ARTICLE
They say change is the only constant in life. In this highly competitive world and the onset of new environmental standards, organizations (businesses and even governments) that are reluctant to embrace change end up paying a hefty price for their rigidity. Sustainable competitive advantage will require a clear vision of the bigger picture, breaking the norms and sometimes shaking an organization or community to its core. If a certain project/program is not yielding expected results, change becomes inevitable. If an organization or community is not meeting its objectives, change becomes paramount. This past Tuesday, the Santa Cruz City Council received an updated quarterly report from City staff about the Downtown Library and Affordable Housing Project. The quarterly report, as requested by the Council in early January, would explain in detail an easy-to-understand overview and status of this project for both the City Council and the Santa Cruz community. You can review the report here: https://www.cityofsantacruz.com/home/showpublisheddocument/90833/637999527712036976 For the past five years, the City Council has directed city staff on the various details of the project and has provided clarity on the significant changes and milestones at each step, taking into consideration the community’s input along the way. Recent highlights to date include: > Project Application submitted by Affordable Housing Developer For the Future Housing > Community Presentation on Planning Application Design held on September 21, 2022 > Phase 1 Cultural Resources Inventory, Draft Report Under Review > Phase I/II Environmental Site Work Completed, Draft Report Under Review Traffic Impact Analysis Underway, Near Completion > Received Finalized Arborists Report and Report Addendum > Library Design Team Completed 100% Design Development Set > Received notice did not Receive round 1 funding for State Library Grant, round 2 forthcoming As the project has moved from a conceptual design evolution to new schematic drawings by Jayson Architecture we can see the immediate results of community input. The design includes: > A 38,000-square-foot library with a 3,200 square-foot rooftop patio > A 1,900-square-foot childcare center and play area > A 9,600-square-foot commercial space > A three-story, 243-space parking garage > Locked enclosures and racks for 258 bicycles The affordable housing component of the project will provide 124 units, including: > 31 three-bedroom units > 31 two-bedroom units > 48 one-bedroom units > 13 studios The report also includes updates about the parking structure — 242 spaces at an estimated cost of $15.5 million financed by the parking district bonds or direct loans including money from the parking structure and the funds of the City's parking district. The number of spaces has continued to decrease as the project design goes through architect review and community engagement. These spaces will replace parking spaces in the downtown that will be lost to other development projects in process or in the pipeline. The city staff also discussed the current status of negotiations with the Santa Cruz Farmers Market. According to ity staff, in July it submitted a draft memorandum of understanding (MOU) to the Santa Cruz Farmers Market board as a guideline for a future location and design plan. The new design would consist of 40,000 square feet with overhead cover. It should be noted that City staff and the Farmers Market executive director have been in discussion about the future of the market for the past few years. The most important issue to the Chamber is about cost and the return on the investment for the community. Where will the financing come from for the project? I’ve already mentioned the parking structure costs above, so let's turn to the library and affordable housing components of the project. The library’s most recent budget estimate is $42.7 million, down $625,000 from the previous estimate. A slightly shorter first floor brought costs down slightly, said Bonnie Lipscomb, the City’s Economic Development Director, one of the staff leads on the project. And the affordable housing project estimated costs show that the City has secured $7.39 million which includes $3.6 million for the Local Housing Trust Fund, and $1.55 million from the Permanent Housing Allocation which are overseen by the California Department of Housing and Community Development. Congressman Jimmy Panetta was successful in securing $2 million through an earmark in the current federal budget. And finally, Central Coast Community Energy has provided a $240,000 funding grant for energy programs. These funds are like a downpayment on a home before the final purchase and escrow closes. Once the City Council approves the project later this year according to the report, project developers can seek funding through tax credits ($43 million) and an estimated $78 million in loan and other state and federal grant programs. The next steps: > Project Design Application Planning Process > Targeting December Council Meeting for Entitlements Approval > Begin Next Design Phases > Finalize Farmers Market MOU > Finalize Farmers Market Design at Lot 7 > 2nd Project Community Meeting November > Apply for Housing Funding January 2023 We have waited for this project to come to fruition since June 2016 when voters overwhelmingly approved the Countywide Measure S Library Bond. At that time, there was not the heightened public concern about the rising cost of housing in Santa Cruz County. With the increase in state mandates on local government to build more housing, the City Council has taken the necessary steps to utilize available City-owned land to create the best use of the site for the future. One of the cornerstones for understanding the change theory is Kurt Lewin’s Change Management Model, developed in 1940. It still holds true today. Lewin divided the process of change into three stages: Unfreeze, Change, Refreeze. The analogy is simple. Assume you have a huge cube of ice but then you realize that what you want is a cone of ice instead. So, what do you do? First, you must melt the ice to make it pliable to change (unfreeze). Then you must mold the iced water into the shape you want, in this case, the cone of ice (change). Finally, you must solidify the new shape (refreeze). Refreezing occurs when change is finally taking shape. Implementing theory of change starts with the end goal in mind. What is it that you want to achieve in the long run? That is exactly where the City Council, City staff and the community have taken us: First, a modern library project that is the hub of the countywide system; then an affordable housing project to address our housing needs and a parking structure were modified to underscore the long-term benefits that a combined project will provide to the future of Santa Cruz. In the face of turmoil (political upheaval and a ballot measure), change is inevitable. Avoiding change is tantamount to burying our community knee-deep into a swamp of uncertainty threatening its very existence. Change is the constant reminder that we must adapt and rethink how our future community needs are to be met. We are on the right track, so let's not back down.
They say change is the only constant in life. In this highly competitive world and the onset of new environmental standards, organizations (businesses and even governments) that are reluctant to embrace change end up paying a hefty price for their rigidity.
Sustainable competitive advantage will require a clear vision of the bigger picture, breaking the norms and sometimes shaking an organization or community to its core. If a certain project/program is not yielding expected results, change becomes inevitable. If an organization or community is not meeting its objectives, change becomes paramount.
This past Tuesday, the Santa Cruz City Council received an updated quarterly report from City staff about the Downtown Library and Affordable Housing Project. The quarterly report, as requested by the Council in early January, would explain in detail an easy-to-understand overview and status of this project for both the City Council and the Santa Cruz community. You can review the report here: https://www.cityofsantacruz.com/home/showpublisheddocument/90833/637999527712036976
For the past five years, the City Council has directed city staff on the various details of the project and has provided clarity on the significant changes and milestones at each step, taking into consideration the community’s input along the way. Recent highlights to date include:
As the project has moved from a conceptual design evolution to new schematic drawings by Jayson Architecture we can see the immediate results of community input. The design includes:
The affordable housing component of the project will provide 124 units, including:
The report also includes updates about the parking structure — 242 spaces at an estimated cost of $15.5 million financed by the parking district bonds or direct loans including money from the parking structure and the funds of the City's parking district. The number of spaces has continued to decrease as the project design goes through architect review and community engagement. These spaces will replace parking spaces in the downtown that will be lost to other development projects in process or in the pipeline.
The city staff also discussed the current status of negotiations with the Santa Cruz Farmers Market. According to ity staff, in July it submitted a draft memorandum of understanding (MOU) to the Santa Cruz Farmers Market board as a guideline for a future location and design plan. The new design would consist of 40,000 square feet with overhead cover. It should be noted that City staff and the Farmers Market executive director have been in discussion about the future of the market for the past few years.
The most important issue to the Chamber is about cost and the return on the investment for the community. Where will the financing come from for the project? I’ve already mentioned the parking structure costs above, so let's turn to the library and affordable housing components of the project. The library’s most recent budget estimate is $42.7 million, down $625,000 from the previous estimate. A slightly shorter first floor brought costs down slightly, said Bonnie Lipscomb, the City’s Economic Development Director, one of the staff leads on the project. And the affordable housing project estimated costs show that the City has secured $7.39 million which includes $3.6 million for the Local Housing Trust Fund, and $1.55 million from the Permanent Housing Allocation which are overseen by the California Department of Housing and Community Development.
Congressman Jimmy Panetta was successful in securing $2 million through an earmark in the current federal budget. And finally, Central Coast Community Energy has provided a $240,000 funding grant for energy programs. These funds are like a downpayment on a home before the final purchase and escrow closes.
Once the City Council approves the project later this year according to the report, project developers can seek funding through tax credits ($43 million) and an estimated $78 million in loan and other state and federal grant programs.
The next steps:
We have waited for this project to come to fruition since June 2016 when voters overwhelmingly approved the Countywide Measure S Library Bond. At that time, there was not the heightened public concern about the rising cost of housing in Santa Cruz County. With the increase in state mandates on local government to build more housing, the City Council has taken the necessary steps to utilize available City-owned land to create the best use of the site for the future.
One of the cornerstones for understanding the change theory is Kurt Lewin’s Change Management Model, developed in 1940. It still holds true today. Lewin divided the process of change into three stages: Unfreeze, Change, Refreeze. The analogy is simple. Assume you have a huge cube of ice but then you realize that what you want is a cone of ice instead. So, what do you do? First, you must melt the ice to make it pliable to change (unfreeze). Then you must mold the iced water into the shape you want, in this case, the cone of ice (change). Finally, you must solidify the new shape (refreeze). Refreezing occurs when change is finally taking shape. Implementing theory of change starts with the end goal in mind. What is it that you want to achieve in the long run?
That is exactly where the City Council, City staff and the community have taken us: First, a modern library project that is the hub of the countywide system; then an affordable housing project to address our housing needs and a parking structure were modified to underscore the long-term benefits that a combined project will provide to the future of Santa Cruz.
In the face of turmoil (political upheaval and a ballot measure), change is inevitable. Avoiding change is tantamount to burying our community knee-deep into a swamp of uncertainty threatening its very existence. Change is the constant reminder that we must adapt and rethink how our future community needs are to be met. We are on the right track, so let's not back down.