Council delays vote on Watermark density‑bonus project after residents raise parking and equity concerns

Councilmembers on Aug. 4 elected to postpone a decision on a density‑bonus and bonus‑parking request for the Watermark mixed‑use project at 200 East Sand Point Avenue until Oct. 20, 2026, after extended discussion about parking impacts, affordable‑housing targets and legal constraints under state law.

Councilmember Vázquez pulled the item for public discussion and questioned whether a vendor or development partner on the project had a local business location; staff confirmed a Santa Ana location for one vendor but noted other contacts were outside the city. Residents and councilmembers raised concerns that the proposal would provide 516 parking spaces where the municipal code would require more under current standards and that the project proposes a limited percentage (5%) of very‑low‑income units in lieu of other affordability options.

Staff explained statutory and municipal code references cited in the report — including state provisions that can affect how local codes apply to density‑bonus requests — and clarified alternatives the applicant had used to qualify for reduced parking. Councilmembers expressed the need for more community outreach and additional technical evidence on traffic and parking impacts; the city attorney reminded the council that if postponement reaches the city’s limit on hearings it may affect the administrative record and legal posture. The motion to continue the item until the Oct. 20 meeting passed with five affirmative votes (one councilmember excused).