Decision day looms for Santa Cruz’s dueling affordable housing ballot measures
In little more than a week, voters in the city of Santa Cruz will head to the polls to decide on a pair of dueling ballot measures aimed at creating new real estate taxes to fund affordable housing programs.
The road to the Nov. 4 vote has been long and rocky, starting with a public meeting hosted by Mayor Fred Keeley in May 2023 that eventually led to Measure C, known as the Workforce Housing Affordability Act. Earlier this year, the Santa Cruz County Association of Realtors countered with Measure B, the similarly named Workforce Housing and Climate Protection Act, openly designed to defeat C.
Tensions rose across the city as both sides qualified for the ballot. Both require at least 50%+1 of the vote to pass, and the one with the greater “yes” vote over that threshold will prevail.
Measure C proposes a $96 annual parcel tax and a graduated real estate transfer tax that starts at home sales above $1.8 million, with the total transfer tax capped at $200,000 per transaction. It aims to raise $4.5 million a year. Supporters say most funds would flow into a fund with strict oversight that will help pay for low-income housing and homelessness programs.
Measure B has a similar two-tax structure but sets a lower parcel tax ($50) and imposes a transfer tax only on home sales above $4 million, with a $100,000 cap per transaction. Realtors have framed it as a more transparent alternative that reduces the costs and risks to many sellers, while also helping to create new funding for climate-related projects. (See Lookout’s explainer on the competing measures.)
Supporters of C say Santa Cruz needs sustained local revenue to keep affordable projects moving and to prevent homelessness, with exemptions for lower-income and senior homeowners. They contend that Measure B would raise far less money and aims to confuse voters. Realtors have countered that Measure C would unfairly burden homeowners and that it’s a city-backed measure disguised as a grassroots citizen initiative.
The vote is also a major test for Keeley, the city’s first full-time mayor, who pledged during his 2022 election campaign to help steer an affordable housing bond onto the ballot as part of an effort to help solve homelessness in Santa Cruz. – Tamsin McMahon
—
FOR THE RECORD: This text was update to clarify that both measures must pass with more than 50% of the vote and the one with the greater “yes” vote over that threshold will prevail.
—
POINTS FOR PARTICIPATION
Expanding pickleball options: There’s a packed agenda for the Santa Cruz City Council’s Tuesday meeting. Councilmembers are set to approve an agreement with UC Santa Cruz to convert two university-owned tennis courts at the school’s Westside Research Park to eight pickleball courts for public use. The courts are located at 2300 Delaware Ave.
Under the agreement, the city would hire and oversee a contractor to renovate the courts and the city would do the groundskeeping. The city would pay no more than $105,000 in renovation costs to convert the courts, per the agreement. – Hillary Ojeda
Lompico emergency route: The city council is also set to approve a resolution to allow the County of Santa Cruz to construct and maintain a new emergency route for the Lompico Canyon community partially through city property. City staff say the new route won’t interfere with city operations and is intended to create another evacuation route for the community – which currently has just one road in and out. Lompico Canyon is a high-risk, mountainous area and is vulnerable to wildfires and storms. The road would go partially through city property in the Newell Creek Watershed off Newell Creek Road. – Hillary Ojeda
Outdoor dining extension: Five years on from the pandemic and many Santa Cruz businesses have continued to enjoy temporary rules that allow them to operate outdoor patios that extend to some public streets and private property. The city’s ordinance authorizing the outdoor spaces was set to expire July 1, 2026. But with challenges such as the Murray Street Bridge closure putting stress on businesses in the area, the city council will have a second reading to extend the rules three years, through July 1, 2029. – Max Chun
Coastal resilience planning: The fragility of the coastline has been especially topical since the torrent of atmospheric rivers battered the county in winter 2023. The Santa Cruz community and city leaders have been exploring ways to protect the coast from erosion well into the future. On Tuesday, the Santa Cruz City Council will receive a staff report on ways the city can preserve its coastline, neighborhoods and natural resources for the next 20 years. The plans include projects and potential efforts for areas such as West Cliff Drive, Main/Cowell beaches, and Seabright/East Cliff Drive. The long-term planning effort includes community meetings, a project website and various presentations to the city council and committees. – Max Chun
Flock cameras: The Santa Cruz Police Department will brief the Santa Cruz Public Safety Committee on how its automated license plate reader cameras have been used, and its policies. The department’s eight cameras averaged 6,200 scans daily, according to the report. The cameras were used to help solve crimes within the city, including locating a vehicle associated with a burglary, and two others in Aptos. Similar to Watsonville’s policy, information gathered by the cameras is stored for 30 days and cannot be shared for immigration enforcement purposes. Throughout the county, there has been a growing opposition to the use of the automated license plate reader cameras, with many residents citing immigration concerns. That meeting starts at 4 p.m. Wednesday in the Santa Cruz City Council chambers at 809 Center St. – Tania Ortiz
Capitola Mall: The Capitola City Council and its commissions will be hashing out details surrounding plans to start redeveloping the Capitola Mall, starting with developing zoning code amendments and the standards that the project will be held to in the coming months. On Thursday, the Capitola Planning Commission will hear and provide feedback on a number of components, including objective design standards, height, the size of the building’s total floor area to the total lot area that it’s situated on, parking requirements and allowed uses. The meeting starts at 5 p.m. on Thursday in the council chambers at 420 Capitola Ave. – Max Chun
Battery storage in South County: District 4 County Supervisor Felipe Hernandez is hosting a town hall Monday night in Watsonville to discuss the county’s efforts to create an ordinance regulating the development of battery storage facilities. Community members will have the opportunity to ask county planning staff any questions they might have about the proposed ordinance, which will have its first hearing on Nov. 18. The town hall starts at 5:30 p.m. in the Watsonville City Council chambers at 275 Main St.
Meanwhile, the Watsonville City Council on Tuesday night will decide whether to send a letter to county officials outlining concerns with a $200 million battery storage facility proposed by New Leaf Energy. The letter comes nearly two weeks after developers briefed city officials on the project, which is planned for just outside Watsonville city limits. That meeting starts at 5:30 p.m.
Later this week, New Leaf Energy is scheduled to give an informational presentation on its pending project to the Pajaro Valley Water Management Agency board of directors. That meeting starts at 9 a.m. Thursday at the Watsonville City Council chambers at 275 Main St. – Tania Ortiz
OF NOTE
PG&E outages: Mid-County residents have long complained about frequent power outages, which have gotten worse since the summer. At a packed community meeting last week, Pacific Gas & Electric gave residents a reason for the inconsistent service: a problem with voltage equipment at a substation had forced the utility to reroute its power lines through an area that is particularly vulnerable to fires and automatic safety shutoffs. A fix is on the way, the company said.
Workbench apartments: The county planning commission unanimously approved a 57-unit apartment project at 841 Capitola Rd. in Live Oak by local developer Workbench, citing the state’s builder’s remedy laws. Opponents said they plan to appeal the decision to the board of supervisors.
Watsonville PLA: The city and a local trades council are set to meet to try to find common ground on Watsonville’s project labor agreement, which sets wages, benefits and work rules on major city projects amid a heated debate. The next discussion is set for Nov. 5.
City of Santa Cruz workers authorize strike: Members of SEIU Local 521, representing about 800 Santa Cruz city workers, voted 96% to reject the latest contract offer by the city and authorize a strike, with mediation set for Thursday and no strike date yet.
RTC rail plan: The Santa Cruz County Regional Transportation Commission published the final concept report for its zero-emission passenger rail project on Friday, about six weeks ahead of a crucial December vote on whether to move on to environmental review or pause the effort. The 323-page report echoes June’s draft and keeps the $4.2 billion estimate but adds detail on funding, pointing to a mix of federal and state sources.