The City of Scotts Valley has secured $1 million in funding promised by the federal government last year to help develop the Town Center property.
The planned Town Center property comprises a 58-acre area framed by Mount Hermon Road, Skypark Drive and Bluebonnet Lane. The property, formerly known as Skypark Airport, is a largely vacant and undeveloped space. The City of Santa Cruz, which owns the property, closed the airport in 1982, citing financial reasons.
Scotts Valley first adopted a development plan for the site in 2008 that aims to create a mixed-use downtown area. This will include housing, with at least 25% intended to be affordable housing, along with a commercial district.
The $1 million in federal funding is a part of a long process to create a city center, which includes the plans to purchase the Skypark property from the City of Santa Cruz for $7.8 million.
In June, the City of Scotts Valley closed escrow on the purchase of the land from Santa Cruz. The $1 million will be used as a down payment for the property purchase, with annual payments to Santa Cruz continuing over the next eight years.
Scotts Valley City Manager Mali LaGoe told Lookout in an email Wednesday that the city plans to cover the annual payments using money from an affordable housing fund and a planned resale of portions of the property to developers.
This Skypark space has been a sour reminder of unfulfilled election promises of development for a generation of Scotts Valley residents. For nearly 30 years, starting with Mayor Randy Johnson in 1996, Scotts Valley elected officials have promised to make a downtown rival to Santa Cruz’s Pacific Avenue.
The Scotts Valley City Council unanimously approved the most recent vision for the Town Center in December 2024, including finalizing plans to purchase the last remaining land that is set to make up the proposed city center.
LaGoe said that the next step is updating and adopting the specific plan and environmental impact report for the Town Center by the end of this year. After that, the city plans on selecting a developer for the project.
-Lookout Santa Cruz, Gwyneth Holcomb July 24, 2025
