Capitola Planning Commission approves Tesla storefront at Kings Plaza with conditions on lighting, deliveries and facade

The Capitola Planning Commission voted to approve a Tesla storefront and service facility at Kings Plaza, allowing vehicle sales, on‑site storage and a 150‑square‑foot wall sign with conditions intended to limit impacts on nearby residences and the adjacent movie theater.

The commission’s approval follows a staff recommendation and an extended public hearing in which residents raised concerns about nighttime lighting, delivery truck access, parking impacts and the safety and environmental risks of concentrated electric‑vehicle batteries. Gina Palini, the contract planner, told commissioners the project includes two service shifts (a combined maximum of 21 employees), 14 service bays (with an expected peak of eight vehicles under repair), up to 15 customer sales appointments a day and five demonstration vehicles on site. Staff’s parking study showed a modest increase from the prior tenant’s demand (Raid: 53 spaces) to the proposed Tesla demand (58 spaces), leaving roughly 266 spaces available for other center uses, Palini said.

Staff presented conditions of approval intended to reduce neighborhood impacts. Those include requiring exterior service doors to remain closed, prohibiting repairs during overnight hours (specified in the staff memo as not occurring between 11:00 and 6:00 a.m.), training employees to avoid triggering car alarms, installing mirrors to reduce horn use, prohibiting a public‑address system, and complying with a lighting condition (Condition 13) that requires motion‑sensored, cutoff and down‑shielded fixtures. Palini also said delivery vehicles must park on‑site and a condition ties delivery location to a minimum distance from residences.

Public speakers were divided. Beverly Deso, president of the Electric Vehicle Association of California Central Coast, urged approval and framed the storefront as primarily a showroom and service point: “They can sit there and idle and there’s no noise and there’s no pollution,” she said, arguing a local service location would reduce travel burdens for residents who need minor repairs. Several nearby residents and commenters questioned late notice of the application, the appropriateness of a vehicle sales/use in a family‑oriented retail plaza near a movie theater, and light intrusion from the back storage lot. Environmental compliance inspector Travis Esel cautioned about lithium‑battery fire and contamination risks — citing recent regional incidents as context — and asked what plans exist to prevent fires or runoff from entering storm drains.

Benjamin, a member of the property‑owning family, said a lease with Agility Builders prevents routing the storage‑lot gate through the center’s customer parking and that the project team has designed permeable paving in the storage area. “We’d actually don’t have the ability to do that is the short answer, but creative idea. I like the idea,” he told commissioners when asked about alternative gate access.

Commissioners expressed general support for the project, citing local access to EV service, job creation and sales‑tax benefits, while pushing for stronger facade aesthetics. Multiple commissioners asked the applicant to modify the front windows to better match Tesla storefront standards and to remove or disguise contrasting mullions. Julie Ortiz, Tesla’s design lead, said matching all four window sections or adding mullions to make them visually consistent would be feasible to consider with staff.

A commissioner moved to approve Item 6A — the Tesla storefront at Kings Plaza — requesting that the applicant work with staff to improve the front‑window aesthetics; another commissioner seconded. The commission recorded a roll‑call vote and approved the project.

The commission’s action also preserves staff‑issued conditions and the March 2 memo amendments; the director’s report that followed announced a March 18 virtual community meeting on the 41st Avenue corridor plan. The planning commission adjourned to its next regular meeting on April 2 at 6:00 p.m.