By Jondi Gumz
Mike Formico is taking advantage of the “builder’s remedy” to propose a subdivision of 161 homes and townhomes on his 40-acre horse pasture on Graham Hill Road from Lockwood Lane to Rollingwoods Drive.
This location is zoned single-family rural residential, 20,000-square foot lot minimum.
Formico knows the property well as he lives on Graham Hill Road.
When a county does not have a state-approved Housing Element, developers can tap into the Builder’s Remedy allowing projects with at least 20% affordable housing to bypass local zoning.
Graham Hill Road, once a toll road named for pioneer Isaac Graham, is four miles long between Santa Cruz and Felton, a beloved shortcut for residents in Scotts Valley.
The pasture, a long and narrow property along Graham Hill Road, has been used by the Santa Cruz County Horsemen’s Association, which owns the showgrounds on the other side of the road.
- 117 market-rate single-family homes.
- 11 market-rate townhouses.
- 26 affordable townhouses for low-income residents, limits set by state.
- 7 affordable townhouses for moderate-income residents.
- A clubhouse with post office boxes, health club, HOA office, and meeting room.
- Parking for 691 cars, 312 covered and 379 uncovered.
- 14.3 acres undeveloped and connected with existing hiking trails.
To the west is Henry Cowell Redwoods State Park, known for hiking trails and horse trails.
The design of the homes would include Craftsman, farmhouse and bungalow.
Under the county zoning rules, this size of development on a two-lane county road would not be permitted, but the state Legislature has passed and Gov. Gavin Newsom has signed a plethora of bills to make it easier for developers to build housing to address the shortage of housing statewide.
Santa Cruz County’s deadline for state Housing Element was Dec. 25, 2023.
That deadline was not met, opening the county up to the builder’s remedy.
Bryan Wenter, AICP, of Miller Starr Regalia, a law firm in Walnut Creek submitted a pre-application April 3, before the state approved the Housing Element, which mandates Santa Cruz County plan for 4,634 housing units by 2031.
In his letter, he wrote that the county could not deny the application based on zoning or the general plan.
He added that because 20% of the units will be affordable, the project is eligible for the state-offered density bonus, concessions and waivers of development and parking standards.
He also promised to submit a formal application within 180 days as required.
Under SB 330, declaring a statewide housing emergency and passed in 2019, housing project review requirements and timelines were changed through 2030.
The pre-application was submitted by Lance Tate, of Tate Development & Investment in Del Mar, which has completed projects in Cupertino, Hayward and San Jose.He’s an alum of Harker School, Menlo School and University of the Pacific.
Projects are subject to a maximum of five hearings before the county must act, according to Wenter.
An initial site assessment performed by Ecological Concerns identified 13 potential species of interest, according to the pre-application and an “Incidental Take Permit” is to be proposed as a mitigation.
Annexation Sought
In July of this year, Formico applied to annex one parcel of pasture property into the San Lorenzo Valley Water District, the application indicating the purpose “is for the provision of water services to a future housing project.”
The application went to the Local Agency Formation Commission, which rules on annexation requests and requested feedback by Aug. 30.
LAFCO administrator Joe Serrano said the parcel is in the San Lorenzo Valley Water District sphere of influence and within the county’s urban services line but missing are the filing fee, a map and “initial study” to assess significant impacts or an environmental impact review.
“Until I get those, I can’t deem application complete,” Serrano told Scotts Valley Times.
According to Gine Johnson, analyst in county Supervisor Bruce McPherson’s office, the Planning Department is reviewing the application and will render “an opinion to the applicant soon in writing.”
She added, “Unless the application meets basic thresholds regarding the zoning and other factors, which prior proposals for this property did not, the application will get its response from Planning but it’s unlikely to move forward unless those basic thresholds can be addressed sufficiently.”
If the developer completes an environmental review, that document would be posted on the website of the planning department, renamed Community Development and Infrastructure at https://cdi.santacruzcountyca.gov/UPC/GetInvolved/PublicMeetingsHearings.aspx
The project goes to the County Planning Commission, which makes a recommendation to the County Board of Supervisors, which holds a public hearing.
