City of Santa Cruz Moves Forward With 831 Water Street Project

On December 14th, the Santa Cruz City Council held a public  oversight meeting to assess the 831 Water Street project compliance with the City's Objective Standards criteria and density bonus request for an affordable housing project proposed pursuant to SB 35. 

The 140-unit two building housing project is the city's first SB 35 application and the project has been met with  a tremendous amount of opposition from the community. At its October 12th meeting, council members denied the developer's plans based in part due to the segregation of all the affordable housing units in one building. Councilmembers also did not agree with staff's findings that the project was in compliance with all of the city's objective standards.  After receipt of a letter from the state's Department of Housing and Community Development (HCD), the project denial was rescinded at the November 23rd City Council meeting.

The staff report considered at the December 14th public oversight meeting found the project application to be consistent with the city's objective standards and the accompanying density bonus request for an affordable housing project pursuant to SB 35. After a lengthy discussion by councilmembers and public comments largely in support of the project, on a 4-3 vote the council allowed the project to move forward. Staff was directed to complete a formal response letter to the SB 35 application, including a determination that the project was consistent with city's  objective standards and the determination of the granting of a Density Bonus.  Councilmembers Brunner, Golder, Kalantari-Johnson, and Mayor Meyers cast votes (although somewhat reluctantly in some cases) to allow the project to go forward. Councilmembers Brown, Cummings, and Watkins cast votes to deny the application.