SC Metro | Affordable Housing

Rotkin Transit Center (formerly Pacific Station)

The Rotkin Transit Center (formerly Pacific Station complex) is METRO’s primary transit center, serving 15 routes with connections to UCSC, Scotts Valley, Watsonville and San Jose. Originally constructed in the early 1980s, the facility is in dire need of renovation and modernization.

The City of Santa Cruz and METRO have been conducting outreach and planning for the redevelopment of Pacific Station since 2002. The property’s prime downtown location makes it both an important transportation hub and an attractive site for developing affordable housing. In support of the most recent redevelopment efforts, the METRO Board of Directors approved a Memorandum of Understanding (MOU) in June 2020 between the City of Santa Cruz and METRO in which the parties agreed to work together to apply for a state Affordable Housing and Sustainable Communities (AHSC) grant to redevelop the site and adjacent City-owned properties into a new transit center and affordable, mixed-use development. 

In January 2022, the project was awarded $29.6 million in AHSC funds from the California Strategic Growth Council to develop 126 units of affordable housing and a new METRO station and bus tarmac in a net-zero, seven story, mixed-use development. The project has also received a $20.9 million grant from the California Department of Housing and Community Development (HCD) Infill Infrastructure Grant (IIG) program, $500,000 in California Transit and Intercity Rail Capital Program (TIRCP) funds, and affordable housing tax credits. Together with METRO’s financial contribution of $4 million Measure D funds , the project was fully funded and broke ground in February 2024, and is expected to be completed by the end of 2026.

Watsonville Transit Center

In early 2024, METRO began the two-year architecture and engineering phase of a project to redevelop the Watsonville Transit Center into an affordable, transit-oriented development. When completed, the development will include 79 units of net-zero affordable housing, ranging from one- to three-bedroom homes.

The ground floor of this infill development will serve as a METRO transit center and ticketing office with the affordable house units located on the upper floors. Bus operations will be relocated to on-street bus bays to maximize the potential of the one-acre site. The redevelopment will also include upgraded transit facilities, a new bike hub, additional bike lanes, a ground-floor commercial space, and an open-air forecourt. 

In addition, METRO plans to operate two bus routes with 15-minute frequencies between the Watsonville Transit Center and Santa Cruz. These routes will meet the state’s definition of high quality transit. 

Located within downtown, the project is a key element of the City of Watsonville’s overall revitalization effort. It will directly increase fair housing in the area because 100% of the dwelling units will be affordable. The project will also indirectly support the construction of housing in Watsonville through the implementation of bus services that meet the state’s definition of high-quality transit. This designation allows the City and developers to streamline certain California Environmental Quality Act (CEQA) requirements and reduce parking, if they choose.

Funding for the project comes from the Association of Monterey Bay Area Governments’ (AMBAG) Regional Early Action Planning Grants of 2021 program (REAP 2.0) and the California Transit and Intercity Rail Capital Program (TIRCP). In addition, the City of Watsonville—working in partnership with Santa Cruz METRO and MidPen Housing—was awarded a $39 million Affordable Housing and Sustainable Communities (AHSC) grant to redevelop the Watsonville Transit Center into a mixed-use housing and transit hub.