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Council approves steps to speed storefront openings and funds downtown activation
Summary
Council approved staff recommendations to streamline permits for desired commercial uses, extend certain commercial use permits through 2030, set a vacant‑storefront registry fee, and appropriate $50,000 for downtown activation events.
The Santa Cruz City Council approved a package of economic development measures on Tuesday aimed at activating vacant storefronts and accelerating business openings.
Economic Development Manager Rebecca Unit presented a multi‑part approach staff developed following council direction. Key elements include: (1) ordinance language to extend the validity of commercial use permits issued between Jan. 1, 2019 and Dec. 31, 2026 through Jan. 1, 2030 so eligible businesses can reopen under an administrative zoning clearance rather than reapplying for a new use permit; (2) a deeper interdepartmental permit streamlining review targeting high‑frequency desired uses (artist studios, galleries, fitness studios, certain restaurants/tasting rooms, sidewalk dining and entertainment); (3) a proposed fee waiver for up to the first $14,000 in planning and building plan‑check and permit fees for the first 20 qualifying ground‑floor tenant improvement projects citywide; and (4) adoption of a vacant storefront registry administration fee tied to the recently adopted Vibrancy Ordinance ($1,621.90 per qualifying storefront).
Unit said staff would begin the detailed zoning and code amendments needed for streamlining, return to the Planning Commission for review and ultimately seek Coastal Commission concurrence where required. She noted an appropriation of $50,000 from the Economic Development Trust Fund to support downtown activation events over the next 6–12 months.
Council member Newsom moved to approve the staff recommendations (with a clarified condition that the fee incentives target ground‑floor commercial businesses citywide); the motion was seconded and passed on roll call. Council members asked staff to prioritize downtown needs and to ensure the outreach to small business owners, and Vice Mayor Kalantari Johnson asked that any changes related to alcohol sales be balanced with concerns about youth access.
The ordinance changes and streamlining proposals will proceed through Planning Commission review and require Coastal Commission approval for coastal‑zone amendments. The fee waiver resolution, if adopted, would take effect immediately; the use‑permit extensions and code amendments have a projected fall/winter timeline for hearings and review.
