By Jondi Gumz
Owners of the Capitola Mall envision a new shopping center with a lot of new construction: Taller buildings — the highest seven stories — with 637 apartments, a movie theater, and outdoor gathering space. The project, extending over 31 of the mall’s 46 acres at 1855 41st Ave., is the biggest in Capitola and will impact residents of Live Oak living just outside the Capitola city limit.
Norman Poitevin listens to presentation on the Capitola Mall makeover project. • Photo Credit: Jondi Gumz
For that reason, Santa Cruz County Supervisor John Leopold invited the developers to a meeting at Simpkins Swim Center to share their vision and answer questions. About 80 chairs were set out, and nearly all were filled.
Stephen Logan, vice president development for mall owner Merlone Geier Partners, said he intends to submit a formal application to the city in February or March.
He emphasized that the plans would change from the drawings that got a conceptual review by the Capitola City Council in November.
“We’ve got 25 pages of design comments,” Logan said. “We had 27 asks by the City Council.”
The project is complicated by the fact the Merlone Geier owns about 65-67 percent of the mall property; this includes Kohl’s but not Target, Macy’s, Ross, Olive Garden, Citibank or Bank of America.
The formal application will trigger an environmental impact report, which will look at a variety of concerns, the biggest being traffic, according to Logan.
The city of Capitola will host a scoping meeting to see what issues must be addressed.
“We will look very closely at exactly what is submitted,” said Leopold, anticipating impacts to county roads and parks.
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School Impact
Stephen Logan of Merlone Geier Partners describes the Capitola Mall makeover. He declined to give a dollar value for the project. • Photo Credit: Jondi Gumz
The mall is in the Live Oak school district, and new apartments would likely mean more students in Live Oak schools.
Most of the apartments would be market rate housing with 15 percent set aside — a city requirement — as affordable to people with lower incomes, which works out to about 95 units. Exactly what income levels have yet to be determined, according to Logan.
Some would be studios, some one-bedroom and some with two bedrooms, with the mix as yet undecided.
Logan said there is potential for senior living and “independent living,” which he later described as empty nesters downsizing.
Condos are not planned because of issues with condo laws, he said.
Construction could begin in summer 2021 with completion in 2024 but that hinges on reaching an agreement with the Santa Cruz Metro to move its bus stop from 41st Avenue in the front of the mall to the back.
“We can’t do this project without moving it,” Logan said.
As far as the proposed name, Capitola Town Square, according to Logal “the jury’s still out on that.”
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Questions
Logan fielded many questions. Here are just some of the questions and his responses:
Does the city of Capitola have a height limit?
Yes, and this project would exceed it.
Can the fire district handle a seven-story building?
We haven’t talked.
Would you pay a fee instead of building housing?
The city wants housing on the site.
What about a hotel?
The city wants a hotel, but it’s a loss leader for us. We’re looking at it.
Where’s the parking for the apartments?
In the center of the building with a key-card system.
What about underground parking?
Expensive and may not be doable given the soils and water table.
Where will kids play?
It’s a concern. We’re working on it.
Is there enough water?
The city of Santa Cruz, which serves the area, said there is plenty of capacity.
Leopold also responded to a couple question: No, 40th Avenue, which is blocked off now, will not be reopened. Also, the city of Capitola allows vacation rentals only in the Village.
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Logan said the mall has more stores leasing space than four years ago, when Merlone Geier bought the property. Most stores are on short-term leases.
“We’re busier than we were last year,” said Elaine Kennedy, chief fiscal officer for mall tenant Art of Santa Cruz.
She complimented general manager Brian Kirk for his support on events to attract more people.
“It seems like this should have been done 15 years ago,” said Live Oak resident Norman Poitevin of the mall makeover. “I think they need to do something.”
Donna Murphy and Andrew Goldrenkranz came representing the nonprofit COPA, Communities Organized for Relational Power in Action.
“We try to advocate for the many people who work here to be able to live here,” Murphy said.
Goldenkranz noted the city’s goal of 130 affordable housing units, seeing the potential to meet the goal at the mall.
Leopold encouraged attendees to sign in and provide an email so he could share the mall plans and provide future updates.