The city of Watsonville, California, in partnership with Santa Cruz METRO, has received a $39 million state grant to redevelop the Watsonville Transit Center into a multistory, mixed-use housing project. The Watsonville Metro Project will combine affordable housing with upgraded transit and active-transportation improvements for pedestrians and cyclists.
The grant, awarded through California’s Affordable Housing and Sustainable Communities Program (AHSC), will transform the existing transit center into a housing and commercial development with 79 affordable apartments, new and improved public transit facilities, a bike hub, bike lanes and ground-floor commercial space. The redesigned site will create a pedestrian-friendly, transit-connected hub that improves regional mobility.
The project is aligned with the city’s 2023 Downtown Watsonville Specific Plan, a strategic plan to revitalize downtown through new housing and expanded commercial development.
Santa Cruz METRO separately received a $2 million grant from the Association of Monterey Bay Area Governments to fund the architectural services, engineering and design work of the affordable housing project through December.
City officials will announce additional details on the project in 2026, including a estimated construction schedule.
Photo by RDNE Stock project from Pexels
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