Downtown Santa Cruz expansion plan gets final approval

SANTA CRUZ, Calif. (KION-TV) -- The Santa Cruz City Council has unanimously approved a major expansion of downtown, clearing the way for new apartments, an arena for the Santa Cruz Warriors, and a new entertainment district south of Laurel Street.

Reactions from the community are mixed. Some residents are hopeful about the potential for growth, while others are concerned about the practical impact on day-to-day life.

"I am very disappointed that this has been approved," Barbara Alaimo said.

The approved plan rezones 29 acres and includes denser housing, pedestrian plazas, and bike lanes.

In response to community feedback, the council voted to cap building heights at 85 feet, lowering the initial proposal of 12 stories.

"Our downtown is suffering from what's going on, and our traffic is going to be horrible. There's no parking in a lot of these buildings. It's going to be a real problem," Barbara Alaimo said

"We don't need any tall buildings. This is not a city. This is a town. Beach town," Paula Riley said.

While the city introduced a local density bonus program to encourage developers to stick to the height limit, state law may still allow taller buildings if affordable housing requirements are met.

Supporters see the plan as a bold step toward revitalizing the area and drawing more people to live and work downtown. Others remain worried about increased traffic and congestion.

"We have all kinds of businesses that have been closing down here. Since we have more people living here, then those businesses will come back, and those of us who live here will have more choices," Murray Walker said

A review by the California Coastal Commission is expected in late summer or fall of 2025.