A housing proposal on the 1800 block of Mission Street in Santa Cruz grew from three stories to six-stories in a new design. (Workbench)

SANTA CRUZ >> A proposed six-story apartment building on Mission Street would provide college students and other tenants with the “right kind of housing” and would free up more single-family homes for families, the project’s architect said at an online meeting attended by several skeptical neighbors on Monday.

The proposal on the 1800 block of Mission Street between Palm and Dufour streets would contain 68 units, divided evenly between two-bedroom units and studios, and 14 parking spots.

Though it would be geared primarily toward UC Santa Cruz students, it could also attract young professionals and couples as well as older singles looking to downsize, said architects from Santa Cruz-based Workbench. 

“UCSC students contend with the toughest housing market of any college town in the state,” said Jamileh Cannon, owner and co-founder of Workbench. “Many end up with long commutes as part of their college experience.”

New housing along main commercial corridors like Mission Street could help slow rent growth while preserving open space and neighborhoods, Cannon said. State housing law also requires the city of Santa Cruz to approve 3,736 new housing units by 2031, she pointed out.

Apartments are proposed to replace three homes on Mission and Dufour streets in Santa Cruz. (Stephen Baxter — Santa Cruz Local)

“We believe that building diversified in-fill housing is essential to keeping our community vibrant and thriving,” Cannon said. She said that Santa Cruz is beautiful and appealing but unaffordable. “If we value equity and affordability, which I believe we do, then we must change,” Cannon said, referring to the city’s historical reluctance to permit taller, multi-unit developments. 

As part of the project, the sidewalk along Mission Street would be widened, street trees would be planted and landscape planters would be installed, said Jessica Presley, project manager at Workbench.

The building was designed to promote car-free living, Presley said. She said there were four bus routes within a half-mile of the site and that it was “very walkable” for most daily errands. She added that the building would provide bike parking to tenants and that there were good bike paths in the area. 

Several neighborhood residents attended the meeting and expressed concern about traffic, parking, noise, privacy, safety and the building’s overall size. Across Dufour Street from the proposal, some neighbors were already unhappy with increased traffic from a redeveloped Comerica bank that became a busy Starbucks and ramen restaurant.

Neighbors react 

Some meeting attendees asked for more space at the building’s rear to separate it from nearby single-family homes. “Having two feet set back would at least be less of a slap in the face to the neighbors,” said Rachel Moriconi. 

“It feels like this is not going to be a very inviting place to live,” said Joanne Hutson, who said she owns an adjacent property. “A lot of locals I know feel they are being pushed out” by the development.

Another neighbor, who identified himself as Forest, worried about “drunk UCSC students driving into my backyard in the middle of the night.” Another attendee said the building’s design was unappealing and reminded him of Soviet architecture.

Restaurants replaced a bank at Mission and Dufour streets in Santa Cruz in recent years. (Stephen Baxter — Santa Cruz Local)

Meeting attendees also pushed for a reduction in the building’s height, pointing out that the original plans called for only three stories.

A Santa Cruz resident who identified himself as Cameron was one of the few project supporters to attend the meeting. “I don’t want my rent to go up, and it’s going to keep going up if there isn’t enough housing,” he said.

The project dates back to 2021, when 1811 Mission St. and 1815 Mission St. were purchased with the intent of demolishing them and constructing a three-story, 27-unit building on the site. At the time, the proposed project included:

• Ground-floor shops.
• Twenty-three single-room occupancy units and four units with flexible densities. 
• Twelve parking spaces.

In June 2023, the Santa Cruz Planning Commission approved permits to demolish the two single-family homes and approved permits for design, special use and boundary adjustments. Construction was expected to start in early 2024.

The project’s developer, Mission Studios Santa Cruz LLC, later decided that plan wasn’t financially viable, Cannon said at Monday’s meeting. In June 2024, a third single-family home at 1819 Mission St. was purchased for $1.6 million as part of the project.

Second version of proposal

A pre-application filed the following month called for a significant expansion of the project. Under the new plan, the three homes would be demolished and a six-story building with 68 residential units would be constructed. The proposed project now includes:

• Ground-floor commercial space, plus an outdoor seating area and residential lobby.
• Fourteen parking spaces including 12 spaces for electric vehicles and two handicapped spaces.
• Thirty-four two-bedroom apartments, including 14 “double” units designed for two roommates in each room.
• Thirty-four studio apartments.
• A sixth-floor roof terrace.
• Ten units are expected to be rented to tenants with very low, low and moderate incomes, Presley said. State authorities set income limits annually.

The average size of all units would be 460 square feet.

Responding to prior complaints about privacy, Workbench redesigned the back facade of the building so that it would contain no windows or balconies facing the adjacent neighborhood of single-family homes. 

As is typical among larger residential developments, the project is taking advantage of several state laws designed to encourage more housing. For example, by including a certain percentage of affordable units, it is set to receive a density bonus that allows it to be bigger than the zoning code would otherwise allow.

“The state of California has become very aggressive over the past several years in adopting legislation that streamlines and promotes the production of housing,” Santa Cruz Associate Planner Rina Zhou said at Monday’s meeting. “Some of that relates to the elimination of discretion on the part of local agencies.”

The developer and Workbench now must submit a full planning application that will require the approval of the Santa Cruz Planning Commission. The Mission Street project would be considered by Santa Cruz City Council if it is appealed after the planning commission’s decision.

Workbench has several other Santa Cruz housing projects and proposals in the works, including the Food Bin redevelopment, the Downtown Santa Cruz Clocktower proposal and Art Haus Ocean on Ocean Street.

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