A proposed building on Front Street would occupy an entire city block between Spruce and Laurel streets. (Contributed — AO Architects)

SANTA CRUZ >> An eight-story proposed housing development is up for approval at the Santa Cruz Planning Commission on Thursday. The project at Front and Laurel streets, now occupied by Ace Hardware, would be among the first developments approved as part of the city’s Downtown Plan Expansion. 

Plans for the project at 201 Front St. include:

• 245 apartments.
• Space for ground floor shops, restaurants and live/work units.
• 257 parking spaces for residents.
• New bike lanes along Laurel and Front streets.
• Removal of 16 heritage trees.

After consideration by the planning commission, the project would also need approval from the Santa Cruz City Council. 

The proposal takes advantage of the Downtown Density Bonus, a city effort to sway developers from pursuing the maximum heights allowed under state laws. In exchange, the city would waive the requirement for 20% of the units to be offered below market rate. Instead, developer Lincoln Property Co. would pay for part of a separate affordable housing project downtown.

That project, helmed by CRP Affordable Housing and Community Development, is set to replace the ten-unit Neptune Apartments at 407 Pacific Ave. with an eight-story building offering 101 below-market-rate units. Lincoln Property would pay $4.25 to CRP to reimburse the nonprofit developer for the purchase price of the Neptune Apartments.

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.