Capitola planning commission advances draft mall zoning rules, debates height, FAR, parking and retail minimums

Capitola City planning staff and consultants told the Planning Commission on Oct. 30 that draft zoning-code amendments for the 46-acre Capitola Mall block will replace the current discretionary community-benefit review with objective standards tied to eligibility criteria, including on-site affordable units and a minimum amount of new retail.

The change is being proposed to implement the city's housing element and the sites inventory that assigns the mall parcel a capacity of 1,777 dwelling units. Staff said the amendments would let projects that meet objective standards and the eligibility rules proceed through a streamlined review rather than the existing multi-step incentive process in chapter 17.88 of the zoning code.

Staff planning consultant Matt Noble said the approach responds to Housing Element Program 1.7, which calls for objective standards so projects meeting those standards may be approved without the historically discretionary findings required for community-benefit incentives. "So, tonight's meeting is a study session to go over some important policy questions related to the Capitola Mall zoning code amendments," Noble said during the presentation.

Why it matters: the mall block sits between 40 First Avenue, Capitola Road and Clance Street and totals roughly 46 acres. It is split into multiple parcels and owners; the portion owned by Merlone Geier Partners is about 31.5 acres and includes roughly half of the mall's existing 640,000 square feet of retail. The housing-element sites inventory identifies a total capacity of 1,777 units for the block, allocated across income tiers; staff said projects seeking increased height/FAR on the mall would have to provide the on-site affordable units…