Capitola Mercantile seeks permit for live entertainment and outdoor seating expansion

In the heart of Capitola, a pivotal discussion unfolded at the Planning Commission meeting on April 3, 2025, focusing on the future of the Capitola Mercantile, located at 115 San Jose Avenue. The meeting centered around a proposed amendment to the Master Conditional Use Permit, a planning tool designed to streamline operations for multi-tenant properties like the Mercantile.

The Mercantile, a hub for local businesses, is seeking to enhance its offerings by allowing live entertainment and expanding its outdoor seating options. Currently, the Master Use Permit prohibits live music, but the property manager has garnered support from nearby stakeholders, including the adjacent hotel, to permit live entertainment until 7 PM. This change aims to foster a vibrant atmosphere while addressing previous concerns about noise and compatibility with neighboring establishments.

City staff presented the proposal, highlighting the benefits of a Master Use Permit, which allows for a more flexible approach to tenant changes. For instance, businesses that typically require a Use Permit can instead apply for an Administrative Permit, expediting the process during tenant turnover. The proposed changes would also increase the seating capacity on Patio B to accommodate up to 26 patrons, enhancing the outdoor dining experience.

Commissioners expressed their support for the initiative, acknowledging the collaborative efforts between the Mercantile and the hotel to create a mutually beneficial environment. Concerns about potential overcrowding and public safety were raised, but officials reassured that strict regulations and conditions would be in place to manage occupancy and ensure compliance with safety standards.

As the meeting progressed, the atmosphere was one of optimism, with commissioners recognizing the importance of fostering local businesses while maintaining community harmony. The proposed amendments to the Master Use Permit are set to not only revitalize the Mercantile but also contribute to the overall vibrancy of Capitola's commercial landscape. The commission's approval of these changes could pave the way for a more dynamic and engaging community space, inviting residents and visitors alike to enjoy the unique offerings of the Capitola Mercantile.