Dania Romero
SCOTTS VALLEY, Calif. (KION-TV) — Following the $1 million in federal funding awarded to Scotts Valley’s new town center, Congressman Jimmy Panetta will meet with city officials to discuss how these funds will be used.
They will be going over the next steps in the project’s long-awaited development.
Scotts Valley hoping that the new city center will become a vibrant downtown where people can live, shop, grab a bite to eat, and much more.
City of Scotts Valley Awarded $1 Million in Federal Funding for Town Center Property
SCOTTS VALLEY, Calif. (KION) – A long-anticipated transformation is finally taking shape in Scotts Valley. A 58-acre gravel lot, vacant for years, is now at the center of an ambitious plan to create a vibrant downtown hub. With $1 million in federal funding secured and city leaders driving the effort, the project is generating both enthusiasm and concern within the community.
City officials envision a central district where residents can live, shop, and gather. The development is proposed just off Mount Hermon Road, one of the busiest corridors in the area. For some locals, the change is a welcome one.
“We need something new that will help encompass the community and bring revenue to the area—a nice place for everyone to hang out and shop and eat,” said Kim Owens, a Santa Cruz County resident.
However, not everyone shares the same excitement. Traffic congestion is already a major concern for those commuting in and out of the area.
“I commuted to San Jose for 30 years and had to go by here. There’s no other way, and this is the bottleneck. It has become much worse,” said William, another county resident.
The development includes around 300 new housing units. To address traffic concerns, the city is initiating traffic studies. But some residents remain skeptical about the project’s overall impact.
“It’s changing the whole purpose of me being here, which is not to be in a metropolitan area like San Jose,” said Gretchen Gudenkauf.
Proposed ideas for the space include townhomes, mixed-use retail, new streets, and apartment complexes. A significant portion of the new units will be designated for affordable housing. While the intention is clear, the definition of “affordable” remains a point of debate.
“I’m kind of surprised that it would be here in Scotts Valley. I hope that it truly is affordable, because ‘affordable’ here—I don’t even know,” said Patrick M., a resident.
Scotts Valley Mayor Derek Timm emphasized the city’s commitment to creating a mix of housing options for various income levels.
“There’s going to be a mix of affordable housing units within the development, and it’s going to help people at all different income levels,” said Timm.
The property was previously owned by the City of Santa Cruz before Scotts Valley purchased it. Mayor Timm described the transaction as a win-win.
“This actually serves a dual purpose. The City of Santa Cruz will use the funds to build affordable units downtown, and we’ll be able to build affordable units in our town,” he added.
The city plans to host a press conference on August 12 to invite public discussion on the next steps. Once the planning phase is complete, Scotts Valley will begin looking for developers to bring the vision to life.
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