By Jon Chown
The Scotts Valley community learned a little bit and complained a lot during an informal meeting on a proposed housing project at 125 Bethany Drive on July 1. City leaders and residents are hoping the developer behind the project watches the video on YouTube because he failed to show.
The meeting, held in the Scotts Valley City Council Chambers, was run by Scotts Valley City Manager Mali LaGoe and she was accompanied by several members of her staff, including City Attorney Kirsten Powell and City Planner Brian Froelich.
In May, The Prime Company applied for a 96-unit, 100% affordable multifamily housing development at the 1.31-acre site. The proposal consists of 95 affordable apartments and one manager’s unit in two multi-story residential buildings up to 80 feet in height, all on commercially zoned property. Just 110 parking spaces would be added. As a reference, the highest density allowed in the planned Town Center District is 50 units per acre with a maximum building height of 50 feet. Unfortunately, there appears to be nothing the city can do to stop it.
“This project will not come before the City Council for consideration due to state laws,” LaGoe explained to the audience. “We did invite the developer to this meeting and they declined to attend.”
There is a concern that the apartment building will tower over Vine Hill Elementary School, which is right across the street, giving any residents an overlook of the school’s playground and facilities.
Previous proposals at 125 Bethany Drive have not been favored by the public. In 2023, Heritage Real Estate Ventures LLC proposed demolishing two existing commercial buildings totaling approximately 12,200 square feet and replacing them with a three-story, 52,822-square-foot mixed-use commercial building. The proposal included 10,465 square feet of professional and administrative office space and 42,357 square feet of storage accommodating up to 227 user spaces, along with 54 parking spaces. The project required a General Plan amendment, rezoning and other discretionary approvals from the City of Scotts Valley.
As part of that application, the city prepared an Initial Study and proposed Negative Declaration under the California Environmental Quality Act, concluding the project would not result in significant environmental impacts. The environmental review was circulated for public comment in July of 2023.
The public had a lot to say, mostly negative. The City Council did not approve the project and now the property has instead returned with a far different application. This time, rather than seeking permits and approvals, the applicant has applied through the state and has asked for ministerial approval under Assembly Bill 2011, Senate Bill 330 and California’s Density Bonus Law.
If the project meets the requirements of those state laws, it would be approved administratively by the city and would not require Planning Commission or City Council approval. The city also notes that qualifying AB 2011 projects are exempt from CEQA review.
LaGoe and Powell explained this to a dissatisfied crowd after Froelich gave a detailed review of the project.
After, Michael Heffner, a disabled veteran, took the podium and said he lived close to the project. “What we need to do is pick this apart,” he said. “Balconies are facing the road within 500 feet. There’s a very clear law that does not allow balconies to be facing a freeway within 500 feet. … So we need to come up with every possible reason that is wrong and pick it apart.”
Mike Zeller, a resident of Bethany Drive, said residents needed to contact their state representatives. “In particular Gail Pellerin and Senator John Laird, let them know how this law is impacting the community and the effects it is having.”
Chris Lopez, another Bethany Drive resident, said the project would have a terrible impact on the community and the city should look at how it might fit it in court, possibly by teaming up with other cities. “They can’t possibly sue everybody into the ground if people unite and fight this together,” she said.
Powell said that she, as city attorney, did have conversations with others in her position, but that not all cities were aligned on the issue. AB 2011, she pointed out, was introduced by Buffy Wicks, who represents Oakland.
Roger Snyder, president of the Scotts Valley Unified School Board, said he was concerned about the project’s proximity to Vine Hill Elementary School. “I cannot believe we are going to have balconies overlooking our kindergarten students. I cannot imagine 200 residents and over 100 cars at that intersection at 7:30 and 8 a.m. on a school day. This has to have some sanity. So I want to hear from the developer how they’re going to address these concerns,” he said.
Attempts to reach the developer Chris Elsey of The Prime Company were not successful.
TOP PHOTO: The commercial buildings at 125 Bethany Drive will be demolished and replaced with 80-foot tall apartment buildings.