Chapter 17.88
INCENTIVES FOR COMMUNITY BENEFITS Revised 6/18

Sections:

17.88.010    Purpose. Revised 6/18

17.88.020    Incentives restricted to added benefits. Revised 6/18

17.88.030    Eligibility. Revised 6/18

17.88.040    Allowable benefits. Revised 6/18

17.88.050    Available incentives. Revised 6/18

17.88.060    Relationship to state density bonus law. Revised 6/18

17.88.070    Application submittal and review. Revised 6/18

17.88.080    Findings. Revised 6/18

17.88.090    Post-decision procedures. Revised 6/18

17.88.010 Purpose. Revised 6/18

This chapter establishes incentives for applicants to locate and design development projects in a manner that provides substantial benefits to the community. These incentives are intended to facilitate the redevelopment of underutilized properties along 41st Avenue consistent with the vision for the corridor described in the general plan and to encourage the development of a new hotel in the Village as called for by the general plan. (Ord. 1017 § 2 (Exh. A) (part), 2018)

17.88.020 Incentives restricted to added benefits. Revised 6/18

The city may grant incentives only when the community benefits or amenities offered are not otherwise required by the zoning code or any other provision of local, state, or federal law. Community benefits or amenities must significantly advance general plan goals and/or incorporate a project feature that substantially exceeds the city’s minimum requirements. (Ord. 1017 § 2 (Exh. A) (part), 2018)

17.88.030 Eligibility. Revised 6/18

A. Eligibility for Incentive. The city may grant incentives for the following projects:

1. Projects in the regional commercial (C-R) and community commercial (C-C) zoning districts that:

a. Front 41st Avenue; or

b. Front Capitola Road between Clares Street and 42nd Avenue; or

c. Are located on the Capitola Mall site.

2. A hotel on the former Capitola Theater site (APN 035-262-04, 035-262-02, 035-261-10) in the mixed use village zoning district.

B. Setback Required – 41st Avenue. Structures on properties fronting the east side of 41st Avenue must be set back a minimum of one hundred feet from the property line abutting a residential property. (Ord. 1017 § 2 (Exh. A) (part), 2018)

17.88.040 Allowable benefits. Revised 6/18

A. All Eligible Projects. The city may grant incentives to all eligible projects as identified in Section 17.88.030 (Eligibility) that provide one or more of the following community benefits. The public benefit provided shall be of sufficient value as determined by the planning commission to justify deviation from the standards of the zoning district that currently applies to the property.

1. Public Open Space. Public plazas, courtyards, and other public gathering places that provide opportunities for people to informally meet and gather. Open space must be accessible to the general public at all times. Provision must be made for ongoing operation and maintenance in perpetuity. The public space must either exceed the city’s minimum requirement for required open space and/or include quality improvements to the public realm to create an exceptional experience.

2. Public Infrastructure. Improvements to streets, sidewalks, curbs, gutters, sanitary and storm sewers, street trees, lighting, and other public infrastructure beyond the minimum required by the city or other public agency.

3. Pedestrian and Bicycle Facilities. New or improved pedestrian and bicycle pathways that enhance the property and connectivity to the surrounding neighborhood.

4. Transportation Options. Increased transportation options for residents and visitors to walk, bike, and take public transit to destinations and reduce greenhouse gas emissions.

5. Historic Resources. Preservation, restoration, or rehabilitation of a historic resource.

6. Public Parking. Public parking structure that provides parking spaces in excess of the required number of parking spaces for use by the surrounding commercial district. Excess parking provided as part of a Village hotel may not be located on the hotel site and must be located outside of the mixed use village zoning district.

7. Green Building. Green building and sustainable development features that exceed the city’s green building award status.

8. Public Art. Public art that exceeds the city’s minimum public art requirement and is placed in a prominent and publicly accessible location.

9. Other Community Benefits. Other community benefits not listed above, such as entertainment destinations, as proposed by the applicant that are significant and substantially beyond normal requirements.

B. 41st Avenue/Capitola Road Projects. In addition to the community benefits in subsection A of this section, the city may grant incentives to eligible projects fronting 41st Avenue or Capitola Road between Clares Street and 42nd Avenue or on the Capitola Mall site that provide one or more of the following community benefits:

1. Capitola Mall Block Pattern. Subdivision of the existing Capitola Mall property into smaller blocks with new intersecting interior streets. May include the extension of 40th Avenue south into the mall property to form a new pedestrian-friendly private interior street.

2. Surface Parking Lot Redevelopment. Redevelopment of existing surface parking lots fronting 41st Avenue and Capitola Road while introducing new sidewalk-oriented commercial buildings that place commercial uses along the street frontage.

3. Transit Center. Substantial infrastructure improvements to the transit center on the Capitola Mall property that are integrated with a possible future shuttle system in Capitola. The transit center may be moved to an alternative location consistent with the operational requirements of Santa Cruz Metro.

4. Affordable Housing. Affordable housing that meets the income restrictions applicable in the affordable housing (-AH) overlay zone. (Ord. 1017 § 2 (Exh. A) (part), 2018)

17.88.050 Available incentives. Revised 6/18

A. 41st Avenue/Capitola Road Projects. The city may grant the following incentives to an eligible project fronting 41st Avenue, Capitola Road between Clares Street and 42nd Avenue, or on the Capitola Mall site:

1. An increase in the maximum permitted floor area ratio (FAR) to 2.0.

2. An increase in the maximum permitted building height to fifty feet.

B. Village Hotel. The city may grant the following incentives to a proposed hotel on the former Capitola Theater site (APN 035-262-04, 035-262-02, 035-261-10):

1. An increase in the maximum permitted floor area ratio (FAR) to 3.0.

2. An increase to the maximum permitted building height; provided, that:

a. The maximum height of the hotel remains below the elevation of the bluff behind the hotel; and

b. The bluff behind the hotel remains visible from the Capitola wharf as a green edge with existing mature trees maintained on site. (Ord. 1017 § 2 (Exh. A) (part), 2018)

17.88.060 Relationship to state density bonus law. Revised 6/18

The incentives allowed by this section are in addition to any development incentive required by Section 65915 of the California Government Code. (Ord. 1017 § 2 (Exh. A) (part), 2018)

17.88.070 Application submittal and review. Revised 6/18

A. Request Submittal. A request for an incentive in exchange for benefits shall be submitted concurrently with an application for the discretionary permits required for the project by the zoning code. Applications shall be accompanied by the following information:

1. A description of the proposed amenities and how they will benefit the community.

2. All information needed by the city council to make the required findings described in Section 17.88.080 (Findings), including a pro forma analysis demonstrating that the benefit of the proposed amenities to the community is commensurate with the economic value of the requested incentives.

B. Conceptual Review. Prior to city action on a request for an incentive, the request shall be considered by the planning commission and city council through the conceptual review process as described in Chapter 17.114 (Conceptual Review). Conceptual review provides the applicant with nonbinding input from the city council and planning commission as to whether the request for incentives is worthy of consideration.

C. Theater Site Story Poles. Prior to city action on a proposed hotel on the former Capitola Theater site the applicant shall install poles and flagging on the site to demonstrate the height and mass of the proposed project.

D. Planning Commission Recommendation. Following conceptual review, the planning commission shall provide a recommendation to the city council on the proposed project and requested incentives at a noticed public hearing in compliance with Chapter 17.148 (Public Notice and Hearings).

E. City Council Action. After receiving the planning commission’s recommendation, the city council shall review and act on the requested incentives at a noticed public hearing in compliance with Chapter 17.148 (Public Notice and Hearings). The city council shall also review and act on other permits required for the project requesting incentives. (Ord. 1017 § 2 (Exh. A) (part), 2018)

17.88.080 Findings. Revised 6/18

A. All Eligible Projects. The city council may approve the requested incentives for all eligible projects only if all of the following findings can be made in addition to the findings required for any other discretionary permit required by the zoning code:

1. The proposed amenities will provide a substantial benefit to the community and advance the goals of the general plan.

2. There are adequate public services and infrastructure to accommodate the increased development potential provided by the incentive.

3. The public benefit exceeds the minimum requirements of the zoning code or any other provisions of local, state, or federal law.

4. The project minimizes adverse impacts to neighboring properties to the greatest extent possible.

B. Village Hotel. In addition to the findings in subsection A of this section, the city council may approve the requested incentives for a proposed hotel on the former Capitola Theater site only if the following findings can be made:

1. The design of the hotel respects the scale and character of neighboring structures and enhances Capitola’s unique sense of place.

2. The hotel will contribute to the economic vitality of the Village and support an active, attractive, and engaging pedestrian environment.

3. The hotel design minimizes impacts to public views of the beach and Village from vantage points outside of the Village.

4. Parking for the hotel is provided in a way that minimizes vehicle traffic in the Village and strengthens the Village as a pedestrian-oriented destination. (Ord. 1017 § 2 (Exh. A) (part), 2018)

17.88.090 Post-decision procedures. Revised 6/18

Post-decision procedures and requirements in Chapter 17.156 (Post-Decision Procedures) shall apply to decisions on incentives for community benefits. (Ord. 1017 § 2 (Exh. A) (part), 2018)