SANTA CRUZ, Calif.–More than 600 people have signed a petition asking the board of Santa Cruz Community Credit Union to rethink the sale of its downtown branch to developers who plan to use the site for a hotel.
In addition, some members are saying they were not kept abreast of the sale and what it would mean, while the credit union said it has notified members on multiple occasions, as required by state law, according to Lookout Santa Cruz.
According to Lookout Santa Cruz, former Santa Cruz city councilmember Micah Posner was among the SCCCU members who dropped off a petition with 636 signatures asking for a meeting with the board — which the credit union had told members that same afternoon was in the offing.
“We want the credit union to back out of the sale,” Posner, a longtime SCCCU member, was quoted by Lookout Santa Cruz as saying. Posner told the publication the group’s goal is to create a discussion for alternative uses for the site. “I don’t like that the bank sold it to make way for a hotel. We have enough hotels in Santa Cruz.”
What SCCCU is Saying
Credit union officials told Lookout Santa Cruz the sale will help contribute to the credit union’s Member Access Plan Initiative, which aims to help provide and prioritize additional resources for low-income communities and communities of color throughout Santa Cruz County, according to a news release.
“We’re excited about this important moment in time when we have a unique opportunity to invest in a better future for those in our community with the greatest need for financial services,” CEO Beth Carr said in a statement.
The site at 324 Front St. is slated for the development of the Cruz Hotel. According to the publication, the project is still in the preliminary planning stage and calls for a six-story, 228-room hotel with 11,498 square feet of retail and restaurant space. In May, the city council voted 4-2 in favor of approving the sale of two parcels of land for use with the project to New York-based developer SCFS Venture. SCFS Venture is managed by Santa Cruz native Owen Lawlor.
SCCCU said it aims to maintain a presence downtown by leasing or buying a smaller space, Lookout Santa Cruz reported.
Lack of Transparency Alleged
Posner and other “disapproving members said they are not opposed to the sale of the building, but rather that a hotel will take its place,” Lookout Santa Cruz added.
“There hasn’t been a lot of transparency with the credit union,” Santa Cruz resident and credit union member Batya Kagan was quoted as saying. “I wasn’t aware this was happening.”
In its statement, Santa Cruz Community Credit Union cited community priorities in explaining the sale, which is expected to be completed by Sept. 30.
“The buyer was selected for the sole purpose of providing the credit union, its members and the community with the greatest financial opportunities, specifically with regard to reducing costs so that SCCCU can increase its financial strength and expand on SCCCU’s core mission to promote and embrace economic justice,” it said in the release.
Special Meeting Planned
The credit union added, “All SCCCU members are invited to attend an upcoming meeting of the board of directors at which time members will be encouraged to provide the Board with feedback.”
The dates for that meeting have not yet been identified, according to Lookout Santa Cruz.