Council approves cash for developer
The Scotts Valley City Council voted to approve a $5,000 contract with Kosmont and Associates Inc. to provide real estate advising for a proposed three-story, 128-room Holiday Inn Express hotel on Scotts Valley Drive.
Anatol Shliapnikoff, the founder and president of Merced Hospitality Inc., had asked that the cost of the contract be split equally between his company and the Redevelopment Agency. The vote was carried 3-0, with Councilman Randy Johnson absent. Mayor Dene Bustichi, citing a potential conflict of interest, also did not vote.
Massage parlor’s license revoked
The City Council voted unanimously to reject Shiatsu Spa owner Jihong Yu’s appeal of the revocation of her business license. The massage parlor’s license was revoked by Scotts Valley Police Department Chief John Weiss following Yu’s failure to appear at a Feb. 7 meeting regarding the Jan. 27 arrest of Qiuyang Zhang, a 62-year-old woman in Yu’s employ, on suspicion of prostitution.
Habitat homes on the way
The City Council unanimously voted to approve environmental review documents and 10 requested zoning exceptions for three two-story townhouses that Habitat for Humanity plans to build on Blake Lane.
Councilwoman Stephany Aguilar voiced her support for the project, saying that she had championed bringing Habitat for Humanity to Scotts Valley for a decade.
“This is, to me, a dream come true,” Aguilar said.
City won’t sell Erba Lane property yet
A motion by Aguilar to advertise a 33,000-square-foot parcel on Erba Lane to developers died in the council without a vote.
The plot, across the street from the fire station, is designated for affordable housing and was recently sold to the city’s Redevelopment Agency for $725,000 before being returned to the city out of fear that the state would take possession of Redevelopment Agency assets.
No council member seconded the motion.
Councilman Jim Reed questioned the wisdom of rushing to sell the land in a weak real estate market.
“This parcel is one of our biggest assets,” Reed said.
Considering that any money received through a potential sale of the property would need to be used first to reimburse the Redevelopment Agency’s affordable-housing fund, Mayor Dene Bustichi also argued against advertising the land, citing the possibility that the state might seize RDA funds.
“To me, this would be undoing what we just got done doing,” he said.