Residents ‘vehemently oppose’ proposed Catalyst project as developers, city officials present plans

A proposed development that would tear down The Catalyst nightclub and replace it with a multistory, mixed-use residential building was met with frustration and skepticism from residents during a meeting Thursday night at which representatives from the City of Santa Cruz, the developer and the architect gave more details about the project.

At a tense public meeting attended by around 150 residents and business owners, many argued that the project would “rip the heart out of downtown Santa Cruz” and pushed back on the idea that the music venue could be relocated to the ground floor of the new building.

Peter Given with Mountain View-based developer GSH Ventures, which filed a pre-application with the city in November, said he’s committed to working with The Catalyst to relocate and said he sees it as a new opportunity for the business to “optimize their space, update their infrastructure and enhance their musical offering to the community.”

Under the proposal, GSH Ventures would tear down 1009, 1011 and 1015 Pacific Ave., combine the three lots into one and build 64 residential units. The Catalyst currently occupies 1009 and 1011 Pacific Ave.

Longtime Catalyst manager Igor Gavric was pragmatic about the development; he said the building and venue are old and in poor condition, and won’t be able to sustain the business for much longer. He acknowledged that while change is difficult, he sees it as a possible opportunity to secure the venue’s longevity, albeit in a new way.

“Our full intent is to preserve The Catalyst,” said Gavric. “The historic nature isn’t the building – it’s The Catalyst itself.”

But community members asked Given how a music venue and residential units could sustainably coexist given noise concerns, and argued that the construction would further contribute to rising housing costs, traffic and destruction of Santa Cruz’s cultural institutions. Owners of businesses adjacent to the proposed project questioned the impact construction would have on their livelihoods.

Alyssa Pullen, owner of the Tea House Spa on nearby Elm Street, said she’s worried the construction could force her business to close. Not only is the back wall of her spa’s bamboo garden the wall of one of the buildings slated for demolition, but the new residential units also would look directly into the garden and private hot tub room. Jesse Cummings, owner of Catalyst Pacific Avenue neighbor Old School Shoes, wondered how long the project would take and expressed concern about how the adjacent construction might hurt his business.

Given said GSH Ventures hoped construction could be finished in 24 months, but acknowledged that that timeline was optimistic. He told residents and business owners that his development team is open to all feedback and is committed to “operating within all the means and methods to mitigate the impacts as much as possible.”

Many residents bemoaned the potential loss of a storied music venue that holds so many memories at a time when arts institutions around the country are shutting down.

Hector Marin, an educator at Harbor High School and 2024 Santa Cruz City Council candidate, described how his students love seeing live music at The Catalyst. He said he recognized the need for more housing, but didn’t think it had to come at the cost of destroying cultural institutions.

“We have more than 10,000 people who have signed our petition saying they don’t want to see The Catalyst demolished,” he said.

That online petition calls on the city to save The Catalyst and suggests that city officials could do so by declaring it a historic preservation cultural landmark. But city officials say their hands are tied when it comes to stopping the development.

“The city recognizes the importance of The Catalyst to Santa Cruz’s music and cultural scene,” said Rina Zhou, senior planner with the city. “However, the city is not involved in the negotiations between the developer and The Catalyst, and the city cannot require that The Catalyst remain in the project or occupy the future space.”

Zhou said the city’s economic development team is in discussions with The Catalyst to offer assistance if needed, and “if The Catalyst and the developer agree to keep the music venue in the new project, the city will work with the developer and The Catalyst to support their needs.”

Historic designation wouldn’t have any impact on the proposed project because of the existing conditions when the pre-application was completed. Under the California Environmental Quality Act exemption the applicants plan to use, if a site isn’t listed on a local, state or national register when the complete pre-application was filed, the site’s historic status (even if declared later) doesn’t affect an applicant’s ability to use that exemption.

“The city has very limited ability to require changes to the project outside of objective standards and conditions that were in place prior to the submission of the complete pre-application,” said Zhou. “The city will review the project for consistency with applicable objective development standards, consistent with local and state laws.”

The developer has until June to file a completed application, and after that, the proposed development will go to the city planning commission for a hearing before it goes to the city council.

Thursday’s meeting was recorded and will be posted on the city’s website here. Given said GSH Ventures also plans to host additional meetings in the coming months to provide more information as the project progresses.

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