Chapter 17.88 — INCENTIVES FOR COMMUNITY BENEFITS Revised 6/26 — Capitola Zoning Code

Sections:

17.88.010	Purpose (effective within coastal zone) .
17.88.010	Purpose (effective outside coastal zone) . Revised 6/26
17.88.020	Incentives restricted to added benefits.
17.88.030	Eligibility (effective within coastal zone) .
17.88.030	Eligibility (effective outside coastal zone) . Revised	6/26
17.88.040	Allowable benefits (effective within coastal zone) .
17.88.040	Allowable benefits (effective outside coastal zone) . Revised 6/26
17.88.050	Available incentives (effective within coastal zone) .
17.88.050	Available incentives (effective outside coastal zone) . Revised 6/26
17.88.060	Relationship to state density bonus law.
17.88.070	Application submittal and review.
17.88.080	Findings.
17.88.090	Post-decision procedures.

17.88.010 Purpose (effective within coastal zone). ¶

This chapter establishes incen redevelopment of underutilize for by the general plan and the	tives for applicants to locate and design d properties along 41st Avenue consiste local coastal program (LCP). (Res. 422	development projects in a manner that provides substantial benefits to the community. These incentives are intended to facilitate the nt with the vision for the corridor described in the general plan and to encourage the development of a new hotel in the Village as called 3, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.88.010 Purpose (effective outside coastal zone). Revised 6/26 ¶

This chapter establishes incentives for
applicants to locate and design
development projects in a manner that provides substantial benefits to the community. These incentives are inten
redevelopment of underutilized properties along 41st Avenue consistent with the vision for the corridor described in the general plan and to encourage the
development of a new
hotel i
for by the general plan and the
local coastal program (LCP). This chapter does not apply to
development on the Capitola Mall property. (Ord.
1075 § 4 (Exh. A), 2026; Res. 4223, 2021;
2020)
17.88.020 Incentives restricted to added benefits.
The city may grant incentives only when the
community benefits or amenities offered are not otherwise required by the zoning code or any other provision of local, state, or federal law.
amenities must significantly advance general plan and/or LCP goals and/or incorporate a project feature that substantially exceeds the city’s minimum requirements. (Res. 4223, 2021
2020)

ded to facilitate the
n the Village as called
Ord.
1043 § 2 (Att. 2),

Community benefits or
; Ord.
1043 § 2 (Att. 2),

17.88.030 Eligibility (effective within coastal zone). ¶

A. Eligibility for Incentive. The city may grant incentives for the following projects:
1. Projects in the regional commercial (C-R) and community commercial (C-C) zoning districts that:
a. Front 41st Avenue; or
b. Front Capitola Road between Clares Street and 42nd Avenue; or
c. Are located on the Capitola Mall site.
2. A hotel on the former Capitola Theater site (APNs 035-262-04, 035-262-02, 035-262-11, and 035-261-10) in the	mixed use village zoning district.
B. Setback Required – 41st Avenue. Structures on properties fronting the east side of 41st Avenue must be set back	a minimum of one hundred feet from the property line		abutting a residential property. (Res.
4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)
17.88.030 Eligibility (effective outside coastal zone). Revised 6/26
A. Eligibility for Incentive. The city may grant incentives for the following projects:
1. Projects in the regional commercial (C-R) and community commercial (C-C) zoning districts that:
a. Front 41st Avenue, excluding the Capitola Mall property; or
b. Front Capitola Road between Clares Street and 42nd Avenue; or
2. A hotel on the former Capitola Theater site (APNs 035-262-04, 035-262-02, 035-262-11, and 035-261-10) in the	mixed-use village zoning district.
B. Setback Required – 41st Avenue. Structures on properties fronting the east side of 41st Avenue must be set back	a minimum of one hundred feet from the property line		abutting a residential property. (Ord.
1075 § 4 (Exh. A), 2026; Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)
17.88.040 Allowable benefits (effective within coastal zone).
A. All Eligible Projects. The city may grant incentives to all eligible projects as identified in Section 17.88.030 (Eligibility) that provide one or more of the following		community benefits.The public benefit
provided shall be of sufficient value as determined by the planning commission to justify deviation from the standards of the zoning district that currently applies to the property.
1. Public Open Space. Public plazas, courtyards, and other public gathering places that provide opportunities for people to informally meet and gather. Open space		must be accessible to the general public at
all times. Provision must be made for ongoing operation and maintenance in perpetuity. The public space must either exceed the city’s minimum requirement for required open space and/or include quality
improvements to the public realm to create an exceptional experience.
2. Public Infrastructure. Improvements to streets,sidewalks, curbs, gutters, sanitary and storm sewers, street trees, lighting, and other public infrastructure beyond the minimum required by the city or other
public agency.
3. Pedestrian and Bicycle Facilities. New or improved pedestrian and bicycle pathways that enhance the property and connectivity to the surrounding neighborhood.

Low-Cost Visitor Serving Amenities. New or improved low-cost visitor serving recreational opportunities or accommodations within the Central Village area.
Transportation Options. Increased transportation options for residents and visitors to walk, bike, and take public transit to destinations and reduce greenhouse gas emissions.
Historic Resources. Preservation, restoration, or rehabilitation of a historic resource.
Public Parking. A public parking structure that provides parking spaces in excess of the required number of parking spaces for use by the surrounding commercial district. Excess parking provided as part of a Village hotel may not be located on the hotel site and must be located outside of the mixed use village zoning district. 8. Green Building. Green building and sustainable development features that exceed the city’s green building award status. 9. Public Art. Public art that exceeds the city’s minimum public art requirement and is placed in a prominent and publicly accessible location.
Child Care Facilities. Child care centers and other facilities providing daytime care and supervision to children.

11. Other
Community Benefits.Other
community benefits not listed above, such as entertainment destinations, as proposed by the
requirements.
B. 41st Avenue/Capitola Road Projects. In
addition to the
community benefits in subsection A of this section, the city may grant in
Clares
Street and 42nd Avenue or on the Capitola Mall
site that provide one or more of the following
community benefits:
1. Capitola Mall
Block Pattern. Subdivision of the existing Capitola Mall property into smaller
blocks with new intersecting interio
property to form a new pedestrian-friendly private interior
street.
2. Surface
Parking Lot Redevelopment. Redevelopment of existing surface
parking lots fronting 41st Avenue and Capitola Road wh
commercial uses along the
street frontage.
3. Transit Center. Substantial infrastructure improvements to the transit center on the Capitola Mall property that are integrated
moved to an alternative location consistent with the operational requirements of Santa Cruz Metro.
4. Affordable Housing. Affordable housing that meets the income restrictions applicable in the affordable housing (-AH)
overlay z

applicant that are significant and substantially beyond normal
centives to eligible projects fronting 41st Avenue or Capitola Road between
r
streets.May include the extension of 40th Avenue south into the mall
ile introducing new sidewalk-oriented commercial
buildings that place
with a possible future shuttle system in Capitola. The transit center may be
one.(Res. 4223, 2021; Ord.
1043 § 2 (Att. 2), 2020)

17.88.040 Allowable benefits (effective outside coastal zone). Revised 6/26 ¶

A. All Eligible Projects. The city may grant incentives to all eligible projects as identified in Section 17.88.030 (Eligibility) that provide one or more of the following community benefits.The public benefit
provided shall be of sufficient value as determined by the planning commission to justify deviation from the standards of the zoning district that currently applies to the property.
1. Public Open Space. Public plazas, courtyards, and other public gathering places that provide opportunities for people to informally meet and gather. Open space must be accessible to the general public at
all times. Provision must be made for ongoing operation and maintenance in perpetuity. The public space must either exceed the city’s minimum requirement for required open space and/or include quality
improvements to the public realm to create an exceptional experience.
2. Public Infrastructure. Improvements to streets,sidewalks, curbs, gutters, sanitary and storm sewers, street trees, lighting, and other public infrastructure beyond the minimum required by the city or other
public agency.
3. Pedestrian and Bicycle Facilities. New or improved pedestrian and bicycle pathways that enhance the property and connectivity to the surrounding neighborhood.

Low-Cost Visitor Serving Amenities. New or improved low-cost visitor serving recreational opportunities or accommodations within the Central Village area.

5. Transportation Options. Increased transportation options for residents and visitors to walk, bike, and take public transit to destinations and reduce greenhouse gas emissions.	5. Transportation Options. Increased transportation options for residents and visitors to walk, bike, and take public transit to destinations and reduce greenhouse gas emissions.	5. Transportation Options. Increased transportation options for residents and visitors to walk, bike, and take public transit to destinations and reduce greenhouse gas emissions.	5. Transportation Options. Increased transportation options for residents and visitors to walk, bike, and take public transit to destinations and reduce greenhouse gas emissions.	5. Transportation Options. Increased transportation options for residents and visitors to walk, bike, and take public transit to destinations and reduce greenhouse gas emissions.
6. Historic Resources.Preservation, restoration, or rehabilitation of a historic resource.
7. Public Parking. A public parking structure that provides parking spaces in excess of the required number of parking spaces for use by	the surrounding commercial district. Excess parking provided as part
of a Village hotel may not be located on the hotel site and must be located outside of the mixed-use village zoning district.
8. Green Building.Green building and sustainable development features that exceed the city’s green building award status.
9. Public Art. Public art that exceeds the city’s minimum public art requirement and is placed in a prominent and publicly accessible location.
10. Child Care Facilities. Child care centers and other facilities providing daytime care and supervision to children.
11. Other Community Benefits.Other community benefits not listed above, such as entertainment destinations, as proposed by the applicant that are significant and substantially beyond normal
requirements.
B. 41st Avenue/Capitola Road Projects. In addition to the community benefits in subsection A of this section, the city may grant incentives to eligible projects fronting 41st Avenue or Capitola Road between
Clares Street and 42nd Avenue (excluding the Capitola Mall property) that provide one or more of the following community benefits:
1. Surface Parking Lot Redevelopment. Redevelopment of existing surface parking lots fronting 41st Avenue and Capitola Road while introducing new sidewalk-oriented commercial buildings that place
commercial uses along the street frontage. (Ord. 1075 § 4 (Exh. A), 2026; Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)
17.88.050 Available incentives (effective within coastal zone).
A. 41st Avenue/Capitola Road Projects. The city may grant the following incentives to an eligible project fronting 41st Avenue, Capitola Road between Clares				Street and 42nd Avenue, or on the Capitola Mall
site:
1. An increase in the maximum permitted floor area ratio (FAR) to 2.0.
2. An increase in the maximum permitted building height to fifty feet.
B. Village Hotel.The city may grant the following incentives to a proposed hotel on the former Capitola Theater site (APNs 035-262-04,	035-262-02, 035-262-11, and 035-261-10):
1. An increase in the maximum permitted floor area ratio (FAR) to 3.0.
2. An increase to the maximum permitted building height;provided, that:
a. The maximum height of the hotel (including all rooftop architectural elements such as chimneys, cupolas, etc., and all mechanical appurtenances			such as elevator shafts, HVAC units, etc.) remains below
the elevation of the bluff behind the hotel;
b. The bluff behind the hotel remains visible as a green edge (i.e., the upper bluff (i.e., below the blufftop edge) and upper bluff vegetation		shall remain substantially visible across the length of the project site)
when viewed from the southern parking area along the bluff of Cliff Drive (i.e., the parking area seaward of Cliff Drive and closest to Opal		Cliff Drive) and from the Capitola wharf;
c. Existing mature trees shall be maintained on the site,except that trees that are unhealthy or unsafe may be removed; and
d. The rooftop shall be aesthetically pleasing and shall not significantly adversely affect public views from Cliff Avenue on Depot Hill. In	addition to		modifications to avoid structural incursions into this view,
this can be accomplished through design features on top of the roof as well (e.g., use of a living roof, roof colors and materials that reduce		its visual impacts, etc.). Rooftop appurtenances (e.g., elevator shafts,
HVAC units, vents, solar panels, etc.) shall be screened from public view and integrated into/within the above-referenced rooftop design features to			the greatest extent feasible. (Res. 4223, 2021; Ord.		1043
§ 2 (Att. 2), 2020)
17.88.050 Available incentives (effective outside coastal zone). Revised 6/26
A. 41st Avenue/Capitola Road Projects. The city may grant the following incentives to an eligible project fronting 41st Avenue, Capitola Road between Clares				Street and 42nd Avenue (excluding the Capitola
Mall property):
1. An increase in the maximum permitted floor area ratio (FAR) to 2.0.
2. An increase in the maximum permitted building height to fifty feet.
B. Village Hotel.The city may grant the following incentives to a proposed hotel on the former Capitola Theater site (APNs 035-262-04,	035-262-02, 035-262-11, and 035-261-10):
1. An increase in the maximum permitted floor area ratio (FAR) to 3.0.
2. An increase to the maximum permitted building height;provided, that:

a. The maximum height of the hotel (including all rooftop architectural elements such as chimneys, cupolas, etc., and all mechanical appurtenances such as elevator shafts, HVAC units, etc.) remains below the elevation of the bluff behind the hotel;

b. The bluff behind the hotel remains visible as a green edge (i.e., the upper bluff (i.e., below the blufftop edge) and upper bluff vegetation shall remain substantially visible across the length of the project site) when viewed from the southern parking area along the bluff of Cliff Drive (i.e., the parking area seaward of Cliff Drive and closest to Opal Cliff Drive) and from the Capitola wharf;

c. Existing mature trees shall be maintained on the site, except that trees that are unhealthy or unsafe may be removed; and

d. The rooftop shall be aesthetically pleasing and shall not significantly adversely affect public views from Cliff Avenue on Depot Hill. In addition to modifications to avoid structural incursions into this view, this can be accomplished through design features on top of the roof as well (e.g., use of a living roof, roof colors and materials that reduce its visual impacts, etc.). Rooftop appurtenances (e.g., elevator shafts, HVAC units, vents, solar panels, etc.) shall be screened from public view and integrated into/within the above-referenced rooftop design features to the greatest extent feasible. (Ord. 1075 § 4 (Exh. A), 2026; Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.88.060 Relationship to state density bonus law. ¶

The incentives allowed by this section are in addition to any development incentive required by Section 65915 of the California Government Code. (Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.88.070 Application submittal and review. ¶

A. Request Submittal. A request for an incentive in exchange for benefits shall be submitted concurrently with an application for the discretionary permits required for the project by the zoning code. Applications shall be accompanied by the following information:

1. A description of the proposed amenities and how they will benefit the community.
2. All information needed by the city council to make the required findings described in Section 17.88.080 (Findings), including a pro forma analysis demonstrating that the benefit of the proposed amenities
to the community is commensurate with the economic value of the requested incentives.
B. Conceptual Review. Prior to city action on a request for an incentive, the request shall be considered by the planning commission and city council through the				conceptual review process as described in
Chapter 17.114 (Conceptual Review). Conceptual review provides the applicant with nonbinding input from the city council and planning commission as to whether the request for incentives is worthy of
consideration.
C. Theater Site Story Poles. Prior to city action on a proposed hotel on the former Capitola Theater site the planning commission or city council	may require the		applicant to install poles and flagging on the
site to demonstrate the height and mass of the proposed project.
D. Planning Commission Recommendation. Following conceptual review, the planning commission shall provide a recommendation to the city	council	on the proposed project and requested incentives at a
noticed public hearing in compliance with Chapter 17.148 (Public Notice and Hearings).
E. City Council Action. After receiving the planning commission’s recommendation, the city council shall review and act on the requested incentives at a noticed				public hearing in compliance with Chapter
17.148 (Public Notice and Hearings). The city council shall also review and act on other permits required for the project requesting incentives. (Res. 4223, 2021;			Ord.		1043 § 2 (Att. 2), 2020)
17.88.080 Findings.
A. All Eligible Projects. The city council may approve the requested incentives for all eligible projects only if all of the following findings can be made in		addition		to the findings required for any other
discretionary permit required by the zoning code:
1. The proposed amenities will provide a substantial benefit to the community and advance the goals of the general plan.
2. There are adequate public services and infrastructure to accommodate the increased development potential provided by the incentive.
3. The public benefit exceeds the minimum requirements of the zoning code or any other provisions of local, state, or federal law.
4. The project minimizes adverse impacts to neighboring properties to the greatest extent possible.
5. If in the coastal zone and subject to a coastal development permit, the project enhances coastal resources.
B. Village Hotel.In addition to the findings in subsection A of this section, the city council may approve the requested incentives for a proposed	hotel on the former Capitola Theater site only if the following
findings can be made:
1. The design of the hotel respects the scale and character of neighboring structures and enhances Capitola’s unique sense of place.
2. The hotel will contribute to the economic vitality of the Village and support an active, attractive, and engaging pedestrian environment.
3. Hotel siting and design will (a) minimize impacts to public views, including views of the beach and Village from vantage points outside of the	Village	and from		Cliff	Avenue and Depot Hill behind the hotel;
and (b) does not adversely impact any significant public views of the coastline as identified in the LCP’s land use plan.
4. Parking for the hotel is provided in a way that minimizes vehicle traffic in the Village, strengthens the Village as a pedestrian-oriented destination, and protects public parking options. (Res. 4223, 2021;
Ord. 1043 § 2 (Att. 2), 2020)

17.88.090 Post-decision procedures. ¶

Post-decision procedures and requirements in Chapter 17.156 (Post-Decision Procedures) shall apply to decisions on incentives for community benefits. (Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020) Home Previous Next

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