This ordinance aims to preserve cultural venues in Santa Cruz.

FULL TEXT OF PROPOSED INITIATIVE ORDINANCE SECTION 1. TITLE This ordinance shall be known as the "Downtown Cultural and Historic Venue Preservation Act." SECTION 2. PURPOSE AND FINDINGS The People of Santa Cruz find that live performance venues contribute significantly to the City's cultural identity, tourism economy, and small business ecosystem. The purpose of this Ordinance is to preserve cultural infrastructure while allowing lawful housing and mixed-use development consistent with California housing law. SECTION 3. DEFINITIONS "Downtown Plan Area" means the geographic area defined in the City of Santa Cruz Downtown Plan, as it may be amended from time to time. "Qualified Cultural Venue (QCV)" means an indoor live performance venue that has operated continuously for at least fifteen years, has a minimum occupancy capacity of 300 persons, and is located within the Downtown Plan Area. "Legacy Cultural Venue (LCV)" means a Qualified Cultural Venue that has operated for twenty years or more, has a capacity of 500 persons or greater, and has hosted regional, national, or international touring artists. "Cultural and Historic Venue" means a Legacy Cultural Venue or other cultural site that is determined to have significant historic, cultural, or community value pursuant to Section 4. SECTION 4. CULTURAL AND HISTORIC VENUE DESIGNATION Legacy Cultural Venues shall be eligible for designation as Cultural and Historic Venues. (a) Upon initiation of designation review, demolition, alteration, or redevelopment permits shall be stayed for up to twelve (12) months while preservation alternatives are evaluated. (b) The City may designate a Cultural and Historic Venue based on criteria including but not limited to cultural significance, history of performances, community identity, and contribution to the arts. (c) Venues including but not limited to long-standing performance spaces such as the Catalyst or similar properties may be designated as Cultural and Historic Venues if they meet applicable criteria. (d) Designation shall be implemented in a manner consistent with state law governing historic preservation, including but not limited to the California Environmental Quality Act (CEQA) and applicable property rights protections. (e) Within twelve (12) months of the effective date of this Ordinance, the City shall initiate historic designation review for all Legacy Cultural Venues located within the Downtown Plan Area that meet the criteria set forth in this Section. Such review shall be conducted pursuant to applicable local, state, and federal historic preservation laws and procedures. (f) The City shall prioritize designation of Legacy Cultural Venues that demonstrate longstanding cultural significance, including those that have served as primary regional performance spaces for touring artists. SECTION 5. NO NET LOSS POLICY NO NET LOSS POLICY The City shall maintain no net loss of indoor live performance occupancy capacity within the Downtown Plan Area. SECTION 6. VENUE REPLACEMENT REQUIREMENT Demolition of a Qualified Cultural Venue or Legacy Cultural Venue shall not occur unless one of the following conditions is met: (a) A replacement venue of equal or greater capacity is fully permitted and has secured all necessary financing commitments prior to demolition; (b) The replacement venue is constructed concurrently with redevelopment; (c) The demolition is approved by a majority vote of City voters; or (d) The demolition is approved by a four-fifths vote of the City Council upon written findings, supported by substantial evidence, that denial would result in an unconstitutional taking of private property. SECTION 7. VENUE CLOSURE PROTECTION If a Legacy Cultural Venue ceases operations for twenty-four (24) consecutive months and redevelopment is proposed, the replacement requirements of this Ordinance shall apply. SECTION 8. CULTURAL PRESERVATION IMPACT FEE A Cultural Preservation Impact Fee shall apply to: (a) Demolition of a Qualified Cultural Venue; and (b) Downtown commercial or mixed-use projects exceeding 20,000 square feet. The fee shall be supported by a nexus study establishing a reasonable relationship between the fee and the impacts of development, consistent with the California Mitigation Fee Act. All revenues shall be deposited into a Cultural Preservation Fund to support venue preservation, development, and small business assistance. SECTION 9. LOCAL BUSINESS DISPLACEMENT MITIGATION Prior to approval of redevelopment projects involving Qualified Cultural Venues, applicants shall prepare a Local Business Impact Analysis. If impacts are identified, the applicant shall implement a Local Business Mitigation Plan, which may include relocation assistance, rent stabilization during construction, priority leasing opportunities, or financial support programs for affected small businesses. SECTION 10. RIGHT OF FIRST OPPORTUNITY Prior to demolition of a Legacy Cultural Venue, nonprofit cultural organizations, community land trusts, or public agencies shall be provided a twelve (12) month opportunity to negotiate purchase or preservation agreements. SECTION 11. STATE LAW COMPLIANCE This Ordinance shall be interpreted and applied in a manner consistent with all applicable state laws, including but not limited to the Housing Accountability Act, Density Bonus Law, and laws governing historic preservation and property rights. Nothing in this Ordinance shall be construed to prohibit or unreasonably restrict residential development required under state law. SECTION 12. SEVERABILITY If any portion of this Ordinance is held invalid, the remaining sections shall remain in full force and effect. SECTION 13. EFFECTIVE DATE This Ordinance shall take effect ten (10) days after certification of election results. SECTION 14. IMPLEMENTATION The City Council is authorized to adopt guidelines, procedures, and regulations to implement this Ordinance consistent with its intent. Notice of Intent to Circulate Petition Notice is hereby given by the persons whose names appear hereon of their intention to circulate the petition within the City of Santa Cruz for the purpose of preservation of the existing building at 1011 Pacific Avenue Santa Cruz, CA 95060 to protect the cultural and historic music venue The Catalyst. A statement of the reasons of the proposed action as contemplated in the petition is as follows: Notice of Intent to Circulate Petition: The Downtown Cultural and Historic Venue Preservation Act To the Honorable City Clerk of the City of Santa Cruz: Pursuant to California Elections Code Section 9202, the undersigned proponents hereby give notice of their intention to circulate a petition within the City of Santa Cruz for the purpose of enacting the Downtown Cultural and Historic Venue Preservation Act. Statement of Reasons Santa Cruz's identity is inextricably linked to its vibrant arts and music scene. For decades, venues like The Catalyst have served as the heartbeat of our downtown, acting as an economic engine for small businesses and a cultural lighthouse for the Central Coast. However, as our city evolves and density increases, we face the permanent risk of losing these irreplaceable "Legacy Cultural Venues" to demolition and displacement. This Initiative provides a balanced, legally sound framework to ensure that as Santa Cruz grows, its soul remains intact. The Downtown Cultural and Historic Venue Preservation Act achieves three critical goals: 1. Meaningful Preservation, Not Stagnation The Act identifies venues that have operated for 15 to 20+ years as vital infrastructure. It requires a rigorous review process before these landmarks can be demolished, ensuring that "Legacy Cultural Venues" are evaluated for their historic and community value under the California Environmental Quality Act (CEQA) and local standards. 2. A "No Net Loss" Policy for Culture Consistent with modern urban planning, this Ordinance establishes a No Net Loss policy for indoor live performance capacity. If a developer intends to redevelop a site containing a Qualified Cultural Venue, they must ensure the community does not lose its cultural capacity. This is achieved through mandatory venue replacement or, in extreme cases, a four-fifths vote of the City Council to prevent unconstitutional property takings. 3. Economic and Small Business Protection Development should not come at the cost of local displacement. This Act mandates a Local Business Impact Analysis and creates a Cultural Preservation Fund through a dedicated impact fee. These funds will support small business assistance and ensure that the artists and workers who power our nighttime economy are not priced out of our downtown. 4. Harmony with State Housing Law This Initiative is explicitly designed to work alongside the Housing Accountability Act and Density Bonus Law. It does not prohibit housing; rather, it ensures that new residential developments are integrated into a city that maintains the cultural amenities that make people want to live here in the first place. By signing this petition, you are voting to protect the stages where our history is made. We invite all residents to support this measure to ensure that Santa Cruz remains a world-class destination for music, culture, and community. I, Kaitlyn McKee, acknowledge that it is a misdemeanor under state law (Section 18650 of the Elections Code) to knowingly or willfully allow the signatures on an initiative petition to be used for any purpose other than qualification of the proposed measure for the ballot. I certify that I will not knowingly or willfully allow the signatures for this initiative to be used for any purpose other than qualification of the measure for the ballot. (Signature of Proponent) _____ Dated this 7 day of April, 2026 I Kaitlyn McKee Signed- 7th of April 2026 of residence: 732 Riverside Avenue Santa Cruz, CA 95060 do formally request that a ballot title and summary be prepared. A PROPOSED AMENDMENT TO THE CITY OF SANTA CRUZ MUNICIPAL CODE RELATED TO DOWNTOWN PERFORMANCE VENUES The proposed Measure would add new provisions to the Santa Cruz Municipal Code, via an ordinance entitled the "Downtown Cultural and Historic Venue Preservation Act." The Measure's text contains several new local regulations, including: A requirement that the City, within 12 months, initiate historic designation review for certain performance venues located within the Downtown Plan Area. Upon initiation of this review, certain demolition, alteration, or redevelopment permits would be stayed for up to 12 months while alternatives are evaluated. A new impact fee supporting "venue preservation, development, and small business assistance." The fee would apply to all downtown commercial or mixed-use projects exceeding 20,000 square feet and the demolition of certain performance venues. A requirement that applicants of development projects involving certain performance venues prepare a "Local Business Impact Analysis," and, if impacts are identified, a "Local Business Mitigation Plan" which may include financial support for affected small businesses. A "Right of First Opportunity" for public agencies and others. Before demolition of certain performance venues, certain entities would have a 12-month opportunity to negotiate purchase or preservation agreements. A "no net loss" policy for live indoor performance capacity within the Downtown Plan Area. A prohibition against demolishing certain performance venues unless one of the following conditions is met: a) "A replacement venue of equal or greater capacity is fully permitted and has secured necessary financing commitments before demolition;" b) "The replacement venue is constructed concurrently with redevelopment;" c) "The demolition is approved by a majority vote of City voters;" or d) "The demolition is approved by a four- fifths vote of the City Council upon written findings, supported by substantial evidence, that denial would result in an unconstitution al taking of private property." This prohibition applies even if certain per formance venues have ceased operations for 24 "consecutive months and redevelop ment is proposed." While the Measure's Notice of Intent indicates that its intent is to prevent The Catalyst's demolition, it is not clear that the Measure would accomplish that goal. If passed, the Measure could be rendered unenforceable or challenged on several legal grounds, including: 1) SB 330 prevents local agencies from applying new, more restrictive standards enacted after a housing development project's pre-application date. SB 330 also prohibits local governments from enacting policies that result in a net loss in residential housing capacity. 2) Under California Density Bonus Law, some of the Measure's requirements could potentially be bypassed by a developer seeking project "concessions" or "waivers." 3) California housing law prohibits the enforcement of subjective standards in evaluating housing projects, prohibits the application of even objective standards that would render certain housing projects financially infeasible, and mandates speedy housing project processing timelines. The Measure requires a simple majority (50% +1) of voters who cast ballots to pass. A "yes" vote is a vote to approve the Measure; a "no" vote is a vote to reject the Measure. s/Cassie Bronson City Attorney