Dear Friends and Neighbors, 

We're just two days away from the end of the County's Fiscal Year. Last week the Board of Supervisors passed a preliminary budget that required us to draw down $43 million in reserves. It will almost certainly be revised in September when we incorporate final changes that result from the State's budget.

There's a long list of items on our Board of Supervisors agenda tomorrow. Among them, the sale of a portion of the 7th and Brommer property for affordable housing is notable. I've included an in-depth explanation about how we got to this point and what will happen with the rest of the property. Also, I'm taking the opportunity to share information about our water supply, since this is linked in everyone's mind with housing growth. 

July kicks off the new fiscal year and also new road projects. The bottom three miles of Soquel San Jose Rd, from Soquel Dr up to Laurel Glen Rd, is getting resurfaced and improved. We'll also restripe East Cliff Parkway (largely maintaining the existing striping) and replace bollards on Soquel Dr later this year. 

Tomorrow's board agenda also includes a vote to put the Robertson and Soquel Light Project out to bid. Based on recent accident data, this is the second most dangerous intersection in the unincorporated County. If approved, work on that project will begin later this year. A right-hand turn lane will also be added to eastbound Soquel Dr onto 41st thanks to the  affordable housing project going in at the corner there.

If you're wondering about future road work, Item 9 on our agenda tomorrow is a preliminary report about new taxes that could help pay for our County's maintenance. I have consistently advocated for more of our existing tax revenues to go toward road maintenance. So far, my fellow supervisors have not been supportive of this. At least a goal to "Invest in County Assets & Infrastructure" has been added to our Strategic Plan! Final approval of our 2026-2032 County Strategic Plan is Item 8 on tomorrow's agenda. 

Generally speaking, public agencies don't host meetings in July. However, you can catch me for Office Hours this Wednesday, July 1, from 1:00 - 3:00 PM at the Sheriff's Center (5200 Soquel Ave, 95062).

Have a fun and safe 4th of July and a great summer!

Best,

Manu Koenig

1st District Supervisor, Santa Cruz County

Image: A drone view of a potential U.S. Immigration and Customs Enforcement detention center near Gilroy, Calif., on Friday, May 29, 2026. Credit: Shae Hammond/Bay Area News Group

The County of Santa Cruz has joined an amicus curiae brief supporting litigation brought by the California Attorney General and Santa Clara County against a planned federal immigration enforcement facility near Gilroy. Though the facility would sit in neighboring Santa Clara County, the impacts of a facility like this would ripple throughout our entire Central Coast region, and our communities are too connected for us to stand on the sidelines. The plaintiffs allege the project moved forward without the required local review and permitting processes that exist for good reason, and we believe those legal standards must be upheld regardless of who is building.

This action builds on work the Board has been doing since January, when we established the S.H.I.E.L.D. Subcommittee to evaluate and respond to the local impacts of federal immigration enforcement. That subcommittee produced an ordinance barring the use of County property for immigration enforcement, along with policies protecting residents' access to healthcare, education, and other essential services no matter what is happening at the federal level. I hear from constituents across District 1 who are worried about their neighbors, their co-workers, and their kids' classmates. Joining this brief is one more way we are saying clearly that our residents deserve transparency, accountability, and due process.

Image: satellite view of 7th and Brommer showing the approximate size and location of a proposed 4-story apartment building with parking along the top and left edge. Source: Item 38. Purchase and Sale Agreement

7th and Brommer is the undeveloped area at the entrance to the Upper Harbor. Item 38 on this Tuesday's Consent Agenda is the approval of the Purchase and Sale Agreement for approximately 3.5 acres of this 8.3-acre property. The Board will consider the sale to Brommer Street Housing, L.P., an affiliate of Community HousingWorks, for the development of at least 100 affordable rental homes, that would be located approximately where the building outline and parking stalls are shown in the above photo.

A Long-Planned Redevelopment Opportunity

This property was assembled years ago by the former Redevelopment Agency with the goal of revitalizing this important gateway into Live Oak. From the beginning, the vision has been for a mixed-use redevelopment. As described in the County's planning documents, the site is envisioned to provide "housing, visitor-serving, and open space uses."

Before the COVID-19 pandemic, the Redevelopment Successor Agency entered into an agreement with Swenson to pursue a redevelopment concept centered on visitor-serving accommodations using a "cabin" model. Due to economic uncertainty for hospitality projects during COVID and changes to State law regarding public property disposition, Swenson ultimately withdrew from the project.

State Law Changed

While the County was determining the next steps, California significantly strengthened the Surplus Land Act through AB 1486 (2019) and related legislation. Those changes require local governments disposing of surplus public land to prioritize affordable housing. Affordable housing developers receive the first opportunity to purchase qualifying public property, and when multiple qualified proposals are submitted, the County is required to negotiate with the proposal that best fulfills the purposes of the law, including maximizing affordable housing production.

In other words, State law required that a substantial portion of the property be made available for priority use of affordable housing and the remainder for visitor-serving accommodations and open space.

Why Three Acres?

Under the Surplus Land Act process, the County evaluated qualifying affordable housing proposals in accordance with State law before entering negotiations.

Following a competitive process that drew nine responses from affordable housing developers, Community HousingWorks was selected as the affordable housing developer based on the depth and number of affordable units proposed. The proposal includes:

• Construction of approximately 100 affordable homes on ~2.36 acres.
• Acquisition of an additional ~1.14 acres to preserve the potential for future affordable housing, should the project move forward.

The 3.5-acre housing area was not selected arbitrarily. Over the past several years, County staff worked closely with the California Coastal Commission and the California Department of Housing and Community Development to determine how affordable housing could be accommodated while preserving the remainder of the site for visitor-serving uses, open space, and protection of coastal resources.

As reflected in the County's Local Coastal Program amendments, the Coastal Commission required that any housing development be clustered into the smallest feasible footprint, generally along 7th Avenue and Stagg Lane, with the housing area limited to no more than 3.5 contiguous acres, including parking, paths, landscaping, and required open space.

The Coastal Commission also required that, once the affordable housing project receives its Coastal Development Permit, any portion of the site not intended for housing will automatically revert to its underlying C-2 commercial zoning, removing the ministerial overlay from the balance of the property. This ensures that the remainder of the site remains available for visitor-serving development, community open space, and protection of coastal resources, consistent with the County's long-standing vision.

What About the Port District?

Many residents have asked whether the Santa Cruz Port District could develop the site instead.

Over several years, the County and the Port District engaged in extensive discussions under an Exclusive Negotiating Agreement (ENA), to explore redevelopment opportunities. Those negotiations were undertaken in good faith, and everyone shared the goal of creating a successful visitor-serving destination adjacent to the Harbor.

Despite those efforts, a visitor-serving proposal that also reserved approximately three acres of the property for affordable housing, as required under current State law and Coastal Commission direction, did not have a financially viable path. Ultimately, the Port District terminated its ENA in April 2026.

The County intends to separately pursue disposition of the remaining property for open space and visitor-serving uses, and the Port District will be welcome to participate in that process.

Why Can't the County Simply Transfer the Property?

Another common question is why the County can't simply give the land to another public agency (such as the Port District).

The answer is that the property was purchased using Redevelopment Agency funds. Under the laws governing redevelopment dissolution, those assets must be sold, with the proceeds distributed to all the taxing entities that receive property tax from the site. As a result, the majority of the sales proceeds will be distributed to the schools.

That means the property cannot simply be donated or transferred for little or no cost, even to another public agency.

What Happens to the Rest of the Property?

The Purchase and Sale Agreement before the Board on June 30 involves only the approximate 3.5-acre affordable housing portion of the site.

The remainder of the property will be offered for sale through a public auction soon. The Port District, or any other interested party, will be welcome to participate in that process.

Following approval of the housing project, the remaining property will revert to C-2 commercial zoning without the ministerial overlay, allowing it to be developed consistent with the site's long-standing vision for visitor-serving uses, community open space, and coastal resource protection.

Have Your Say

Should the Purchase and Sale Agreement be approved, Community HousingWorks, a non-profit affordable housing developer, will continue refining its proposal through community feedback and planning review. Community HousingWorks intends to host a community meeting the week of July 20 to present its proposal, answer questions, and gather feedback from neighbors and the broader community. Notices of the meeting will be mailed to residents in the coming weeks.

I encourage anyone interested in the project to attend and share their thoughts. Community input can help shape the design of the project, including its architecture, circulation, landscaping, and how it fits into the surrounding neighborhood.

Looking Ahead

The 7th & Brommer property has been the subject of planning efforts for many years. While the original visitor-serving proposal was derailed by COVID and changes in State law, the County's overall vision for the property has remained consistent: creating a destination that combines housing, visitor-serving uses, and open space.

The action before the Board on June 30th represents one important step toward realizing that vision while complying with State affordable housing laws, Coastal Commission requirements, and the financial obligations associated with the former Redevelopment Agency. It also preserves the opportunity for future visitor-serving development on the remainder of the site, ensuring that this important gateway property can continue to serve residents and visitors alike for decades to come.

Good News on Groundwater:

A Fair Funding Plan and a Stable Water Future

Image: Graph demonstrating increase in population and decrease in water production

At the Santa Cruz Mid-County Groundwater Agency's June 18 board meeting, I was pleased to join my colleagues on the MGA to approve a new five-year funding framework that does not require charging private well owners.

The updated plan adjusts cost-sharing among the four member agencies, with the City of Santa Cruz stepping up to a larger 25% contribution, a meaningful show of regional partnership that helped make it possible to keep fees off the backs of small private well owners.

The board also received an informational presentation on water demand and future growth that is genuinely encouraging. Even as our region is expected to add thousands of new housing units in the coming years, water agencies project that total groundwater use will remain stable or even decline. That's exactly what has happened over the last 40 years. As shown in the graph above, connections (the green line) have increased by roughly 20,000 homes (40%), while water production (the blue line), which represents demand, has fallen by roughly 5,000 acre-feet per year (25%).

This is thanks to high-efficiency fixtures in new construction and continued conservation by existing users. What's more, through recycling water and aquifer storage and recovery, the impact of our water production on the environment will be reduced further still. Residents in multi-family housing, which represents the majority of new construction, also use much less water per person than those living in single-family housing.

This data shows that we can accommodate planned housing growth with our existing water supply.

East Cliff Parkway / Soquel Dr Update

Image: a dog taking their owner for a walk along East Cliff Parkway. credit Visit Santa Cruz, santacruz.org

Many of you have been asking about the County’s plans for restriping East Cliff Parkway.

After evaluating several options, we have decided to refresh the pavement markings this summer largely as they have existed historically. We are also considering a few minor modifications to make it clearer that bicyclists may ride on the Parkway itself, closest to the curb.

Last year, my office conducted extensive community outreach and surveying. The results showed a preference, by roughly 60% of respondents, for fully separating bicycle and pedestrian traffic by moving bicycles into the street. Public Works subsequently developed a complete design for that concept. However, several factors have led us to pause implementation at this time.

First, the estimated cost of the project has increased significantly and is now approaching $200,000, even for a temporary "quick-build" installation.

Second, the recent debate surrounding the proposed female surfer statue demonstrated how public opinion can shift between initial surveys and actual project implementation. While early polling showed strong support, the proposal ultimately did not move forward. Given current budget constraints, the County cannot afford to invest substantial resources in a project that may not achieve lasting community consensus.

Third, the bollards installed along Soquel Drive as part of the buffered and protected bike lane project require immediate attention. Dozens have been damaged, highlighting the need for a more durable design capable of withstanding impacts from high-speed vehicles. Because traffic speeds on the Soquel Corridor are significantly higher than on East Cliff Parkway, completing and strengthening those safety improvements is a higher priority.

For these reasons, we will postpone plans for a major reconfiguration of East Cliff Parkway and instead focus on restriping the corridor to improve clarity for all users while ensuring that the Soquel Drive Buffered Bike Lane Project is completed correctly and safely. Both efforts are expected to move forward later this summer.

Highlights from Tuesday's

Board of Supervisors Meeting

After three hearings and a collaborative effort across County departments, the Board of Supervisors is considering a Parks budget for 2026-27 that I believe strikes the right balance for our community. The proposal before us would restore seven-day operations at the Simpkins Family Swim Center, maintain portable restroom services at parks countywide, and bring back Park Maintenance extra help staffing to tackle deferred maintenance and vegetation management needs that have been building up across the County. Getting here wasn't simple, as staff worked creatively to close a $590,000 budget gap through a combination of one-time contributions, cost transfers, and modest reductions, rather than cutting core services. District 1 is contributing $100,000 from our Measure K allocation to help make this possible, and I was glad to support that because these are exactly the kinds of investments our constituents rely on. While most of the funding solutions identified this year are one-time in nature, I want to be honest that we will need to find more durable structural solutions before the next budget cycle to avoid facing these same pressures again. 

Following 18 months of community conversations, Board study sessions, and feedback from more than 4,500 residents across every corner of the county, the Board of Supervisors will consider adopting the County Strategic Plan 2026–2032. This plan is organized around six focus areas: housing and infrastructure, health and well-being, safety and justice, environment and climate, access to basic needs, and economic opportunity, and sets ten measurable goals to guide County decision-making and budgeting through 2032. One of the most meaningful additions in the final version is a dedicated goal on investing in County assets and infrastructure, something residents consistently raised as a priority and that I was glad to see elevated alongside housing and transportation. The plan is a living document, not a fixed one; staff will return later this year with a Federal Policy Response Goal that addresses the real and growing uncertainty federal policy changes are creating for services our community depends on, and I look forward to that conversation. 

Roads are one of the most direct ways county government touches people's daily lives, and the funding gap we're facing is real. The County's Pavement Management Program estimates we need about $29.5 million per year just to hold our road network at its current condition level, but we're only directing around $6.3 million annually to pavement, leaving a gap of roughly $21–$23 million per year. This Tuesday, the Board will receive a report on the range of funding tools that could help close that gap, including a local sales tax, parcel taxes, and assessment districts.  Financial consultants will complete a full analysis and bring us evaluated options in January 2027.

Tuesday, June 30 - Board of Supervisors Meeting, 9:00 AM. The meeting will be held via Zoom and in person at the County Government Center Board Chambers, Room 525, located on the 5th floor at 701 Ocean Street, Santa Cruz, CA 95060.

Wednesday, July 1 - First District Office Hours, 1:00 - 3:00 PM. First come, first served. 5200 Soquel Ave, Santa Cruz, 95062.

Tuesday, August 11 - Board of Supervisors Meeting, 9:00 AM. The meeting will be held via Zoom and in person at the County Government Center Board Chambers, Room 525, located on the 5th floor at 701 Ocean Street, Santa Cruz, CA 95060.