County planning commission approves Workbench project on Capitola Road; neighbors plan appeal

A contentious housing project in Live Oak led by local development and architecture firm Workbench is moving forward after winning unanimous approval from the Santa Cruz County Planning Commission, despite some nearby residents expressing concerns over traffic and parking. 

The 57-unit project at 841 Capitola Rd., near 7th Avenue, was approved by the commission Wednesday afternoon in large part because it uses the state’s builder’s remedy mechanism, which allows developers to bypass local zoning laws if a jurisdiction does not comply with state housing development requirements. 

“We are in a tough moment here,” commission chair Trina Barton told the nearly dozen neighbors who turned out at the meeting to oppose the project. “We want to make this project better for you, but our hands are tied, and it’s very frustrating for us” to be subject to builders’ remedy rules.

The nearly three-hour discussion focused on residents’ traffic concerns. Commissioners went back and forth on ways to mitigate safety issues on Grey Seal and Capitola roads, as the project will bring more cars driving in and out of the cul-de-sac to the apartment complex. 

Mike Reis, who lives on Grey Seal Road, said Workbench’s development is proposing to use the cul-de-sac “as a driveway.” In Workbench’s plan, vehicles will have access to the complex and its parking lot via Grey Seal Road. Other residents worried that the increase in traffic will make the typically quiet and calm road less safe for children to play outside. 

Reis added that the housing development does not provide enough parking spaces for the 57 units, offering only 31 spaces for cars — which he’s worried could lead to all available on-street parking being taken up. 

Workbench senior developer Clay Toombs argued that the reduced parking spaces come down to giving residents of the complex the option to pay for a parking space or possibly opt to use a different means of transportation. 

“That’s the whole purpose of reduced parking,” Toombs said. He added that the public street — Grey Seal Road — is for everyone, if parallel parking is available, and the 11 homes on the road have their own property to park their cars. 

Commissioners suggested different ideas on how to reduce traffic in the neighborhood, including creating an access point to the apartment complex through Capitola Road and making Grey Seal Road an exit for cars, or possibly creating a parking district — a geographical area, often in urban or commercial zones, that uses on-street parking revenue to fund local improvement projects. 

Both suggestions were ultimately turned down by county staff attending Wednesday’s meeting. Staff also raised concerns over existing traffic congestion on Capitola Road, adding that if the developer decides to create an entry point there, a traffic engineer would need to assess the impacts and most likely need a traffic light installed. 

Reis told Lookout he believes the county’s housing element was actually in compliance with the state housing development requirements at the time Workbench submitted its project application, after obtaining emails, via a public records request, between county planning staff and the state department of housing. According to the emails, the county’s housing element was in compliance by March 2024, and therefore the builder’s remedy should be revoked, he said. 

County staff argue that the housing element was not certified until April 2024, which allowed for developers to submit applications to qualify under the builder’s remedy. The state certified the county’s housing element on April 12, 2024. Workbench submitted a preliminary application for the project on April 9 of that year and a formal application on Oct. 3, according to the county’s website.

Reis said the next step for him and fellow residents is to file an appeal against the decision to the Santa Cruz County Board of Supervisors. 

The 57-unit rental project planned for 841 Capitola Rd. has undergone a lot of changes since it was first proposed in 2022, primarily due to escalating mortgage costs. 

The project was first envisioned as 15 single-family homes, each with its own attached accessory dwelling unit (ADU). Workbench CEO Tim Gordin previously told Lookout that these homes were intended for first-time homebuyers. 

But by 2023, as mortgage rates peaked, the firm reimagined the project as an apartment building. Developers also added four affordable units to the project. 

Earlier this year, the project was planned for 63 units, later downsized to 57, County Community Development and Infrastructure spokesperson Tiffany Martinez previously told Lookout. 

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