Last week Scotts Valley Mayor Jim Reed sat down for an interview with the Press Banner to discuss some important issues he hopes to address in his third mayoral term. There is no question for Reed a key economic driver for the city will be the addition of new hotels. According to Reed’s estimates, one hotel can generate enough transient occupancy tax revenue equivalent to what 1,823 single family homes or 10 grocery stores would generate.
The recent news that the former Lexington Hotel project was sold is a positive sign for Reed. Former owner, Anatol Shilapnikoff purchased the lot for the hotel in 2006, but several issues arose during development preventing the 128-room hotel on Scotts Valley Drive from completion.
In January, Reed’s office announced the sale is expected to be finalized Feb. 9 or 10, by Lotus Management, Inc. The new hotel, expected to be open as soon as this summer, will be a Four Points by Sheraton.
“There is nothing close to what hotels bring in as far as revenue,” Reed said.
Beyond generating tax revenue to be put in a general fund for the city to use for basic services, such as infrastructure, Reed also pointed out hotel visitors spend money locally at restaurants and shops. And they have little impact on morning and evening commutes.
Reed recognizes, the city of Scotts Valley will continue to struggle financially, but it’s not because of actions from the city council or budgeting issues. Rather, after Proposition 13 was passed by the State legislature in 1978, the way funding is distributed to smaller cities changed.
“We have a long running revenue problem,” Reed said. “Smaller cities got the short end of the stick and it is not because anyone did anything wrong. Therefore, we as a city have to work together to solve these problems ourselves.”
Another item on Reed’s agenda is solving the need for more affordable housing. With over 110 new housing units approved since 2013 and more on the horizon, Reed stated the importance to include options beyond just single-family homes. Reed welcomes developers to think of adding studios, one-bedroom units and condos.
In tandem with adding new housing developments, Reed said in the coming weeks council members will start to reassess ordinances regarding building standards.
A recent example Reed mentioned is the lack of parking spots at the Woodside housing development. According to Reed, the police department brought it to his attention the development did not have adequate parking space needed for the number of units. However, according to current city ordinance the developer followed the requirements correctly.
Reed wants to engage in conversations with council members and local officials on whether or not city ordinances need to be reexamined to better suit the community’s needs.
“What makes living in Scotts Valley so great is people feel safe here. We live in the one of the best climates in the county and our schools are top notch,” Reed said. “What you want tos see is the things that make this city great remain for the next generations.”
