Chapter 17.24 — COMMERCIAL AND INDUSTRIAL ZONING DISTRICTS Revised 6/26

Sections:

A. Community Commercial (C-C) Zoning District. The purpose of the C-C zoning district is to provide areas for a variety of commercial uses serving Capitola residents and visitors. The C-C zoning district allows for retail, restaurants, and services that meet the daily needs of the community. The scale, intensity, and design of development in the C-C zoning district shall be compatible with adjacent neighborhoods and contribute to Capitola’s unique coastal village character. Interspersed residential and office uses in the C-C zoning district shall support a diverse local economy and range of housing choices.

B. Regional Commercial (C-R) Zoning District. The purpose of the C-R zoning district is to provide areas for commercial uses that serve regional shoppers as well as Capitola residents, workers, and visitors. The C-R zoning district will maintain a critical mass of retail and service uses that maintain 41st Avenue as a successful retail destination. Office, medical, and residential uses will be restricted to protect the long-term economic vitality of the corridor. Incremental redevelopment of underutilized properties in the C-R zoning district will enhance the corridor as a pedestrian-friendly shopping destination that enhances Capitola’s unique identity and quality of life.

C. Industrial (I) Zoning District. The purpose of the I zoning district is to provide an area for heavy commercial and light industrial uses in Capitola. The I zoning district allows for nonresidential uses which are desired in the community but could be incompatible with land uses in other zoning districts. The I zoning district shall continue to accommodate businesses that contribute to a diverse economy, provide local jobs, and serve the needs of residents and other businesses in Capitola. (Ord. 1043 § 2 (Att. 2), 2020)

A. Permitted Land Uses. Table 17.24-1 identifies land uses permitted in the commercial and industrial zoning districts. The city council may approve a use not listed in Table 17.24-1 after receiving a recommendation from the planning commission and finding the use to be consistent with the general plan and the purpose of the zoning district.

Table 17.24-1: Permitted Land Uses in Commercial and Industrial Zoning Districts

Notes:

[1] Combination of two or more tenant suites within a multi-tenant building or greater than five thousand square feet requires minor use permit.

[2] Combination of two or more tenant suites within a multi-tenant building or greater than five thousand square feet requires conditional use permit.

[3] Without stock. Storage of merchandise limited to samples only.

[4] Prohibited within one hundred feet of a residential zoning district or residential use including residential properties outside the city limits. Distance is measured from any site feature designed and/or used to provide drive-through service (e.g., vehicle aisle, menu board, lighting) to the property of the residential district or use.

[5] Majority of vehicles for sale must be new.

[6] Mobile food vendors in one location four times or less per year are regulated as a temporary use in accordance with Section 17.96.180 and are allowed with an administrative permit in accordance with Chapter 9.36 of this code. Mobile food vendors in one location more than two times per year require a conditional use permit.

[7] Residential uses are prohibited on the first story.

[8] Maximum five thousand square feet.

[9] Allowed only as a part of a mixed use project integrated with commercial structures located on the same development site.

[10] Requires cannabis retail license (Chapter 9.61) and compliance with subsection D of this section.

[11] A retail use twenty thousand square feet or more requires a conditional use permit.

[12] See Section 17.96.210 (Demolition and replacement of dwelling units) for requirements that apply to new residential uses on sites identified as nonvacant in the general plan housing element inventory of land suitable for residential development.

B. Additional Permits. In addition to permits identified in Table 17.24-1, development projects in the commercial and industrial zoning districts may also require a design permit pursuant to Chapter 17.120 (Design Permits). Modifications to a historic resource may require a historic alteration permit pursuant to Chapter 17.84 (Historic Preservation). Development in the coastal zone may require a coastal development permit pursuant to Chapter 17.44 (Coastal Overlay Zone), independent of and in addition to any other required permit or approval.

C. Office Uses in the C-C and C-R Zoning Districts.

1. New Office Uses. In the C-C and C-R zoning districts, permits required for new office uses and conversions of nonoffice space to office use are shown in Table 17.24-2. Offices include professional, medical, financial institutions and governmental offices.

Table 17.24-2: Permitted New Office Uses in the C-C and C-R Zoning Districts

Notes:

[1] Allowed with a conditional use permit only in a multi-tenant building if one or more of the following conditions are met: (1) entry doors do not face an adjacent street frontage; or (2) the building does not front 41st Avenue or Clares Street.

[2] Permitted by right where: (1) entry doors do not face an adjacent street frontage; or (2) the building does not front 41st Avenue. Otherwise, a conditional use permit is required.

2. Existing Office Uses.

a. In the C-C and C-R zoning districts, office uses may continue to occupy existing office space. For purposes of this section, “existing office space” means any tenant space legally occupied by an office use; and vacant tenant space where the most recent legal occupant was an office use. The city shall use business license documentation to determine the legal occupancy of tenant space.

b. Offices are a permitted use in existing office space. A new office tenant may occupy existing office spaces without the permit requirements in Table 17.24-2.

D. Retail Cannabis. A retail cannabis establishment must be in compliance with the following standards:

1. Permit Requirements.

a. Cannabis Retail License. Prior to conditional use permit application, an applicant shall obtain a potential retail cannabis license from the city, as outlined in Chapter 5.36.

b. Conditional Use Permit. A retail cannabis establishment must obtain a conditional use permit from the planning commission. The retail cannabis establishment shall be in compliance with the following standards:

i. Distance from Schools and Churches. Retail cannabis establishments are not permitted within a path of travel of one thousand feet from any schools and churches. The path of travel shall be measured following the shortest path of travel along a public right-of-way from the property line of the proposed retail cannabis establishment parcel to the church or school.

ii. Distance Between Retail Cannabis Establishments. A retail cannabis establishment shall not be located within a path of travel of five hundred feet of another retail cannabis establishment. Path of travel is measured from the retail establishment suite on a multi-tenant property or the structure for a single-tenant property.

iii. Independent Access. A retail cannabis establishment shall have an independent exterior entrance that is not shared with any other business or residence.

iv. 41st Avenue Frontage. In the C-C zoning district, a retail cannabis establishment must be on a property fronting 41st Avenue. (Ord. 1066 § 2 (Att. 1), 2024; Ord. 1057 § 2 (Att. 1), 2022; Ord. 1043 § 2 (Att. 2), 2020)

A. Permitted Land Uses. Table 17.24-1 identifies land uses permitted in the commercial and industrial zoning districts. The city council may approve a use not listed in Table 17.24-1 after receiving a recommendation from the planning commission and finding the use to be consistent with the general plan and the purpose of the zoning district.

Table 17.24-1: Permitted Land Uses in Commercial and Industrial Zoning Districts

Notes:

[1] Combination of two or more tenant suites within a multi-tenant building or greater than five thousand square feet requires minor use permit.

[2] Combination of two or more tenant suites within a multi-tenant building or greater than five thousand square feet requires conditional use permit.

[3] Without stock. Storage of merchandise limited to samples only.

[4] Prohibited within one hundred feet of a residential zoning district or residential use including residential properties outside the city limits. No minimum distance requirement from residential uses on the Capitola Mall property. Distance is measured from any site feature designed and/or used to provide drive-through service (e.g., vehicle aisle, menu board, lighting) to the property of the residential district or use.

[5] Majority of vehicles for sale must be new.

[6] Mobile food vendors in one location four times or less per year are regulated as a temporary use in accordance with Section 17.96.180 and are allowed with an administrative permit in accordance with Chapter 9.36 of this code. Mobile food vendors in one location more than two times per year require a conditional use permit.

[7] Residential uses are prohibited on the first story, except on Capitola Mall housing element sites where ground-floor residential uses are allowed. See Section 17.24.035 (Capitola Mall redevelopment) for additional requirements on the Capitola Mall property.

[8] Maximum five thousand square feet.

[9] Allowed only as a part of a mixed use project integrated with commercial structures located on the same development site, except on Capitola Mall housing element sites where residential-only projects are allowed. See Section 17.24.035 (Capitola Mall redevelopment) for additional requirements on the Capitola Mall property.

[10] Requires cannabis retail license (Chapter 9.61) and compliance with subsection D of this section.

[11] A retail use twenty thousand square feet or more requires a conditional use permit.

[12] See Section 17.96.210 (Demolition and replacement of dwelling units) for requirements that apply to new residential uses on sites identified as nonvacant in the general plan housing element inventory of land suitable for residential development.

B. Additional Permits. In addition to permits identified in Table 17.24-1, development projects in the commercial and industrial zoning districts may also require a design permit pursuant to Chapter 17.120 (Design Permits). Modifications to a historic resource may require a historic alteration permit pursuant to Chapter 17.84 (Historic Preservation). Development in the coastal zone may require a coastal development permit pursuant to Chapter 17.44 (Coastal Overlay Zone), independent of and in addition to any other required permit or approval.

C. Office Uses in the C-C and C-R Zoning Districts.

1. New Office Uses. In the C-C and C-R zoning districts, permits required for new office uses and conversions of nonoffice space to office use are shown in Table 17.24-2. Offices include professional, medical, financial institutions and governmental offices.

Table 17.24-2: Permitted New Office Uses in the C-C and C-R Zoning Districts

Notes:

[1] Allowed with a conditional use permit only in a multi-tenant building if one or more of the following conditions are met: (1) entry doors do not face an adjacent street frontage; or (2) the building does not front 41st Avenue or Clares Street.

[2] Permitted by right where: (1) entry doors do not face an adjacent street frontage; or (2) the building does not front 41st Avenue. Otherwise, a conditional use permit is required.

2. Existing Office Uses.

a. In the C-C and C-R zoning districts, office uses may continue to occupy existing office space. For purposes of this section, “existing office space” means any tenant space legally occupied by an office use; and vacant tenant space where the most recent legal occupant was an office use. The city shall use business license documentation to determine the legal occupancy of tenant space.

b. Offices are a permitted use in existing office space. A new office tenant may occupy existing office spaces without the permit requirements in Table 17.24-2.

D. Retail Cannabis. A retail cannabis establishment must be in compliance with the following standards:

1. Permit Requirements.

a. Cannabis Retail License. Prior to conditional use permit application, an applicant shall obtain a potential retail cannabis license from the city, as outlined in Chapter 5.36.

b. Conditional Use Permit. A retail cannabis establishment must obtain a conditional use permit from the planning commission. The retail cannabis establishment shall be in compliance with the following standards:

i. Distance from Schools and Churches. Retail cannabis establishments are not permitted within a path of travel of one thousand feet from any schools and churches. The path of travel shall be measured following the shortest path of travel along a public right-of-way from the property line of the proposed retail cannabis establishment parcel to the church or school.

ii. Distance Between Retail Cannabis Establishments. A retail cannabis establishment shall not be located within a path of travel of five hundred feet of another retail cannabis establishment. Path of travel is measured from the retail establishment suite on a multi-tenant property or the structure for a single-tenant property.

iii. Independent Access. A retail cannabis establishment shall have an independent exterior entrance that is not shared with any other business or residence.

iv. 41st Avenue Frontage. In the C-C zoning district, a retail cannabis establishment must be on a property fronting 41st Avenue. (Ord. 1075 § 4 (Exh. A), 2026; Ord. 1066 § 2 (Att. 1), 2024; Ord. 1057 § 2 (Att. 1), 2022; Ord. 1043 § 2 (Att. 2), 2020)

A. General. Table 17.24-3 identifies development standards that apply in the commercial and industrial zoning districts.

Table 17.24-3: Development Standards in Commercial and Industrial Zoning Districts

Notes:

[1] Additional building height and FAR allowed for a housing development project that consolidates adjacent housing element opportunity sites. See Section 17.24.040(J) (Lot Consolidation Incentive). B. C-C Zoning District Fronting Capitola Road. The following requirements apply to C-C parcels fronting the south side of Capitola Road between 41st Avenue and 45th Avenue as shown in Figure 17.24-1:

1. Maximum height: thirty-five feet.

2. Minimum rear setback: forty feet. 3. Enhanced Application Review. A proposed project with a height greater than two stories shall comply with the following enhanced application review procedures: a. Conceptual Review. i. Prior to consideration of a formal application, the planning commission and city council shall provide conceptual review of a proposed project in accordance with Chapter 17.114 (Conceptual Review). Figure 17.24-1: Parcels Fronting Capitola Road Between 41st Avenue and 45th Avenue ii. Before planning commission and city council review, the applicant shall host at least one community workshop to solicit community input on preliminary project plans. iii. When reviewed by the planning commission and city council, the applicant shall demonstrate how the project design addresses public input received at the community workshop, as appropriate. b. City Council Action. Following conceptual review, the planning commission shall serve as the recommending body and the city council shall serve as the review authority and take final action on the application. c. Findings. To approve the application, the city council shall make all of the following findings in addition to findings for the required permits: i. The project satisfies applicable design review criteria in Section 17.120.070 (Design review criteria). ii. On-site parking, points of ingress/egress, and internal vehicle accessways are located and designed to minimize parking and traffic impacts on neighboring residential areas to the greatest extent possible. iii. The project incorporates rear yard setbacks and upper-story stepbacks as needed to maintain adequate light and air for abutting residential uses. iv. The height and intensity of development is compatible with the scale and character of neighboring residential areas. v. The project incorporates design features to support a safe and welcoming pedestrian environment. Potential features may include, but are not limited to, enhanced sidewalks along the property frontage, internal pedestrian walkways, outdoor public gathering places, unique landscaping treatments, and active ground-floor uses fronting the street. C. Front and Street Side Setbacks in the C-R and C-C Zoning Districts. In the C-R and C-C zoning districts, buildings shall be set back from the front and street side property line so that: 1. The building is at least fifteen feet from the curb or street edge; and 2. Building placement allows for a minimum ten-foot sidewalk along the property frontage. See Figure 17.24-2.

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Figure 17.24-2: Front and Street Side Setbacks in the C-R and C-C Zoning Districts

D. Increased Floor Area and Height in C-C and C-R Zoning Districts. As provided in Chapter 17.88 (Incentives for Community Benefits), the city council may approve exceptions to height and floor area ratio (FAR) limits shown in Table 17.24-3 for proposed projects in the C-C and C-R zoning districts. These exceptions are intended to facilitate the redevelopment of underutilized properties along 41st Avenue consistent with the vision for the corridor described in the general plan.

Chapter 17.88 (Incentives for Community Benefits), the city council may approve exceptions to height and floor area ratio (FAR) limits shown in Table 17.24-3 for proposed projects in the C-C and C-R zoning districts. These exceptions are intended to facilitate the redevelopment of underutilized properties along 41st Avenue consistent with the vision for the corridor described in the general plan.

E. Residential Transition Standards. Where a commercial or industrial zoning district abuts a residential zoning district, the following standards apply:

1. Setbacks. The minimum setback from the residential property line shall be fifteen feet for interior side yards and twenty feet for rear yards. For lots less than one hundred feet wide, the planning commission may allow a reduced side yard setback upon finding that potential impacts to adjacent residential properties have been adequately minimized through enhanced building and landscape design.

2. Daylight Plane. No structure shall extend above or beyond a daylight plane having a height of twenty-five feet at the setback from the residential property line and extending into the parcel at an angle of forty-five degrees. See Figure 17.24-3.

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Figure 17.24-3: Residential Transitions – Daylight Plane

3. Landscaping. A landscaped planting area, extending a minimum of ten feet from the property line, shall be provided along all residential property lines. A tree screen shall be planted in this area with trees planted at a minimum interval of fifteen feet.

4. Loading. Loading and unloading shall be designed to have the least amount of impact on neighboring residential uses. When feasible, loading and unloading shall be provided from the commercial frontage rather than from areas adjacent to residential uses.

F. Capitola Mall Redevelopment. While the Capitola Mall site has been zoned regional commercial (C-R) as part of the zoning code update, it is expected that major redevelopment of the mall property may require a rezone, planned development, specific plan, development agreement, or similar process to tailor appropriate development standards for the redevelopment project. Where an application submitted pursuant to this section includes fewer than all parcels within the mall property, the applicant shall demonstrate that the development type and pattern and site design will be compatible and not unreasonably interfere with future redevelopment of the remaining parcels. For the purposes of this section, the mall property is defined as the area bound by 41st Avenue, Clares Street, and Capitola Road. G. Landscaping. See Section 17.72.050(B) for nonresidential landscape requirements. H. Objective Standards for Multifamily Dwellings and Mixed-Use Residential Development. New multifamily dwellings and mixed-use residential development in the C-C and C-R zoning districts must comply with Chapter 17.82 of this code (Objective Standards for Multifamily and Mixed-Use Residential Development).

Road. G. Landscaping. See Section 17.72.050(B) for nonresidential landscape requirements. H. Objective Standards for Multifamily Dwellings and Mixed-Use Residential Development. New multifamily dwellings and mixed-use residential development in the C-C and C-R zoning districts must comply with Chapter 17.82 of this code (Objective Standards for Multifamily and Mixed-Use Residential Development).

I. Roof Decks. Roof decks that provide common open space for residents in the commercial zoning district require a design permit. Roof decks must comply with standards in Section 17.16.030(C)(5)(b). J. Lot Consolidation Incentive. Housing Element Table 4-3 identifies adjacent opportunity sites which are suitable for lot consolidation. Projects in the C-C zoning district that consolidate two or more opportunity sites identified in Housing Element Table 4-3 into a single parcel as part of a housing development project are permitted maximum building height and floor area ratio (FAR) as identified in Table 17.24-4.

Table 17.24-4: C-C Lot Consolidation

Bonus

K. Micro-Units. A building with micro-units in the C-C or C-R zoning district is permitted a maximum height of fifty feet and a maximum FAR of one and one-half only when:

1. The micro-units are within one-quarter mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21064.3 of the Public Resources Code; and

2. The micro-units constitute fifty percent or more of the total number of units in the building. (Ord. 1066 § 2 (Att. 1), 2024; Ord. 1057 § 2 (Att. 1), 2022; Ord. 1053 § 3, 2022; Ord. 1043 § 2 (Att. 2), 2020)

A. General. Table 17.24-3 identifies development standards that apply in the commercial and industrial zoning districts, excluding the Capitola Mall property. For development standards that apply to the Capitola Mall property, see Section 17.24.035 (Capitola Mall redevelopment).

Table 17.24-3: Development Standards in Commercial and Industrial Zoning Districts

Notes:

• [1] Additional building height and FAR allowed for a housing development project that consolidates adjacent housing element opportunity sites. See Section 17.24.040(J) (Lot Consolidation Incentive).

B. C-C Zoning District Fronting Capitola Road. The following requirements apply to C-C parcels fronting the south side of Capitola Road between 41st Avenue and 45th Avenue as shown in Figure 17.24-1:

1. Maximum height: thirty-five feet.

2. Minimum rear setback: forty feet.

3. Enhanced Application Review. A proposed project with a height greater than two stories shall comply with the following enhanced application review procedures:

a. Conceptual Review.

i. Prior to consideration of a formal application, the planning commission and city council shall provide conceptual review of a proposed project in accordance with Chapter 17.114 (Conceptual Review). Figure 17.24-1: Parcels Fronting Capitola Road Between 41st Avenue and 45th Avenue

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ii. Before planning commission and city council review, the applicant shall host at least one community workshop to solicit community input on preliminary project plans.

iii. When reviewed by the planning commission and city council, the applicant shall demonstrate how the project design addresses public input received at the community workshop, as appropriate.

b. City Council Action. Following conceptual review, the planning commission shall serve as the recommending body and the city council shall serve as the review authority and take final action on the application.

c. Findings. To approve the application, the city council shall make all of the following findings in addition to findings for the required permits:

i. The project satisfies applicable design review criteria in Section 17.120.070 (Design review criteria).

ii. On-site parking, points of ingress/egress, and internal vehicle accessways are located and designed to minimize parking and traffic impacts on neighboring residential areas to the greatest extent possible.

iii. The project incorporates rear yard setbacks and upper-story stepbacks as needed to maintain adequate light and air for abutting residential uses.

iv. The height and intensity of development is compatible with the scale and character of neighboring residential areas.

• v. The project incorporates design features to support a safe and welcoming pedestrian environment. Potential features may include, but are not limited to, enhanced sidewalks along the property frontage, internal pedestrian walkways, outdoor public gathering places, unique landscaping treatments, and active ground-floor uses fronting the street.

• C. Front and Street Side Setbacks in the C-R and C-C Zoning Districts. In the C-R and C-C zoning districts, buildings shall be set back from the front and street side property line so that:

1. The building is at least fifteen feet from the curb or street edge; and

2. Building placement allows for a minimum ten-foot sidewalk along the property frontage. See Figure 17.24-2.

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Figure 17.24-2: Front and Street Side Setbacks in the C-R and C-C Zoning Districts

D. Increased Floor Area and Height in C-C and C-R Zoning Districts. As provided in Chapter 17.88 (Incentives for Community Benefits), the city council may approve exceptions to height and floor area ratio (FAR) limits shown in Table 17.24-3 for proposed projects in the C-C and C-R zoning districts. These exceptions are intended to facilitate the redevelopment of underutilized properties along 41st Avenue consistent with the vision for the corridor described in the general plan.

• E. Residential Transition Standards. Where a commercial or industrial zoning district abuts a residential zoning district, the following standards apply:

1. Setbacks. The minimum setback from the residential property line shall be fifteen feet for interior side yards and twenty feet for rear yards. For lots less than one hundred feet wide, the planning commission may allow a reduced side yard setback upon finding that potential impacts to adjacent residential properties have been adequately minimized through enhanced building and landscape design.

2. Daylight Plane. No structure shall extend above or beyond a daylight plane having a height of twenty-five feet at the setback from the residential property line and extending into the parcel at an angle of forty-five degrees. See Figure 17.24-3.

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Figure 17.24-3: Residential Transitions – Daylight Plane

3. Landscaping. A landscaped planting area, extending a minimum of ten feet from the property line, shall be provided along all residential property lines. A tree screen shall be planted in this area with trees planted at a minimum interval of fifteen feet.

4. Loading. Loading and unloading shall be designed to have the least amount of impact on neighboring residential uses. When feasible, loading and unloading shall be provided from the commercial frontage rather than from areas adjacent to residential uses.

F. Reserved.

G. Landscaping. See Section 17.72.050(B) for nonresidential landscape requirements.

H. Objective Standards for Multifamily Dwellings and Mixed-Use Residential Development.

1. Excluding development on the Capitola Mall property, new multifamily dwellings and mixed-use residential development in the C-C and C-R zoning districts must comply with Chapter 17.82 (Objective Standards for Multifamily and Mixed-Use Residential Development).

2. Residential-only and mixed-use development on the Capitola Mall property shall comply with Chapter 17.57 (Objective Design Standards for Capitola Mall Redevelopment).

I. Roof Decks. Roof decks that provide common open space for residents in the commercial zoning district require a design permit. Roof decks must comply with standards in Section 17.16.030(C)(5)(b). J. Lot Consolidation Incentive. Housing Element Table 4-3 identifies adjacent opportunity sites which are suitable for lot consolidation. Projects in the C-C zoning district that consolidate two or more opportunity sites identified in Housing Element Table 4-3 into a single parcel as part of a housing development project are permitted maximum building height and floor area ratio (FAR) as identified in Table 17.24-4.

Table 17.24-4: C-C Lot Consolidation Bonus

K. Micro-Units. A building with micro-units in the C-C or C-R zoning district is permitted a maximum height of fifty feet and a maximum FAR of one and one-half only when:

1. The micro-units are within one-quarter mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21064.3 of the Public Resources Code; and

2. The micro-units constitute fifty percent or more of the total number of units in the building. (Ord. 1075 § 4 (Exh. A), 2026; Ord. 1066 § 2 (Att. 1), 2024; Ord. 1057 § 2 (Att. 1), 2022; Ord. 1053 § 3, 2022; Ord. 1043 § 2 (Att. 2), 2020)

A. Purpose. This section establishes standards for residential and mixed-use development on the Capitola Mall property. These standards aim to promote and facilitate housing production that is affordable to all income levels in a vital, mixed-use environment, in accordance with the general plan housing element.

B. Applicability. This section applies to all proposed development projects with new residential and/or mixed uses on the Capitola Mall property.

C. Definitions. Terms used in this section are defined as follows:

1. “Core area” means all areas on the Capitola Mall property that are not in the perimeter zone.

2. “Housing element site” means a parcel on the Capitola Mall property listed in Appendix D, Table D-1, of the city of Capitola sixth cycle housing element of the general plan.

3. “New commercial space” means either a new commercial building or substantially improved existing commercial building with complete interior and exterior tenant improvements.

4. “Perimeter street” means 41st Avenue, Capitola Road and Clares Street.

5. “Perimeter zone” means areas on the Capitola Mall property as follows:

a. For Tier 1 projects: all areas within one hundred twenty-five feet of a property line abutting 41st Avenue, Capitola Road, or Clares Street.

b. For Tier 2 and Tier 3 mixed-use projects: all areas within seventy-five feet of a property line abutting 41st Avenue or Capitola Road and within one hundred twenty-five feet of a property line abutting Clares Street. 6. “Tier 1 project” means all proposed development projects with new residential uses that do not meet the “Tier 2 mixed-use project” or “Tier 3 mixed-use project” definitions in this section.

7. “Tier 2 mixed-use project” means a proposed mixed-use development project with all of the following:

a. Residential development that meets or exceeds the affordability requirements specified in subsection (D)(8) of this section, Inclusionary Housing Requirement.

b. A hotel with a minimum of one hundred twenty rooms and a minimum of three thousand six hundred square feet of meeting space and conference facilities.

1. Housing Element Sites. Table 17.24-6 identifies the development standards that apply to development on a Capitola Mall housing element site. These standards aim to facilitate housing production on the Capitola Mall property and incentivize the creation of housing in a vital, mixed-use environment.

Table 17.24-6: Mall Redevelopment Development Standards

Notes: [1] A hotel with a height up to eighty-five feet is allowed in the perimeter zone. [2] See Section 17.57.040(B) (Publicly Accessible Open Space) for open space landscaping requirements. [3] Maximum density only for housing element sites. For other parcels, see subsection (D)(2)(b) of this section. 2. Parcels Not a Housing Element Site. On a Capitola Mall parcel that is not a housing element site (APNs 034-261-07 and 034-261-52), the following apply: a. The maximum residential density is twenty dwelling units per acre. b. Development shall comply with the development standards in Section 17.24.030 (Development standards) except as otherwise modified in this section. 3. Density. a. Calculation. i. The density of a proposed development on the Capitola Mall property is calculated on a project-wide basis as the number of dwelling units per acre of land, using the total combined land area for all contiguous parcels under single ownership regardless of whether dwelling units are proposed on an individual parcel. ii. The land area used to calculate density includes the following: (A) Privately owned and maintained publicly accessible open space; and

(B) Public open space dedicated to the city; and

(C) Private streets, sidewalks, pathways and other similar private circulation improvements except where dedicated for public use consistent with subsection (D)(3)(a)(iii) of this section; and (D) Areas subject to tenant lease controls and private easements;

(E) Perimeter street frontage improvements on privately owned property subject to a public access easement or dedication pursuant to Section 17.57.050(A)(h)(3)(d);

(F) Public rights-of-way; and (G) Public easements.

iii. The “density” definition in Section 17.160.020(D)(6) does not apply to the Capitola Mall property. b. Minimum Density – Alternative Compliance. If an owner of multiple parcels within the Capitola Mall property proposes an initial phase of development that does not meet the minimum density standard, including but not limited to a commercial-only building or commercial-only project, the applicant may demonstrate compliance by recording, to the satisfaction of the city attorney, a legal instrument that establishes an increased minimum residential density on other parcels within the Capitola Mall property under the applicant’s control, such that the affected parcels collectively achieve an overall minimum density of twenty dwelling units per acre. 4. Parking. Minimum on-site parking spaces shall be provided as follows: a. Tier 1 projects: as required by Chapter 17.76 (Parking and Loading). b. Tier 2 and Tier 3 mixed-use projects: as shown in Table 17.24-7 for residential uses. For nonresidential uses, as required by Chapter 17.76 (Parking and Loading).

Table 17.24-7: Required Residential Parking for Tier 2 and Tier 3 Mixed-Use Projects

6. Height Projections.

a. Up to fifteen percent of the total building frontage along a perimeter or interior street may include architectural features and building infrastructure that project up to ten feet above the maximum permitted building height identified in Table 17.24-5. Permitted height projections include the following:

i. Corner building elements.

ii. Tower or vertical accent features.

iii. Parapets or roofline projections with distinctive architectural treatment.

|b. Elevator overruns, stair enclosures, mechanical equipment, and similar
building infrastructure may project above the maximum permitted
building height within any portion of a
building footprint.
7. Objective Standards.
Development on the Capitola Mall property shall comply with the requirements in Chapter
17.57 (Objective Design Standards for Capitola Mall Redevelopment).
8. Inclusionary Housing Requirement. New residential
development on the Capitola Mall property shall comply with the city’s inclusionary housing ordinance in Chapter
18.02 (Affordable (Inclusionary)
Housing) except as follows:
a. A minimum of fifteen percent of the
dwelling units shall be deed restricted affordable to lower income households and a minimum of five percent of the units are either deed restricted affordable to
moderate income households or studio units with a
kitchen and living space but without a separate bedroom.
b. Rental and ownership housing projects must provide either on-site affordable units or dedicate land that satisfies the criteria below in lieu of concurrently constructing inclusionary units within the housing
development project. Payment of in-lieu fees is not permitted. Dedicated land must comply with the following:
i. The dedicated land must be on the Capitola Mall property.
ii. The amount of dedicated land must be sufficient to accommodate the required number of affordable units otherwise required for the proposed housing project.
iii. The offer of dedication shall be made prior to or concurrently with the filing of the final subdivision map or prior to issuance of the first
building permit, whichever occurs earlier.
iv. The offer of dedication may occur only after the city approves the conditional use permit and all other discretionary
planning permits required for the affordable
development,except for a design permit
which may be approved by the city after the dedication.
v. The dedicated land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units at affordability levels sufficient to satisfy the otherwise applicable inclusionary
requirement.
vi. The land must be dedicated to the city or to a housing developer approved by the city. The city may require the
applicant to identify and transfer the land to the developer.
vii. The
applicant shall identify a proposed source of funding for the affordable units and off-site infrastructure necessary to serve such units not later than the date of approval of the final subdivision map,
parcel map, or residential
development application.
E.
Land Use Regulations. All
land use regulations and permit requirements in Section
17.24.020 (Land use regulations) apply to
development with new
residential uses on the Capitola Mall property, except
as follows:
1. Within a Tier 2 or Tier 3 mixed-use project, the following
land uses are permitted “P” uses:
a. All
hotels.
b. All
retail uses.
c.
Eating and drinking establishments,excluding
bars and lounges.
d.
Commercial entertainment and recreation excluding such uses with an ancillary bar or lounge.
e.
Cultural institutions.
2. All residential
development,with or without a new commercial component, is allowed with a conditional use permit.
3. The city has determined that
residential uses on the Capitola Mall property consistent with this chapter and Chapter
17.57 (Objective Design Standards for Capitola Mall Redevelopment) are in compliance
with the city’s general plan and are conditionally allowed in the CR zoning district. Therefore, the city’s review of a conditional use permit for residential
development on the Capitola Mall property shall focus
on requiring conditions related to the following considerations; provided, that such conditions shall not deny the residential
development or reduce project
density:
a. Interior
site layout (e.g., arrangement and configuration of different uses, public open space, and structures).
b.
Site access and internal circulation.
c. Operating characteristics (hours of operation, traffic generation, lighting, noise, odor, dust, and other external impacts).
d. Public services and infrastructure.
e. Project phasing.
f. Property maintenance.
4. On a housing element
site,a project with less than fifty percent of the new
floor area occupied by
residential uses is prohibited except where allowed as provided in subsection (D)(3)(b) of this section
(Minimum
Density – Alternative Compliance).
5. Required Commercial Uses for Tier 2 and Tier 3 Projects.
a. The minimum required commercial
floor area for a Tier 2 or Tier 3 project shall be occupied by active, publicly accessible commercial, cultural, or entertainment uses open to the general public, including
retail sales, restaurants, food and beverage establishments, and similar visitor-serving uses.
b.
Medical offices and clinics and uses that are membership-based personal service uses, including gyms, fitness centers, and yoga studios, shall not count toward the minimum required commercial
floor
area.
c. Alternative uses consistent with underlying zoning may be permitted with the issuance of a conditional use permit upon a finding by planning commission that the above uses are not viable in the current
market.
F. Fiscal Impact Analysis.
1. When Required. A fiscal impact analysis (FIA) is required in connection with the application for any proposed
development project with new
residential uses on the Capitola Mall property, except that an
FIA is not required for a stand-alone one hundred percent affordable housing
development project.
2. Contents of Fiscal Impact Analysis.
a. Each FIA shall include, at a minimum:

i. An estimate of the incremental change to annual recurring revenues and expenditures to the city generated by the project at buildout, including but not limited to property tax, sales tax, transient occupancy
tax, and service costs (police, public works, parks, administration).
ii. Identification of any net fiscal surplus or deficit to the city’s general fund and special revenue funds over ten-, fifteen-, and twenty-year horizons.
iii. A description of proposed mitigation measures or financing mechanisms (e.g., community facilities district,
development agreement contributions) to offset any projected negative fiscal impact.
iv. Supporting assumptions, data sources, and methodology.
b. The FIA shall consider city cost implications resulting from publicly accessible open space, maintained by the property owner and not the city, provided in the proposed
development.
3. Review and Approval.
a. The
applicant shall submit for city review a FIA prepared by a qualified economic consultant concurrently with the applicant’s submittal of a
development application.
b. The applicant’s FIA shall be peer reviewed by a qualified independent economic consultant hired by the city and funded by the
applicant.
c. Based on the results of the peer and city review of the FIA, the city may require revisions to the FIA analysis assumptions, data sources, and methodology.|b. Elevator overruns, stair enclosures, mechanical equipment, and similar
building infrastructure may project above the maximum permitted
building height within any portion of a
building footprint.
7. Objective Standards.
Development on the Capitola Mall property shall comply with the requirements in Chapter
17.57 (Objective Design Standards for Capitola Mall Redevelopment).
8. Inclusionary Housing Requirement. New residential
development on the Capitola Mall property shall comply with the city’s inclusionary housing ordinance in Chapter
18.02 (Affordable (Inclusionary)
Housing) except as follows:
a. A minimum of fifteen percent of the
dwelling units shall be deed restricted affordable to lower income households and a minimum of five percent of the units are either deed restricted affordable to
moderate income households or studio units with a
kitchen and living space but without a separate bedroom.
b. Rental and ownership housing projects must provide either on-site affordable units or dedicate land that satisfies the criteria below in lieu of concurrently constructing inclusionary units within the housing
development project. Payment of in-lieu fees is not permitted. Dedicated land must comply with the following:
i. The dedicated land must be on the Capitola Mall property.
ii. The amount of dedicated land must be sufficient to accommodate the required number of affordable units otherwise required for the proposed housing project.
iii. The offer of dedication shall be made prior to or concurrently with the filing of the final subdivision map or prior to issuance of the first
building permit, whichever occurs earlier.
iv. The offer of dedication may occur only after the city approves the conditional use permit and all other discretionary
planning permits required for the affordable
development,except for a design permit
which may be approved by the city after the dedication.
v. The dedicated land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units at affordability levels sufficient to satisfy the otherwise applicable inclusionary
requirement.
vi. The land must be dedicated to the city or to a housing developer approved by the city. The city may require the
applicant to identify and transfer the land to the developer.
vii. The
applicant shall identify a proposed source of funding for the affordable units and off-site infrastructure necessary to serve such units not later than the date of approval of the final subdivision map,
parcel map, or residential
development application.
E.
Land Use Regulations. All
land use regulations and permit requirements in Section
17.24.020 (Land use regulations) apply to
development with new
residential uses on the Capitola Mall property, except
as follows:
1. Within a Tier 2 or Tier 3 mixed-use project, the following
land uses are permitted “P” uses:
a. All
hotels.
b. All
retail uses.
c.
Eating and drinking establishments,excluding
bars and lounges.
d.
Commercial entertainment and recreation excluding such uses with an ancillary bar or lounge.
e.
Cultural institutions.
2. All residential
development,with or without a new commercial component, is allowed with a conditional use permit.
3. The city has determined that
residential uses on the Capitola Mall property consistent with this chapter and Chapter
17.57 (Objective Design Standards for Capitola Mall Redevelopment) are in compliance
with the city’s general plan and are conditionally allowed in the CR zoning district. Therefore, the city’s review of a conditional use permit for residential
development on the Capitola Mall property shall focus
on requiring conditions related to the following considerations; provided, that such conditions shall not deny the residential
development or reduce project
density:
a. Interior
site layout (e.g., arrangement and configuration of different uses, public open space, and structures).
b.
Site access and internal circulation.
c. Operating characteristics (hours of operation, traffic generation, lighting, noise, odor, dust, and other external impacts).
d. Public services and infrastructure.
e. Project phasing.
f. Property maintenance.
4. On a housing element
site,a project with less than fifty percent of the new
floor area occupied by

, and structures).
b.
Site access and internal circulation.
c. Operating characteristics (hours of operation, traffic generation, lighting, noise, odor, dust, and other external impacts).
d. Public services and infrastructure.
e. Project phasing.
f. Property maintenance.
4. On a housing element
site,a project with less than fifty percent of the new
floor area occupied by

residential uses is prohibited except where allowed as provided in subsection (D)(3)(b) of this section
(Minimum
Density – Alternative Compliance).
5. Required Commercial Uses for Tier 2 and Tier 3 Projects.
a. The minimum required commercial
floor area for a Tier 2 or Tier 3 project shall be occupied by active, publicly accessible commercial, cultural, or entertainment uses open to the general public, including
retail sales, restaurants, food and beverage establishments, and similar visitor-serving uses.
b.
Medical offices and clinics and uses that are membership-based personal service uses, including gyms, fitness centers, and yoga studios, shall not count toward the minimum required commercial
floor
area.
c. Alternative uses consistent with underlying zoning may be permitted with the issuance of a conditional use permit upon a finding by planning commission that the above uses are not viable in the current
market.
F. Fiscal Impact Analysis.
1. When Required. A fiscal impact analysis (FIA) is required in connection with the application for any proposed
development project with new
residential uses on the Capitola Mall property, except that an
FIA is not required for a stand-alone one hundred percent affordable housing
development project.
2. Contents of Fiscal Impact Analysis.
a. Each FIA shall include, at a minimum:
i. An estimate of the incremental change to annual recurring revenues and expenditures to the city generated by the project at buildout, including but not limited to property tax, sales tax, transient occupancy
tax, and service costs (police, public works, parks, administration).
ii. Identification of any net fiscal surplus or deficit to the city’s general fund and special revenue funds over ten-, fifteen-, and twenty-year horizons.
iii. A description of proposed mitigation measures or financing mechanisms (e.g., community facilities district,
development agreement contributions) to offset any projected negative fiscal impact.
iv. Supporting assumptions, data sources, and methodology.
b. The FIA shall consider city cost implications resulting from publicly accessible open space, maintained by the property owner and not the city, provided in the proposed
development.
3. Review and Approval.
a. The
applicant shall submit for city review a FIA prepared by a qualified economic consultant concurrently with the applicant’s submittal of a
development application.
b. The applicant’s FIA shall be peer reviewed by a qualified independent economic consultant hired by the city and funded by the
applicant.
c. Based on the results of the peer and city review of the FIA, the city may require revisions to the FIA analysis assumptions, data sources, and methodology.|

mic consultant concurrently with the applicant’s submittal of a
development application.
b. The applicant’s FIA shall be peer reviewed by a qualified independent economic consultant hired by the city and funded by the
applicant.
c. Based on the results of the peer and city review of the FIA, the city may require revisions to the FIA analysis assumptions, data sources, and methodology.|

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|attorney.|||||| |iii. The first payment of such fees shall be due one year after the issuance of certificate of occupancy, and annually thereafter. The contract shall terminate immediately upon issuance of certificate of|||||| |occupancy for the
hotel and/or commercial
development necessary to qualify for Tier 2 or Tier 3 incentives. (Ord.
1075 § 4 (Exh. A), 2026)|||||| |17.24.040 Residential mixed use development in commercial zoning districts (effective within coastal zone).|||||| |A. Purpose and Applicability. This section establishes design standards for
mixed use development with housing above ground-floor commercial uses in the||community commercial (C-C) and regional|||| |commercial (C-R) zoning districts. These standards are intended to promote successful
mixed use development that is pedestrian-friendly and contributes to the vitality of commercial districts in Capitola.|||||| |B. Standards.|||||| |1. Ground-Floor Uses. Ground-floor spaces fronting the primary
street shall be occupied by
retail,restaurant, and personal service uses that generate pedestrian activity.|||||| |2.
Building Placement.
Buildings shall be placed near the edge of the sidewalk. Increased
setbacks are permitted if they enhance pedestrian experience|and add visual interest.||||| |3.
Building Orientation.
Buildings shall be oriented towards a public
street with the primary entrance to the
site or
building directly accessible from an|
adjacent||sidewalk. The planning commission may allow||| |buildings and their primary entrances to be oriented toward a public space. The primary entrance to a
building shall not be oriented towards surface parking.|||||| |4. Blank
Walls.The length of an unarticulated/blank
building wall shall not exceed ten feet. Architectural articulation should have a similar pattern as other||
adjacent buildings|||to provide cohesive design in| |the neighborhood.
Building articulation may be provided by:|||||| |a. Doors, windows, and other
building openings;|||||| |b.
Building projections or recesses, doorway and window trim, and other details that provide architectural articulation and design interest;|||||| |c. Varying
wall planes,
heights or contrasting materials and colors; and||||||

d. Awnings, canopies, or arcades to reinforce the pedestrian scale and provide shade and cover from the elements.

5. Storefront Width. The width of a single building/storefront shall not exceed fifty feet. Larger buildings shall be broken down into a pedestrian-scale rhythm with individual storefront widths of twenty-five to fifty feet.

6. Ground-Floor Building Transparency. The ground-floor street-facing building walls of nonresidential uses shall provide transparent windows or doors with views into the building for a minimum of sixtyfive percent of the building frontage located between two and one-half and seven feet above the sidewalk. See Figure 17.24-4. Windows or doors area shall be transparent to allow views into the building. Exceptions to this transparency requirement may be allowed if the planning commission finds that:

uses shall provide transparent windows or doors with views into the building for a minimum of sixtyfive percent of the building frontage located between two and one-half and seven feet above the sidewalk. See Figure 17.24-4. Windows or doors area shall be transparent to allow views into the building. Exceptions to this transparency requirement may be allowed if the planning commission finds that:

a. The proposed use has unique operational characteristics which preclude building openings, such as for a cinema or theater; or

b. Street-facing building walls will exhibit architectural relief and detail, and will be enhanced with landscaping in such a way as to create visual interest at the pedestrian level.

==> picture [146 x 91] intentionally omitted <==

Figure 17.24-4: Storefront Transparency

7. Retail Depth. Ground-floor commercial space shall have a depth of at least forty-five feet or two-thirds of the parcel depth, whichever is less. Where possible, sixty-foot depths are encouraged to accommodate a wider range of tenants, especially food tenants. The planning commission may grant an exception to the minimum retail depth requirement if the minimum retail depth is infeasible due to unusual physical conditions on the parcel.

8. Ground-Floor Height. Ground-floor commercial space shall have a minimum floor-to-floor height of fifteen feet. Where possible, eighteen-foot floor-to-floor heights are encouraged.

9. Parking Location. No more than ten percent of off-street retail parking may be provided along the side of retail as “teaser” parking. The remainder of the parking shall be behind the building or in underground/structured parking. See Figure 17.24-5.

10. Driveways and Curb Cuts. Pedestrian and vehicle conflicts shall be minimized by limiting the number of curb cuts to two per block and the width of curb cuts to twenty-four feet where feasible. To the extent possible, curb cuts shall be designed so pedestrian curb ramps are limited and pathways remain level as they cross the vehicle route.

==> picture [131 x 118] intentionally omitted <==

Figure 17.24-5: Residential Mixed Use – Teaser Parking

(Ord. 1043 § 2 (Att. 2), 2020)

A. Purpose and Applicability. This section establishes design standards for mixed-use development with housing above ground-floor commercial uses in the community commercial (C-C) and regional commercial (C-R) zoning districts. These standards are intended to promote successful mixed-use development that is pedestrian-friendly and contributes to the vitality of commercial districts in Capitola. These standards do not apply to the Capitola Mall property.

B. Standards.

1. Ground-Floor Uses. Ground-floor spaces fronting the primary street shall be occupied by retail, restaurant, and personal service uses that generate pedestrian activity.

2. Building Placement. Buildings shall be placed near the edge of the sidewalk. Increased setbacks are permitted if they enhance pedestrian experience and add visual interest.

3. Building Orientation. Buildings shall be oriented towards a public street with the primary entrance to the site or building directly accessible from an adjacent sidewalk. The planning commission may allow buildings and their primary entrances to be oriented toward a public space. The primary entrance to a building shall not be oriented towards surface parking.

4. Blank Walls. The length of an unarticulated/blank building wall shall not exceed ten feet. Architectural articulation should have a similar pattern as other adjacent buildings to provide cohesive design in the neighborhood. Building articulation may be provided by:

a. Doors, windows, and other building openings;

b. Building projections or recesses, doorway and window trim, and other details that provide architectural articulation and design interest;

c. Varying wall planes, heights or contrasting materials and colors; and

d. Awnings, canopies, or arcades to reinforce the pedestrian scale and provide shade and cover from the elements.

5. Storefront Width. The width of a single building/storefront shall not exceed fifty feet. Larger buildings shall be broken down into a pedestrian-scale rhythm with individual storefront widths of twenty-five to fifty feet.

6. Ground-Floor Building Transparency. The ground-floor street-facing building walls of nonresidential uses shall provide transparent windows or doors with views into the building for a minimum of sixtyfive percent of the building frontage located between two and one-half and seven feet above the sidewalk. See Figure 17.24-4. Windows or doors area shall be transparent to allow views into the building. Exceptions to this transparency requirement may be allowed if the planning commission finds that:

a. The proposed use has unique operational characteristics which preclude building openings, such as for a cinema or theater; or

b. Street-facing building walls will exhibit architectural relief and detail, and will be enhanced with landscaping in such a way as to create visual interest at the pedestrian level.

==> picture [146 x 90] intentionally omitted <==

Figure 17.24-4: Storefront Transparency

==> picture [494 x 75] intentionally omitted <==

----- Start of picture text -----
7. Retail Depth. Ground-floor commercial space shall have a depth of at least forty-five feet or two-thirds of the parcel depth, whichever is less. Where possible, sixty-foot depths are encouraged to
accommodate a wider range of tenants, especially food tenants. The planning commission may grant an exception to the minimum retail depth requirement if the minimum retail depth is infeasible due to
unusual physical conditions on the parcel.
8. Ground-Floor Height. Ground-floor commercial space shall have a minimum floor-to-floor height of fifteen feet. Where possible, eighteen-foot floor-to-floor heights are encouraged.
9. Parking Location. No more than ten percent of off-street retail parking may be provided along the side of retail as “teaser” parking. The remainder of the parking shall be behind the building or in
underground/structured parking. See Figure 17.24-5.
10. Driveways and Curb Cuts. Pedestrian and vehicle conflicts shall be minimized by limiting the number of curb cuts to two per block and the width of curb cuts to twenty-four feet where feasible. To the
extent possible, curb cuts shall be designed so pedestrian curb ramps are limited and pathways remain level as they cross the vehicle route.
----- End of picture text -----

==> picture [131 x 119] intentionally omitted <==

Figure 17.24-5: Residential Mixed Use – Teaser Parking (Ord. 1075 § 4 (Exh. A), 2026; Ord. 1043 § 2 (Att. 2), 2020) Home Previous Next

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