ARTICLE
There was a lot of action-packed discussion at the Santa Cruz City Council meeting on Tuesday, May 14, 2024. The intense debate about the location of a medical marijuana dispensary at the corner of Mission Street and Laurel Avenue on the west side of town took center stage as the last item on the council agenda. It was a debate that pitted the parents, teachers, and school administrators of Santa Cruz City Schools vs. the community advocates for medical marijuana and WoMen Alliance for Medical Marijuana. Following months of community tension that even pulled state legislators into the fray, the Santa Cruz City Council decided Tuesday evening that a new cannabis dispensary could move into the old Emily’s Bakery lot at the intersection of Mission and Laurel streets, against the loud and organized objection of school district officials and parents. The city council voted 6-1 to approve the project and deny the appeal from the city schools. I won't belabor any further discussion about this issue which started when WAMM founder Valerie Corral was seeking financial support to maintain her business model. That is where Hook Outlet owner Bryce Berryessa stepped in to form the partnership. My focus for this eNews article is not on the siting of the marijuana dispensary but on another critical project on the council agenda that was heard earlier in the meeting (without much debate). The city staff led by Economic Development Director Bonnie Lipscomb and her team provided the city council with an update on the Downtown Library and Affordable Housing Development Project. As many of our readers know, the Chamber has been a strong advocate for this project, visualizing it as the cornerstone of our downtown’s future. The project has been ongoing for over a decade with the Santa Cruz Public Libraries initiating a comprehensive facilities master planning process culminating in a Library Master Plan in 2014. Santa Cruz County voters approved the library bond in June 2016 paving the way to take the countywide library system to the modern day system. Over the next several years, various council advisory and sub committees reviewed developing a project that later incorporated 124 units of affordable housing with a mix of affordability with a 60% maximum average AMI (Area Median Income) or lower. The culmination of multiple public meetings and hearings resulted in the approval of the entitlements of the Downtown Project. In 2021, the City released a request for proposal (RFP) to solicit an affordable housing developer partner and selected a joint proposal from For The Future Housing and Eden Housing to build the Project. It appears to have slowly moved through the idea to the planning process and each step is focused on getting the project in the construction phase in 2025-2026. According to the staff report, it reads: “For the Future Housing and Eden Housing partnered to form DTLMU Investors L.P. (a California Limited Partnership) as a joint venture to serve as the developer. The City and/or the Project has received grant funding including the State Housing & Community Development’s Local Housing Trust Fund ($3.805 million), Affordable Housing Trust Fund ($1.75 million), Central Coast Community Energy Grant ($240,000), an Affordable Housing Sustainable Communities (AHSC) award ($33.5 million) and a Fiscal Year 2023 federal budget appropriation of ($2 million). Per State funding requirements, the City needs to enter into a lease(s) with the affordable housing developer, For the Future Housing and/or Eden Housing or its affiliate to use the awarded funds and to apply for any future funds.” On April 22nd, 2024, the City closed on the purchase and acquisition of 113 Lincoln Street (APN 005-141-11). This parcel acquisition now gives the City total site control of all parcels that are included in the approved project entitlements. This addition required an amended and reinstated option agreement to stay in compliance with our existing funding awards as well as provided the affordable housing developer the required documentation demonstrating site control to finalize and submit their application to the California Tax Credit Allocation Committee (TCAC) on April 23rd, 2024. Staff recommends that the Council adopt a resolution ratifying the Amended and Restated Option to Lease agreement; authorizing the City Manager to enter into a lease(s) once terms of the Option agreement have been satisfied by the developer; and authorizing the Economic Development and Housing Director to execute any amendments or documents needed thereto of a non-substantive nature, in a form approved by the City Attorney, for the above-described City-owned parcel(s) inclusive of 119 Lincoln and 113 Lincoln Street, with DTLMU Investors, L.P. (a California Limited Partnership), and/or For the Future Housing and/or Eden Housing, and/or its affiliate(s), for a minimum term of 55 years from Certificate of Occupancy at an annual lease fee of $1. The developer/lessee would be solely responsible for the development of the Project improvements and the ongoing operation and maintenance of the affordable rental housing and childcare facility during the lease term. Upon completion of the Project construction, the Developer would convey back to the City the publicly owned components of the Project, including the parking garage, commercial space(s), and the downtown Library. This project will be a catalyst for the City as the central hub of the county-wide library system.
There was a lot of action-packed discussion at the Santa Cruz City Council meeting on Tuesday, May 14, 2024. The intense debate about the location of a medical marijuana dispensary at the corner of Mission Street and Laurel Avenue on the west side of town took center stage as the last item on the council agenda. It was a debate that pitted the parents, teachers, and school administrators of Santa Cruz City Schools vs. the community advocates for medical marijuana and WoMen Alliance for Medical Marijuana. Following months of community tension that even pulled state legislators into the fray, the Santa Cruz City Council decided Tuesday evening that a new cannabis dispensary could move into the old Emily’s Bakery lot at the intersection of Mission and Laurel streets, against the loud and organized objection of school district officials and parents. The city council voted 6-1 to approve the project and deny the appeal from the city schools. I won't belabor any further discussion about this issue which started when WAMM founder Valerie Corral was seeking financial support to maintain her business model. That is where Hook Outlet owner Bryce Berryessa stepped in to form the partnership.
My focus for this eNews article is not on the siting of the marijuana dispensary but on another critical project on the council agenda that was heard earlier in the meeting (without much debate). The city staff led by Economic Development Director Bonnie Lipscomb and her team provided the city council with an update on the Downtown Library and Affordable Housing Development Project. As many of our readers know, the Chamber has been a strong advocate for this project, visualizing it as the cornerstone of our downtown’s future. The project has been ongoing for over a decade with the Santa Cruz Public Libraries initiating a comprehensive facilities master planning process culminating in a Library Master Plan in 2014. Santa Cruz County voters approved the library bond in June 2016 paving the way to take the countywide library system to the modern day system.
Over the next several years, various council advisory and sub committees reviewed developing a project that later incorporated 124 units of affordable housing with a mix of affordability with a 60% maximum average AMI (Area Median Income) or lower. The culmination of multiple public meetings and hearings resulted in the approval of the entitlements of the Downtown Project. In 2021, the City released a request for proposal (RFP) to solicit an affordable housing developer partner and selected a joint proposal from For The Future Housing and Eden Housing to build the Project. It appears to have slowly moved through the idea to the planning process and each step is focused on getting the project in the construction phase in 2025-2026.
According to the staff report, it reads: “For the Future Housing and Eden Housing partnered to form DTLMU Investors L.P. (a California Limited Partnership) as a joint venture to serve as the developer.
The City and/or the Project has received grant funding including the State Housing & Community Development’s Local Housing Trust Fund ($3.805 million), Affordable Housing Trust Fund ($1.75 million), Central Coast Community Energy Grant ($240,000), an Affordable Housing Sustainable Communities (AHSC) award ($33.5 million) and a Fiscal Year 2023 federal budget appropriation of ($2 million). Per State funding requirements, the City needs to enter into a lease(s) with the affordable housing developer, For the Future Housing and/or Eden Housing or its affiliate to use the awarded funds and to apply for any future funds.”
On April 22nd, 2024, the City closed on the purchase and acquisition of 113 Lincoln Street (APN 005-141-11). This parcel acquisition now gives the City total site control of all parcels that are included in the approved project entitlements. This addition required an amended and reinstated option agreement to stay in compliance with our existing funding awards as well as provided the affordable housing developer the required documentation demonstrating site control to finalize and submit their application to the California Tax Credit Allocation Committee (TCAC) on April 23rd, 2024.
Staff recommends that the Council adopt a resolution ratifying the Amended and Restated Option to Lease agreement; authorizing the City Manager to enter into a lease(s) once terms of the Option agreement have been satisfied by the developer; and authorizing the Economic Development and Housing Director to execute any amendments or documents needed thereto of a non-substantive nature, in a form approved by the City Attorney, for the above-described City-owned parcel(s) inclusive of 119 Lincoln and 113 Lincoln Street, with DTLMU Investors, L.P. (a California Limited Partnership), and/or For the Future Housing and/or Eden Housing, and/or its affiliate(s), for a minimum term of 55 years from Certificate of Occupancy at an annual lease fee of $1. The developer/lessee would be solely responsible for the development of the Project improvements and the ongoing operation and maintenance of the affordable rental housing and childcare facility during the lease term. Upon completion of the Project construction, the Developer would convey back to the City the publicly owned components of the Project, including the parking garage, commercial space(s), and the downtown Library. This project will be a catalyst for the City as the central hub of the county-wide library system.