Bethany Drive overhead view
During an informational meeting held July 1, Scotts Valley residents spoke out against a development that’s set to go in next to Vine Hill Elementary School. (City of Scotts Valley)

It was a pitched battle—deciding whether or not to allow a storage facility at the site of mid-century office buildings along Bethany Drive in Scotts Valley.

It included criticism, during an Oct. 2, 2024, City Council hearing, from a school board official and a child demanding the developers “build a house or something else.”

In the end, the NIMBY concerns of the residents (they worried about construction dust, increased traffic and pedestrian and bike safety) won the day. Council asked the developer to do more public outreach and make a few tweaks.

Fed up with the pushback, the developer decided instead to turn to a Kansas-based developer, The Prime Company, and now a by-right affordable high-rise building is slated to go into the pie-shaped lot near Vine Hill Elementary, at 125 Bethany Dr.

The 96-unit series of adjoining towers is classified as a “100% affordable housing” project, though this is based on an Area Median Income in the six figures.

The State of California has been grappling with what to do about the region’s ongoing housing crisis, where many residents are forced into substandard accommodations yet still end up paying up to half of their incomes toward rent.

It took a few years, but the measures implemented by Gov. Gavin Newsom’s administration have finally begun to bear fruit.

One of these laws (SB 2011) allows developers to build housing on land zoned for commercial use, as in the Scotts Valley example.

And they don’t have to seek approval from the City of Scotts Valley.

Plus, in this case, they’re entitled to a density bonus and other concessions for building affordable units.

Even though it was not required to do so, the City opted to hold an informational meeting on July 1, for residents to learn more about the project and voice their concerns.

The developer didn’t bother to send a representative, even though the property owner, Eli May—the son of former Scotts Valley Press Banner general manager Lee May—lives in the area.

Bethany Drive view from Tabor Drive
A representation of what the view would look like from Tabor Drive. (City of Scotts Valley)

City Manager Mali LaGoe said they were recording the meeting in hopes that The Prime Company would at least be willing to watch the video.

So far, they have not been willing to provide all the studies that the City has asked for, she added.

One of the commenters at the meeting pointed out that the younger May had pledged to listen to the concerns of residents, back when he was pitching the storage facility. This speaker implored him to stay true to his word.

The Press Banner reached out to him on Monday for comment, but he politely declined, referring questions to the developer, The Prime Company—but without providing relevant contact information.

City staff said they are not privy to the terms of the deal between May and The Prime Company, but said he is not obligated under State housing laws to sell the land.

On Tuesday, the newspaper sent out requests for comment to The Prime Company—which bills itself as a company that bases its actions on Christian principles—but did not hear back by press time on Wednesday.

One speaker suggested their actions, so far, have not been very Christ-like.

Chief among the concerns is the worry that people on the building’s balconies will be able to peep on schoolchildren playing down below.

However, many of the comments brought up the more traditional planning concerns around volume of vehicles, construction hassles and displeasure with the State’s response to the housing crunch, which has eroded local control over development.

There are no future hearings planned at this time, as none appear to be required.

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Drew Penner is an award-winning Canadian journalist whose reporting has appeared in the Globe and Mail, Good Times Santa Cruz, Los Angeles Times, Scotts Valley Press Banner, San Diego Union-Tribune, KCRW and the Vancouver Sun. Please send your Los Gatos and Santa Cruz County news tips to [email protected].

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