The Capitola City Council is evaluating zoning changes that could allow up to 1,700 new homes on the 46-acre site of Capitola Mall, which is owned by Merlone Geier Partners. The council is considering different approaches for the redevelopment process, including how much community input will be included and what design standards will apply.
Merlone Geier Partners has been in discussions with city officials about redeveloping the mall for more than ten years. In 2019, the company proposed a plan featuring 637 residential units and approximately 339,000 square feet of commercial space intended for retail, restaurants, and entertainment. That proposal also included mixed-use buildings with ground-floor retail and upper-level apartments built around parking garages. Although this earlier application did not move forward, it has influenced current planning efforts.
At a recent meeting, council members reviewed three potential zoning options for the project. One would follow a traditional update process involving significant community outreach but would delay approvals until next year. Another option, supported by Merlone Geier Partners, would streamline approvals and limit community involvement to speed up construction. A third possibility involves form-based code development that focuses on walkability and integrating the new development with surrounding neighborhoods; however, this approach would require additional time and coordination.
“People are interested in seeing a design,” Council Member Melinda Orbach said during the meeting. “We have to move things along so that Merlone Geier can come to us with a design, with a proposal, with a project, so then we can talk about it, and our residents can chime in on what works and what doesn’t for them.”
The council decided to establish a subcommittee to collaborate with Merlone Geier Partners and plans to reconvene within two weeks to discuss further steps regarding future development.
“This is going to be one of the biggest things we do in Captiola,” Mayor Joe Clarke said during the meeting. “So taking two weeks, it’s not a long time. I’d like to see our subcommittee reach out to Merlone Geier and the other stakeholders, and let them know that we’re committed to seeing the project through.”
Capitola Mall was originally constructed in 1977 and expanded in 1989. It currently features 68 retail tenants including anchor stores such as Target, Macy’s, and Kohl’s.
As part of its Housing Element requirements from the state of California (https://www.hcd.ca.gov/planning-and-community-development/housing-elements), Capitola must plan for 1,336 new housing units by 2031. More than half of these units need to be reserved for low-income or very-low-income households—defined as those earning between $63,400 and $101,750 per year.
