3.

Review of feasibility and pro-active support for City Council action on zoning changes for housing uses and housing density. The City is processing two major housing development proposals. One is a rezoning of 60 net acres

of vacant industrial land (Landmark Park) to a medium density residential project. This project combined with an adjacent 35 acres can result in development of 800 - 1000 units over the next seven years. The second project is the annexation of approximately 73 acres of land immediately adjacent to the city limits and within the City of Watsonville Sphere of Influence. Up to 600 units are proposed for this site. This project is known as the Franich Annexation.

Environmental Impact Reports are required for each of these
projects. In the case of the Landmark Park project, major
infrastructure improvements including the construction of a
4Lane bridge is required. The environmental review for
this site is in its preliminary stage. Up to ten percent
of the units to be developed for this site will be "lower
income or affordable". Development of approximately 20
acres of the Landmark site is being investigated as a "fast
track" project. This area can be readily accessed without
bridge construction and would be developed only for
affordable and/or low income units (up to 150 units).

There

The Franich Annexation project has been the subject of
litigation. The site had been previously annexed to the
city through approval by the Watsonville City Council and
the Santa Cruz Local Agency Formation Commission (LAFCO).
The annexation was overturned due to flaws in the
environmental review and annexation proceedings. A very
complex and detailed Subsequent Environmental Impact Report
EIR) is in progress. The draft report has been circulated
for public review and the final EIR is now underway.
appears to be considerable public opposition to this
project even though the site is within the Sphere of
Influence boundary as defined by the Local Agency Formation
Commission. The site is relatively flat, all
infrastructure needs including sewer, water, storm drain
and highway access are immediately adjacent to this site.
Due to the complexity of the environmental review and the
annexation public hearing process, it is unlikely that
development of this site (which includes at least 15%
affordable units) can be underway within the next two years.
Watsonville's major problem in providing housing (of all
types) is the availability of vacant land suitable for
residential development. We have less that 62 acres of
vacant or underutilized residential land within the city
limits. This land consists of smaller lots scattered
throughout the city or larger parcels with very poor soil,

excessive slope, or inadequate access. These parcels can be developed, however the public improvement costs are very high which reduces the feasibility of low income/affordable housing development.

As demonstrated in attachment B, the fees assessed by the city for housing construction are not an impediment to development.

MT: SC

(2c) res.eq.dam

400

The current status of commercial uses in the 200, 300, and 500 blocks of the study area are provided in the following pages. Data are segregated by address, building name or owner. type of use, square footage and building status.

Total estimated damage is approximately $28,000,000. Over sixteen buildings were demolished, at an estimated loss of $13,742,450 and the closure of 36 businesses. A large wall map showing the name of Main Street property owners, and building locations is available in the ULI Library.

"A list of businesses currently open for business are listed on the following Chamber of Commerce publication. Eight of these businesses are operating out of the modulars, obtained through

the Chamber of Commerce.

The combined square footage of the modulars is 10,025. copy of the lease agreements are provided in Appendix 5.2. The lease agreements provide tenant name, square footage and monthly rent.

Three additional tenants are scheduled to least modular space. The prospective tenants are: Tanori's Bridal Shop (504 sq. ft.), Dori's Photography (960 sq. ft.) and Name Unknown (960 sq. ft.).