Capitola council selects hybrid zoning update to advance mall redevelopment; staff to amend contract

Capitola — The Capitola City Council voted to advance a hybrid zoning update for the Capitola Mall that the staff described as a middle path between a standard public process and an expedited review. Council approved “Option 1.5,” directing staff to amend the budget and authorize a contract amendment with Ben Noble Planning to complete objective development standards that staff and a property owner say are needed to design a redevelopment plan. Council member Westman moved the action and Council member Orbach seconded; the motion passed on a roll call of record as yes votes by Council member Johnson, Council member Orbach, Council member Westman, Vice Mayor Morgan and Mayor Clark.

Why it matters: the action is intended to give developers a clear, predictable set of rules (height, massing, setbacks, parking and design standards) so a large mixed‑use project, including housing, can be planned and evaluated under the city’s housing element and state timelines. The council and staff repeatedly said the work is part of meeting the city’s housing commitments and making a possible large project feasible.

What the council approved: staff outlined four alternatives for updating zoning and objective design standards, plus a hybrid Option 1.5 that keeps an expedited schedule while adding two stakeholder meetings and one community meeting. Staff estimated the hybrid at about $68,000 and completion in January 2026; alternative timelines ranged from January to April 2026 and costs from about $46,000 up to a form‑based code option at about $162,000.

Developer and consultant input: Jamis (Jameis) Quilliam of Merlone Geier Partners, a property owner interested in redevelopment, told the council that Merlone Geier needs clearer objective standards before it can prepare a specific project. As Quilliam put it: “what we're hopeful for is that we can just get some clarity on on what those objective design standards on are so that we can prepare a project, and then we can share that with the community. There's also other owners at the mall that we need to get approvals from if we were to move forward.”

Background and constraints: staff reviewed the housing element history, including why the mall block was expanded in the sites inventory and how changes — up to 75 feet of height allowed in the housing element and revised floor area rules — were intended to make housing redevelopment economically feasible. Staff emphasized fiscal analysis will be done as part of any code changes so the city can evaluate revenue and service impacts.

Next steps: the council’s motion directs staff to adopt the Option 1.5 approach, amend the fiscal year 2025–26 budget to fund the work (staff noted $68,000 in the motion), and allow the city manager to execute the Ben Noble planning contract amendment. Staff said commissioners and the community can expect additional workshops and that the city will coordinate with Merlone Geier and other stakeholders going forward.

What councilmembers said: supporters said the hybrid preserves an expedited schedule while increasing public engagement; others emphasized the need to protect city resources and to ensure the process remains transparent.

Why the timetable matters: staff and speakers reminded council that the city must implement objective standards tied to the certified housing element and state review timelines. Council directed staff to proceed under the adopted Option 1.5 schedule, with planning commission meetings and public outreach required before final adoption.

Ending: The council’s vote moves city staff into contract and budget work to deliver objective zoning language and associated outreach; a return to Planning Commission and City Council for adoption hearings was expected in the coming months.