City staff are proposing a new downtown density bonus in return to provide a larger number of below-market-rate units

SANTA CRUZ COUNTY, Calif. (KION-TV) — The Santa Cruz City Council discussed the downtown plan expansion that aims to transform a 29-acre neighborhood into high-rise buildings and a new arena for the Santa Cruz Warriors.

With recent state laws affecting local development rules, the community is expressing concerns about affordability and displacement.

City staff are proposing a new downtown density bonus that limits building heights to 8 or 12 stories while offering more density, but could leave some people in the area displaced.

"CA State law requires 42 months of relocation support for lower-income tenants that are directly displaced due to construction," Sarah Neuse Senior Planner said. "Those same tenants then get to come back into newly built, permanently affordable units on the same project site. So, while that period of displacement can certainly be disruptive, it is not the end of the story or a an on-going condition."

There will be very few residents that face any kind of permanent displacement, and none of those will be low-income residents. Those households are entitled to very strong protections under state law.

In exchange for these height restrictions, developers would be able to provide a larger number of below-market-rate units or contribute funds to the city’s affordable housing trust fund.

During the meeting, officials spoke about the support available and different options for those who are facing displacement.

"A local ordinance provides two months of relocation support for anyone in that moderate, moderate income category," Neuse said. "State law requires a minimum of one month for any involuntary placement. Typically in publicly funded projects of projects that are 100% below market rate housing, a lot of those funding sources prohibit, including local preferences."

The council is also considering a new category to protect households at risk of displacement for people who live on a parcel set for redevelopment.

In this case, state law provides 24 months of relocation support.

Brian Shields spoke at the meeting, he highlighted the challenges that workers face when commuting far.

He emphasized the need for labor standards to support local residents in Santa Cruz.

"The union is one state in their car and they've commute in from out of town," Brian Shields field rep with the Carpenters Union Local 646 said. "That's that's how these projects, that's how this beautiful downtown expansion plan will be built. People who are sleeping in their cars 4 nights a week and try to commute home to to have some form of family or livelihood. I think that a level of a labor standard would be extremely appropriate to apply here."

Updates from the downtown expansion plan will go out to the California Coastal Commission for approval.