The City of Santa Cruz said its downtown library mixed-use project will break ground before June after securing more than $110 million in state funding and tax credits.
The project received $55.1 million in state tax credits, along with $55.6 million in bond money, city officials said Thursday. According to the terms of the tax credit, the city must start construction no later than June.
The mixed-use development is a partnership between the city and nonprofit developers Eden Housing and For The Future Housing. It will turn a city-owned parking lot bounded by Cathcart, Cedar and Lincoln streets, known as Lot 4, into a complex that includes 124 affordable housing units, a new 41,000-square-foot library, a child care center, commercial space and parking for 240 cars and 203 bikes.
The city said it also intends to plant 36 new trees to replace 12 that will be cut down during the construction. Of those, 14 will be planted on the site of the development and the rest at other locations in the city. The downtown farmers market, which has operated on the site for two decades, will be relocated to a new permanent location in downtown Santa Cruz, the city said.
The mixed-use library project faced significant opposition that culminated in a 2022 ballot initiative, Measure O, which sought to halt the project. Voters ultimately rejected the measure, allowing the development to proceed.
The library portion of the project will be paid for partly through funds from Measure S, a $67 million bond measure passed in 2016 to rebuild or remodel 10 county libraries.
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