A seven-story building with below-market-rate studio apartments for older adults is proposed in Downtown Santa Cruz. (McSorley Architecture)

SANTA CRUZ >> A proposal for a seven-story building in Downtown Santa Cruz has been submitted for a site scouted by Ryan Coonerty, candidate for Santa Cruz Mayor. The project would replace the two-story Dell Williams jewelry store building at 1320 Pacific Ave. owned by Coonerty’s wife and mother-in-law.

The proposed building next to the Palomar Inn would have 38 below-market-rate homes for older adults. It would also include shops on the bottom floor and common space for residents on the second floor, including a community kitchen, meeting room and fitness room. The project does not include any parking, as permitted by state laws.

A proposed building next to the Palomar Inn would use modular construction, where parts of the building are built elsewhere and assembled onsite. (McSorley Architecture)

Streamlined approval process

The proposal uses AB 2011, a state law that allows approval by city staff, without public hearings, for commercial buildings redeveloped to include housing. However, it’s also seeking for the city to cede about 10 feet of a stretch of the alleyway behind the building — which does require a Santa Cruz City Council vote.

An appraiser is now determining the monetary value of the strip of land, said Santa Cruz Housing Development Manager Jessie Bristow. After that process, the city council and developers would negotiate on an agreement to transfer the property in a closed session of a city council meeting, Bristow said. If an agreement is reached, it would be discussed and voted on in public, during an open session of a council meeting, he said.

If city council approves the expanded footprint, the project would be approved as soon as the developer, Arcata-based Danco Group, submits a complete application that complies with city rules. An application submitted earlier this year was deemed incomplete and has been returned for additional information, said Senior Planner Ryan Bane.

Coonerty family connection

Dell Williams — and the land to be redeveloped — is owned by Emily Coonerty, the wife of mayoral candidate Ryan Coonerty, and Emily Coonerty’s mother, Cindy Bernard. The two intend to continue the Dell Williams business in the new building, Ryan Coonerty said.

Ryan Coonerty helped facilitate the deal with Danco after being hired as a consultant to find a suitable location for the project. That contract ended May 2025, he said.

Ryan Coonerty also consulted for developers on other projects in the city in 2024 and 2025, including the Cruz Hotel, 201 Front St. and an apartment complex on Delaware Avenue leased to UC Santa Cruz for students and staff.

“I was trying to help projects that I agreed with get the community and city support necessary to get across the finish line,” he said.

As part of his contract with landowners and developers for the 201 Front St. project, he has also had conversations with leaders of the Santa Cruz Warriors about their future plans for a stadium, he said. The contract ended July 2024, and Coonerty said he remains “involved in ongoing talks with the Warriors” without pay.

He said his most recent contract with a developer ended in August 2025, for an unannounced project from Owen Lawlor Land Use outside of city limits. Coonerty said his experience working with developers would not conflict with his potential decisions as mayor and that he would recuse himself from any decisions related to the Dell Williams building, or any other matters advised by the city attorney.

“I’m going to abide by the letter and spirit of the law,” he said.

Editor’s note: This story was updated to clarify Ryan Coonerty’s role in the new development and correct details of the existing building.

The building would include 38 below-market-rate homes for older adults and one market-rate unit for a building manager. (McSorley Architecture)

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