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Capitola Planning Commission reviews zoning package for Capitola Mall redevelopment, sets targets for hotel, retail and open space

Capitola Planning Commission · November 20, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

At a Nov. 19 Planning Commission meeting, staff previewed draft zoning amendments and incentives for the Capitola Mall redevelopment—including a qualifying mixed-use path that requires 20% on-site affordable housing, a minimum 85-room hotel with 3,500 sq ft meeting space, and a commercial minimum (commissioners discussed raising 25,000 sq ft to 40,000 sq ft); staff will return Dec. 4 with objective design standards and an updated draft.

The Capitola Planning Commission on Nov. 19 reviewed draft zoning-code amendments intended to implement the city’s housing element and to guide redevelopment of the Capitola Mall site, focusing on density, heights, commercial floor-area, parking and fiscal analysis.

Staff and consultants described a two-track approach: a set of incentives for a "qualifying mixed-use" project and a separate standards track for other residential or mixed-use projects. Ben Noble, a planning consultant, said the qualifying path would require on-site residential that meets a 20% affordable target, include a hotel of at least 85 rooms with 3,500 square feet of meeting space, and provide a minimum amount of new commercial space (the draft text used 25,000 square feet). "The goal with the qualifying mixed use project is to incentivize a mixed use redevelopment project consistent with the vision that the city has for the property," Noble said.

Why it matters: the changes are designed to meet Capitola’s regional housing needs allocation (RHNA) and avoid reducing residential development capacity while steering redevelopment toward a mix of housing, hotel and retail that the city says will produce more net revenue than large amounts of low-performing retail alone.

Key details and debate

- Density and capacity: Staff said the Mall area is identified in the housing-element sites inventory with an assumed maximum density of 48 dwelling units per acre (used in the city’s capacity calculations) and discussed a realistic unit…

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