Capitola Council declines to back CRP’s request for letter of support for 3720 Capitola Road

The Capitola City Council voted 4–1 on Nov. 13 to deny CRP Affordable Housing’s request for a city letter of support needed to complete a Community Development Block Grant (CDBG) disaster‑relief application for a proposed 43‑unit, 100% affordable project at 3720 Capitola Road.

Councilmember Westman moved to deny the request, a motion seconded and carried in a roll call that recorded Councilman Johnson voting yes, Councilman Orbach voting no and Mayor Clark, Vice Mayor Morgan and Councilman Westman voting yes. The motion followed extended public testimony and staff briefings raising unresolved technical issues and neighborhood concerns.

City planning staff told the council they received the 43‑unit proposal about three weeks earlier and then, within days, a separate SB 330 pre‑application for an 88‑unit ministerial route. Staff said they found discrepancies in the developer’s base density calculations that had not been reconciled and therefore recommended against committing the city to a letter that would be tied to a specific project configuration.

"We don't have enough information or we haven't worked with our community to be supportive," Councilmember Westman said before making the motion to deny the letter request. City staff confirmed the discrepancy involved how base density and unit yield were calculated and that limited review time prevented staff from resolving the differences before the council meeting.

Neighbors from Bulb and Bold avenues told the council the request was added to the consent agenda on short notice and that many residents lacked time to review plans or see the materials in the agenda packet. Residents repeatedly cited traffic, narrow streets, lack of sidewalks, parking and safety as concerns if a higher‑density project were to proceed.

CRP representatives said the developer’s preferred route is the 43‑unit project because that option is most viable for the grant. "We respectfully request that the city council approve a letter of support this evening to enable us to complete our funding application," a CRP acquisitions representative told the council. CRP also said it would complete required traffic studies and follow entitlement processes.

Several councilmembers noted state housing laws and SB 330 (the ministerial approval path) can limit local control if projects meet statutory criteria, and said that risk made the timing sensitive. Even so, the majority concluded the unresolved technical issues and the lack of meaningful community engagement made signing a binding letter inappropriate at this time.

The council’s action denies only the request for a letter of support. It does not approve or deny any development permit; any application that comes through the planning process will be evaluated under the city’s objective standards and applicable state law. Staff said the developer may still submit an application; an SB 330 ministerial pathway was explicitly discussed as the alternative if no city letter is provided.

The denial was the last substantive action on the meeting’s consent‑pulled items. The council recessed for five minutes before continuing the agenda.