A rendering of a proposed apartment complex at 3500 Paul Sweet Road in Live Oak. (Workbench)

SANTA CRUZ >> The Santa Cruz County Planning Commission on Wednesday will weigh in on a six-story housing proposal in Live Oak that has elicited concerns from nearby Dominican Hospital and residents of Dominican Oaks senior housing. 

The proposed development at 3500 Paul Sweet Road would consist of 105 rental units, including six homes for extremely low-income households, based on state-set income limits. In 2025, an individual that made $41,550 or less before taxes would be considered extremely low income. The 105 units would be a mix of studios, one-bedroom and two-bedroom apartments.  

The project would include a 68-space parking garage, a common area terrace, covered bicycle parking and electric vehicle charging stations.    

The developer, Santa Cruz-based Workbench, has several other local multi-story projects underway. For the Paul Sweet Road complex, Workbench invoked a state rule known as the Builder’s Remedy, which allows developers to bypass certain zoning rules if a county or city doesn’t have a state-approved Housing Element in place.

The latest Housing Element, a state-mandated plan for housing over an eight-year period and intended to help address the state’s chronic housing shortage, was due in December 2023. But Santa Cruz County’s plan was not certified until April 23, 2024, one day after Workbench filed a preliminary application for 3500 Paul Sweet Road, according to Planning Commission documents. 

A law firm retained by Dominican Hospital and Dominican Oaks — which are owned by the same parent company — is arguing that Workbench shouldn’t qualify for the Builder’s Remedy in this case. It claims the county was in full compliance with the Housing Element by April 12, 2024. 

Moreover, “we have not been able to find an example where [the Builder’s Remedy] applies so close to a hospital or a senior living facility,” said Amy Saulnier, executive director at Dominican Oaks. Workbench representatives declined to comment. 

The developer is involved in a pending legal dispute over another housing proposal in Live Oak relating to the Builder’s Remedy. Following the approval of a five-story apartment building at 841 Capitola Road by the planning commission in October, a group of Live Oak neighbors opposing it have issued an appeal and threatened a lawsuit. If county supervisors deny the project, Workbench said they may sue on the grounds that the county isn’t obeying state housing laws.

The half-acre parcel on Paul Sweet Road is surrounded on three sides by Dominican Oaks, and contains an uninhabited single-family residence and two sheds. Workbench’s plans call for knocking down these structures, along with 39 trees. Construction is scheduled to begin next year. 

Saulnier, as well as several residents from Dominican Oaks, said noise and construction dust would prevent them from opening their windows, a necessity since they don’t have air conditioning. Once completed, the new building would then block the sun for two wings of the 206-unit senior housing complex, Saulnier said.

Other concerns shared by residents and staff include possible interference with the flight path of helicopters traveling to and from Dominican Hospital, and that increased road traffic would reduce ambulance response times. A delay of “a few minutes is life or death when it comes to emergency access,” said Rachel Howley, vice president of ancillary services at Dominican Hospital. 

Howley added that Workbench’s fire safety plans were inadequate, with a directive for responding fire engines to block the entryway to Dominican Oaks. “There’s no way [an evacuation] could be done timely and safely, especially when you’re talking about residents that all have mobility challenges,” Howley said.

“We’re not against housing” at this site, Howley said, “we’re just requesting responsible housing.”

Supporters of the project include local affordable housing organizations and the Santa Cruz Area Chamber of Commerce. 

Elaine Johnson, executive director of Housing Santa Cruz County, wrote in a letter that the six extremely low-income units represented “the largest per-unit rental subsidy we have seen in any local project to date,” and that the complex as a whole offered a “rare opportunity for diverse residents to live affordably in a high-opportunity neighborhood.”

Workbench staff will present during Wednesday’s planning commission meeting. The commission could decide to approve the project, demand edits to the plans, or table the discussion for a future meeting. Any appeal by the hospital or retirement community would then head to the Santa Cruz County Board of Supervisors.

Questions or comments? Email [email protected]. Santa Cruz Local is supported by members, major donors, sponsors and grants for the general support of our newsroom. Our news judgments are made independently and not on the basis of donor support. Learn more about Santa Cruz Local and how we are funded.