Road closures, loss of parking during downtown Santa Cruz library construction taking toll on surrounding businesses

Businesses near the new library and affordable housing project under construction in downtown Santa Cruz say foot traffic has decreased and parking is difficult for their customers. 

“We’re lucky, because we have a really strong base in Santa Cruz. But I can’t lie, the shutdown of the parking lots here has affected everyone,” said Zeus Fae, a bartender at Hula’s Island Grill on Cathcart Street. 

Fae told Lookout he has watched from behind the bar as cars circle the block four or five times. 

“I would think for a city that has a vision to grow its downtown, there would be some kind of a balance,” he said. “If we’re going to continue to modernize or update downtown Santa Cruz, adequate parking needs to be included.”

He said a downtown needs to be “equally inviting and welcoming, and ease of parking is one of the simple things you can do for civilians and pedestrians to demonstrate those things.”

The city’s mixed-use development on Lot 4 between Cathcart and Lincoln streets eliminated a parking lot; crews are using the smaller Lot 8, off Lincoln between Cedar Street and Pearl Alley, for staging for the development. Metered street parking on Cathcart, Lincoln and Cedar adjacent to Lot 4 is also unavailable during construction. And the owner of a business on Lincoln Street said the project frequently closes that street between Cedar Street and Pacific Avenue, causing his sales to suffer.

The development is one of many projects in downtown Santa Cruz as the area evolves to add more dense housing.  

The city broke ground on the project last August after demolition of the old Toadal Fitness building. The project includes a 123-unit affordable housing complex, 41,000-square-foot library, a 240-space parking garage, a child care center and commercial space. The new library is scheduled to open in spring 2028. 

“We can’t get people in the door if they can’t park,” said Miles Potter, operations manager at Spokesman Bicycles on Cathcart Street. He noted that the construction does not make the area look inviting. 

Nevertheless, customers are “making a vested effort to come in,” he said. “With the support of our community we can push through to the other side.” 

Irene Ma, a manager at Lúpulo Craft Beer House on Cathcart Street, has also seen less foot traffic and heard complaints from customers about the noise and dust. 

“It has been detrimental to business,” she said of the construction.

Scott Edelstein, who owns Izzy’s Ices on Lincoln Street, said his business is down 28% since construction started in August.

“It’s hurting my livelihood, my ability to pay my bills,” he said. 

“I still have to pay [Pacific Gas & Electric] for the same amount of energy every single day. I still have to pay my landlord. I still have to pay my employees. And I still have to pay everybody the same amount, regardless of whether the foot traffic is here. So that’s what I’m worried about.”

He said the city alerted him that Lincoln Street would be closed for concrete pouring for two days. The road has been closed almost daily between 7 a.m. and 4 p.m, he said.

“I feel like Santa Cruz definitely needs a little more growth,” Edelstein said. “I understand it. I just don’t understand why it all has to happen at once, and I don’t understand why there’s not better communication” between city officials and businesses.

He said this is the latest in a series of blows to the block. Edelstein opened his Italian ice shop in September 2023. Since then, Cafe GSC, vintage store Cat’s Meow, Toadal Fitness and nearby New Leaf Community Market closed or relocated. Plus, the downtown Santa Cruz farmers market, which took place on Lot 4, moved. 

“That was another thing that brought me to this spot,” he said. 

“We took a chance in ‘23 thinking we would be a part of the rebirth,” he said. “But I’m about to come to the end of a lease pretty soon. … And so we’re trying to decide, do we stay downtown or not? And I don’t know that we will.”

Brian Borguno, development manager in the city’s department of economic development, said the city’s goal is to have Lincoln Street closed as little as possible. Crews will be closing the street for four days for concrete pours, “and potentially surrounding the days that they’re pouring,” he said. “Outside of that, it should be very infrequent.”

The concrete pours are scheduled for January through February and possibly into March depending on weather and progress at the site. 

“And then once they finish that, we should see less and less impact to Lincoln Street closing,” Borguno said. 

Borguno said Cedar and Cathcart streets might continue to see lane closures as crews move around the library construction site. Because Lincoln Street is a narrower, one-way street, there isn’t a safe way to move equipment there without closing the road, he said. 

“Right now we’re at the beginning phases where probably the highest impact and the heaviest construction work is occurring to get things moving,” he said. 

After crews finish the first floor, they’ll be able to keep the work within the perimeter of the site more as the building grows vertically. 

Borguno said he has heard concerns from some businesses about the compounding effect of so many construction projects downtown, both public and private, putting constraints on people visiting. That might be the case at times, “but we’ve seen lots of activity continue to increase,” he said.

For example, he said, the farmers market has seen some of its busiest days at its new location up Cedar Street. 

The city created a map to help drivers find alternative parking downtown. 

Borguno said the new development will include a public parking garage. Plans call for crews to finish the housing development, the parking garage and the structural framework for the library around the end of 2027. The current timeline for opening the housing and garage is late 2027. The city will choose a contractor to build the interior of the library, which is scheduled to open in spring 2028.

Metered parking on the streets adjacent to the construction will remain unavailable for much of the project’s duration. Some portions could reopen at the end of 2027. 

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