The City of Santa Cruz adopted a resolution of the City Council to support recovery citywide in an attempt to make it easier to fill vacancies in commercial spaces as a result of the pandemic.

Given past business operation restrictions and closure requirements, as well as the ongoing impacts from the COVID-19 pandemic, many businesses have been forced to close temporarily or have made the difficult decision to close permanently, leaving many empty storefronts or spaces in flux while business owners determine the best approach to take in the ever-changing business climate. This extension allows an existing use permit to stay active for a longer period to support a business reopening in the same location or a new business taking over the space with the same operations. The extension provides significant savings on permitting and time to open for those wanting to activate spaces in our commercial districts. It is also a benefit to brokers and property owners in marketing their vacancies to be able to offer a space that has entitlement approval still in place.

The resolution authorizes a temporary extension on commercial use permit expiration dates and abandonment periods to provide the following benefits:

1. All commercial use permits approved between March 4, 2020, and up to and including the expiration date of the local health emergency declaration, shall have the life of the permit automatically extended to expire one year from the expiration date of the emergency declaration, unless otherwise extended by the City Council.
2. All active commercial use permits and nonconforming uses that have ceased operation between March 4, 2020, and up to and including the expiration date of the local health emergency declaration, shall have the six month abandonment period automatically extended to expire one year from the expiration date of the emergency declaration, unless otherwise extended by the City Council.

What this means for businesses:

1. For a new business operator who obtained a use permit during the emergency declaration and was unable to begin operating within the time allowed under the use permit, the new business operator may begin operating upon proof of a valid Business License from the Finance Department in order to exercise its approved use permit and all applicable conditions of approval at the subject property.
2. For an existing business operator that closed for an extended period of time during the emergency declaration and wants to reopen and for which no other use has been approved at the same property, the operator can renew or obtain a new Business License from the Finance Department to resume operation of their approved use permit and all applicable conditions of approval or prior nonconforming use at the same property.
3. For a new business operator without previous operation at a location where a business closed during the emergency declaration period, the new business operator may begin operations under the most recent use permit or consistent with prior nonconforming use by obtaining a Zoning Clearance from the Planning & Community Development Department and a Business License from the Finance Department. Activation of a prior use may be approved by the Planning & Community Development Department in consultation with the Economic Development Director.

View the full resolution here.

For questions about this resolution or eligibility for this streamlined permitting process, please contact Business Liaison Sarah Domondon at [email protected].