Santa Cruz Seeks Final Approval for Expanded Downtown Plan, Reviews Budget

SANTA CRUZ — During their meeting on Tuesday afternoon, the Santa Cruz City Council will discuss the second and final reading of the Expanded Downtown Plan, settle fees related to the Downtown Density Bonus, and examine the budget for the fiscal year 2025-2026, along with several other topics on the agenda.

The gathering starts at 12:45 p.m. on Tuesday with oral presentations, where attendees can voice their opinions on topics outside the set agenda. After these open comments from the public, the decision-making committee will tackle the consent agenda—a list of measures that typically get approved as a single vote unless someone asks for separate discussion on an issue.

Included among the 15 items on the consent agenda are suggested nominations for the city’s Commission for the Prevention of Violence Against Women, the Historic Preservation Commission, and the Children’s Fund Oversight Committee, along with the mayor’s choice of three individuals for membership.
Measure E Oversight Committee
In 2008, city voters endorsed Measure E, a parcel tax aimed at raising money for stormwater management as well as the safeguarding of watersheds and water quality. Additionally, the council plans to address potential changes to the starting time of the city’s lengthy Planning Commission meetings, currently set for 7 p.m., possibly moving them to begin at 6 p.m., along with considering several other matters.

After approving the consent agenda, the legislative body will address its consent public hearings, which are typically voted on collectively unless some items are withdrawn for additional discussions and evaluations.

The initial topic out of the five scheduled public hearings concerns a proposal to endorse the fees and charges related to the city’s Downtown Density Bonus initiative. This innovative policy was crafted by the city planners as a localized option to counterbalance California’sDensity Bonus Law, aiming to prevent newly rezoned higher buildings from escalating excessively within the boundaries of the Downtown Plan Expansion zone.

The program initially comprised
Two main paths for developers
There are three ways to be eligible for the Downtown Density Bonus. A development qualifies if at least 13.3% of the total units in the completed project are designated as affordable housing for low-income families. Alternatively, developers have the option to pay an inclusionaryhousing fee of $60 per square foot of their entirely market-rate project directly into the city’s Affordable Housing Trust Fund rather than incorporating any affordable units within the project itself. Lastly, eligibility can also be achieved by committing to construct low-income units away from the actual site being developed under this particular project.

An additional choice, which was initially suggested at a
April Planning Commission meeting
This provision would enable developers to choose not to include any affordable housing units in their projects provided they offer a piece of land to the city. The planning department would subsequently take over as the developer of this land and be entitled to additional compensation for undertaking this development role.

According to the
agenda report
The third Downtown Density Bonus criterion related to fees allows developers to allocate land specifically for below-market-rate housing away from their primary project site. In this case, along with offering suitable land, the developer must contribute $9.54 per square foot towards off-site affordable housing units into the City’s Affordable Housing Trust Fund. Additionally, they have to pay an amount equaling one year’s wages plus benefits for a City Development Manager to cover extra administrative work necessary to oversee the creation of lower-cost homes on the designated property.

In addition to other public hearings about consent items, the city council will review the second and final reading of the proposal.
Downtown Plan Expansion project
, or the transformation of the current 29-acre area south of Laurel Street into a site for a new arena for the Santa Cruz Warriors.

After gaining approval for its consent calendar through public hearings, the Santa Cruz City Council will hold two additional public meetings before proceeding to their annual budget discussions.
suggested budget for the fiscal year 2025-2026
will be mulled over by the council, department by department. According to the city manager’s message within the document, the approximately $532 million proposed budget is “largely status quo,” aside from “modest budget increases of about 2.5% of discretionary budgets.”

To see the meeting agenda, go to
cityofsantacruz.com
.