New townhouses to be built near Scotts Valley Drive

The Scotts Valley City Council, after a spirited round of public input on affordable housing last week, has unanimously approved the construction of a 5,000-square-foot-commercial space and 25 townhouses at the corner of Scotts Valley Drive and Dunslee Way.
Scotts Valley developer Corbett Wright plans to construct three-story townhouses that range from 1,100 to 1,900 square feet, and will be three and four bedrooms. The council required that three of those homes be designated “moderate-low-income” affordable housing.
Wright said groundbreaking will begin next spring, with units for sale by the end of 2017. He anticipates that all of the townhouses will be occupied by the end of 2018.
Wright also earlier this year won approval from the council to buy a prime Mt. Hermon Road site from the city for $1 million, on which plans to open a restaurant and possible brew pub.
The permit approved by the council Dec. 6 does not allow a restaurant to occupy the commercial space at Dunslee Way.
Wright successfully argued before the council that its idea of designating one affordable townhouse as “low income” was unrealistic.
“Respectfully, the project cannot absorb this,” said Wright, speaking before the council. He said the decision would cost him $200,000. “I tried to come up with the best project I could.”
Wright said he will not set the price on the 22 market-rate homes until the project has moved forward. He added that he will have marketing materials “within the next few months.”
The moderate-low-income homes will cost buyers slightly more than $500,000. Owners of the three homes must keep their townhouses in the affordable program for the next 55 years. Wright also agreed to pay the city $41,000 in additional fees to replace taxes lost on the lower sale prices.
Scotts Valley currently has a 15 percent affordable housing element for new construction in some sections of the city, but it is up to the council’s discretion to designate whether the units will have low- or moderate-income pricing.
Public sentiment last week clearly favored making affordable housing in Scotts Valley a primary goal. “The highest priority is to take care of low income people,” said resident Joy Hinz.
Rosanna Herrera, a recent council candidate and owner of Bruno’s Barbeque, and Michael Schulman, Scotts Valley school board president, recommended amending the current ordinance to require specific amounts of affordable housing.
Others warned that constructing multiple story dwellings at affordable or market-rate prices can take a toll on those requiring special needs.
“Townhouses do not serve the handicapped,” said R.N. Ellen Buckingham, adding that most people will be unable to climb stairs at some point in their life because of age or injury. “ScottsValley needs to take responsibility.”
Marlyn Bergman, who with Scott Norton owns the vacant 10.4-acre parcel that is the site of Wright’s project, said he purchased the property in 1968. At that time there was a single-family dwelling that he rented out. In 1973, the house burned to the ground and it was never rebuilt. He said he still pays $1,000 a month in taxes.
A half-acre of the site will remain open space with an area for children to play. In addition, Wright is required to improve Dunslee Way, a road in ill repair, up to city standards. As part of the council action, the Wright will construct 12 townhouses and then build the commercial space prior to completing the residential portion of the project.