N. California Blvd. Development Proceeds

The City Council on Tuesday night took a step toward an apartment-and-retail development in a "secondary gateway" into downtown.

The council voted 4-1 to direct city staff to process a potential General Plan Amendment to allow 70-foot buildings (raising the current 50-foot limit) for the development between North California Boulevard and Locust Street, across Bonanza Street from McCovey's Restaurant.

Voting no was Council member Cindy Silva.

"This is a big deal," she said. "It sets the stage for what happens in the future in the traditional downtown. We can do this well or we can do it poorly … 70 feet at the corner of Bonanza and California is too much." Silva said she had walked around the area, snapping photos and trying to imagine sight lines with taller buildings.

The design by Laconia Development, LLC, of Walnut Creek is "too bulky" for a two-lane street like Bonanza, said Silva. Laconia is making plans for a 5- or 6-story development with 150 apartments and 20,000 square feet of ground-level retail and office units at 1500 and 1540 North California Blvd., including the Scotts Valley Bank site. There would be underground parking for the 1.23-acre site, which now consists of a two-story bank building, a one-story vacant former restaurant and a surface parking lot.

Laconia CEO Paul Menzies said the company has heeded input from city officials and residents and is making plans for parking access off Bonanza instead of North California Boulevard. Laconia held public meetings for residents of the Almond-Shuey residential neighborhood that borders North California Boulevard.

City staff recommended the city reject raising the height limit because of "massing" issues of buildings going up to 70 feet overshadowing much smaller adjacent buildings, said senior planner Jeremy Lochirco.

Out of proportion

Shuey Avenue resident Tom O'Brien spoke to the council, saying the project "is way out of proportion to anything in the general plan." He said if parking access was off North California, it would interrupt regular traffic flow and disrupt morning commuters at the intersection of North California and Ygnacio Valley Road.

Menzies indicated there was room for compromise on the height limit. He said the company would work on architecture and design changes, based on much community input. The developer would bring a more focused idea before the city's Design Review Commission, Planning Commission and — if all proceeds — the City Council for a formal vote.

Mayor Bob Simmons, speaking in support of proceeding with plans, said he was pleased the applicant was willing to change the architecture in response to community input.

While a plan to add retail space to the northern downtown progresses, there was a recent report of downtown business recovering nicely. Real estate sources say retail vacancy rates have fallen to 3.2 percent, according to a piece in the Contra Costa Times.