A sign for the proposed Gateway South project sits at the location site in Scotts Valley. 

A proposed development for the area known as Gateway South in Scotts Valley brings with it a history of stops and starts.
The new application, filed by San Jose developer Brent Lee, calls for a 180-room hotel, 3,450-square-foot restaurant and 182 units of senior housing.
“It’s obviously at the very beginning stages,” said Mayor Jim Reed, who has taken part in two previous projects on the vacant 17.62-acre site on the west side of Highway 17 adjacent to the Scotts Valley Hilton. “This project will be under the microscope.”
Anticipated projected entitlements include a general plan amendment, specific plan amendment, zone change, planned development permit, design review and use permit approvals.
An environmental (EIR) was initially prepared for the land in 1995, as well as supplemental EIRs for in 2005 and 2009 for projects that were not built.
Rather than complete another lengthy environmental impact report, the Scotts Valley City Council on Jan. 17 entered into an agreement with Kimley-Horn & Associates to oversee the environmental aspects of the project for $215,000, paid for by the developer.
Kimley-Horn is well-known in the community and is currently consulting on Scotts Valley’s update of its general plan.
“It always helps when you have someone familiar with the community,” said Reed referring to the council’s selection over Denise Duffy & Associates. “I think (they) have gotten favorable reviews with the general plan review.”
The new Gateway South will become a part of the general plan review this year during public meetings, which will be overseen by Kimley-Horn.
The two previous abandoned project on the site include a corporate campus and Target shopping center.
The corporate campus was abandoned after the Silicon Valley experienced a slow-down and large companies, such as Borland and Seagate Technologies, reduced their presence “over the hill.”
Several years later, Target experienced resistance from nearby communities Monte Fiore and Manana Woods.
Reed said he has already had feedback on the application.
“Any time one is proposing a hotel you have to sit up and take notice,” he said. “But that doesn’t influence the objective study the city does for any project this big.”
The principal effect of the proposed development would be traffic during commute time from residential traffic onto Highway 17, Reed said. Adding that there are sufficient lanes on La Madrona Drive near Mt. Hermon Road.
 “We don’t want people to have to sit through another cycle at the lights,” said Reed, referring to the signal at La Madrona and Mt. Hermon Road. “Anytime you have a development there are going to be impacts. We just have to do our homework.”

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