.Affordable Housing Complex Approved at Food Bin Site

59 reduced-sized units and a new market will be built on the site

A new 5-story affordable housing complex approved for the current Food Bin in Santa Cruz site was approved despite objections from neighbors.

The city’s planning commission passed it in a 5-1 vote on January 18. The new building will provide housing for students and young professionals, according to Workbench, the project’s developer.

But current residents voiced their concerns over the building’s height and the question of where the potential 59 new residents will park. Other issues such as where delivery drivers will park were also raised.

While the original plan held the number of units to 40 and the project’s height to three stories,   Workbench will invoke California’s state density bonus law, SB 330, to increase its scope. Now, the city’s zoning laws will be waived, raising the maximum height of the Food Bin project from three stories to five, and the number of units in the building from 40 to 59. 

Unless it is legally challenged, it does not have to go before the city council, according to city staff.

The project will now consist of 59 reduced-size units, also called single room occupancy (SRO) units, that are about 288 square feet in size. The dwellings may include a kitchen and partial bathroom, and are meant for one to two people.

Eight of the 59 units will be for “very low income households” which would be rented to an individual making between $34,600 and $57,650 . The remaining units would be rented at market rate.

The current Food Bin and Herb Room buildings, which date back to the 1960’s, will be torn down to make way for the project. A commercial space for a new Food Bin and 12 electric vehicle parking spots for customers will be built on the ground floor.

Senior planner for the city, Ryan Bane, told the commission that under the codified “objective standards” used to evaluate developments, they could not reject this project. The city could be held liable for $10,000 for every unit found to be illegally blocked, he said.

In the public comment portion of the meeting, neighbors expressed worry about new residents taking on-street parking and the building’s size. They also were concerned about pedestrian safety in the busy intersection. 

“We are not against the development, we’re not, but please come to our neighborhood and look up at the building from our point of view,” said Craig Schindler who moved four houses down from the proposed building after the CZU fire destroyed his home. 

Other residents pointed out that the units might not be affordable to students, and questioned how the building could enforce keeping people with cars from renting.

No parking is required under new state law if the project is within a half mile of transit. But even if many students own cars they can rent to those that do not, according to Jamileh Cannon, founder of Workbench.

“[You] can be prejudiced against the car owning class— they are not a protected class of  people,” said Cannon.

Doug Wallace and Peggy Eulensen, the owners of the Food Bin, hired Workbench to make their vision a reality. They hope that students will bike, walk, and take the bus. As a condition of the project’s approval, the developers were tasked to work with the city to provide bus passes to the future residents. 

A few Food Bin loyalists said they would no longer shop there if the new design went ahead because the Food Bin would no longer be “stop and shop” without easy parking.

But more UC Santa Cruz students expressed excitement that they would be able to live so close to a market, and reminded the commission that every small unit of housing matters– in 2020, 9% of UCSC students were homeless.

Nicholas Robles of the UCSC Housing Coalition spoke in favor of the project’s car-free commitment as a student who doesn’t own a car. He said he fantasized about coming home to the building after a long day on campus, and filling up on groceries: “Students at UCSC are already paying premium for M&Ms from vending machines, $3, and they’re paying that, it’s selling, so it’s a pretty good deal for the Food Bin as well.”

According to Doug Wallace, residents will mingle with the customers and the store will continue to be a gathering place for nutritional information. To fit the new student focus, Wallace plans a coffee bar and burritos for quick shopping in the new store. 

“We’re small business owners and we’ll work hard to create a neighborhood market that is synergistic with the town and the neighborhood,” said Doug Wallace. 


  1. This is not going to help the affordable housing situation much. Eight of 59 units below market rate? That’s less than 15% of units. Developers make a big point of tacking on the word ‘affordable’ in their descriptions, when they meet only the barest minimum number of below-market rate units. The Good Times headline is misleading.

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    • Adding 8 low income units is huge. Adding 51 units at market rate but with no parking (which is at the far low end of market rate) with access to campus transit is also huge. The more units, the lower the market rate. We need to do everything we can to lower the market rate.

      The article gave way more attention to nimbys than balanced journalism requires. Meanwhile it did not clarify that building upward on existing developments rather than sprawling out into these idyllic legacy cottages (destroying acres of wetland and biodiverse meadow per minute on this planet) … is about 10000 times better from an environmental standpoint.

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  2. There should be a five-story building like that on every block in Santa Cruz, and it makes no sense to resist that form of housing efficiency by saying “but I like having fewer neighbors” or “but there’s no place for them to park.” The future of the planet is building upward with no place to park.

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  3. This article inaccurately states that the very low income apartments in this project would be “rented to an individual making between $57,650 and $92,950.” According to the table of INCOME LIMITS for Santa Cruz County from CA HCD, which can be found at the link provided in the article, the “very low income” limit for Santa Cruz County is currently defined as one person earning UP TO $57,650, two people earning UP TO a combined income of $65,900, etc. (it’s unlikely that one of these micro apartments would house more than two people). So, an individual making, say, $33,000 per year (minimum wage, full-time) would qualify to rent one of the eight very low income apartments in this project, because that person’s income does not exceed the $57,650 LIMIT for one person.

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  4. Same thing is going in at 515 Soquel. Three stories tall, 6 feet from my fence line blocking the southern sky. 43 units with very little parking and no plan for Amazon trucks on our dead end street. We need housing but need to be continue of how these mega developments fit in neighborhoods.

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  5. “Eight of the 59 units will be for “very low income households” which would be rented to an individual making between $57,650 and $92,950. The remaining units would be rented at market rate.”
    Read that again.

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  6. Congratulations Peggy, Doug, and Santa Cruz. The Food Bin / Herb Room is a treasure. This project will help ensure a locally owned natural food continues to be able to serve the community.

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  7. Why are we building housing for the UCSC student population?

    And if we are going to build student housing then build it on the campus. There is ample room on campus to build housing. I suspect that they are building it on Mission in order to be less than a mile from a transit hub and, therefore, be able to make it more units without having to request an exemption.

    We need to be building housing for families.

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  8. Wow! Saddened at the changes happening in Santa Cruz. Congratulations on becoming a mini San Jose.

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  9. So “very low income” is ~57,000-93,000? You could be working 40 hours a week in a service industry job and still never make this much. And that’s for only 8 of the units— how much do you have to be making to live in the other 51 units?

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  10. Newsomes lame growth policy mandates are destroying community’s. Santa Cruz is quickly becoming undesirable due to its willingness to accommodate this development without the concerns of impact to the existing community. Just because people want to live here doesn’t mean we have to provide housing to the detriment of our neighborhoods

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