A proposal on the 900 block of Ocean Street next to Marianne’s Ice Cream includes 389 homes on 4.15 acres. (BDE Architecture)

“That’s the way to do things,” said Santa Cruz Planning Commissioner Rachel Dann. “You talk through things, you make adjustments where you can,” she said. “Congratulations on designing a good project.”

Developers from High Street No. Cal. Development Inc. are not based in Santa Cruz, Planning Commissioner Timerie Gordon said, but their work was done “more thoughtfully than some local developers.” She added, “It will be a big change, but it will be a welcome one.”

The block slated for redevelopment has been blighted for at least a decade, a representative of Grant Park Neighbors said. Construction is expected to start in spring 2026 and last about two years, developers said.

The proposal

The proposal spans 4.15 acres and merges 21 lots on Ocean Street, Hubbard Street and May Avenue. Marianne’s Ice Cream at 1020 Ocean St. is on one end, and the project includes the property where Togo’s sandwich shop stands at 902 Ocean St. on the other side.

Five-story apartments are planned on Ocean Street and three-story apartments in two buildings on May Avenue. A public paseo, barbecue areas and other public spaces would connect the two streets and run through the center of the project. 

State law requires no new parking, but 415 new spots are planned mainly underground, as well as 494 bike parking spaces. Electric vehicle charging is planned, as well as a surf shop, pet grooming and ground-floor commercial spaces on Ocean Street.

The plan also would:

• Demolish 12 homes and four commercial buildings.
• Build studios, one-, two-, three- and four-bedroom apartments, with 35% of the units two bedrooms or more.
• Rent 54 homes below market rate, with 36 of those homes for tenants with “very low income” and 18 units for “low income” tenants, according to state-set income limits. 
• Add 19 light poles on May Avenue, Ocean Street and Hubbard Street.
• Remove 35 trees and plant 98 new trees.
• Have trash collection within the project rather than on the street, per some neighbors’ request.
• Rent tenant parking spaces separately from apartments to encourage carless households.

The planning commission voted 4-0 to certify an environmental impact report and approve permits for demolition, design, special use, land division, density bonus and Heritage Tree removal. The commission added a condition that final colors and materials of the project must be approved at a Santa Cruz Zoning Administrator meeting.

Vice Chair Michael Polhamus and Commissioners Gordon, Dann and Matthew Thompson voted yes. Chair Julie Conway and Commissioner John McKelvey were absent, and Commissioner Pete Kennedy recused himself. 

Santa Cruz City Council approval is not required for the project unless there is an appeal, Santa Cruz Senior Planner Ryan Bane wrote in an email.

Building A is five stories on Ocean Street, and buildings B and C are three stories on May Avenue. A public walkway runs through the center.  (BDE Architecture)

Proposals for the block have been in the works since 2018 with plans for 390 homes. A 2022 version included 351 homes.

The plan takes advantage of state density bonus rules, which allow developers to build housing developments higher and denser than allowed by zoning laws if they have a certain percentage of below-market-rate housing at specified levels of affordability.

In recent years, developers from High Street No. Cal. Development Inc. had extensive talks with members of Grant Park Neighbors about their concerns. The group formed in 2018 in part to improve safety at the park and discourage drug use and illegal activity.

Neighbors’ concerns

Linda Weyers, a representative of the group, said at Thursday night’s meeting that the developers “met many of our conditions,” including some traffic calming additions to May Avenue, a point of contact with neighbors and standards for street trees. 

“The poor condition of this part of Santa Cruz signals that it’s OK to participate in illegal activities,” Weyers said. She said she hoped the area would become a “pleasing gateway” to Santa Cruz rather than a “doormat that everyone wipes their feet on.”

Lots on 4.15 acres are proposed to be combined for a project on Ocean Street and May Avenue in Santa Cruz. (City of Santa Cruz)

The proposal calls for three-story homes on May Avenue. (BDE Architecture)

Four union carpenters spoke at Thursday night’s meeting, asking for union apprentices, journeymen and other union workers during construction. 

A woman who said she represented future tenants of the project also spoke in favor of it, signaling a need for more housing.

Racheal Murphy, owner of Callahan’s bar at 507 Water St. near the project, said she couldn’t wait for new homes to be built. “We need this to come,” Murphy said. 

She said bar staff often lock gates and bathrooms for security reasons, and its staff sometimes has to clean up others’ messes. “Time is of the essence for us that are trying to stay above the water line,” she said. The project is poised to “change everything.”

A rendering shows proposed homes on May Avenue. (BDE Architecture)

Three-story apartments are in plans for May Avenue. (BDE Architecture)

Marianne’s Ice Cream Co-owner Charlie Wilcox said he supports the project and traffic is key to the business and its 100 employees countywide. (BDE Architecture)

A public walkway is expected to connect May Avenue and Ocean Street. (BDE Architecture)

Hovering cars aside, a rendering shows what builders expect on Ocean Street in 2028. (BDE Architecture)

Lots on Ocean Street and May Avenue are proposed to be combined for new housing and commercial space. (Brian Phan — Santa Cruz Local file)

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