UPDATE: City Council Tables 58-Unit Affordable Housing Plan for a Month

Ocean Street neighbors who oppose a planned 58-unit, low-income housing building at 348 and 350 Ocean Street are planning to talk to the city council tonight about their concerns about the building's height and the traffic it will bring in.

An Idaho firm is planning a four-story, 42-foot high building and is asking for a variance from the current restriction of 37 feet, or an extra story over what is now approved.

"Basically no one is opposed to the concept," said attorney Bill Parkin, who is representing a group called Citizens Concerned About 350 Ocean. "No one is opposed to affordable housing. The problem is this huge monolithic building that exceeds standards for setback and height."

Parkin compared the possible exemption to zoning regulations to what happened with the La Bahia hotel, where the city asked for an extra floor because developer Barry Swenson said that was the only way he could afford to do the project, but the Coastal Commission denied the exception.

Mayor Don Lane told the Santa Cruz Sentinel that the council would hold a hearing tonight at 7 p.m., but would likely delay the vote for more consideration.

Neighbors are also worried about the added peak time traffic the residences will bring. The area is already set to build a new hotel a block away, which will increase the number of cars in what is already a tied up intersection at Ocean and Broadway.

Parkin said the current traffic studies used for the housing complex are from an old study for a hotel.

"It's completely flawed for environmental review," said Parkin. "Housing is a year-round affair and has a different flow of traffic with a different population that comes and goes at different times than a hotel."

The project will demolish two single-family homes and six buildings with 20 apartments. The current tenants would be relocated.

The $22 million proposal will have 25 three-bedroom units, 16 two-bedroom units, 16 one-bedroom units and a manager’s unit, replacing buildings that have regularly been the subject of code enforcement complaints.

At Tuesday's council meeting, speakers were split. About half the neighbors were supportive of the project, saying it would help upgrade the troubled neighborhood.

Others were afraid it was too boxy and uncharacteristic of a neighborhood of older homes and Victorians.

The council will hold a second public hearing March 13 to review the project again.