The Scotts Valley Town Center plan stretches across 58 acres in the center of the city, including commercial spaces east of Kings Village Road. (Amaya Edwards — Santa Cruz Local/CatchLight Local)
SCOTTS VALLEY >> The timing might finally be right to bring dreams of a new Town Center in Scotts Valley to fruition. The city is in negotiations with San Jose-based developer Swenson to hammer out a plan that could bring more than 300 new homes to the 58-acre area.
The exclusive negotiation agreement — in which the city agreed to only negotiate with Swenson and not any other developers — is a six-month process where the city will work to refine Swenson’s design proposal. The city council chose Swenson during a meeting on June 17 and negotiations are expected to last through 2026.
The Town Center project has been a long time coming, facing delays that were sometimes out of the city’s control. It is envisioned as the new heart of Scotts Valley, a walkable downtown with shops and housing. Swenson is proposing 200 below-market-rate units at ranging levels of affordability.
The original plans were approved in 2008 but were stymied as the Great Recession took hold of the economy. More roadblocks arose in the 2010s up until 2023 with developers backing out of the project because the City of Santa Cruz owned a portion of the former Santa Cruz Skypark Airport.
Scotts Valley City Councilmember Derek Timm pointed out that the timing of this project has also been challenging as the rise of online shopping cut demand for brick-and-mortar retail spaces.
“We’ve secured all the land rights we needed. We’ve done the cleanup on the site. We’ve done everything to get the project,” Timm said. “We’re excited to be at that stage finally.”
A rendering shows a potential design for part of the Town Center. (City of Scotts Valley)
The latest Town Center Specific Plan, which was adopted on Dec. 17, 2025, has fewer commercial and more residential areas than the 2008 plan, according to Scotts Valley City Manager Mali LaGoe.
Scotts Valley leaned heavily on the Town Center’s potential for new housing to meet requirements in its latest Housing Element, a state-mandated plan for housing development that cities and counties must complete every eight years. In the document, the Town Center is described as potentially able to accommodate more than 400 low-income homes.
Scotts Valley must permit 649 low- and very-low-income homes by 2031 to meet state development benchmarks meant to alleviate California’s housing affordability crisis.
Swenson’s proposal will have to include a minimum of 300 housing units with a significant portion being below-market-rate. LaGoe said the city is glad to be working with a developer that has ties to Santa Cruz County.
“Swenson was clearly more invested in the project,” LaGoe said. “We wanted a developer that not only knew how to build housing but also commercial areas because it is a town center. It’s not just a housing development.”
Many acres of vacant land are set to be developed as part of the Town Center project. (Amaya Edwards — Santa Cruz Local/CatchLight Local)
Even as the city continues to push to make the Town Center a reality, many residents have given up on that dream. Some even consider it a running joke. Julia Monahan is a resident of an unincorporated area near Mt. Hermon Road. She’s lived and worked in Scotts Valley at different points within the last 23 years. She said she was excited when she first heard about the Town Center idea in the early 2000s, but since the project has dragged on she’s lost her initial enthusiasm for it.
“For those of us that live near what would be the Town Center, it just feels like more empty promises for this vision that hasn’t been built,” Monahan said.
Residents will have more chances to voice their thoughts on the project. Once negotiations are completed, expected to wrap up at the end of this calendar year, then Swenson can prepare and submit an actual project application to the Scotts Valley Planning Department.
“We haven’t really decided or figured out if there will be additional public meetings or when would make the most sense to do those,” LaGoe said. “But certainly in 2027, there will be planning commission and city council meetings that people can attend and learn more and express their thoughts about the project.”
A sign advertises future retail space for lease. (Amaya Edwards — Santa Cruz Local/CatchLight Local)
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Amaya Edwards is Santa Cruz Local's Photo and Social Media Journalist. She is a Catchlight Local Fellow.
