The proposal for a 16-story mixed-use residential tower in Santa Cruz County has sparked significant debate, but it now appears that the community is moving past this idea. Sibley Simon, a partner at Workbench, the firm behind the proposal, stated that a high-rise of this scale at the northern edge of downtown Santa Cruz is financially unfeasible. Simon clarified that the project will likely be reduced to a seven-to-eight-story building due to the prohibitive costs of constructing taller structures that require more expensive materials like concrete and steel.
Simon emphasized that the financial hurdles, not political or permitting issues, are the main obstacles to building the originally proposed 16-story tower. The shift to a shorter building reflects the reality that wood-framed structures, which are less costly, are the more viable option for the area. Although this decision marks a step back from the ambitious original plan, Simon noted that future projects in Santa Cruz might eventually reach greater heights as costs decrease and financial risks are mitigated.
The photo above shows the current development already in progress along the San Lorenzo Corridor
The initial proposal for the Clocktower Center, which was first reported in April, quickly polarized the community. The original plan called foran 18-story building, later reduced to 16 stories, but it still represented a significant departure from what is typical for the area. The project became a symbol of the tension between local control and state laws encouraging higher-density, affordable housing. The developer had argued that the project was legal under state law, which allows for exceptions to local height restrictions if a development includes affordable housing units.
Despite the legal justification, Simon explained that the financial risks associated with such a groundbreaking development in Santa Cruz County are too great for lenders and financiers. The lack of precedent for such a project in the area makes it difficult to secure funding, as investors are wary of financing something new and untested in the market. This caution, rather than political opposition, is what will likely prevent the tower from reaching its originally proposed height.
The project, still in its early stages, is currently in the pre-application phase. Workbench has until the end of September to submit a revised formal application to the city. Simon did not specify when the firm expects to finalize and submit the new plan, but the community can anticipate a scaled-back version of the original proposal, with fewer stories and potentially fewer parking spots, addressing some of the concerns raised by lenders.
Lookout Santa Cruz, August 2, 2024
