonus overlay allowances in lieu of availing themselves of all State Density Bonus provisions.

In this state law environment, it has been challenging to develop policies that would incentivize developers to forgo the State Density Bonus in favor of a local incentive. Increasing the inclusionary requirement without significant additional incentives would make development infeasible. Staff have been working to address the City Council direction of achieving 320 below market rate homes in the Plan area (20% of 1,600 units) by creating an Increased Affordable Housing Overlay Zone. The Overlay Zone would include incentives for developers when they commit to both: 1) providing more than the currently required 20% inclusionary housing at below-market rents and 2) limiting building heights to no more than 12 stories and 145 feet in height. While it is beyond the City’s authority to deny State Density Bonus projects when they are proposed, the City could offer two primary incentives that might be more attractive to developers than the allowances in the state law, a base FAR increase and the ability to provide

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required below market rate units off-site. Pursuing either option would require that the developer agree to both, above-noted conditions.

FAR Incentive: The first incentive under consideration is to allow the sites within the overlay zone to “purchase” additional FAR in exchange for increasing the percentage of below-market units provided. For example, for each additional 1% of below-market units above 20%, the developer could buy an additional 0.1 FAR above the base of 4.0. In this way, a developer could potentially get to an FAR of

5.0 by providing 30% of the units as income-qualified below-market-rate housing.

To make this incentive attractive, a density bonus above the base FAR increase might also be necessary, and qualifying levels of affordability will likely need to be higher than those needed to qualify for the State Density Bonus. The specific percentages of bonus density and the affordability levels for purchasing the base FAR and for qualifying for the additional density bonus require careful analysis and comparisons to the State Density Bonus allowances. Staff is currently contemplating structuring the policy to allow that analysis to take place on a caseby-case basis for each project proposing to utilize this incentive, in order to respond to changing market conditions over time.

Off-site Incentive: The second potential incentive would be to allow for the required inclusionary housing units to be built on a separate parcel. This off-site option would require that the number of below-market units provided is equal to a minimum of 35% of the base project on the market rate site. Meeting this standard would qualify the market rate project for a 50% bonus in housing units and could allow for even more than the required number of units to be constructed as part of a 100% affordable (below-market) housing development. This option is similar to the option of land donation that has been used to create the newly-built Pacific Station South project. This incentive would include limitations on where off-site units could be located, requiring that they be within a reasonable distance of the South of Laurel Area District (e.g., ½ mile) or within the Downtown Plan Area, so that residents of the affordable housing project still have easy access to Downtown amenities. Additionally, off-site units could not be located within neighborhoods with high concentrations of existing affordable housing and concentrated areas of lower-income households (e.g., Beach Flats or Lower Ocean neighborhoods), to minimize the risk of displacement of existing residents.

This policy is still under development, and staff is interested in feedback from elected and appointed officials, as well as members of the public on this topic. This Overlay Zone has placeholder text in Section 8.3.5 of the attached Appendix 8 South of Laurel Area District.

Following discussion with the City Council and Planning Commission, staff will continue to refine this policy and have final details and standards included as part of the Final Draft Downtown Plan later this year.

One other policy staff is considering for the Increased Affordable Housing Overlay is an option to allow the City Council to provide permission to a developer to exceed the 12 story/145-foot height limit by some modest amount if they determine that the design of a proposed building is noticeably superior with the addition of another 1-2 stories of height or 10-20 feet. Approval of such would be subject to a public hearing and completely at the discretion of elected officials but could allow for a small amount of flexibility should it be deemed appropriate. As compared to a

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strict, 12-story limit, this could accommodate an alternative design that encourages developers to use the new Increased Affordable Housing Overlay program as opposed to the State Density Bonus, which would mean more affordable housing and greater control over building design.

At this point, the geographic boundaries of the Increased Affordable Housing Overlay have not been finalized. In order to be responsive to the City Council Direction of both June 2022 and January 2023, to limit the total number of taller building elements to no more than a total of four, staff had initially considered limiting the overlay to the four blocks of property between Pacific Avenue and the San Lorenzo River, north and south of Spruce Street (See Appendix page 11, Figure 8.2-2, Blocks A, B, C, and D), in order to limit the total number of structures that might be incentivized to reach a 12-story height. Given the changes to the State Density Bonus Law, and the City’s inability to limit height of a Density Bonus proposal in a meaningful way, staff is now evaluating the possibility of allowing more sites in the South of Laurel Area District to have access to these incentives that could create an acceptable height limit.

Other Plan Components
As a specific plan, the Downtown Plan must meet certain criteria as dictated by California state planning law. A specific plan must include not only land use and circulation components, but also address infrastructure and implementation of the proposed concept. A specific plan may modify the allowances in a General Plan, whereas changes to state law in the last six years mean that an area plan and zoning ordinance are superseded by the General Plan. In this way, a specific plan carries more weight than other area plans and is held equal to the City’s General Plan under state law. For this reason, the expansion of the Downtown Plan addresses the utility infrastructure needs of the South of Laurel Area (See Appendix, page 73) and discusses the many financial tools that are available to support the City and property owners over the coming years as redevelopment takes place and both public and private investments are made (See Appendix, page 75).

Lastly, the plan also addresses sustainability and resiliency for the South of Laurel Area, citing references to various environmental quality and resource efficiency standards that will govern new development. These standards include local, state, and federal requirements addressing natural hazards such as flooding/drainage, water use efficiency, refuse management, bird-safe building design features, and Green Building standards. This section will be updated with further mitigation measures if identified through the environmental review process currently underway (See Appendix, page 70).

Next Steps
Following the current period of Council, Commission, and public review, the project team will gather relevant comments and make edits to the document accordingly. In addition to any comments from the public, Commission, or Council at the joint study session, staff is soliciting email correspondence from community members over the next several weeks and also coordinating directly with California Coastal Commission staff to encourage an early review and smooth approval process for the final document. To specifically hear from existing downtown property owners and business owners, City staff anticipates holding a meeting with them during the month of June to receive feedback and answer questions. All the feedback received will become part of the public record and influence the final round of edits to the Public Review Draft Plan in moving toward a Final Draft Plan. The Final Draft Plan will be completed in the fall of 2024.

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During the review period, staff is also working on preparing the other policy documents that will be necessary to implement the vision and policies described in the Downtown Plan. These other documents will include amendments to the Municipal Code, zoning map, 2030 General Plan text and Land Use Maps, the Beach/South of Laurel Plan, and the Local Coastal Land Use Plan. A new fee will also need to be established for the City to recover non-grant-funded costs associated with preparation of the specific plan.

To fulfill the requirements of the California Environmental Quality Act (CEQA), the Final Draft Plan will be the subject of a Draft Environmental Impact Report (EIR) that will be released for a standard 45-day public review by late 2024. Preparation of the Final EIR will then take place following the comment period and potentially extend through the end of the calendar year. Once the EIR is complete and any recommended mitigation measures are integrated into the Plan, the Planning Commission and City Council will hold public hearings to consider adoption of the Final Downtown Plan and certification of the EIR. Assuming the City Council adopts the plan and all supporting policies, the final step toward completion will be to submit the package of policy amendments to the California Coastal Commission for review and approval. Staff expects this review to take a minimum of a several months, allowing for the Plan to potentially take effect in mid-2025.

Health in All Policies
The components of the current proposal are consistent with the Health in All Policies pillars of equity, public health, and sustainabilty in that they would encourage creation of both needed housing and economic opportunities and foster greater accessibility between the Downtown, San Lorenzo River, and beach areas. Development in the Downtown area is in close proximity to transit, jobs, amenities, and a wide range of entertainment and recreational activities, making it one of the most sustainable places to grow in the region. From an equity perspective, the project area will include space for new inclusionary low-income housing, including replacement housing for any existing low- and very-low income residents. This Plan also supports active transportation modes that improve both personal health and environmetnal sustainability.

CEQA
The Plan will require environmental review prior to Council’s final consideration. An EIR, as discussed in the Next Steps section above, will be prepared for the project. The final proposed amendments to the Downtown Plan, General Plan, Local Coastal Program, Beach/South of Laurel Plan, and Municipal Code, together with the Draft EIR, are anticipated to be considered by the Planning Commission for a recommendation to the City Council in early 2025.

FISCAL IMPACT: This report is part of the grant-funded project to expand the Downtown Plan boundary. The total project cost is currently scoped to be $555,000. Planning was awarded a grant for this project, totaling $300,000, and general fund sources will be used to cover the full cost of the project beyond the grant amount. The City is considering creative solutions to allow the beneficiaries of the plan to reimburse City general fund costs towards the funding of the plan, including staffing costs associated with the development of the plan, and policies will be considered for incorporation into the final plan to address these reimbursements.

As the project area is built out, staff anticipates that the additional property, admissions, and sales taxes, together with any special assessments elected for the project area, will have positive impacts on the City’s long-term fiscal conditions. Provision of services to the area will result in additional costs to the City but given the location, density, and efficiency of land uses under

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consideration, revenues should be expected to exceed expenses. Creating a new urban destination with distinct urban character and a major events venue of regional importance could make this project the center of a highly successful economic development endeavor, bringing residents and visitors from throughout the region into the downtown and helping them navigate between key points of interest at the beach, river levee, and Downtown. Precise information on the longerterm fiscal implications will not be fully known until new uses and buildings are constructed and operating.

Prepared by:

Sarah Neuse
Senior Planner
Matt VanHua, AICP
Principal Planner
Submitted by:

Lee Butler, AICP, LEED/AP
Director of Planning and
Community Development
Approved by:

Matt Huffaker
City Manager
ATTACHMENTS:

1. Proposed Appendix 8 South of Laurel Area District

2. Proposed Amendments to the Downtown Plan
Both Attachments available online at www.cityofsantacruz.com/downtownplanexpansion

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City Council

AGENDA REPORT
DATE: 10/3/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Planning and Community Development
SUBJECT: Downtown Plan Expansion, Downtown Density Bonus, and AntiDisplacement Policy. Location: South of Laurel Street, Roughly Between Center/Cedar Streets and the San Lorenzo River (in Council District 4) and, for a Future Anti-Displacement Policy, Citywide. Applicant: City of Santa Cruz. (PL)
RECOMMENDATION: Motion to:
1) Direct staff to include the Downtown Density Bonus, as discussed in this report, in the forthcoming amendments to the Downtown Specific Plan as a part of the Downtown Plan Expansion Project;
2) Consider options for a funding source that could be used to create a local affordable housing tenant preference for households at risk of displacement; and 3) Acknowledge that the Council’s direction as part of this action is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15306 – Information Gathering.

BACKGROUND: The project to expand the Downtown Plan was initiated at the end of 2021 and has involved phases of information gathering, outreach, analysis, collaboration with major property owners as well as the Santa Cruz Warriors, and drafting new sections of the Downtown Plan itself. The City Council provided direction in June 2022 regarding height and the number of units. Council provided further direction in January 2023 specifying that the plan include three desired outcomes: First, the expanded plan area should support the addition of 1,600 housing units (while studying up to 1,800 units in the Environmental Impact Report (EIR)); second, of these 1,600 new units, at least 20% of them (320 units) should be available at below-market-rate (BMR) rent or sale prices; and third, to the greatest extent possible, City policy should incentivize construction of buildings that are no more than twelve stories in height, inclusive of density bonus. It was contemplated that these numbers would be achieved with the assumption of a 50% Density Bonus.

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On June 18, 2024, the City Council and City Planning Commission received an update on the Downtown Plan Expansion process in a joint study session. This meeting coincided with a month-long public review period where the plan was released to the public to receive additional comment. The consensus direction from that meeting was for staff to return as soon as possible with the policy approach that will achieve the above-stated goals set in January 2023. This report is responsive to that direction and includes an update regarding potential anti-displacement policy approaches that staff are researching.

During production of the draft Plan, direct and indirect displacement of existing residents in and around the South of Laurel neighborhood has been mentioned as a potential concern by several community members and public officials. Staff are exploring how anti-displacement preferences might be integrated into the Downtown Plan Expansion area given the more direct displacement effects that could affect the area as new projects are built. State Legislation passed in 2022 (Senate Bill 649) created a new option for cities and counties to set aside a certain percentage of new affordable housing units for local households at risk of displacement. As part of the Council’s Housing Element adoption late last year (specifically in Objective 5.5b), the City Council directed staff to research and bring forward for Council adoption anti-displacement policies programs and code amendments by September 2025. That direction relates to and supports the anti-displacement work being considered for the Downtown Plan Expansion, and this report contains an update on that work.

DISCUSSION: Council’s direction for the Plan area to consider 1,600 units (and study up to 1,800 in the EIR) is accomplished through the land use plan and environmental documentation process. The two other points of direction, incentivizing a greater number of BMR units and seeking height limits of twelve stories, require a more creative solution. Because the California State Density Bonus provides development incentives and the City’s high inclusionary rate naturally pushes larger multifamily development to use a State Density Bonus, the City must create a development incentive program that can compete with the State Density Bonus.

State Density Bonus Law
The State Density Bonus is a State law that allows housing proposals to be larger and denser than would otherwise be permitted under local regulations in exchange for reserving some amount of the housing for very-low, low, or moderate income households (or for certain targeted groups like students, veterans, and seniors). There can be no specific height limit in place for a project that uses the State Density Bonus. Once a base project is calculated using existing development standards, those development standards can be waived if they help a project achieve its proposed bonus units. Typically, waivers will apply to site standards that regulate building massing – height, floor area ratio (FAR, which is a measure of building area compared to site area), setbacks, open space, and parking are the most common. In addition to allowing waivers for physical constraints, the State Density Bonus also allows a limited number of concessions to be requested to remove financial constraints. Concessions are frequently used to adjust standards such as building materials, and architectural details, as requirements for ground floor commercial.

The City must review development applications using the State Density Bonus in the manner that they are submitted, without requiring the use of different waivers or concessions, and the City

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must approve the project if it complies with the remaining local codes and standards. A bonus of 50% of density is not necessarily equivalent to a 50% increase in height – it is up to the building designer to decide how to arrange the bonus area into the project they wish to propose. In this manner, the existing development allowances in the Downtown, both north and south of Laurel Street, could theoretically be used to propose a building that is taller than the targeted 12 story height limit directed by City Council. That potential already exists today in the downtown and has for several years.

In Santa Cruz, existing citywide requirements for inclusionary housing units (BMR housing that is required to be built with every new housing proposal of five units or more) require that a minimum of 20% of new housing units be restricted to serving Low Income households, as published annually by the California Department of Housing and Community Development.

Under the California State Density Bonus Law, required percentages of affordable units pursuant to inclusionary requirements and State Density Bonus requirements 1) are based on the initial, base project, before any bonus units are added to the project and 2) are not mutually exclusive, meaning that affordable units meeting the State Density Bonus requirement count towards meeting the City’s inclusionary requirement and vice versa. This means that for a project using the State Density Bonus, the City’s 20% inclusionary requirement ends up generating BMR units that are just over 13% to around 15% of the project’s total units, depending on the number of bonus units included. Therefore, to achieve the goal of a final yield of BMR housing that is no less than 20% of all new units, the requirements on the base projects will need to be greater than the current inclusionary requirements.

Under current market conditions in the Downtown Plan area, the 50% density bonus is the upper limit of the most common bonus pursued by market rate developers, so staff has been using a 50% bonus as a standard for calculation. The City cannot simply increase the current inclusionary requirement to 30% to achieve a 20% total unit outcome in a 50% Density Bonus scenario. The level of subsidy required for private housing developers to meet that kind of standard is higher than any financial model has found to be feasible for housing in Santa Cruz. It would likely be so infeasible that it would stop development of housing all together.

The City must create new local incentives to compete with the State Density Bonus and entice developers to instead follow City policies. If the incentives are right, housing development could increase the percentage of BMR units tied to the project and commit to following local standards such as Council’s desired 12 story height limit. Staff proposes a Downtown Density Bonus policy that achieves these aims.

Downtown Density Bonus
City planning staff have identified options for development projects to encourage developers to use the local policy and agree to building heights no taller than either eight stories or twelve stories, depending on the option selected. To make these lower heights more appealing while still achieving a yield of at least 20% BMR units, the policy proposes some novel options for granting a density bonus.

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Because all sites in the project area are eligible for State Density Bonus, which would yield only 13-15% of the units being BMR and could result in heights greater than 12 stories, staff recommends that the Downtown Density Bonus be available to all property within the Downtown Plan Expansion area south of Laurel Street. This approach provides a higher likelihood of meeting the Council’s direction, particularly related to the maximum desired height and increased percentage of affordable units.

All projects seeking a Downtown Density Bonus would be committing to using only the City’s program and permanently forgoing any State Density Bonus for which they might otherwise qualify. All projects would be required to exceed the existing base inclusionary requirements, with the result being the production of permanently below-market, income-qualified housing units that total at least 20% of the total units in the final Downtown Density Bonus project. The proposed Downtown Density Bonus offers two types of development bonuses and three methods of qualifying for those bonuses. The goal of the Downtown Density Bonus is to be more attractive to developers than the State Density Bonus.

Development Bonus Options
In the proposed policy, the Downtown Density Bonus would be offered in two different ways:

1. Option A: a qualifying proposal would be allowed to build up to twelve stories and 145 feet in height and up to 6.125 FAR (3.5 FAR base + 75% bonus) if the project agrees to go through a discretionary process that includes review by an Architectural Review Committee for recommendations to support high quality design and materials as well as a Planning Commission Subcommittee to review materials at the Building Permit stage.

2. Option B: a qualifying project would be allowed to build up to the base height limits in the Plan (85 feet in most areas and 70 feet in others) with no limit on FAR if the project agrees to go through a discretionary process that includes review by an Architectural Review Committee for recommendations to support high quality design and materials as well as a Planning Commission Subcommittee to review materials at the Building Permit stage.

Qualification Options
Development projects will be able to qualify for a Downtown Density Bonus in any of the following three ways:
1) On-Site: Provide BMR units in an integrated market rate and BMR development project that meet both of the following criteria:
a) A minimum of 13.3% of the total units in the final project (density bonus plan) would be available to low-income households and
b) An additional 8% of the total units in the final project (density bonus plan) would be available to moderate-income households making up to 110% of AMI.

The number of BMR units would represent 21.3% of the total units in the project.

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2) Off-Site: Provide BMR units at an off-site project with a minimum number of BMR units equivalent to 26.7% of the total units in the Downtown Density Bonus proposal and targeting households with incomes up to 80% of AMI.
a) The site with the BMR units must be located either:
i) within a half mile of the South of Laurel project area, or ii) within the boundaries of the expanded Downtown Plan, or iii) within the Coastal Zone. (see Maps, attached)
b) The off-site project must demonstrate the following:
i) Land control and an ability to achieve the required number of BMR units (30% of the total units in the associated market rate project) prior to building permit issuance for the market rate project and ii) That the project with the requisite BMR units is fully funded and that construction begins before a certificate of occupancy is awarded to the market-rate project. If that is not feasible, the applicant shall dedicate the land to the City and pay the difference of the cost of the land and the inlieu fee as calculated below. 3) In-Lieu: Pay a fee toward the City’s affordable housing trust fund at a fee of $60 per square foot of housing units in the Downtown Density Bonus proposal. a) The City is required to spend a minimum of 50% of these funds on development and preservation projects serving lower-income households within a half mile of the South of Laurel project area, within the boundaries of the Downtown Plan, or inside the Coastal Zone.

Policy Advantages
BMR Calculations
The Downtown Density Bonus proposes to calculate requirements for BMR units based on the density bonus project proposal rather than on a set of base plans. The qualifying BMR percentages were calculated based on a 50% bonus scenario using a plan of 100 units allowed by base zoning:
100 units x 50% bonus = 150 total units
100 units x 20% inclusionary requirement = 20 Low-Income units 20 inclusionary units / 150 units = 13.3% of total units are Low-Income units 12 Moderate-Income units / 150 units = 8% of total units are Moderate-Income units Or
40 off-site Low-Income units/150 units = 26.7% of total units are Low-Income units (or deeper levels of affordability) built off site
The percentage approach also allows the bonus to scale to any parcel or proposal size and eliminates the confusing project review step of having to calculate the density bonus by analyzing a project base plan that will never be built. Put simply, the more units in the overall density bonus project, the more below market rate units that are required to be provided; the percentage of BMR units remains at 21.3% of the total.

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Depth of Subsidy
The Downtown Density Bonus will create a greater number and greater percentage of housing units that are restricted to below-market rate costs than would be created by projects using the State Density Bonus to build similar projects. However, the State Density Bonus would require that the units built are subsidized to a deeper level of affordability. One of the trade-offs necessary to make the Downtown Density Bonus more appealing to developers was adjusting the depth of affordability required in order to qualify for the bonus density. Staff is recommending a policy for the On-Site Qualification that maintains the existing inclusionary housing requirement of 20% of the base project being affordable to households at or below Low-Income threshold of 80% of the Area Median Income (AMI) level, plus an additional 12% of the base project being affordable to households at the Moderate Income level of 110% of AMI. The equivalent State Density Bonus would be achieved by restricting 15% of the base units to the Very-Low Income Level at 50% of AMI and then meeting the City’s inclusionary requirements by providing an additional 5% of base units at the Low-Income level (City policy requires that a total of 20% of the base units are provided at affordable cost to households at or below 80% of AMI).

The depth of affordability is a trade-off necessary in order to meet the ambitious goal of achieving a minimum of 20% of the total new housing at below-market costs. Projects pursuing the Off-Site Qualification will be required to create more housing units than would have been required in the On-Site Qualification, and because those units will be part of a 100% BMR project, they will qualify for public subsidies that can be used to target deeper levels of affordability. The proposed policy would require 100% of these units to be restricted to Low Income Households (80% of AMI) or deeper levels of affordability, and funding sources might require even deeper levels of affordability. (Most public funding sources are focused on building housing for households at or below the 60% or 50% of AMI threshold.) Similarly, the In-Lieu Qualification can be used to address a variety of affordable housing needs serving households at or below the Low-Income Level, including preserving existing affordable housing and stabilizing existing tenants, in addition to supporting construction of new deeply-affordable housing units.

The proposed mix of BMR units promotes economic diversity in the downtown area. Projects using the State Density Bonus will typically have Very Low, Low, and Above Moderate Income units, and projects consisting of 100% BMR units will typically have Very Low and Extremely Low Income units. No program currently requires or encourages Moderate Income BMR units.

The proposed Downtown Density Bonus would do so, which would promote development of downtown housing for more diverse economic segments of the community.

Type of Development Bonus
The Downtown Density Bonus proposes to grant the development bonus as additional FAR, rather than a number of units based on a set of base plans. This method eliminates any disadvantage for buildings required to incorporate commercial ground floor space, because the bonus is based on the total building FAR, not just the residential portion of the building. Further, the proposed bonus would offer more development potential than could be achieved through the

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50% State Density Bonus. By offering a 75% bonus on the base FAR in Option A and unlimited FAR in Option B, the Downtown Density Bonus offers more options for feasible development projects, making the City program more attractive than the State Density Bonus.

Architectural Review
Both options build in an architectural review committee (ARC) in order to address the challenges of applying objective design standards to Density Bonus proposals. This committee would be composed of licensed architects who make recommendations on the permit application. As proposed, a separate subcommittee of the Planning Commission would review exterior materials as part of the Building Permit approval process, to help ensure quality and durability of proposed materials.

Off-Site BMR
The State Density Bonus does not allow for BMR units to be constructed off-site. Allowing for off-site construction of BMR units as part of 100% BMR development projects not only creates a greater total amount of BMR housing, but it also allows those units to be provided at a deeper level of affordability. 100% BMR projects can qualify for public funding that can allow VeryLow- and even Extremely-Low Income households to be served. These levels of subsidy are challenging to provide in any substantial number as part of market rate development. Because of additional public financing options related to building a 100% BMR project versus inclusion of the units into a market rate project, offering an off-site option could be a powerful incentive and can support a higher percentage of BMR units than is required for the on-site option. These offsite locations would need to be relatively equitably located relative to the market rate projects.

Staff is recommending that this option be limited to using appropriately-zoned (zoned for multifamily housing and at least the number of units required for the Downtown Density Bonus) parcels within on half-mile of the Downtown Expansion Area, within the Downtown Plan Area, or elsewhere within the Coastal Zone. The attached maps show these areas of the City for reference, but do not identify specific sites that might qualify.

In-Lieu Fee
Finally, creating an option for an in-lieu fee could appeal to certain development proposals and has the potential to generate funding for the City’s Affordable Housing Trust Fund. As demonstrated with the recent projects in the downtown, the Economic Development and Housing Department has an excellent track record of turning donations of land, funding, and staff time into hundreds of housing units for lower-income tenants. Another benefit is that these funds can be used to preserve existing BMR housing, which can be much harder to fund using other public sources and which directly serves existing local households who could be vulnerable to displacement pressures.

The in-lieu fee could represent the funding necessary to create the local preference for households at risk of displacement – an option that can only be achieved through substantial local funds. Estimates on the amount of funding that could be generated through the in-lieu fee on just a single project could be in excess of $10 million. If multiple projects choose the in-lieu

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fee option the City could be well positioned to initiate projects that carry a strong local preference and serve households facing indirect market displacement pressures.

Planning staff has worked with local developers, an inclusionary housing consultant, and collaborated heavily with the City Housing team in developing this policy recommendation and has worked to ensure that all components of City Council direction can be met with the proposed policy. Further work to finalize the details around application timing and permit processing for these future development proposals will continue in the lead up to the next iteration of the Draft Downtown Specific Plan, to be released later this year.

Anti-Displacement Policy
The term “anti-displacement” can be used to describe a wide variety of policy actions that support existing residents to remain living and working in the community during times of change in the macroeconomic sphere. These policy items may address housing, employment, tenant protections, financing strategies, and many other subtopics, each worthy of their own discussion.

These policies can address both direct and indirect displacement of households living on or near redeveloping property. Together, California State Law and local ordinances provide several protections for households facing direct displacement but few for those facing indirect pressure.

Direct Displacement
For existing tenants in the South of Laurel neighborhood who could be subject to direct displacement impacts, several existing protections are in place. In the State of California, all tenants are entitled to relocation benefits if they are evicted as part of a development project and local ordinances provide further support to additional households facing direct displacement pressures:
• The state Housing Crisis Act of 20191
and subsequent amendments expanded the
relocation benefits that developers are required to provide for displaced lower income2 households.
o Lower income households receive up to 42 months of rental assistance payments in the same jurisdiction, as well as payment of moving costs. o Lower income households are entitled to a first right of refusal for a comparable unit at an affordable rent in the new housing development. o State laws require developers to replace existing units occupied by lower income households with new affordable units in the new building with market rate units.. • Moderate income3
households are entitled to receive two months of rent as relocation assistance consistent with Santa Cruz Municipal Code section 24.08.1350. 1 See California Government Code Section 66300.6(4)
2 Lower Income households are defined as having income that is up to 80% of the Area Median Income, as standardized based on household size.
3 Moderate-Income is defined as households with income up to 110% of the Area Median Income, standardized by household size.

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• All households are eligible to receive one month’s rent through state laws4 related to nofault evictions. • All households have a right to stay in their unit until six months prior to construction.

All relocation benefits must be documented in a Relocation Plan, Affordable Housing Determination Packet, and First Right of Refusal Proof of Compliance documents that developers are required to submit to the City as part of development applications. These existing protections help provide stability for tenants and contribute to efforts that address direct displacement of lower income households from Santa Cruz.

Indirect Displacement
Unlike residents of redeveloped property, tenants experiencing indirect displacement due to rising rents or other market pressures that affect the stability of housing have a limited number of protections under existing state law (such as statewide rent control and eviction protections on qualifying properties). Some households may be highly sensitive to rent increases and also have few resources to facilitate negotiating relocation support should they choose to move as a result.

The City’s large rent increase ordinance5
does provide some recourse for certain tenants, though
enforcement of that ordinance is a civil matter between a property owner and tenant. For households with lower incomes seeking a new residence, there are often no affordable options, and they may be forced to leave the City or even the County of Santa Cruz entirely in order to locate housing that meets their needs.

In 2022, Governor Newsom signed Senate Bill 649, the Local Tenant Preferences to Prevent Displacement Act (SB 649, attached) into law, and the City of San Jose quickly began work on developing a program taking advantage of the new legislation. Councilmember Newsome called SB 649 and the City of San Jose’s actions to the attention of staff, and staff has reviewed both the statute and the program for possible implementation in Santa Cruz.

The law creates an allowance for certain federal and state funds to be used in support of “households at risk of displacement.” This was a significant change since most federal and state funding sources can only be spent on BMR housing that is “publicly available” and allows any US resident to apply for a lease. Placing local preferences on any housing that uses federal tax dollars is explicitly prohibited by many federal and state funding programs. Since BMR housing projects often rely on multiple federal, state, local, and even private funding sources, local preferences cannot be applied to them..

The significance of SB 649 is that it creates a new class of households that can be prioritized for certain publicly funded housing units. The law allows a city or county to require a set aside of units in projects that use Federal Low-Income Housing Tax Credits (LIHTC) and California State Tax-Exempt Housing Bonds (State Housing Bonds). Any remaining funds needed to 4 California Civil Code Section 1946.2.(d)(3)(a)
5 Santa Cruz Municipal Code Chapter 21.03

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complete a project would need to come from the local jurisdiction or from other private sources that would accept the preference requirement.

The law defines “households at risk of displacement” as lower-income households that currently reside in areas that are experiencing “rapid growth or increasing housing prices.” In developing a policy to serve these households, the State law also requires that cities continue to comply with obligations to affirmatively further fair housing consistent with both state and federal laws prohibiting discrimination against any protected class of households or individuals. Typically, jurisdictions conduct a disparate impact analysis using standard statistical methods to ensure that the proposed policy does not create any discriminatory effects based on race, gender, source of income, or any other protected characteristic. After conducting this disparate impact analysis, the City of San Jose recently determined that a maximum of 15% of housing units in qualifying projects could be set aside for households at risk of displacement.

This kind of set aside could be a powerful tool to ensure that new housing built in Santa Cruz creates opportunities for stability for the most vulnerable local households. The challenge with this kind of program is that a small City like Santa Cruz has a hard time generating sufficient funding to support projects that would be subject to these restrictions. Most recent publicly funded housing projects are using funding from five or more different sources, and most of those funding sources require that all units be publicly available without any local preference. In order to generate a significant number of units that carry an anti-displacement local preference the City would need a substantial source of funding to support development of housing projects that rely on only three sources of funding: LIHTC, State Housing Bonds, and City money. The City’s Affordable Housing Trust Fund is not currently sufficiently funded to achieve that goal. With new funding sources the City could have a tool to create an anti-displacement preference as described, after conducting in the necessary disparate impact analysis. The in-lieu fee in the Downtown Density Bonus policy is one possible source of funding to support this kind of preference.

Coastal Commission Discussion
City Staff met with representatives of staff for the California Coastal Commission on October 2, 2024 to discuss the Downtown Density Bonus and related anti-displacement concepts raised in this report. Given the urbanized nature of the downtown, the Commission staff recognized that coastal resource impacts are limited in the area, and they had a generally positive response to the proposals. City and Commission staff discussed the locational criteria of the off-site and in-lieu fee affordable housing options (see Maps, attached), which are intended to ensure that affordable housing is provided in the Coastal Zone or in/near the downtown’s amenity-rich environment.

The discussion included where affordable housing may likely go outside of the downtown area (the half-mile radius) and the implications of such locations, such as affordable housing in the Beach Flats or Lower Ocean neighborhoods.

As it relates to reducing displacement in the Beach Flats and Lower Ocean while further increasing the affordable housing stock, one idea that City staff offered was for replacement housing units required per state law to not count towards the 30 percent of off-site affordable

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units. For example, if a 100-unit project selected the off-site option, it would require 30 BMR units. However, if the off-site development was demolishing five units with Low Income tenants, those units would need to be replaced on the affordable housing site, in addition to the 30 required BMR units, for a total of 35 BMR units in this example. Staff intends to incorporate this language into the proposed off-site option for the Downtown Density Bonus.

CONCLUSION
Concerns about development and displacement have arisen repeatedly throughout the process of drafting the proposed expansion of the Downtown Plan. Recent changes to State Law have improved the resources available to those directly displaced due to redevelopment, with all tenants entitled to some amount of relocation support and low-income households receiving up to 42 months of rental support. Staff will enforce all existing state and local laws that create relocation support, ensuring that the greatest number of tenants receive the protections intended for them.

The proposed Downtown Density Bonus policy achieves the City Council direction provided on January 2023. The policy is designed to be a more attractive option for housing developers than the State Density Bonus, including some novel options like discretionary architectural review, off-site BMR units, and the possibility of an in-lieu fee payment. If the proposed policy is made available to all sites in the project area, the potential to achieve the goals of limited height and increased rates of BMR housing is increased. Further, the Downtown Density Bonus off-site and in-lieu options could increase the total number of BMR units even beyond the 20% target while still allowing for the same or greater amount of market rate housing to be added to the city.

Staff is seeking Council support for the proposed Downtown Density Bonus, including its application to the entirety of the Downtown Plan Expansion area. To that end, staff is interested in any questions or feedback the Council has regarding the policy approach. In particular, staff is interested in the Council’s thoughts about the in-lieu fee option given that these funds could contribute to an anti-displacement preference in publicly-funded projects.

NEXT STEPS
Following City Council direction on the topics of this report, staff will incorporate that direction into the proposed amendments to the Downtown Plan and prepare to release the most updated version of that document with the proposed amendments to the 2030 General Plan, Local Coastal Program Implementation Plan, Municipal Code, and Beach South of Laurel Area Plan (collectively the “Downtown Plan Expansion” project) along with the publication of the Draft Environmental Impact Report (DEIR) within approximately the next month.

The above-listed documents and the DEIR will be released for a standard 45-day public review period. Responses to any public comments and preparation of the Final EIR will then take place, extending through the end of the calendar year and into early 2025. Once the Final EIR is complete and any recommended mitigation measures are integrated into the proposal, the Planning Commission and City Council will hold public hearings to consider adoption of the Final Downtown Specific Plan and certification of the EIR. Assuming the City Council adopts the plan and all supporting policies, the final step toward completion will be to submit the package of policy amendments to the California Coastal Commission for review and approval.

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Staff expects this review to take several months, allowing for the amended and expanded Downtown Specific Plan to potentially take effect summer or fall of 2025.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The policy direction sought here is not a formal policy adoption by the Council. The formal policy adoption will take place as part of the proposed amendments to the Downtown Specific Plan and associated documents, which will require environmental review prior to Council’s final consideration. Thus, at this stage, this item is considered exempt from CEQA under the categorical exemption in CEQA Guidelines Section 15306 – Information Collection – in that the direction is part of a study and analyses leading to an action which the City has not yet approved, adopted, or funded.

A DEIR, as discussed in the Next Steps section above, is being prepared for the project. The final proposed amendments to the Downtown Plan, General Plan, Local Coastal Program, Beach/South of Laurel Plan, and Municipal Code, together with the Final EIR, are anticipated to be considered by the Planning Commission for a recommendation to the City Council in 2025.

HEALTH IN ALL POLICIES (HiAP): The components of the current proposal are consistent with the Health in All Policies pillars of equity, public health, and sustainability in that they would encourage creation of both needed housing and economic opportunities and foster greater accessibility between the Downtown, San Lorenzo River, and beach areas. Development in the Downtown area is in close proximity to transit, jobs, amenities, and a wide range of entertainment and recreational activities, making it one of the most sustainable places to grow in the region. From an equity perspective, the project area will promote the production of new inclusionary lowincome housing, including replacement housing for any existing low- and very-low income residents. This plan also supports active transportation modes that improve both personal health and environmental sustainability.

FISCAL IMPACT: This report is part of the grant-funded project to expand the Downtown Plan boundary. The total project cost is currently scoped to be $555,000. Planning was awarded a grant for this project, totaling $300,000, and general fund sources will be used to cover the full cost of the project beyond the grant amount. The City has adopted a General Plan Maintenance Fee that is applied to new development, and those funds are expected to cover the general fund expenses.

As the project area is built out, staff anticipates that the additional property, admissions, and sales taxes, together with any special assessments elected for the project area, will have positive impacts on the City’s long-term fiscal conditions. Provision of services to the area will result in additional costs to the City, but given the location, density, and efficiency of land uses under consideration, revenues should be expected to exceed expenses. Creating a new urban destination with distinct urban character and a major events venue of regional importance could make this project the center of a highly successful economic development endeavor, bringing residents and visitors from throughout the region into Santa Cruz and helping them navigate between key points of interest like the beach, river levee, and the downtown. Precise information on the longer-term fiscal implications will not be fully known until new uses and buildings are constructed and operating.

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Prepared By:

Sarah Neuse
Senior Planner
Matt VanHua, AICP
Principal Planner
Submitted By:

Lee Butler, AICP, LEED AP
Director of Planning and
Community Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. EXISTING STATE AND CITY HOUSING RIGHTS FOR TENANTS SUMMARY.DOC

2. SB 649 (CORTESE) TEXT.DOC

3. CITY LIMITS MAP OF OFF-SITE BELOW MARKET RATE HOUSING LOCATIONS.PDF

4. DOWNTOWN MAP OF OFF-SITE BELOW MARKET RATE HOUSING
LOCATIONS.PDF

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PLANNING COMMISSION

ACTION SUMMARY
Regular Meeting
April 17, 2025
7:00 P.M. GENERAL BUSINESS AND MATTERS OF PUBLIC INTEREST, COUNCIL CHAMBERS Call to Order-Chair Polhamus called the meeting to order at 7:02 p.m.

Roll Call-Commissioners Dann, Gordon, Kelley, Kennedy, McKelvey, and Chair Polhamus were present.

Absent: Commissioner Thompson was absent with notification.

Statements of Disqualification: Commissioner Gordon recused herself from hearing Item 3, due to having a client who owns property in the Downtown Expansion Area.

Oral Communications-Chair Polhamus opened Oral Communications for members of the public who wished to speak regarding items not listed on the agenda. The following person(s) spoke: none.

Consent Public Hearing Agenda

1. 111, 113, 115, and 119 Leonard Street Project Number: FP25-0003 Assessor's Parcel Numbers: 005-251-06, 07,08 A Project to Adjust the General Plan Land Use Designation on Parcels on the North Side of Leonard St at the Intersection with May Avenue from the Mixed-Use Visitor Commercial (MXVC) Land Use Designation to the Low-Medium Density Residential (LM) Land Use Designation. This Action will Result in a Reduction in Residential Capacity in the City of Approximately 40 Housing Units and will Return the Parcels to a General Plan Land Use Designation that is Implemented by the Existing Multifamily – Low Density (R-L) Zone District which Applies to the Parcels.

Environmental Review: This Project is Covered by the EIR Conducted on the City’s General Plan and Adopted in June 2012; Location: District 1; Applicant: City of Santa Cruz

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MOTION: Motion made by Commissioner Kennedy, seconded by Commissioner Dann, to find that the proposed amendment to the General Plan Land Use Map serves and furthers the public necessity, general community welfare, and good zoning practice, and that the proposed amendment is in general conformance with the principles, policies, and land use designations of the General Plan; and recommend approval of the proposed amendment to the Land Use Map of the 2030 General Plan, per prior Council direction.

FRIENDLY AMENDMENT: Commissioner Dann requested a friendly amendment to recommend to staff that this item not be placed on a Consent Public Hearing agenda when it is heard by the City Council, and that a full presentation of the item be given.

Commissioner Kennedy declined to accept the friendly amendment. Commissioner Dann withdrew her second of the motion.

MOTION: Commissioner Kennedy moved, seconded by Commissioner Kelley, to find that the proposed amendment to the General Plan Land Use Map serves and furthers the public necessity, general community welfare, and good zoning practice, and that the proposed amendment is in general conformance with the principles, policies, and land use designations of the General Plan; and recommend approval of the proposed amendment to the Land Use Map of the 2030 General Plan, per prior Council direction.

ACTION: The motion carried by the following vote:

AYES: Commissioners Kelley, Kennedy, Gordon, McKelvey, and Chair Polhamus.

NOES: Commissioner Dann
ABSENT: Commissioner Thompson

2. 2394 Delaware Ave.: Zoning, General Plan, and LCP amendments Project Number:

FP25-0002 Assessor’s Parcel Number: 003-061-09 General Plan amendment, Zoning Map Amendment, and Local Coastal Program Amendment to: Change the General Plan Designation and Zoning of a 10.3-Acre Site Zoned R-1-5/CZ Permit Jurisdiction (Single Family Residence/Coastal Zone- Original Permit Jurisdiction) and with a Low-Density Residential General Plan Designation so that the Northern Four Acres of the Site Shall be Changed to the Agriculture/Grazing (AG) Designation and the E-A/CZ Appeal (Exclusive Agricultural District/Coastal Zone Overlay Appeal zone), and the 6.3-Acre Southern Portion of the Site Shall be Changed to the Low-Medium-Density Residential (LM) Designation and the R-L/CZ Permit Jurisdiction (Multiple-Residence – Low Density District (R-L) District/Coastal Zone Overlay original jurisdiction zone); Amend the Text of General Plan Action LU 1.1.4; Amend the Agriculture/Grazing Land Use Designation Definitions in the General Plan and Local Coastal Program; and Obtain Local Coastal Program Certification for the Northern Portion of the Site. Environmental Review:

Addendum to General Plan 2030 EIR (CEQA Guidelines Section 15164); Location:

District 6; Applicant: City of Santa Cruz.

MOTION: Motion made by Commissioner Kennedy, seconded by Commissioner Dann, to find that the Planning Commission concurs with the required findings, as specified in the staff report and to recommend that the City Council approve the proposed

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amendments to the City of Santa Cruz General Plan, Zoning Map, and Local Coastal Program Land Use Plan as shown in the attachments, and acknowledge the addendum to the Environmental Impact Report (EIR) prepared for the City’s General Plan.

FRIENDLY AMENDMENT: Commissioner Dann requested friendly amendment to recommend to staff that this item not be placed on a Consent Public Hearing Agenda when it is heard by the City Council, and that a full presentation of the item be given.

Commissioner Kennedy declined to accept the friendly amendment. Commissioner Dann withdrew her second of the motion.

MOTION: Motion made by Commissioner Kennedy, seconded by Commissioner Kelley, to find that the Planning Commission concurs with the required findings, as specified in the staff report and to recommend that the City Council approve the proposed amendments to the City of Santa Cruz General Plan, Zoning Map, and Local Coastal Program Land Use Plan as shown in the attachments, and acknowledge the addendum to the Environmental Impact Report (EIR) prepared for the City’s General Plan.

ACTION: The motion carried by the following vote:

AYES: Commissioners Kelley, Kennedy, Gordon, McKelvey, and Chair Polhamus.

NOES: Commissioner Dann
ABSENT: Commissioner Thompson
Public Hearings

3. Downtown Plan Expansion Project Number: FP22-0001 City-Wide Amendments to the Downtown Plan to Expand the Boundaries of the Plan and Add Relevant Standards for the New Downtown Plan Area (the South of Laurel Area); Amendments to the Downtown Plan to Support the Goals of the Project; Add a New Appendix 8 to the Downtown Plan, with Various Policies, Objectives, and Standards for the South of Laurel Area; Amend the Boundary and Some Text of the Beach/South of Laurel Comprehensive Area Plan to Remove the Project Area from That Plan; Amend the Text of the 2030 General Plan to Reflect the Addition of the South of Laurel Area to the Downtown; Amend the Land Use Map of the General Plan and Local Coastal Program Land Use Plan to Reflect the Changed Downtown Plan Boundary and to Change the Land Use Designation on Some Parcels from Multifamily Residential - High Density and Multifamily Residential – Medium Density to Regional Visitor Commercial, Consistent with Surrounding Parcels in the Area and Consistent with Other Parcels in the Existing Downtown Plan Boundary; Amend the Local Coastal Program Land Use Plan (LCP LUP) to Clarify Applicability of the Downtown Plan within the Coastal Zone; Amend Municipal Code Chapter 24.10 to Delete Obsolete Text and Chapter 24.12 to Acknowledge Changes to State Laws Regulating Parking Requirements; Rezone Parcels Within the South of Laurel Area into the Central Business District (CBD) Zone District.

Environmental Review: An Environmental Impact Report has Been Prepared for This Project; Location: District 4; Applicant: City of Santa Cruz.

MOTION: Motion made by Commissioner Dann that the Planning Commission approve the staff recommendation with the following revisions: 1) deletion of the recommendation to certify the Final EIR (since the Commission hasn’t seen it); adoption of the amendments to the Downtown Plan, 2030 General Plan, Local Coastal

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Program Land Use Plan, Beach/South of Laurel Comprehensive Area Plan, and Municipal Code including the zoning map, as proposed in the attached documents with the following changes, which should be incorporated in the documents where appropriate: a) the existing General Plan and zoning densities shall be retained, except for increased densities allowed under the City’s Downtown Density Bonus program and the recommended density for Block H – 220 Front Street; b) only Downtown Density Option B shall be included in the plan (not option A) and without the in-lieu fee option; c) the section allowing the Council to increase building heights in Option B shall be removed (page 112); d) the proposed Architectural Review Committee shall not recommend height increases, nor shall staff recommend height but should be considered for later consideration on a city wide basis for all larger projects; e) replacement housing for low income units shall not be counted as inclusionary units; f) demolition of the supportive housing development on Front Street shall be removed from the plan; g) encourage developers to use local hire, union labor.

ACTION: Motion failed for lack of a second.

MOTION: Motion made by Commissioner Kennedy, seconded by Commissioner McKelvey, to concur with the required findings specified in the staff report and recommend to the City Council the following actions: 1. Certification of the Final Environmental Impact Report (EIR); and 2. Adoption of the amendments to the Downtown Plan, 2030 General Plan, Local Coastal Program Land Use Plan, Beach/South of Laurel Comprehensive Area Plan, and Municipal Code including the zoning map, as proposed in the attached documents; with the following additional recommendations to the City Council: include a Downtown Density Bonus land dedication option, as discussed; add a policy relating to Pedestrian, Bike, and Transit Enhancements: Future Pedestrian, Bike, and Transit Enhancements-The SOLA will continue to change over time. As properties redevelop and as transportation modes shift, or as the City seeks to further promote active transportation and discourage single-occupant vehicles, the conceptual cross sections included in the plan may need to shift. The City will continue to assess how to support transit, bicycle, and pedestrian travel through a variety of means, such as:
• Enhancing transit service along the Font Street/Pacific Avenue corridor by adding features such as in-lane boarding islands, queue jump lanes, or transit signal priority in place of the on-street parking or center turn lanes provided in the cross sections;
• Including transit-priority corridors, such as on Front Street; • Creating pedestrian-only or bicycle/pedestrian shared use segments, such as on Pacific Avenue or Spruce Street; or
• Further enhancing the visibility of pedestrian and bike connections between the Beach Area and SOLA.

The assessment of these changes will need to evaluate implications for the broader transportation network, and it should also consider implications for access to Beach Hill by residents and businesses (add to page 8-60 in Appendix 8); add a Labor provision: Encourage developers and contractors to evaluate hiring local labor, hiring from or contributing to apprenticeship programs, increasing resources for labor compliance, and providing living wages; add the following language regarding Spruce

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St Plaza: encourage commercial activity in the Spruce St. Plaza such as: farmer’s markets, community events, fairs, etc. and promote active use and promote safety and maintenance for all users.

ACTION: The motion carried by the following vote:

AYES: Commissioners Kelley, Kennedy, McKelvey, and Chair Polhamus NOES: Commissioner Dann
ABSENT: Commissioners Thompson, Gordon
DISQUALIFIED: Commissioner Gordon
MOTION: Motion made by Commissioner Kennedy, seconded by Commissioner McKelvey, to extend the Planning Commission meeting to adjourn at 11:15 p.m.

ACTION: The motion carried by the following vote:

AYES: Commissioners Dann, Kelley, Kennedy, McKelvey, and Chair Polhamus NOES: None
ABSENT: Commissioners Thompson, Gordon (see statements of disqualification) Information Items
Subcommittee/Advisory Body Oral Reports
Adjournment-The meeting adjourned at 11:10 p.m.

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Staff Responses to the Failed Planning Commission Motion At the April 17, 2025 meeting, the Commissioner Dann made a motion that failed due to lack of second. Because it did not receive a second, no discussion ensued to highlight the concerns associated with its content.

The failed motion by Commissioner Dann created impacts that run counter to the goals of the project as directed by City Council and conflict with state laws. The motion consisted of several parts, and a few items are worth addressing directly. The full text of the failed motion is included in a separate attachment – the Draft Summary of the Planning Commission’s April 17, 2025 meeting. The motion would have, among other modifications, made the following changes to the proposed project documents:

1. “The existing General Plan and zoning densities shall be retained, except for increased intensities allowed under the City’s Downtown Density Bonus program and the recommended density for Block B – 220 Front Street.”
Response: The City’s downtown is the best place for higher density housing and higher intensity land uses. The proposed project represents a very modest (less than 25%) increase in potential for housing, and limiting development capacity to the levels of intensity currently shown on these parcels would further their underutilization. The current levels of intensity have failed to deliver the type of redevelopment that adds life and energy into the downtown and additional restrictions on development potential would push development demand into other areas of the City.

Detractors of the proposed plan have stated that the Downtown Density Bonus alone should be used to achieve the desired housing and development intensities. The Downtown Density Bonus policy would not result in that outcome as currently drafted, and making adjustments to the Downtown Density Bonus policy to address those specific goals would still fail to create the certainty investors need before committing to a multi-million dollar development project. First, while the FAR for a property cannot be reduced by future Councils (due to state laws requiring no net loss of residential capacity), the Downtown Density Bonus policy could be removed or modified in unpredictable ways. This uncertainty for the parcels in question is chilling for the development community, meaning many of the goals of the plan would not be realized, including jeopardizing the future Warrior’s arena.

Further, by failing to increase the development capacity on these sites, the Council could increase the uncertainty about the City’s commitment to supporting investments and redevelopment in this area. That uncertainty could discourage investments to the point that redevelopment does not occur and the vision for the SOLA, with new housing, new public improvements, and a new Warriors arena, is not realized.

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In addition to creating problems in terms of market rate and below-market rate housing noted above, the motion as written would create issues related to the creation of the Spruce Street Plaza, upgrades to the San Lorenzo Riverwalk, and the development of a permanent Warriors Arena. This is because the current General Plan and zoning densities have failed to produce any significant amount of housing in the three decades or so that the designations have been in place, which suggests that the current designations might not align with feasible development projects. Parcels of land are not all equally likely to be developed; due to the inherent costs of development and the risk to development firms, land with a higher likelihood of generating a reasonable profit margin tends to be built out while others with lower or riskier returns do not. When parcels cannot be developed in a profitable manner, land sits vacant or underutilized, housing stock ages without replacement or new additions, and a growing population is left to compete for a stagnant number of homes. The right combination of zoning and policy incentives can jump-start development and all the benefits that come with it. The current General Plan and zoning on the sites are not the right combination to generate the housing and employment opportunities Santa Cruz needs, and the Downtown Density Bonus alone might not produce the results the vision depends on, in part due to the reasons described above.

For example: despite the fact that Santa Cruz has been topping charts with some of the highest rent prices in the nation year after year, three of the four parcels in the City that are zoned for High-Density Residential (R-H) have not been developed with housing since that zoning district was created at least 30 years ago. The existing Downtown Plan Area likewise saw little development interest in the area south of Cathcart Street and north of Laurel Street until zoning changes in 2018 increased the allowed height from 60 feet to 85 feet.

South of Laurel Street, these three High-Density Residential zoned parcels are found on Block B and the northern part of Block D (between Front Street and the San Lorenzo River, north and south of Spruce Street respectively). The absence of development interest suggests that the parcels may be unlikely to redevelop with needed market rate and belowmarket rate housing as currently zoned. So not only would the number of potential housing units remain lower than the 1,600 directed by the City Council, the number of housing units that are actually built on these sites over the next 15-20 years could be the same as the number built over last 20-30 years: zero.

The lack of redevelopment would also mean that the public amenities envisioned for this neighborhood could not be fully realized. Public

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amenities like sidewalks, roadway improvements, bike lanes, and street trees, are installed by developers of adjacent property during the construction of new buildings. In the case of larger projects like the Plaza, Riverwalk improvements, or Pacific-Front roundabout, they are realized through financial contributions from all new development in the neighborhood. If the sites cannot be developed in a profitable manner and therefore remain in their current uses, that also means that new sidewalks, bike lanes, Riverwalk improvements, and the Spruce Street Plaza will not be built. Public funding alone would be insufficient to execute on the vision of improved mobility, community space, and an active, engaging entertainment district.

Crucially, the current General Plan Land Use Designations and zoning standards do not allow the development of a permanent Warriors Arena.

The arena has been planned to be in a location where it could front onto the new Spruce Street Plaza and create a major anchor for a lively public space. The current General Plan and Zoning designations are for residential uses only, with no allowance for new commercial uses. The existing commercial uses on the six parcels proposed to change designation are either older than the current zoning and have been operating under the City’s non-conforming use allowances, or, as in the case of the temporary Kaiser Permanente Arena, were built under a special use permit allowing temporary occupancy for a non-standard use. Keeping the existing uses, as stated in the motion, would allow only residential development to frame the Spruce Street Plaza and could reduce the potential for creating a lively, engaging space where restaurants, bars, cafes, and other businesses can serve their customers in an outdoor space removed from automobile traffic.

An additional challenge is that the Downtown Density Bonus option that offers unlimited FAR (Option B) relies on the height established in the Downtown Plan for each parcel in the SOLA: 50, 70, or 85 feet.

Maintaining the existing zoning reduces the development potential of these sites even with the Downtown Density Bonus, leading to the challenges described above.

2. Only Downtown Density Bonus Option B shall be included in the plan (not option A) and without the in-lieu fee option;
Response: The goal of the Downtown Density Bonus is to compete with the State Density Bonus and successfully attract developers away from use of the State Density Bonus. Downtown Density Bonus Option B provides incentives for projects to stay below 85 feet in height (or the height otherwise called for in the Plan). Downtown Density Bonus Option A

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provides incentives for staying below 145 feet in height and 12 stories.

Given that the State Density Bonus can be used to achieve heights greater than 12 stories, keeping Option A provides incentives to adhere to the Council-directed height, while the State Density Bonus cannot provide that guarantee. Another Council direction was to achieve a 20% overall rate of below-market rate housing in the plan area. Deleting Option A removes a point of competition with the State Density Bonus, and every time the State Density Bonus is selected rather than the City’s Downtown Density Bonus, fewer below-market units are built, and the Council direction and project goal of a total of 20% becomes less likely to be realized.

If the goals of the Council are to encourage limits on building heights and to increase the amount of below-market rate housing, there are some key advantages to keeping Option A, and there are no benefits to deleting it.

Should a developer seek to build above 85 feet, Option A provides a “safety net” incentivizing a limit on building heights while also ensuring greater numbers of below-market units.

Without Option A, a developer seeking to build above 85 feet in height would only be able to choose the State Density Bonus. Buildings taller than 12 stories could be proposed in the downtown area through the use of the State Density Bonus which would result in fewer below-market rate units (albeit at deeper levels of affordability). Keeping Option A and retaining this additional safety net is recommended by staff to address future shifts in construction costs that could result in financial advantages for taller buildings.

Regarding the in-lieu fee option, deleting the fee eliminates a potentially substantial source of funding for the City’s Affordable Housing Trust fund, which is money that is necessary in order to create a local preference for below-market rate housing. As discussed at length in the October 22, 2024 staff report, attached, local funds are the primary required component of creating housing that is set aside for local families in need of support, rather than being made available to the general (incomequalifying) public, as is required of all other publicly-subsidized housing.

Eliminating these components of the Downtown Density Bonus would make it harder to create below-market rate housing, and less of it would be built.

3. The section allowing the Council to increase building heights in Option B shall be removed (page 112);

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Response: The flexibility (only with the support of Council) to recommend modest additional height for certain projects might result in a more attractive building design and an improved overall aesthetic for the City. This is especially true for the tops of buildings, where diverse rooflines would improve the skyline as compared to the monolithic building heights currently seen. Roofline diversity was something specifically sought during the Planning Commissioners’ discussion of the proposed changes, and with the discretion of City Council holding the final authority on these decisions, it is unnecessary to eliminate the potential for this ability to respond to future public sentiment. This flexibility could be used to ensure that a building steps back from Beach Hill or the river in a way that benefits public views, or it could be used for a building to incorporate a copula or other defining element at a prominent corner. Without any increase in the total Floor Area Ratio allowed, the additional height would, by definition, be limited to only a portion of the structure and could be used to create a more beautiful building design. Maintaining that option seems wise at this time.

4. The proposed Architectural Review Committee shall not recommend height increases, nor shall staff recommend height increases, and the Architectural Review Committee should be considered for later consideration on a citywide basis for all larger projects; Response: See comments on additional height above.

An architectural review process can only be required as part of a voluntary process. Establishment of a citywide program that requires such a process for other development using existing state or local development policies is contrary to California State Law and cannot be implemented. See Government Code Section 66300 part (b)(1)(C).

The Downtown Density Bonus includes Architectural Review in exchange for substantial development bonuses that are more competitive than the State Density Bonus, both through more competitive affordable housing income levels and through providing greater square footage allowances.

Additional development incentives for even larger buildings outside the downtown than those already being proposed would likely face concern from nearby community members. Therefore, a similar program would be difficult to create in the rest of the City.

Additionally, such approach would reduce the number of very low income units that are spread throughout the City through market-rate housing projects’ use of the State Density Bonus. This is less of a concern in downtown, with its concentration of 100 percent affordable projects that incorporate very low income units.

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5. Replacement housing for low-income units shall not be counted as inclusionary units; Response: As clarified during the Planning Commission hearing, this is contrary to California State Law and cannot be implemented. See Government Code Section 66300.6 part (b)(1)(B).

6. Demolition of the supportive housing development on Front Street shall be removed from the plan;
Response: The Adult Residential Care Facility located at 126 Front Street provides a crucial service in our community. The 47 beds in the facility provide housing and 24-hour care for adults living with a mental health diagnosis, and the operations of the facility are strictly governed by California Health and Safety Codes and other codes governing adult residential care. These codes prevent facilities like the one in the project area from being closed or demolished before a replacement facility is developed and the residents relocated. The proposed Appendix 8 addresses this condition as part of the discussion of Laurel Street Extension on page 8-30, reminding readers that a replacement facility must be developed or identified, and the relocation of all residents accomplished before the land can change ownership (the site is currently owned by the County of Santa Cruz), or the new right of way can be created. In a case where an alternative site cannot be identified, the realignment of the roadways required for the creation of the public plaza and the rerouted Laurel Street Extension cannot take place.

The residents and facility are in no danger of being displaced from the community.

Making this change to the plan would essentially reimagine the foundational structure of a lively entertainment district focused around a welcoming public plaza free from automobile traffic and connecting to the River. The change would also make Block D (the block where 126 Front Street is located) too small to be a potential site for the Warriors Arena, leaving only the adjacent block C, between Pacific Avenue and Front Street south of Spruce Street, as a potential site for the Arena. That said, relocation of the facility is a challenging task that will require coordination of multiple public and private entities working toward a solution that is consistent with strict legal standards.

Overall, the motion would have run counter to many of the goals established by City Council Direction and public input over the past four years. It did not receive a second.

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Brittany Inclan
From: Mandy Slayton <[email protected]>
Sent: Sunday, May 4, 2025 10:53 AM
To: City Council
Subject: Please support EIR Alternative 1 wih Option B only Dear City Council,
It has been a wild ride with building housing this year. While a lot of the new low income housing is much needed, it is clear that a lot of the developments are also way above the paychecks of most residents.

There are so many vacancies and the developers just take them as a tax write off. This is not working! Every meeting we are told that the city's hands are tied, the state has removed local control and we are powerless.

THIS MOMENT IS ONE WE CAN CONTROL!
Please * Please *Please* do not increase the base height in SOLA to 85 feet. We all know that with density bonuses we could wind up with a literal tower (the double of 85 is 170 ft. or a 14 story building) and no way to prevent it. Look at the clock tower proposals! Increasing the height to allow for a 14 story building after density bonuses is an unforced error . You do have control and your hands are not tied at this moment. This is not the climate to be giving up any of the control we have over development. Please adopt EIR alternative 1 with option B only which will allow for 4-8 story buildings after density bonuses as opposed to 8-16 stories. We are watching to see how the votes fall on this one and who is with us in protecting our town's character by moving forward with reasonable growth that truly helps the people of the town.

Thanks for your time,
Amanda

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Brittany Inclan
From: MaryJane Dow <[email protected]>
Sent: Sunday, May 4, 2025 4:42 PM
To: City Council
Subject: STOP -Downtown Plan Expansion project in the South of Laurel (SOLA) City Council,
PLEASE STOP the Downtown Plan Expansion project in the South of Laurel (SOLA)- I whole heartedly agree with the following:
"Santa Cruzans for Responsible Development believes that the city leaders will be committing a huge UNFORCED ERROR if they go through with raising the height limits in SOLA as proposed.

It's an ERROR because raising the base height limit to 85-ft. in SOLA will unintentionally allow for buildings twice or more that high when the 100% state density bonus (AB 1287) is applied - that's potentially 16-20 story buildings.

It's UNFORCED because the city doesn't need to raise the height limits to achieve its housing goal in SOLA (1600 new units, with 20% of them below market-rate) or its goal of building a new Warriors arena - these goals can be met under the current height limits. "
If agree with the above PLEASE VOTE for "EIR Alternative 1, with Option B-only", which will meet the project goals without raising height limits (resulting in mostly 4-8 story buildings instead of 12-20 story ones). "
The Santa Cruz City council is NOT listening to it’s citizens. We DO NOT WANT all 5+ story buildings.

Why are you all so hell bent on distroying our town. The existing crappy looking buildings that are already built are not full.

We do not have the infratructure, the water, nor the police presence for such a huge expansion.

WE DO NOT WANT IT.

LISTEN!
Go find another city to distroy.
~ MaryJane
Home owner Santa Cruz

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Brittany Inclan
From: Ursula Lamberson <[email protected]>
Sent: Sunday, May 4, 2025 6:16 PM
To: City Council
Subject: EIR Alternative
To to it may concern
Aloha
I am very concerned about the rapid and excessive downtown Santa Cruz develompment, especially SOLA. I urge you to vote for “EIR Alternative 1 , with Option B-only”. It will meet the project goals without raising height limits.

We dont like to see 12 to 20 story buildings downtown Santa Cruz. It will greatly impact the character of our town and quality of life. Also during such complex change of the downtown area the desruption and quality of life will be greatly impacted and become a potention health hazard for people. Constructions creates toxic envirnoment. We already hear compains about the appartment building on the corner of Laurel and Front regarding quality of constractions and failing appliences, workout rooms that are less then advertised and in general missleading salespitches. The city and developers are also entering a great risk of running low occupancy rates. The whole project might look good on paper and might appear lucrative but the reality mostlikely will look very different. Once permitted and built it is irreversible and our town might greatly loos the charme it has now.

I urge you to put sustainabiliy, envirnomentle safety, quality of life before profit.

Thank you for your consideration
Kindly
Ursula Lamberson
420 Effey Street
Santa Cruz, CA 95062
[email protected]
808 651 3747

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Brittany Inclan
From: Raymond A Kubick III <[email protected]>
Sent: Monday, May 5, 2025 8:43 AM
To: City Council
Subject: Downtown Plan Expansion - Comments
Dear City Council Members,
The city is rushing to build as many units as possible, all using large developers and management companies to maximize tax revenues. While the current building frenzy is blamed on the state housing requirements, plans for SOLA are likely going to exceed the current Housing Element.

Please be responsible stewards for the city and its residents and approve EIR Alternative 1, with Option B-only! Zillow lists 302 rental properties as of today within the city limits and clearly does not include every available rental. Please avoid the excess of rental units that is occurring in Santa Clara and San Mateo cities and counties.

The city does not need to change building heights limits, especially given the lack of infrastructure or jobs to support existing residents, much less thousands of additional residents.

Thank you!
Ray Kubick
1002 Seabright Avenue
Santa Cruz, CA 95062

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Brittany Inclan
From: Jay Pennock <[email protected]>
Sent: Tuesday, May 6, 2025 10:50 AM
To: City Council
Subject: Keeping the Warriors in Santa Cruz
I'm writing to you as a resident of the county of Santa Cruz, an avid sports fan, Santa Cruz Warriors fan, as well as a business owner that has seen the benefits of having the Warriors in town. Please do what it takes to keep the Warriors in town, including building an appropriate arena for them. I have supported the growth of downtown into a city, so let's make this a destination location to support the local businesses and restaurants that need a thriving downtown.

Dr. Jay Pennock
Rejuvenate Medi-Spa & Wellness
[email protected]

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Brittany Inclan
From: Nancy Concepcion Boyle <[email protected]>
Sent: Tuesday, May 6, 2025 11:59 AM
To: City Council
Cc: Nancy Concepcion; Nancy Concepcion
Subject: Santa Cruz Warriors - Downtown Plan and Arena YESSS!!!! Dear City Council and specifically,
Mayor Fred Keeley, Vice Mayor Shebreh KalantariJohnson , Councilmember Gabriela Trigueiro , Councilmember Sonja Brunner, Councilmember Scott Newsome, C ouncilmember Susie O'Hara , and Councilmember Renee Golder I am a proud to be a Santa Cruz resident for 38 years, a City Planner for this great city for 37 years and a SC Warri ors season ticket holder for 12 years!!!! And my kids who were born here 35+ years ago share these sentiments.

The Santa Cruz Warriors has not only created a wonderful basis to unite this Community, but also has led to what community is all about.....being part of and taking part in such a special spirit! There are anchor stores....and then there is an anchor that crosses ages, nationalities and beliefs- and sports whet her it be school leagues and in this case the sports leagues....helps create identity and spirit.

I was here when the earthquake happened and was part of the re-growth of the City.

I excited about the new plans.....Please pass the downtown plan with the so needed Arena for our awesome Santa Cruz Warriors and the other groups that will benefit !!!!!!!!! Nancy Concepcion
Bryan Boyle
Kimberly Boyle Lahr

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Brittany Inclan
From: Edna Elkins <[email protected]>
Sent: Tuesday, May 6, 2025 2:16 PM
To: City Council
Subject: Santa Cruz Warriors new stadium, I hope!!
Dear City Council members,
I have been a season ticket holder since the first season. Every season, my friends and I enjoy watching the G League players interact and become a team. We also cheer for the players that are called up to the Golden State Warriors and follow their progress. We watch coaches get promoted and become part of other NBA coaching squads.

I attended with two friends, and we had the pleasure of meeting others seated around us. A group of us have become a close knit group and get together often.

The Santa Cruz Warriors have been a vital part of our community since the inception, witnessed by the increase in activity before and after the games at local restaurants. The team has been involved in volunteer activities in the community every season and are a wonderful example for our school students.

The "temporary" arena is showing signs of wear and tear. A new arena would increase the number of attendees and season ticket holders. ( Bathrooms need updating, more seat back chairs, larger handicap seating and a much-improved sound system.)
Thank you for your consideration.

Edna Elkins

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Brittany Inclan
From: Marta Strock <[email protected]>
Sent: Wednesday, May 7, 2025 9:57 AM
To: City Council
Cc: Benjamin Strock
Subject: Letter of Support for Downtown Expansion
Dear Members of the Santa Cruz City Council,
We are Ben and Marta Strock, owners and brokers of Strock Real Estate, Inc., right here in Aptos.

For many years, our firm has been deeply rooted in the growth and well-being of our community, helping individuals and families find their perfect place in our beautiful Santa Cruz County.

Beyond our professional lives, we are also enthusiastic residents of this county, and as many of you know, dedicated courtside season ticket holders for our Santa Cruz Warriors. Attending their games has become a real joy for us. The energy in that arena is simply electric, a place where neighbors connect, local talent shines brightly, and the excitement of the game creates wonderful memories. For us, it’s more than just basketball; it’s a vibrant thread in the fabric of our community.

And that’s precisely what the Warriors bring to Santa Cruz County as a whole. They are a powerful unifying force, a source of immense local pride, and a significant boost to our community’s spirit and economy. The games offer accessible entertainment for families, generate local jobs, and shine a positive light on our region. Through their youth programs and local partnerships, the team's deep commitment to community engagement further strengthens our social bonds. They are more than just a team; they are an integral part of what makes Santa Cruz County such a cherished place to live.

That's why we are so genuinely thrilled about the prospect of a new sports and entertainment venue in Downtown Santa Cruz. This isn't simply about a larger arena; it's about making a significant investment in the future of our community. It's about creating a central hub that can host a wider variety of events, attract more visitors, provide vital support to our local businesses, and elevate the overall vibrancy of our downtown area. As strong advocates for responsible growth, we see this as a crucial step in fostering economic development and creating valuable opportunities for our residents.

Furthermore, as environmentalists deeply committed to safeguarding the natural beauty of our county, we firmly believe that thoughtful and well-planned downtown expansion can be achieved in harmony with our precious resources. By concentrating development in existing urban areas, we can effectively minimize sprawl and protect our invaluable open spaces and delicate ecosystems. We have full confidence that the City Council will prioritize sustainable building practices and environmental stewardship as this important project moves forward.

From the bottom of our hearts, we wholeheartedly urge you to support this downtown expansion and the creation of a new sports and entertainment venue. It represents a vital investment in our community's future, our local economy, and the unique spirit that makes Santa Cruz County such an extraordinary place we are proud to call home.

Thank you for your time and thoughtful consideration.

Sincerely,
Ben and Marta Strock

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Owners/Brokers, Strock Real Estate, Inc.
--
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photo Marta Strock
Accounting, STROCK TEAM
Silicon Valley | Santa Cruz | Monterey
StrockTeam.com | 831-247-9472
[email protected]
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Brittany Inclan
From: Marc <[email protected]>
Sent: Thursday, May 8, 2025 9:43 AM
To: City Council
Subject: Downtown plan expansion
To City Council,
Please vote for EIR Alternative 1, with Option B-only.

We can meet the state housing quota and keep our town’s size and skyline more pleasant.

Thank you,
Marc Blumberg

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Brittany Inclan
From: Yvette Brooks <[email protected]>
Sent: Thursday, May 8, 2025 2:34 PM
To: City Council
Subject: Letter of Support SC Warriors
Attachments: Statement of Support (1).pdf
Please find attached my letter of support.

Yvette Brooks
Chief Executive Officer
United Way Santa Cruz County
www.unitedwaysc.org
Book with Me

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PO Box 1458
4450 Capitola Road Suite 106
Capitola, CA 95010
831-465-2205
www.unitedwaysc.org I https://211santacruzcounty.org/
Statement of Support – Downtown Expansion Plan and New Santa Cruz Warriors Arena By Yvette Brooks, CEO, United Way Santa Cruz County
Honorable Mayor and Councilmembers,
Thank you for the opportunity to share my strong support for the Downtown Expansion Plan and the development of a new Santa Cruz Warriors Arena in our city. As CEO of United Way Santa Cruz County, I see firsthand the transformative impact that strategic development, community partnerships, and investment in public spaces can have on the well-being of our residents, especially our youth and working families.

This plan represents more than just a new arena. It represents a bold vision for inclusive growth, adding over 1,000 new homes, including several hundred affordable units that are deeply needed in our community. It also enhances the cultural and economic vitality of downtown Santa Cruz, while ensuring that families have access to quality entertainment, jobs, and a sense of pride in our shared identity.

The Santa Cruz Warriors are more than a sports team. They are a community partner, a source of inspiration for local youth, and an economic driver for our city. Their long-term commitment to staying rooted in Santa Cruz deserves our support, and this arena will help secure that future.

I urge the Council to adopt this plan and continue working in partnership with our community to shape a thriving, equitable, and vibrant downtown.

Thank you for your leadership and consideration.

Sincerely,
Yvette Brooks
CEO, United Way Santa Cruz County
We ignite our community to give, advocate and volunteer so that our youth succeed in school and life, our residents are healthy and our families are financially independent

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1 Julia Wood
From: Peggy Dolgenos <[email protected]>
Sent: Friday, May 9, 2025 10:57 AM
To: City Council
Cc: Chris Murphy; Peggy Dolgenos; James Hackett
Subject: In support of SC Warriors arena
To Mayor Keeley and members of the Santa Cruz City Council:

I’m writing today in favor of the permanent home for the Santa Cruz Warriors.

My house on Cedar Street is only a few blocks from the current arena and my business is just down the street, so I’m very familiar with the arena and the people who come in and out.

It’s really quite nice to be near the facility. It’s well kept and the fans are enthusiastic and generally wellbehaved. It’s a welcome amenity for the neighborhood and has improved the area.

The Sea Dubs have been excellent community members as well. They work with local companies like ours, supporting local businesses and our employees. We really appreciate this and enjoy working with them.

I enjoy going to the games and the Cruzio staff does, too. All in all, this organization has been a major positive for our community.

Thank you,
--Peggy Dolgenos
CEO, Cruzio Internet

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2 Julia Wood
From: Angela C. <[email protected]>
Sent: Friday, May 9, 2025 1:51 PM
To: City Council
Subject: Support for Santa Cruz Warriors
Hello City of Santa Cruz Councilmembers,
I am a retired City employee of nearly 25 years, was born and raised in Soquel, and my husband and I have been Santa Cruz Warriors season ticket holders since they moved to Santa Cruz in 2012.

We were also Beach Hill residents for over twenty years, up until two years ago when we moved to my family home in Soquel.

Every season we look forward to attending Santa Cruz Warriors games and events. The games are so exciting, with top notch talent and local organizations performing at half time. We also enjoy the events where we meet and mingle with the players and other fans. We are always impressed by the professionalism of the Warriors organization on and off the court and oftentimes bring family and friends to events with us. It dawned on me recently as I sat anxiously watching a nail biter game, cheering and screaming for the Warriors, watching professional sports has been a great passion of mine since I was a kid.

The Santa Cruz Warriors also have such a positive impact on our community. From local basketball clinics, player appearances in schools and at community events as well as donations to many organization including the "Swishes for Dishes” program where, for the 2024 season, 40,750 meals were donated to the local food banks based on points scored! Additionally, the Warriors Arena brings the community together by hosting games for local schools and entertainment events, as well as in time of crisis by opening its doors during COVID for flu shot clinics or disseminating information during the Santa Cruz Mountain fires.

We are so excited and fully support a permanent venue for the Santa Cruz Warriors along with a year round entertainment complex. Having a venue so close to us would allow us to enjoy high quality sports and entertainment without driving over the hill to San Jose or San Francisco. We know there are traffic, building height and noise considerations but in our opinion we think the South of Laurel Street needs an upgrade, and that the City and Warriors will continue to work with neighbors and community groups to find workable solutions.

We support this project and truly hope that the City of Santa Cruz will find a way to make it happen.

Sincerely,
Angela & Richard Chandler

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4 Julia Wood
From: Jane Mio <[email protected]>
Sent: Friday, May 9, 2025 1:54 PM
To: Fred Keeley; City Council
Subject: 5/13 City Council Meeting ~ agenda item 23
Agenda item 23 ~ Downtown Plan Expansion
Dear Mayor Keeley and City Council Members,
I am voicing my support for ALTERNATIVE 1 after reading Kimbley-Horn Associates' Alternative 1 findings:

Ability to Meet Project Objectives
This alternative would generally meet the project objectives by providing future development with a mix of uses, improving mobility and connectivity, and promoting economic and responsible growth.

However, due to a reduction of housing units, this alternative would only partially meet the project objectives regarding supporting goals of the Housing Element, facilitating the development of new housing focused in the downtown area, and encouraging a mix of housing types and affordability levels.* * In regard to .. "only partially meet the project objectives" it's worth considering adjusting the project objectives, because Alternative 1 is beneficial compromise for all, which is a highly welcome, needed direction.

Of the alternatives considered, Alternative 1 would best achieve the project objectives, and because it would slightly reduce development, potential impacts would be slightly reduced, even though the significant impacts would remain the same as the proposed project. Therefore, Alternative 1 is considered the environmentally superior alternative of the alternatives reviewed.

Thank you for your time to read my input.

Best regards,
Jane Mio

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Brittany Inclan
From: Judi Grunstra <[email protected]>
Sent: Friday, May 9, 2025 4:56 PM
To: City Council
Subject: Agenda Item 23
Mayor Keeley and Councilmembers:

The process that has unfolded around the path from Draft EIR to Final EIR lacks transparency and must be redone.

1. Kimley Horn's research has been nullified by new State legislation, AB 1287, which allows for 100% density bonuses, NOT merely 50% density bonuses. This will have an impact on pretty much every aspect of the findings of "insignificant impact." Please request that a new Draft EIR be undertaken, taking into account AB 1287, with adequate time for public review (45 days minimum).

2. The release of the Final EIR a mere 2 days before the public had a chance to read it is unacceptable, regardless of the strict legal requirement noted by the Planning Director. The Planning Commission also only had 2 days.

Therefore, do not approve the motion to:
1) Adopt a resolution certifying the Final Subsequent Environmental Impact Report (EIR) I also question staff's response to Planning Commissioner Dann's unseconded motion at the April 17 Planning Commission meeting.

Since Council often bemoans the fact that the state has taken away so much local control, here is an opportunity for you to keep some local control by not upzoning in the Downtown Expansion area.

Judi Grunstra

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Brittany Inclan
From: Joe De Meo <[email protected]>
Sent: Saturday, May 10, 2025 6:57 AM
To: City Council
Subject: Downtown expansion
Please pass the increase of density measure this week. I am sending you this email to voice my support.

I know the same vocal nimby group that has been fighting housing for years will be out in force. One thing I'd like to see are townhouses for families to purchase. Don't know if they would pencil out now with the high cost of building?
Regards Joe De Meo
Y

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Brittany Inclan
From: Toni Corrigan <[email protected]>
Sent: Saturday, May 10, 2025 9:08 AM
To: City Council
Subject: Downtown expansion
Dear Council Members,
I’m writing to add my voice to what I hope is the multitude of emails you’ve received begging you not to approve the current downtown expansion plan.

I, of course, have no way of knowing what your individual stakes are in the rapid dismantling of what was my once beautiful beach side city, but whatever they are…enough is enough.

The thought that we have managed to elect a group of people who collectively think what you’ve done to Santa Cruz is an improvement makes my head spin.

I feel as if I’m probably speaking to the equivalent of a brick wall, but in the event that even one of you has found a moral compass and will listen to your constituents, please vote no on the plan.

Thanks,
Antoinette Corrigan
[email protected]

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Brittany Inclan
From: Emeline Fredrick <[email protected]>
Sent: Saturday, May 10, 2025 10:52 AM
To: City Council
Subject: Downtown Plan Expansion
As a resident of Santa Cruz, living in City Council District 4, I support the infill zoning of downtown as necessary for a healthy community by decreasing housing costs and increasing the level of activity downtown, making it a safer area to live, work, and shop.

As part of YIMBY Santa Cruz, I also support increasing the development capacity of all 42 parcels in the project area.

From,
Emeline Fredrick
[email protected]

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Brittany Inclan
From: sandi cornfield <[email protected]>
Sent: Saturday, May 10, 2025 12:14 PM
To: City Council
Subject: New Santa Cruz Warriors Arena
Dear City CouncilOur names are Sandi and Scott Cornfield and we live in Marina, CA.

We first came to a Sea Dubs game in 2020 as a birthday present to my husband. By the end of the first quarter I was at the box office buying season tickets! The team, the staff, the entire organization from the head office to the concessionaires were so much fun and all cared about their fans.

Because we live out of the area and need to get up here very early due to traffic, we have enjoyed finding so many great restaurants and stores to support on game days. We have brought lots of friends, family and neighbors up for games too and exposed them to the joys of downtown Santa Cruz. We have also attended some of the concerts there too!
It's always fun to see some of you at the games (and to check out the mayor's shoes!) and seeing you sharing the bus with us when we go to Chase each year.

We hope to see the new arena come to fruition so that we can continue to support the greatest G League team in the country!!!! Go Sea Dubs!
Sandi and Scott Cornfield
Santa Cruz Warriors Fan Club
Marina Chapter

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Brittany Inclan
From: Marianne Callahan <[email protected]>
Sent: Saturday, May 10, 2025 4:04 PM
To: City Council
Subject: Downtown Expansion
Hi,
I am completely in favor of increasing the density in the downtown expansion area. I also encourage that the council increase the development capacities of all 42 parcels and increase the FAR to the maximum which is 5.

Thanks council and staff,
Marianne Callahan
332 Morrissey Blvd.

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Brittany Inclan
From: Karen Ottemann <[email protected]>
Sent: Saturday, May 10, 2025 6:27 PM
To: City Council
Subject: Downtown Plan Expansion increase density please Hi, I live in SC district 4 and am in favor it more housing and increasing the density in the downtown plan expansion. Thanks!
Karen Ottemann
Walnut ave.

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Brittany Inclan
From: Kathleen Condon <[email protected]>
Sent: Sunday, May 11, 2025 10:19 AM
To: City Council
Subject: Downtown Plan Expansion
Dear Members of the Santa Cruz City Council,
Thank for helping to make Santa Cruz a vibrant, livable city. I write in support of increasing density in the Downtown Plan Expansion currently before you. Housing affordability and homelessness are urgent issues in our community and, increasingly, nationwide. Santa Cruz has an opportunity to be proactive and future oriented by addressing its stunning housing shortage with intentional, thoughtful, and critically needed development.

Perhaps you are familiar with the work of Princeton sociologist and Pulitzer Prize winner, Matthew Desmond? In his most recent book, Poverty by America, he describes how affluent Americans, through laws and policies, knowingly and unknowingly prevent changes that may benefit those living in poverty.

He specifically cites housing development as an example of how the affluent use their power to maintain the status quo, which effectively prevents poorer people from achieving the same level of wealth and stability. I implore you to please use your power and the wisdom of scholars on this topic to remove barriers to maximizing housing opportunities especially for members of our community who are at greatest risk of losing housing and joining the ranks of those experiencing homelessness.

Below please find an excerpt from and a link to a recent essay by Matthew Desmond:

Third, prepare the way. Restrictive (and often racist) zoning laws prevent multifamily housing from being built on most residential land in the country, limiting housing supply and driving up costs. If we want to get serious about delivering more housing, we have to get serious about zoning reform. The federal government could tie infrastructure or transportation funds to such reform and provide overwhelmed local officials with technical assistance. More ambitiously, it could pass a national law that shifts land-use decisions to regional governments to break through entrenched NIMBYresistance at the local level. Japan has such a law, which has enabled even Tokyo to remain affordable. https://www.nybooks.com/articles/2024/11/07/how-to-solve-the-housing-crisis-matthew-desmond/ Sincerely,
Kathleen M Condon
203 May Avenue
Santa Cruz, CA 95060
It is certain, in any case, that ignorance, allied with power, is the most ferocious enemy justice can have James Baldwin

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Brittany Inclan
From: Bonnie Bush
Sent: Sunday, May 11, 2025 11:50 AM
To: City Council
Subject: Fwd: South of Laurel Plans
Bonnie Bush, CMC
City Clerk
City of Santa Cruz
809 Center St., Room 8, Santa Cruz, CA 95060
Phone: 831-420-5035
Email:[email protected] Web: www.cityofsantacruz.com Begin forwarded message:

From: Juanita Usher <[email protected]>
Date: May 11, 2025 at 11:37:38 AM PDT
To: Bonnie Bush <[email protected]>
Subject: South of Laurel Plans
****CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.**** Dear City Council — I am baffled by the push to “develop” the South of Laurel neighborhood. I oppose it for several reasons. (1) What will happen to the residents of the housing for mentally ill that exists next to the Warriors arena? Will they be guaranteed placement elsewhere? How could that happen since there is a lack of housing for the mentally ill currently? (2) If the north of Laurel (main downtown) is struggling to fill in vacant storefronts and rent out expensive newly built housing — won’t that same fate occur after “rebuilding” south of Laurel? Why not focus on the downtown north of Laurel area before disrupting the south of Laurel area? (3) Have you regularly tried to get from the East Side of Santa Cruz over to the West Side of Santa Cruz? This route — past the Warriors Arena — is the most efficacious means to get from one side of town to the other if one is a resident of Santa Cruz. (4) Why not make the Civic Auditorium the new Warriors stadium? It is in need of upgrade, it is in the downtown area closer to more parking and it would revitalize the area where the current library is being abandoned. Sounds like a winwin to me.

In short, I am a 30 year resident of Santa Cruz city and want to go on record as being opposed to this “make-work” fantasy that will destroy both housing and already thriving businesses. With the current state of Trump tariffs and the inability to guarantee the ability to get building materials from overseas without paying exorbitant costs, I would implore the City Council to put this project on the back burner for now. Why not wait a few years to see if the “north of Laurel” housing and little shops on their bottom floors even have success before destroying a vital right of way, vital housing, and a great neighborhood.

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Thank you for your consideration.

Juanita (Jane) Usher

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Brittany Inclan
From: Mara Alverson <[email protected]>
Sent: Sunday, May 11, 2025 2:16 PM
To: City Council
Subject: Proposed city expansion
Say NO to Rezoning Santa Cruz
Item #23: Downtown Plan Expansion, Extending and Amending the Downtown Specific Plan, Including for Areas South of Laurel Street, Roughly to the Roundabout at Pacific and Center Streets, and Making Related Changes to the General Plan, Local Coastal Plan, Beach/South of Laurel Plan, and Zoning. Applicant: City of Santa Cruz. CEQA: EIR (PL)
00pm.

Say NO to Rezoning Santa Cruz for Unaffordable Skyscrapers

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City Council Meeting
Tuesday, May 13 at 7:00pm
Set your phone reminders now!
(More info & Talking Points below)
Item #23: Downtown Plan Expansion, Extending and Amending the Downtown Specific Plan, Including for Areas South of Laurel Street, Roughly to the Roundabout at Pacific and Center Streets, and Making Related Changes to the General Plan, Local Coastal Plan, Beach/South of Laurel Plan, and Zoning. Applicant: City of Santa Cruz. CEQA: EIR (PL)

TAKE TIME TO MAKE AN IMPORTANT DECISION
-Don't follow the orders of staff, STAND UP, REPRESENT
US, DECIDE CAREFULLY to upzone the Downtown Plan Expansion, this is on one of the most serious, pivotal change in the history of Santa Cruz! Time your time, stop the rush! DELAY making a decision- take more time to fully read and consider the Environmental Impact Report (EIR). The planning commission was given only 2 days to analyze the Environmental Impact Report of 370 pages-NOT enough time for such a huge document and big decision! Incremental development is a better choice, not a dramatic, all-out assault on our downtown.

THE 100% DENSITY BONUS kills the "More housing" argument. -The downtown plan expansion (DPE) rezoning or "UPzoning" for housing is NOT needed since with State Law AB1287, or the 100% density bonus legislation, it is required to build DOUBLE the existing density, with 15% affordable units. The DPE area is 29 acres, but the total area subject to the double density of AB1287 is 1735 acres-plenty space for housing! (see General Plan Table Lu-2) Housing developers do NOT need an increase in height limits since AB1287 waives height limits when you build housing.

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IS THE HIDDEN AGENDA MORE HOTELS?
-The Downtown Plan Amendments would change South of Laurel zoning from High and Medium Density Residential to "Visitor Serving Commercial" .

This allows housing developers to compete with wealthy corporate hotel developers for this project area. Upzoning from 45 to 85 feet in the DPE will give a huge feast for hungry hotel developers. Especiallynear the transit center, residential housing (not hotels) should be a priority.

ALTERNATIVE 1, OPTION B meets all your PROJECT GOALS
-If you vote, please choose the EIR alternative 1, option B, which embraces change; will build thousands of apartments and the rebuild the warrior stadium into the "entertainment district" of city staff's dreams, while staying within the current (more reasonable height limits) up to 8 stories. (rather than 16 to 24 stories).

DO WHAT YOU PROMISED
On Jan 10, 2023, this city council asked staff to reduce heights and limit the apartment units to a max of 1600. Keep your word! Stand up for these original goals in the face of staff pushing now to build 1800 units (which with the 100% density bonus law ,can easily be over 3000 units! With over 6000 cars and with the very high, corporate rents encourage overcrowding.

Can we trust you as our elected officials to do what they say?

PRIORITIZE TRULY AFFORDABLE HOUSING
Start to follow the city ordinance to create more workforce housing for ordinary, essential workers -who run our schools, hospitals, restaurants and safety (i.e. police, fire, ambulance) infrastructure, plus our retired and elderly community members.

The government must work harder to house our workers. San Francisco is allowing non-profits to buy buildings (before corporations) to create affordable housing. None of our hard working, low to middle-income

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residents can afford the $4000 per month studios and $6000/month, two bedroom apartments offered in the new towers downtown.

Governments in cities like San Francisco have also stopped corporate landlords from working together, using "Realpage" and other programs to set very high rents with landlords in their area and accept lower occupancy rates in their apartment buildings.

Grateful for all you do!

TAKE TIME TO MAKE AN IMPORTANT DECISION
-Don't follow the orders of staff, STAND UP, REPRESENT
US, DECIDE CAREFULLY to upzone the Downtown Plan Expansion, this is on one of the most serious, pivotal change in the history of Santa Cruz! Time your time, stop the rush! DELAY making a decision- take more time to fully read and consider the Environmental Impact Report (EIR). The planning commission was given only 2 days to analyze the Environmental Impact Report of 370 pages-NOT enough time for such a huge document and big decision! Incremental development is a better choice, not a dramatic, all-out assault on our downtown.

THE 100% DENSITY BONUS kills the "More housing" argument. -The downtown plan expansion (DPE) rezoning or "UPzoning" for housing is NOT needed since with State Law AB1287, or the 100% density bonus legislation, it is required to build DOUBLE the existing density, with 15% affordable units. The DPE area is 29 acres, but the total area subject to the double density of AB1287 is 1735 acres-plenty space for housing! (see General Plan Table Lu-2) Housing developers do NOT need an increase in height limits since AB1287 waives height limits when you build housing.

IS THE HIDDEN AGENDA MORE HOTELS?
-The Downtown Plan Amendments would change South of Laurel zoning from High and Medium Density Residential to "Visitor Serving Commercial" .

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This allows housing developers to compete with wealthy corporate hotel developers for this project area. Upzoning from 45 to 85 feet in the DPE will give a huge feast for hungry hotel developers. Especiallynear the transit center, residential housing (not hotels) should be a priority.

ALTERNATIVE 1, OPTION B meets all your PROJECT GOALS
-If you vote, please choose the EIR alternative 1, option B, which embraces change; will build thousands of apartments and the rebuild the warrior stadium into the "entertainment district" of city staff's dreams, while staying within the current (more reasonable height limits) up to 8 stories. (rather than 16 to 24 stories).

DO WHAT YOU PROMISED
On Jan 10, 2023, this city council asked staff to reduce heights and limit the apartment units to a max of 1600. Keep your word! Stand up for these original goals in the face of staff pushing now to build 1800 units (which with the 100% density bonus law ,can easily be over 3000 units! With over 6000 cars and with the very high, corporate rents encourage overcrowding.

Can we trust you as our elected officials to do what they say?

PRIORITIZE TRULY AFFORDABLE HOUSING
Start to follow the city ordinance to create more workforce housing for ordinary, essential workers -who run our schools, hospitals, restaurants and safety (i.e. police, fire, ambulance) infrastructure, plus our retired and elderly community members.

The government must work harder to house our workers. San Francisco is allowing non-profits to buy buildings (before corporations) to create affordable housing. None of our hard working, low to middle-income residents can afford the $4000 per month studios and $6000/month, two bedroom apartments offered in the new towers downtown.

Governments in cities like San Francisco have also stopped corporate landlords from working together, using "Realpage" and other programs to set

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very high rents with landlords in their area and accept lower occupancy rates in their apartment buildings.

Grateful for all you do!
Mara Alverson MFT
831-588-3013

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Brittany Inclan
From: Bonnie Bush
Sent: Sunday, May 11, 2025 4:02 PM
To: City Council
Subject: Fwd: Downtown housing plan
Bonnie Bush, CMC
City Clerk
City of Santa Cruz
809 Center St., Room 8, Santa Cruz, CA 95060
Phone: 831-420-5035
Email:[email protected] Web: www.cityofsantacruz.com Begin forwarded message:

From: Pmcveigh <[email protected]>
Date: May 11, 2025 at 3:46:46 PM PDT
To: Bonnie Bush <[email protected]>
Subject: Downtown housing plan
****CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.**** I encourage you to absolutely not approve anything above four stories. Downtown is very subject to earthquake and flooding and should not be impacted by high story buildings.

Hard to believe anything could be built on this geological mud flat plane.

Have a good day
Pat mcveigh

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Brittany Inclan
From: Gerald <[email protected]>
Sent: Sunday, May 11, 2025 6:46 PM
To: City Council
Subject: Feedback on the Downtown Plan Expansion Project To City Council,
Earlier in the evolution of this project I emailed Senior Planner Sarah Neuse with feedback on the Draft EIR. Having read through the Final EIR along with City Staff notes prepared for the upcoming City Council meeting this Tuesday, I wanted to provide a bit more feedback on the Downtown Plan Expansion as it stands now. Like many members of the community I continue to have serious misgivings about what I read.

It'd be easy to indulge in tangents and get long winded on this topic. You don't have time for that (nor do I), so I limited this to a few "top" bullet points. Please keep these in mind when weighing your decision this week.

In General:

I'm left scratching my head as to why these changes are being proposed at all, honestly.

As it stands developers can go much denser and taller than city zoning permits thanks to the new state law AB 1287. Our current zoning per the Certified Housing Element / RHNA is more than enough to achieve housing goals not just for 2031 but also beyond. I see no compelling need to upzone in SOLA beyond benefitting developers and their financiers (who of course want to see a maximized return on investment / the closest thing you can get to a "sure bet").

Reading through City Staff's responses to Commission Dann's motion, in particular, one encounters lots of assumptive and unfounded assertions. Things like "uncertainty is chilling the development community" (projects in the City Planning pipeline would indicate otherwise), or "lack of redevelopment means public amenities wouldn't be realized... bike lanes etc." (I find it questionable that we need to increase height limits and rezone this area to allow hotels in order to afford improving bike lanes or closing off a section of Spruce St.). There is frequent mention of creating a "lively entertainment district".

Basically, plans to force-engineer soul/buzz in SOLA. In my anecdotal experience, in 2025, when you have lots of 8+ story apartments that mostly rent for ~$3,500/mo the surrounding area isn't a bustling pedestrian zone; it consists of remote workers who doordash food to their apartment. Prima Facie example: Anton Pacific is a quiet, impersonal monolith. Will that get better when construction next door is wrapped? Maybe.

City Staff responses also mention the oft-cited "lots of demand" due to the "growing population" soundbytes. The population of our County and City has net decreased in the last ten years.

The population of California writ-large has only marginally increased in recent years.

Height Concerns:

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My personal opinion is there's nothing wrong with buildings in Santa Cruz slowly growing up to El Palomar heights in the SOLA area. I share concerns with what I believe to be the majority of Santa Cruz residents about buildings that go beyond this. That is, taller than 8 stories and certainly taller than 12 stories, the thought of which makes me grimace; we're not San Jose.

Again, there is no need to upzone SOLA to achieve our current or future housing targets. Likewise there is no need to upzone SOLA (due to AB 1287) in order to allow developers to go higher than is currently permitted in this part of the City (or indeed most "corridor" areas of the City).

Reading through the 5/13 Agenda Report is reading a lot of contradictions about heights. It's ironic to me that City Staff at once portrays the Downtown Plan Expansion (and the Downtown Density Bonus options) as creative ways to reduce the likelihood of developers exceeding 8 stories while at the same time asserting developers going higher than 8 stories is unlikely due to the need for different, more expensive construction techniques. If the latter is true, then why do we need incentives to steer developers in the direction of shorter buildings? As it stands, the best way to ensure projects in the SOLA area don't go over 8 stories (and certainly to ensure they don't go over 12) would be to not upzone at all.

Current height limits there are 35-48 ft. in that area. Unchanged, and using AB 1287, developers would probably top out at around 85-100 ft.

The Final EIR:

I do not feel that public comments were adequately addressed in the Final EIR and per CEQA law. I especially take issue with concerns about AB 1287 being maxed out (100% density bonus being used) on top of the Downtown Plan Expansion's proposed height limit increases in order to go supertall being brushed off as "speculative".

How is this speculative when a) it's entirely possible developers could go 20+ stories tall using AB 1287 in combination with the new height limits from this plan and make it pencil out with large luxe top-floor units that have an ocean view and b) especially when AB 1287's 100% density bonus has already been used in three projects currently under review in Santa Cruz: 2020 North Pacific Ave, 831 Almar and 530 Ocean St.? I suspect failing to revisit these public comments and properly model out the effects on traffic, emissions, the environment etc. in cases of 12,16, and 20+ story buildings in a revised EIR will lead challenges and delays under CEQA down the line.

Housing Shortage vs. Affordability:

Housing inventory and costs are related but not one and the same. An affordability crisis isn't always synonymous with an inventory shortage (New York is really expensive - it also has a lot and growing inventory).

Santa Cruz is expensive because it's a very desirable place to live, and a relatively small and constrained geography with high demand and lots of nearby big-earners. Given this I do not foresee a few thousand extra housing units making prices drop any more than 10k or 15k new housing units would. I should note that studies on housing "filtering" or "trickle down housing" universally show weak evidence for lowering costs.

Framing the project as aiming to reduce cost of living or tackle the affordability crisis is misleading in my opinion. It would be more accurate to simply say you'd like to increase the City's tax base, help finance a new Warriors Arena and - hopefully - give downtown local businesses a shot in the arm. These aren't bad

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goals in and of themselves, but you can't honestly say they're geared towards Santa Cruzans struggling with housing costs.

If you really wanted to ensure a portion of the units permitted in this project made an impact on affordability and appealed to more entry-level and working class members of our community, I'd recommend a) doing away with the Downtown Density Bonus's in-lieu fee, which effectively allows developers to pay a discounted per sq. ft. rate to defer their affordable unit obligations, b) putting in place incentives that encourage developers to build a blend of rentals and condos for purchase, as this helps new families acquire a stake in the city and ownership in urban areas has all sorts of downstream benefits vs. pure rentals and c) don't rezone (as is the case in the plan now) 3 blocks to allows hotels in place of housing.

I suspect many people write letters like this, vent, and never actually specify what they'd prefer instead or offer a constructive alternative. So to conclude:

In my ideal world, we'd somehow cap all building heights in the city at 8 stories and require new multiunit construction to have 20% very low income units baked-in. I realize that's too rigid a goal. So, in lieu of that, please at minimum only consider adopting alternative 1, option B.

With appreciation.

Gerald.

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Brittany Inclan
From: Ajay Shenoy <[email protected]>
Sent: Sunday, May 11, 2025 7:48 PM
To: City Council
Subject: Comment in support of increasing density of Downtown Plan Expansion Dear Santa Cruz City Council,
I have lived for 11 years in SC District 6, and am writing to urge the city council to vote in favor of the staff recommendation to increase the density of the Downtown Plan Expansion. I would further urge increasing the General Plan development capacities of all 42 parcels in the project area and increasing the floor area ratio (FAR) to match the maximum for the rest of the downtown area.

As a faculty member at the university, I have seen the extraordinary hardship caused to our students and employees by the city's housing shortage. And as an economist, I can attest that both economic theory and the available evidence show that it is the lack of housing supply that has driven rents to their unaffordable heights. The years of restrictions on density imposed by prior city councils have created a large undersupply of housing. Only strong action by the current city council can return the market to a more affordable equilibrium.

Ajay Shenoy
--
----------------------
Ajay Shenoy
Associate Professor, Economics
University of California, Santa Cruz
http://people.ucsc.edu/~azshenoy/

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Brittany Inclan
From: Dean Silvers <[email protected]>
Sent: Sunday, May 11, 2025 7:50 PM
To: City Council
Subject: Vote no re: massive skyscrapers downtown
City Council,
There are so many questions about the plan to upzone the Downtown Plan Expansion: traffic, water, affordability, along with shadows and ugliness. Who will live in these expensive units? Not any typical worker earning minimum wage (including the staff hired to build and later maintain these new apartments). Such apartments are also not for public workers, who are already unable to afford a studio apartment, which I understand currently cost about $3,000 in the recently-finished apartments.

There are too many already-empty storefronts downtown, yet each of these new apartment complexes plans to have additional “commercial use” on the ground floor.

Perhaps you actually intend to instead have more hotels built. Again, for whom, and where will the water come from, and how and where will the traffic flow?
I ask you to choose the EIR alternative 1, Option B, which is saner and will keep the height limit to 8 stories. You promised to reduce the proposed heights and to keep the number of units to 1600. So keep your promises!
I write to you as a retired teacher for Santa Cruz City Schools. Fortunately, I bought my home in downtown Santa Cruz long ago. My current pension would not be enough for a studio in one of these new apartments.

Dean Silvers
316 Myrtle St.

Santa Cruz

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Brittany Inclan
From: Ruth <[email protected]>
Sent: Sunday, May 11, 2025 8:10 PM
To: City Council
Subject: No! Stop expanding
This is a deplorable administration of our beautiful city center.

Stop what you are doing and listen to your heart. Is this development bullshit really the answer for our beloved city?
No to building height 12-20 stories!
Stop the nonsense.

Sincerely,
R Garland
Sent from my iPhone

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Brittany Inclan
From: Ruth <[email protected]>
Sent: Sunday, May 11, 2025 8:15 PM
To: City Council
Subject: Downtown Plan Expansion
>
> This is a deplorable administration of our beautiful city center. > Stop what you are doing and listen to your heart. Is this development bullshit really the answer for our beloved city?
> No to building height 12-20 stories!
> Stop the nonsense.

Do not buckle to the pressure from outside interests!
> Sincerely,
> R Garland
>
> Sent from my iPhone

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Brittany Inclan
From: Sarah Albertson <[email protected]>
Sent: Sunday, May 11, 2025 8:19 PM
To: City Council
Subject: I live in downtown Santa Cruz. Please vote for the EIR alternative 1, option B, Dear Santa Cruz City Council,
I am a home owner, living in downtown Santa Cruz. Please vote for the EIR alternative 1, option B, which embraces change; will build thousands of apartments and the rebuild the warrior stadium into the "entertainment district" of city staff's dreams, while staying within the current (more reasonable height limits) up to 8 stories. (rather than 16 to 24 stories).

Thank you,
Sarah Albertson
120 Taylor St,
Santa Cruz CA 90606
Sent from my iPad

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Brittany Inclan
From: Philip Boutelle <[email protected]>
Sent: Sunday, May 11, 2025 9:01 PM
To: City Council
Subject: 5/13/2025 Agenda Item 23: Downtown Plan Expansion Mayor Keeley and City Council,
Regarding Agenda Item 23: Downtown Plan Expansion, I support staff’s recommendation, but I think it falls short. This plan is one of the city’s biggest chances in years to add real infill housing, and we’re barely tapping into it. Out of 42 parcels, only six are proposed to get increased development capacity.

That’s a missed opportunity—especially when we’ve already watered this plan down so much that it now amounts to fewer than 150 net new units. That’s not going to move the needle on housing or climate.

We should be increasing capacity across the entire project area, not just a handful of parcels. And we should raise the maximum floor area ratio from 3.5 to 5, to match what’s already allowed just across Laurel. There’s no good reason not to.

Frankly, I’m worried the project could be weakened even further. We’ve seen recent attempts to roll it back even more, and I’m concerned some councilmembers may try again tonight. We can’t let that happen.

Most of this development is in District 4, where I live. As a constituent, I want to see the council support a more ambitious plan that actually meets the city’s housing goals. Downtown is exactly where we should be building more housing—near jobs, near transit, near services. Let’s not squander this opportunity. -Phil Boutelle
Santa Cruz

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Brittany Inclan
From: Becky Steinbruner <[email protected]>
Sent: Sunday, May 11, 2025 9:39 PM
To: City Council; Fred Keeley; Bonnie Bush
Cc: Becky Steinbruner
Subject: Public Comment on May 13, 2025 Council Agenda Item #23 Dear Santa Cruz City Council and Mayor Keeley,
I am writing to provide comment on Item #23 of the Council's May 13, 2025 regular agenda:

Downtown Plan Expansion, Extending and Amending the Downtown Specific Plan, Including for Areas South of Laurel Street, Roughly to the Roundabout at Pacific and Center Streets, and Making Related Changes to the General Plan, Local Coastal Plan, Beach/South of Laurel Plan, and Zoning. Applicant: City of Santa Cruz. CEQA: EIR 1) This matter has been too rushed. The Draft EIR became available only two days before the Planning Commission met to review and approve the Project's impacts and allow the public time to read and comment. Please consider a continuance of this matter after public discussion to provide members of the public more time to thoughtfully review what is considered by many to be the largest project in the City's history that potentially could forever change the character of the area.
2) The EIR failed to adequately analyze impacts of AB1287 that would allow a 100% density bonus. This must be fully analyzed for a meaningful and realistic EIR.
3) The EIR fails to provide adequate analysis of significant negative impacts on residents whose homes would be demolished, and fails to provide any realistic plan for where these hundreds of residents would go or how the City would accommodate housing them.
4) Significant new information has become known that was not included in the EIR or staff report. Item #18, Community Risk Assessment, Standards of Cover, and Deployment Analysis Report (FD) also on your Board's May 13, 2025 agenda, identifies and describes the Downtown area as being at high risk of liquefaction, flooding, and tsunami hazards. The Downtown Expansion Plan EIR did not take into consideration or analysis any of this significant new information. Therefore, the EIR should be returned to the consultants in order to adequately evaluate these risks to the Project area and ensure the zoning and building heights allowed will be safe for the public and to reduce liability to the City in future such disasters.
5) If your Council and staff do insist on pushing forward, I respectfully request that you adopt Alternative #1 with only Option B densities and building heights.

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Thank you.

Sincerely,
Becky Steinbruner

23.374
Brittany Inclan
From: [email protected]
Sent: Sunday, May 11, 2025 10:12 PM
To: City Council
Subject: Downtown Extension Plan
Dear City Council,
This message is in regards to the downtown/South of Laurel Ave expansion plan. As a resident of Santa Cruz since 1989, I understand the need to create new housing options without encroaching on our green spaces as well as creating a new arena for the Warriors as the building is nearing its intended life span.

I must say I am terribly disappointed to hear of the proposal the Council will be voting on this coming Tuesday that will give unrestricted heights to developers. With strategic development of under-utilized and vacant lots throughout the City, we can create more housing through high density living spaces without altering the current height restrictions.

If the Council allows developers to build to any height, we will not be able to keep costs low enough to create affordable living, which will gentrify our City even further. You claim to be pro-diversity and have a City welcome to all, but you need to prove it through consistently providing affordable living. You can see how high rises haven’t solved the problem in San Francisco, New York, and Vancouver.

I urge the Council to vote EIR Alternative 1, with Option B-only on Tuesday.

Thank you for your time,
Heather Hall
307 Mountain View Ave
Santa Cruz, CA 95062

23.375
Brittany Inclan
From: Tara Larson <[email protected]>
Sent: Monday, May 12, 2025 5:16 AM
To: City Council
Subject: Item23-downtown plan extension
Please please do not approve any more high rise buildings to go up in Santa Cruz. Work to revamp existing buildings and fill the space we already have. Do not destroy the beach town style and vibe and turn it into a “city”.

There are plenty of housing options available. Please, funding should be allocated to fixing up what exists and ecological protection and restoration to keep Santa Cruz the nice town it was. I know some expansion and building must happen, but please keep the development height low (4 stories or less) for our beautiful skyline and tree canopy filled streets.

Tara Larson
Sent from my iPhone

23.376
Brittany Inclan
From: Aethia Danforth <[email protected]>
Sent: Monday, May 12, 2025 5:36 AM
To: City Council
Subject: Downtown Expansion Plan
To: All City Council members,
Think carefully of what you are doing to the Downtown of Santa Cruz with your current iteration of the expansion plan.

You are paving the way for high rise luxury hotels and you are not supporting affordable rentals for the workers of Santa Cruz. Is the plan to ship in workers from Watsonville or even further out? So far all the rentals you are advocating are for the students or for the wealthy, they are not for the average retail or restaurant worker. Why are you building more empty retail spaces when so many retail spaces are empty and have been for years? Why not work with the planning department and find a way for the owners of the building to easily convert their empty retail buildings into housing? We do not need more overpriced skyscrapers without parking.

Do we have the services to support this increase in traffic and humans? Do we have the fire equipment to reach up to these highrises? Where are the cars going to park?
Do not delude yourself that they will take public transportation, that's just your excuse to live in fantasyland and continue what you are doing which seems to be taking money from the developers and destroying Santa Cruz in the process for your own greed.

Implement a real environmental report with a long term projection into the future.

Limit the height of the buildings and all buildings with adequate parking for all of the tenants and guests.More affordable housing for the workers that you want to work in all of the retail stores you are building. No corporate landlords and stop taking money from the developers so you get elected.

You serve the citizens of Santa Cruz not the developers. No more student housing which just gives the University an incentive to enroll more students. All developments must provide parking for all of their tenants. That's just common sense. You are destroying the air quality and safety of our community with this exponential building and it is not needed, that is just another delusion. Do something about all of the vacation rentals and investment housing in Santa Cruz and you will find that there are a lot of empty houses.

Wake up City Council
Aethia Danforth.

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Brittany Inclan
From: JOE or SARA MIKLES <[email protected]>
Sent: Monday, May 12, 2025 6:34 AM
To: City Council
Subject: Downtown Plan Expansion
Dear Council members,
I am extremely concerned with what you are planning for the downtown area. You are going against everything this town has stood for. You've already allowed multiple large building to be built creating heat sinks and stagnant air traps. Now you want to change the allowable building heights in a flood vulnerable area. Please, no. Follow the EIR Alternative 1, with Option B-only. That area is flood plane and river sediment. The EIR has to be flawed to allow you to build such a large building in that space. I was on the mall October 17, 1989 at 5:04 p.m.. If you had experienced the earthquake the way I did, you would not be pushing for so many overbuilds in such a small area.

And remember the leaning high rise in San Francisco. That could happen in that spot just as easily. Engineering isn't an exact science.

Sara Mikles
Lifelong resident
Sent from my iPad

23.378
Brittany Inclan
From: Janine Canada <[email protected]>
Sent: Monday, May 12, 2025 7:50 AM
To: City Council
Subject: Item #23
Do we really need more high rise apartments??
What about the water limitations??
*** Vote for EIR #1 with option B only!***
Thank you! Please listen to the voters!
Sent from my iPad

23.379
Brittany Inclan
From: Janine Roeth <[email protected]>
Sent: Monday, May 12, 2025 8:51 AM
To: City Council
Subject: Agenda Item #23 - Adopt a strong Downtown Plan Expansion Mayor, Vice Mayor and Council members,
I’m writing in support of the staff recommendation for Agenda Item #23 — the Downtown Plan Expansion. I strongly support more housing, especially in the South of Laurel Area (SOLA), and want to see policies that make it truly possible to build.

Downtown is the right place for new housing. It’s walkable, close to jobs and transit, and already has the infrastructure. This plan also includes major public benefits — like new plazas, better bike and pedestrian streets, and the arena — all thoughtfully planned from the start, rather than retrofitted later.

But if we want these things to actually happen, we need to make sure the zoning supports real development.

Right now, only 6 of the 42 parcels in the expansion area would get increased development potential.

That’s far too limited. We need to keep strong standards like a 5.0 FAR, especially in SOLA. Efforts to reduce development standards — like the motion that recently failed at Planning Commission — run counter to the goals set by City Council and risk putting the plan in conflict with state housing laws.

Scaling back makes it harder to build. And with downzoning happening elsewhere in the city, this plan would only result in about 150 new homes overall - that’s not nearly enough to help us meet our housing or climate goals.

And please don’t let parking fears get in the way. Developers are still including parking even when it’s not required. The real traffic problem comes from pushing new homes out of downtown and forcing people to drive in.

This is a major opportunity for the city. Let’s make sure the Downtown Plan Expansion actually delivers on its promise — more homes, better public spaces, and a more vibrant downtown.

Thanks for all you do. Sincerely,
Janine Roeth

23.380
Brittany Inclan
From: Kelly Zilliacus <[email protected]>
Sent: Monday, May 12, 2025 8:59 AM
To: City Council
Subject: Downtown Plan Expansion
Hello,
As a resident of the Seabright neighborhood, I am writing to urge you to vote for EIR Alternative 1, with Option B-only for the downtown expansion plan. This option will meet project goals without raising height limits, resulting in mostly 4-8 story buildings (which is plenty high!).

Thank you,
Kelly Zilliacus

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Brittany Inclan
From: Shelly D'Amour <[email protected]>
Sent: Monday, May 12, 2025 9:37 AM
To: City Council
Subject: Tuesday May 13 Agenda: Item #23 Downtown Expansion Plan Dear Council Members and Mayor,
I beg you to delay a decision on this item and read, analyze and consider the EIR. Two days is a ridiculous amount of time to analyze the report. This makes it seem like the report is just a nuisance or bureaucratic item that’s not important enough to consider.

Upzoning is completely unnecessary IF the goal is housing. WHY are you changing zoning to “Visitor Serving Commercial”? I understand that in 2023 you asked staff to reduce heights and limit apartment units to a maximum of 1600. Please keep to that.

Don’t reward developers with yet another cash cow. They don’t care about housing any who actually lives here.

This is all about the money and you know it. If they truly cared about Santa Cruz, developers would build smaller projects designed in a way that encourages community; that existing and displaced residents could afford to live in; and that displaced businesses could afford to move back into. You CAN say no to this one.

If you must vote (and you don’t have to right now!) please choose Alternative 1 Option B.

Shelly D'Amour, board president
El Rio MHP Cooperative
831.332.7075

23.382
Brittany Inclan
From: Meghan Arnold <[email protected]>
Sent: Monday, May 12, 2025 9:52 AM
To: City Council
Subject: SUPPORT: Downtown Plan Expansion
As a Westside homeowner, I am writing to support the Downtown Plan Expansion.

I support staff in their analysis and their recommendation. However, I encourage council to go further: to increase the General Plan development capacities of all 42 parcels in the project area, instead of just six, and to increase the floor area ratio (FAR) from the current maximum of 3.5 to match the maximum for the rest of the downtown area, which is 5.

It just makes sense to encourage higher-density communities near existing infrastructure, near jobs, and near services. Downtown Santa Cruz is a place where we should be building more housing and not less.

Thank you for building a Santa Cruz for the future.

Meghan Arnold
200 California St.
meghan arnold | a creative and professional creative professional [email protected] | www.meghanarnold.com | linkedin | instagram | calendly pronouns: she/hers

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Brittany Inclan
From: Brett Hatch <[email protected]>
Sent: Monday, May 12, 2025 10:40 AM
To: Scott Newsome; City Council
Subject: I support increased FAR for all 42 parcels in Downtown Expansion Plan area Dear Scott Newsome and SC City Council,
Hello, my name is Brett Hatch, and I am a resident of District 4. I am writing you today to express strong support for:
1) Ensuring that the entire Downtown Expansion Plan applies to all 42 parcels within the project area 2) Increasing the FAR from the current maximum of 3.5 to match the maximum of downtown N of Laurel, which is 5
The Downtown Expansion Plan is our very best shot at increasing desperately-needed infill construction in the City. The Plan originally targets 1600 units between Laurel & the roundabout, which would be very solid progress toward the State mandated 3700+ total units that the City is required to permit under RHNA.

Reducing the FAR from 5 to 3.5, and reducing the scope from all 42 parcels to just 6 parcels, will greatly impede the Plan's ability to deliver on its goals. Please keep in mind that under State law, meeting our RHNA goals is the best way to maintain local control over the look and feel of the city, and the types of buildings permitted. Paring down the Plan is very counterproductive, because any sense of "local control" that it provides is illusory.

I live on Spruce St, in a building half a block from the 42-parcel version of the Downtown Plan Expansion's project area. Speaking as somebody who lives right here, this is the right direction to be going. We should not be chipping away at the Plan's goals, that isn't right for the neighborhood, and it isn't right for the City.

The Plan presents a vision of today's Downtown extending all the way to the Wharf and Boardwalk should be a thriving neighborhood. I live in that neighborhood, and that vision is incredibly appealing to me.

Please do not hamper the Plan's ability to deliver on those goals.

Thank you,
- Brett Hatch, resident of Spruce St in District 4

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Brittany Inclan
From: Christine Weir <[email protected]>
Sent: Monday, May 12, 2025 10:57 AM
To: City Council
Subject: Stop super high-rise building in downtown
Dear City Council Members, I am writing regarding item #23 on the May 13 Council Agenda. I urge you to delay a decision to more carefully consider the options. But if you do vote, please vote for EIR alternative 1, option B.

Much as it pains me to see the recent alterations to downtown and its turn toward the nondescript and loss of what made Santa Cruz special, I understand the necessity of building more housing. But we do need to go beyond the current regulations of a maximum of 8 stories to provide the housing we need.

Thank you for your consideration,
Christine Weir,
California Street, Santa Cruz

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Brittany Inclan
From: Brett Garrett <[email protected]>
Sent: Monday, May 12, 2025 11:26 AM
To: City Council
Subject: Item 23 Downtown Plan Expansion
Please support EIR Alternative 1, with Option B only.

Please don't increase the building height limits at this time.

Thank you,
Brett Garrett

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Brittany Inclan
From: Henry Hooker <[email protected]>
Sent: Monday, May 12, 2025 11:26 AM
To: City Council
Subject: Downtown Expansion Plan
Members of the Santa Cruz City Council,
The City of Santa Cruz has a moment of opportunity to make our city more livable by significantly increasing the density of downtown. Density puts people near their jobs and needed services, promotes a more robust transit system, and helps revitalize the struggling businesses on and around Pacific Avenue.

It is preposterous that the city forces people to commute into town by refusing to allow real density, while pretending that we are preserving the character of a small town.

I wonder if our citizens understand that if we do not encourage truly dense housing in the downtown, where it belongs, the State of California has effectively ruled that the required housing will be incentivized, by law, to be built in the other neighborhoods. If not near services and easy transit, this new housing will only increase our dependence on automobiles - and parking - for all our daily needs.

Seize this opportunity to increase the density potential of the entire neighborhood to be similar to the existing downtown. Not doing so forces the mandated housing to be built in areas of the city that don't have the existing infrastructure to support it.

Thank you for making Santa Cruz a State-Designated Prohousing City. Don't drop the ball now.

Henry Hooker

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Brittany Inclan
From: M. R. Wolfe & Associates, P.C. <[email protected]> Sent: Monday, May 12, 2025 11:41 AM
To: City Council
Cc: Bonnie Bush
Subject: Letter to City Council re: Downtown Plan Expansion - May 13, 2025 Meeting, Agenda Item No. 23
Attachments: SCRD Ltr to City Council re Downtown Expansion Project_5-12-25.pdf To the Clerk and City Council:

Attached please find correspondence addressed to the Santa Cruz City Council concerning the proposed Downtown Plan Expansion Project and related Final Subsequent Enviornmental Impact Report (SEIR), currently scheduled to be heard as Agenda Item No. 23 at the Council’s May 13, 2025 meeting.

Please distribute to Councilmembers in advance of the meeting at your earliest convenience.

I would be grateful if you could acknowledge receipt of this email and its attachment when you can.

Thanks very much.
________________________
Susan Anthony
M. R. Wolfe & Associates, P.C | Attorneys
Land Use | Environmental Law | Government
580 California Street | Suite 1200 | San Francisco, CA 94104 415.369.9400 | Fax: 415.369.9405 | www.mrwolfeassociates.com The information in this e-mail may contain information that is confidential and/or subject to the attorney-client privilege. If you have received it in error, please delete and contact the sender immediately. Thank you.

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May 12, 2025
By Email
Mayor Fred Keeley
Members of the City Council
City of Santa Cruz
809 Center Street, Room 10
Santa Cruz, CA 95060
[email protected]
Re: Downtown Plan Expansion Project
Dear Mayor Keeley and Councilmembers:

On behalf of Santa Cruzans for Responsible Development (“SCRD”), an unincorporated association of Santa Cruz residents, please accept and consider the following comments and concerns in advance of the public hearing on the proposed Downtown Plan Expansion Project (“Project”) and its associated Final Subsequent Environmental Impact Report (“Final SEIR”).

As explained below, the Final SEIR fails to correct serious analytic deficiencies in the Draft SEIR identified in a multiplicity of public comments on the Draft SEIR, fails to respond to those comments in good faith with reasoned analysis or explanation, and as a result fails to disclose and evaluate all reasonably foreseeable impacts associated with buildout of the Project. The City Council should therefore decline to certify the Final SEIR or approve the Project at this time, and should instead direct staff to prepare and circulate a revised Draft SEIR that addresses the errors and defects identified by SCRD and numerous others.

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Santa Cruz City Council
May 12, 2025