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City of Santa Cruz approves new housing development for downtown

UPDATE 12/13/18 7:15 p.m. A new housing and mixed use development has been approved by the Santa Cruz City Council.

The project will bring 205 new housing units, retail, dining and office space to the area of Front and Laurel streets.

The city council voted to approve the project after hours of discussion Tuesday with a 5-2 vote.

Not everyone was happy with the decision. Some of the controversy lying in the fact that there will be no units designated to affordable housing.

Measure O passed years ago in Santa Cruz requiring developers to dedicate a certain percentage of units being built to low-income homes, but the city made an exception here, “instead of providing those onsite units the developer is dedicating properties to the city that would then be used for 100 percent affordable project,” says Planning director Lee Butler.

The city owns property next to the development and with the dedicated parcels from the developer Butler says, “we’re anticipating that would contain 80-100 units in total and the properties that the developer is dedicating would have roughly 22-32 affordable units on them.”

Former City Council member, Micah Posner says that’s not enough and making these exceptions will not put a dent in the housing crisis, “the fact that the city is going to build housing next door is great, but it’s not for the most part a contribution from this developer. The city is not doing the will of the people, because it’s not living up to measure O it’s not requiring developers to have 15 percent affordable housing.”

The city argues that along with new housing, this development ill bring a big economic boost to the southern part of downtown that has not developed as quickly as the northern part.

The project is still in the planning, permitting and funding phases. Development is not expected to start for at least another year.

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A new housing and mixed use development project has been approved by the Santa Cruz City Council.

The project is expected to bring more than 200 housing units, retail and dining to the downtown area.

It will be located on the corner of Front and Laurel Streets.

KION’s Ashley Keehn will have more at 5p.m. and 6p.m.

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