This proposal for a storage and office facility on Bethany Drive faced stiff community opposition during a public hearing Oct. 2. Council members said they could be swayed to support it if certain tweaks are made and the developer consults with neighbors. (City of Scotts Valley)

A developer that wants to build a combination storage-and-office building at 125 Bethany Dr. at the northern end of Scotts Valley has a little more work to do to get the project over the finish line.

The proposal faced significant opposition from neighbors during the regularly-scheduled Oct. 2 Scotts Valley City Council meeting. The Council was generally supportive of the plan, but indicated more public outreach—and a few tweaks—were yet needed.

“I recognize you’re probably doing a balancing act,” said Councilmember Jack Dilles, as he listed some of the issues with the project.

The development has been put forward by Aptos-based Heritage Real Estate Ventures LLC. Heritage’s Eli May, son of Press Banner General Manager Lee May, made his case that the project is needed to support the business community in town, given the changing nature of commerce in the digital era.

He also said companies are already expecting to be displaced by the City’s agenda for building homes, as spelled out in the recently adopted Housing Element.

Some local residents and business owners spoke in support; however, many residents vehemently opposed the complex.

One woman called it “extraordinarily alarming,” and said Heritage never had a single conversation with a group of neighbors who don’t want to see it go in.

Another said she believes the project to be incompatible with the neighborhood, and said she wouldn’t feel comfortable letting her young daughter walk to school due to the increase in traffic she expects the project would invite.

“When I grow up, I want to be the mayor of Scotts Valley,” her daughter said, each word pouring out slow and sweet like molasses. “I live on Bethany Drive. My dream is to walk to school by myself. In fact, my parents bought me an Apple Watch to stay in touch with me. What I think you’re doing is wrong. Build a house or something else.”

Michael Schulman, president of the Scotts Valley Unified School District Board of Trustees, was impressed.

“I have to follow that?” he commented. “OK.”

From the school board’s point of view, there are three main problems with the development in its current form: noise, pedestrian safety and dust.

While he said he believes it’ll be easy enough to address the first two, he suggested the dust issue might be more of a challenge.

“There is a range of ways to take down a building,” he said. “You could blow it up, which I think you don’t want. You could take it apart nail-by-nail.”

He said it was important to find a happy medium so that vulnerable students playing nearby wouldn’t face negative health consequences.

Chief among the neighbors’ concerns were the variances being requested.

Heritage was seeking a General Plan amendment and a zoning change, and had submitted a Cultural Resources Alteration Application, in order to build the 52,250-square-foot three-story building on the north side of Scotts Valley Drive, between Tabor and Bethany drives.

It would include 10,000 square feet of professional and administrative offices and 42,250 square feet of storage, serving up to 227 users.

A split decision from the Planning Commission meant that body made no recommendation one way or the other about the plan.

A 26-year resident of Tabor Drive said she agrees there’s a need to renovate the facility, but added that the new plan is a far cry from the educational facilities formerly housed in the space.

“I’ve taught there,” she said. “The current design is not in keeping with the General Plan of the city. I think that more effort is needed.”

One business owner said, since a 100% affordable project is set to displace his business, he could really use office and storage space at 125 Bethany.

Another business owner said the flexibility of additional storage space can allow companies to adapt when economic shocks hit, such as when his company was impacted by the Covid-19 pandemic.

“I like supporting the businesses,” said Dilles, but added that the idea of adding storage units for people who may come-and-go quickly made him “uneasy.”

He asked if the developer would be willing to restrict storage to the tenants of the building.

“We would be open to that,” May said.

Heritage said it would also be willing to set parking dimension limits and to add more trees.

Staff didn’t make any recommendations.

Council directed staff to bring the item back at a future meeting after an improved version is submitted, and said the storage space would have to be for tenants only.

“There is a path forward if conditions are met or negotiations happen, compromises happen,” said Mayor Randy Johnson. “That’s a squishy process.”

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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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