Capitola seeks answers from RTC on rail-trail encroachments at Castle Mobile Home Estates; forms ad hoc to press requests

City staff briefed the Capitola City Council on June 12 about encroachments along the Regional Transportation Commission (RTC) right-of-way adjacent to Castle Mobile Home Estates and described ongoing coordination with the park owner Millennium Housing and the RTC to find a negotiated path forward.

Why it matters: Preliminary RTC surveys identify roughly 20 encroachments into RTC-owned right-of-way at the mobile home park. Residents and advocates said the encroachments, if enforced as currently described in RTC materials, could require moving homes or fences and impose significant cost and disruption on low-income and senior residents of the park. Council members and residents urged clarity and fairness about how encroachments will be handled across the corridor and whether comparable encroachments elsewhere (for example, at the Capitola Beach Villas on 40 First Avenue) are being treated consistently.

What staff reported: The park, at 1099 30 Eighth Avenue, has 108 spaces and is an affordable park; when the City participated in the acquisition there were two active rehabilitation loans remaining (originally 10). Staff summarized prior outreach and said the RTC has completed an encroachment review and that some additional, more-accurate surveying is needed to determine whether structures, fences or other improvements must be relocated. Staff described the city’s role as convener and said the RTC proposed a tolling agreement to pause legal deadlines while negotiations continue; Millennium Housing was reviewing that draft and staff characterized discussions as productive.

Resident testimony and concerns: Several Castle Mobile homeowners described anxiety and confusion after receiving notices referenced in RTC materials, disputed counts in the RTC concept report and asked why similar narrow segments elsewhere along the corridor appear to have been treated differently. "If that is accurate, I would like to know why the RTC is requiring the removal of these encroachments behind Castle Mobile Estates, but not imposing the same requirements on 40 First where the condominiums are," resident Cammie Corvin said. Multiple residents said the concept report undercounts affected homes; one resident told council she received a notice stating a home must be moved by June 30, 2025.

Council response and action: Council members pressed for clearer data and asked staff to assemble a list of specific questions for the RTC. Council directed staff to pursue an expedited process for information and negotiation and voted to form an ad hoc committee composed of the mayor and Council Member Jerry Jensen to draft a letter and request formal answers from the RTC. The council motion to create the ad hoc passed unanimously.

Funding and assistance: Councilmembers and residents discussed potential local housing-rehab or assistance resources, including housing trust funds and nonprofit partners such as Habitat for Humanity, and volunteer support from community organizations. Staff said some rehab loan funds remain tied to the property and that prior rehabilitation loans totalled slightly less than $250,000 when issued; two loans remain active totaling a little over $100,000.

Next steps: The city will convene parties and the newly formed mayor-Jensen ad hoc will draft and send a letter to the RTC with council questions. Staff also said the RTC requested additional site surveying and that the city can be present during that work. Council members sought a public response from the RTC at a scheduled RTC board meeting; staff recommended the mayor and ad hoc pursue formal written questions and request RTC response at a board hearing so the regional decision-makers see the concerns.

Sources: City presentation on Castle Mobile Home Estates, resident public comment at the June 12 council meeting, council motion to form ad hoc committee.