Ninety-seven townhouses were proposed on a 6.4-acre property on Meder Street. (SDG Architects)

SANTA CRUZ >> A proposal for 97 townhomes on Meder Street in Santa Cruz was withdrawn last week by developer KB Homes South Bay Inc. Plans included 18 three-story buildings across a 6.4-acre property.

The development was planned across from Beit Shalom cemetery and University Terrace Park. It was submitted to the city in October 2024. A full application was never submitted, according to city records, but a preapplication was deemed complete in February and a community meeting was held in March.

City planner Rina Zhou on Monday said the city did not know why the developer scrapped the project. A representative of KB Homes declined to comment.

In July, a different developer backed out of a 389-unit project on Ocean Street, possibly due in part to rising construction costs. The developer later said they hoped to revive the project on a smaller scale.

Read more about 430 Meder St. on Santa Cruz Local’s housing project tracker.

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