Council denies appeal of Mission Street Studios project; directs enforcement and design-collaboration steps

The Santa Cruz City Council voted to deny an appeal of the Planning Commission approval for a six‑story mixed‑use project at 1118–19 Mission Street — commonly called Mission Street Studios — while directing staff to take several neighborhood-focused follow-ups aimed at parking, loading and design collaboration.

Appellant Bruce Thomas spoke for neighbors on Dufour and Palm streets and identified an ongoing safety issue at the Dufour–Mission intersection: delivery trucks frequently double‑park outside a commercial loading zone, forcing lane closures and creating hazardous maneuvers. “Delivery trucks frequently double parking at the entrance to Dufour Street,” Thomas said during his appeal presentation, and he urged council to resolve enforcement and loading‑zone design before the larger project is built.

Staff earlier told council the project is subject to state housing laws and SB 330 provisions and that local discretion is limited, but the applicant voluntarily revised the design during pre‑application review, added frosted windows on the rear elevation, offered a neighborhood tree‑planting allowance and agreed to create an additional loading zone on the north side of Dufour opposite the existing zone. The Planning Commission approved the demolition authorization, lot line adjustment, design permit and density‑bonus requests required for the 67‑unit building.

After public testimony from several neighbors and business owners recounting heavy traffic, tight turning radii and recurring double‑parking at the Dufour curb, Vice Mayor Kalantari Johnson moved to deny the appeal and direct staff to take neighborhood‑oriented enforcement and planning steps. The council’s motion — seconded by Councilmember O’Hara and adopted unanimously — directed staff to increase parking enforcement for the next three to six months, explore adjustments to parking restrictions on Dufour Street (including potential changes to the commercial loading‑zone hours or designation), and meet with neighborhood representatives to assess whether compliance and safety improve.

Council members additionally approved a friendly amendment asking staff to work with the council’s ad hoc housing subcommittee to evaluate ways the city may have greater influence or collaboration over architectural style, building design and site design early in review, and to return with policy recommendations in 2026. Staff and the public noted that a number of state laws — including density bonus and vehicle‑code constraints — limit local discretion, but councilmembers said they wanted to pursue feasible remedies and stronger early engagement to reduce neighborhood impacts.

Applicant representatives reiterated willingness to continue working with neighbors on privacy and loading‑zone details; developer representatives also highlighted voluntary design changes made during review. The council denied the appeal on a unanimous roll call.

Implementation and oversight: staff will (1) coordinate increased enforcement and evaluate whether Dufour curb usage improves, (2) study potential adjustments to curb restrictions and loading‑zone hours and sizes in coordination with Caltrans and the police department, and (3) report back to council and meet with neighborhood representatives within the stated 3–6 month period.