For 15 years, city leaders have been looking for ways to re-envision the Capitola Mall, which like many of its shopping-center brethren across the U.S., has lost a measure of the luster it had a few decades ago, the neon-colored heyday of the 80s.
And while a handful of new, local businesses have helped to revitalize Santa Cruz County’s only mall, it is no longer the draw it once was.
That is likely to change after the Capitola City Council on Sept. 11 unanimously approved a set of zoning amendments that will allow the creation of a housing development on the mall property, which is bordered by Clares Street, Capitola Road and 41st Avenue.
With a rezoning plan expected by January, Merlone Geier Partners (MGP)—the majority owner of the mall site—will begin plans to redevelop the property.
The project is an effort by city officials to help meet its Regional Housing Needs Allocation (RHNA) numbers, which the state of California requires of every jurisdiction in the state.
That means Capitola must plan for 1,336 units of low, moderate and market-rate housing units by 2031.
But because Capitola is just 2 square miles—and has few buildable spaces—city officials have to look to infill development such as the mall.
In addition to the sizable housing project, recently approved changes also include building heights up to 75 feet.
The plan approved includes community engagement sessions.
MGP managing director Jamas Gwilliam said it is too early in the planning process to say what the project will look like.
Once the city provides the objective design standards it wants to see at the site, the company can move forward, he said.
“Then we can share that with the community, run studies to look at traffic, talk to the community more about the placemaking aspects, the number of units and affordable units and get you the specifics on what that exactly looks like,” he said.
Gwilliam said that MGP is hoping to get feedback from the community, but warned against extending that period for too long.
“There is a timeline HCD is given and the questions, while good…it would be better to respond to a project once we have the zoning code,” he said.
Of the four choices presented to the council for the development process, Councilwoman Susan Westman opted for one that both expedites the process and calls for more public engagement, although at $68,000 is slightly more expensive than a similarly expedited $46,000 plan that allowed only one public session.
“I think it’s worth the city spending that money to engage with our community and give us an opportunity to engage with our community to try and move this project forward,” Westman said.
Councilwoman Melinda Orbach said she would also like to see a hotel at the site with a large event and conference space.
“I’ve heard from many people who struggle to find a big enough space to hold their events in Santa Cruz County,” she said. “Rarely are there spaces for the capacity of more than 500 people. Many of us working professionals travel to conferences where we spend thousands of dollars each year out of the pocket of our employers. Why not spend the money here? People already want to come to Capitola. Why not build the infrastructure needed to support this tourist industry?”
