Joanne Dawid, a Windward Place resident, reflected an increasingly common strain of thought amongst many Scotts Valley locals, as she made the only public comment during a City Council housing-progress-update hearing on April 1.
Sounding cheery, but apprehensive, she expressed understanding for the predicament the municipal government is in, while still emphasizing her desire to see at least some residential growth—like the redevelopment of the former Seagate campus—halted.
“It is horrible,” she said, stating she’s worried about the impact on quality of life matters, such as traffic, policing, fire services and parking. “It’s crowded wherever you go. All day. It’s dangerous…. The building’s practically on the sidewalk. And it’s an eyesore. And it’s going up really quick.”
But Dawid appreciates that Mayor Donna Lind was willing to speak to her directly about the situation.
“She’s been very kind about it; but it’s going to ruin our city—and I’m just really sad,” Dawid said, adding she knows of people who are already moving out of the area because of the changes. “I know that everybody kind of feels the same. But every time I drive by, I just pray that God shuts it down. I do. Anyways. Thank you guys for trying.”
Councilmember Derek Timm noted the Seagate redevelopment represents the first time a particular housing law (written by an Oakland politician) is being used.
And Timm blamed Monterey County municipalities for offloading housing onto Santa Cruz County, though he didn’t mention that Scotts Valley is being asked to do more this time around after failing to build much housing in the past.
The Annual Progress Report shows that in the 2025 housing year (which ended Dec. 15):
- 86 units were submitted for planning review;
- 40 housing units were entitled or approved through planning process;
- 153 housing units were issued building permits; and
- 8 housing units completed construction and were issued occupancy.
That means Scotts Valley can count 153 units toward its progress on fulfilling its requirements under the Regional Housing Needs Assessment minimum for the city of 1,220 units, within the current eight-year period.
“That’s the point in the flow where we actually get to count ‘em toward the RHNA,” Brian Froelich, the senior planner in the Community Development Department, told Council.
Bucking the trend of years past, the largest chunk of housing that was approved in 2025 was 59 units of “low” income housing (including three non-deed restricted units), followed by 39 units of non-deed restricted homes (including three non-deed restricted units). This was followed by 31 units of deed-restricted “extremely low” income units (this was on top of two units of deed-restricted “acutely low” units). Just three units of “moderate” income housing were approved. And 19 units of “above moderate” income homes came through—the only category for which approvals were issued in 2023 and 2024.
Since 2023 only included a few days for the new cycle, this past year was really like the second year under the new, and more intense, Housing Element system.
“And it’s quite a bit different than the first year,” Froelich remarked.
But that still leaves Scotts Valley with a heavy lift of units to build. It’s required to still generate 320 more units of “very low” income housing, 198 units of “low” income housing, 151 units of “moderate” income housing and 387 units of “above moderate” income housing—for a total of 1,056 homes left to facilitate.
Scotts Valley has also been making progress on streamlining its granny flat, junior ADU and lot-split rules to align with State of California law. (There is even a pre-approved ADU plan and ADU manual on the City’s website.)
But the biggest puzzle piece is about the Town Center Specific Plan and Zoning Code amendments that would allow a major (and rather elusive to-date) mixed use project to sprout, reforming the downtown with commercial units and a variety of housing options.
“Pretty significant,” Froelich said. “The Town Center is mentioned 99 times in the Housing Element. It’s woven its way through a number of the different programs.”
Plus, 75 Mount Hermon Road and Grace Way developments were “in the pipeline” but hadn’t quite made it across the finish line yet, by the end of 2025.
The 75 Mount Hermon Road project boasts 40 units, including 26 “very low” and 14 “low” income units, meanwhile, Grace Way is anticipated to bring 21 units—one “very low,” one moderate and 19 “above moderate” income units.
“We’ve got 61 units across two projects,” Froelich said, adding Grace Way was originally supposed to have two “very low” units, but the developer changed their mind about that.
Councilmember Timm said this is evidence that—unlike many other municipalities in California that Gov. Gavin Newsom has chastised for not taking housing directives seriously—Scotts Valley is “on track” with its residential development goals.
“It shows that we still have about 1,000 ‘low’ income units that we need to produce,” he said. “Is this planning process alone enough to put us in (compliance) with the State?”
Froelich replied, “That’s a good question,” but clarified that the around 1,000 figure does include “above market” units.
Councilmember Krista Jett asked how Scotts Valley’s RHNA requirement compares to others in the region.
“To put it in a bit of perspective, we have about 4,500 units in Scotts Valley, and had to plan for 1,200. That’s about 25% of our housing stock,” Froelich said. “We were very similar to Capitola.”
He added Watsonville’s target was much lower.
Vice Mayor Steve Clark asked how much staff time has been taken up by this planning initiative.
“There is hundreds and hundreds of thousands of dollars wrapped-up in this,” Froelich said. “That will continue.”
Froelich added that Scotts Valley did get some grant money to help with its Housing Element, however he said that money has now been spent.
Clark said officials should do more to lobby the state government for more funding to assist with the housing file.
Councilmember Greg Wimp asked about the penalties Scotts Valley would face if it doesn’t make its numbers.
“Yeah, that’s the big question out there,” Froelich said. “We really haven’t seen this level of interest from the State in local politics. And so, we’re still gauging the effects that could have.”
But, he said, if things veer off course, the City could have to rezone additional areas for housing.
