Design and Construction Report staff writer
Construction has started on the Downtown Santa Cruz Library & Affordable Housing Project, with Lot 4 fenced off and demolition of the former Toadal Fitness building already underway. Asphalt removal has begun, and meters on Cathcart, Lincoln, and Cedar Streets adjacent to the site are currently unavailable while the project progresses.
The $250 million mixed-use development will replace the existing downtown library and include 124 housing units—nearly all affordable—alongside a modern library, childcare facilities, and structured parking for 240 vehicles, including 25 level 2 EV charging stations. Bicycle accommodations will include 203 spaces, bike lockers, and e-bike charging stations.
The project consolidates surface parking into a single structure, freeing up land for housing and retail and creating a more pedestrian-friendly downtown. City officials say this approach is consistent with Santa Cruz’s shared parking model, which reduces the number of spaces needed in the urban core while maximizing land use efficiency.
Funding includes a $33.5 million Affordable Housing Sustainable Communities grant, a $55.1 million allocation through the California Tax Credit Allocation Committee, a $55.6 million bond award via the California Debt Allocation Committee, and $4.5 million from the state’s Building Forward program.
“Creating new housing supply in Santa Cruz is critical as we face a worsening regional and state housing shortage,” said a City project spokesperson. “This project consolidates parking, maximizes land for affordable units, and ensures a modern library and civic space for the community.”
A groundbreaking was held Aug. 20 and construction schedules are being finalized in coordination with the library and housing teams, with phased work planned to maintain downtown activity and minimize disruption to local businesses.
Once complete, the project will provide a modern library with resources for all residents, 124 affordable housing units, childcare facilities, and parking and bicycle infrastructure to support residents, visitors, and library patrons.
