Santa Cruz Zoning Administrator · Wednesday, October 7, 2026, 10:00 AM · Item 3 · Public Hearings

MajorHousing, Planning & development

Seven-story, 91-unit mixed-use building proposed at 901-903 Pacific Avenue

In plain English

A developer wants to tear down two commercial buildings at 901-903 Pacific Avenue in downtown Santa Cruz and build one seven-story mixed-use building with 91 homes. The two parcels (Assessor's Parcel Numbers 005-143-03 and 005-143-004) would have their shared property line redrawn through a boundary line adjustment. The Zoning Administrator is asked to accept the environmental finding (a categorical exemption, meaning no full environmental study) and approve the package of permits: boundary line adjustment, coastal permit, design permit, non-residential demolition authorization, and a downtown density bonus that allows more units than base zoning. A yes vote clears the way for demolition and construction, subject to the conditions in Exhibit "A" of the staff report dated October 2, 2026.

This would add 91 residential units and remove two existing commercial buildings on Pacific Avenue, changing the height and use of a prominent downtown block for neighbors, nearby businesses and the building's current commercial tenants.

Key facts

  • Location: 901-903 Pacific Avenue, Assessor's Parcel Numbers 005-143-03 and 005-143-004
  • Project: demolish two commercial buildings; build one seven-story mixed-use building with 91 residential units
  • Application CP25-0073, filed 7/30/26 by applicant Jan Hachhauser
  • Zoning: CBD/FP-O (Central Business District / Floodplain Overlay), within the Pacific Avenue Subarea of the Downtown Plan
  • The coastal permit for this project is not appealable to the California Coastal Commission
  • Heard at the Zoning Administrator meeting of Wednesday, October 7, 2026; staff report dated October 2, 2026

Reasons to support

  • It puts 91 new homes on two downtown parcels already zoned for Central Business District use, within the Pacific Avenue Subarea of the Downtown Plan.
  • Staff recommends approval and finds the project qualifies for a categorical exemption from further environmental review, with conditions of approval attached in Exhibit "A".
  • The downtown density bonus is an existing city tool that allows added units on sites like this one, and the boundary line adjustment lets the two parcels work as a single building site.

Reasons to oppose or change it

  • Two existing commercial buildings would be demolished, displacing whatever ground-floor commercial uses occupy them today.
  • A seven-story building is a substantial increase in height and mass on Pacific Avenue, and the density bonus allows more units than the base zoning would otherwise permit.
  • The site sits in a Floodplain Overlay (FP-O) zone, so flood risk is a design and safety consideration for 91 new residences.
  • Because this coastal permit cannot be appealed to the California Coastal Commission, the city's own appeal process is the only route for anyone who disagrees with the decision.

Official wording

901-903 Pacific Avenue Project Number: CP25-0073 Assessor's Parcel Number(s): 005-143-03; 005-143-004 Boundary Line Adjustment, Coastal Permit, Design Permit, Non-Residential Demolition Authorization Permit, and Density Bonus Request to Demolish Two Commercial Buildings and Construct a Seven Story, Mixed-Use Building With 91 Residential Units on Two Parcels Located in the CBD/FP-O (Central Business District/Floodplain Overlay) Zone District and Within the Pacific Avenue Subarea of the Downtown Plan. Environmental Determination: Categorical Exemption; Filed 7/30/26 by Applicant: Jan Hachhauser. This Project Requires a Coastal Permit Which is Not Appealable to the California Coastal Commission Recommendation: That the Zoning Administrator acknowledge the Environmental Determination and approve the Boundary Line Adjustment, Coastal Permit, Design Permit, Nonresidential Demolition Authorization Permit, and Downtown Density Bonus request based on the Findings listed below and the attached Conditions of Approval in Exhibit “A” of the staff report dated October 2, 2026.
Official agenda

Summary written by claude-opus-5 from the agenda and the Staff report (agenda packet, pages 2-3). It can contain mistakes. The official documents govern.