Scotts Valley Town Center Is Moving Again: What the Old Skypark Airport Plan Means for Homes, Retail, and Local Property Owners

Scotts Valley's old Skypark Airport site has been mostly vacant land for years, and a lot of people around here had started wondering if the Town Center plan was ever actually going to happen. It is moving again. The City selected Swenson to negotiate development terms for a 12-acre Town Center core, with a current concept that includes 300-plus homes, retail space, and a grocery store component. Construction is targeted for late 2028 if approvals move forward. Final project approval still rests with the City Council, and more public input is expected. Here is what the plan actually includes, where things stand today, and what it could mean for homeowners, buyers, and sellers nearby.

What Is Being Built at the Old Skypark Airport in Scotts Valley?

The City of Scotts Valley selected Swenson to develop a proposed 12-acre Town Center core on the former Skypark Airport site. The broader Town Center area covers 58 acres, bounded by Mt. Hermon Road, Skypark Drive, and Blue Bonnet Lane. Most of the Town Center core is currently vacant land left over from that former airport.

The current concept includes:

• 300-plus homes total
• 200 affordable apartments
• More than 100 for-sale townhomes
• 27,500 square feet of retail space
• A grocery store component

No specific grocery tenant, pricing, unit sizes, or HOA details have been announced. What you are reading about right now is the concept moving into negotiation, not a finished plan with every detail locked in.

You can read more about the site and the City's planning process on the City of Scotts Valley Town Center page.

When Will the Scotts Valley Town Center Be Built?

The short answer is that construction is currently targeted for late 2028, and that is still a few years out. It is worth understanding how long this plan has actually been in the works, because it helps explain both why people are excited and why some are taking a wait-and-see approach.

The City first adopted a Town Center Specific Plan all the way back in 2008. Previous versions of the plan stalled. The Press Banner described the Town Center as "the lynchpin" of the City's housing plan, and that context matters when you're thinking about what this project means for the community.

Here is the recent timeline:

• December 17, 2025: The City Council certified the environmental report and approved the updated 2025 Town Center Specific Plan in a 4-0 vote, with one recusal.
• February 20, 2026: The City released a Request for Proposals requiring at least 300 housing units, with at least 25 percent affordable to lower-income households.
• June 17, 2026: The City Council selected Swenson for an Exclusive Negotiation Agreement in a 3-0 vote, with two recusals.

The next step is the City Council negotiating the development agreement and final project terms with Swenson. More public input opportunities are coming. This is a long game, not something opening next spring.

How Many Homes Will the Scotts Valley Town Center Have?

The current plan calls for more than 300 homes on the 12-acre Town Center core site. That breaks down into 200 affordable apartments and more than 100 for-sale townhomes. The City's RFP required at least 300 housing units and at least 25 percent affordable to lower-income households, and the current concept clears both of those bars.

If you're a buyer thinking about those townhomes, it is too early to assume any sales timeline. No release date, pricing, or unit configuration details have been announced. Keep following the City's process and stay in touch with a local agent who is tracking this, because when those details do come out, things will move.

Who Is the Developer of the Scotts Valley Town Center?

The City selected Swenson, a Santa Cruz-based company, for an Exclusive Negotiation Agreement. Swenson also built The Dunes in Marina, so they have built mixed-use projects in our region before.

That said, the selection does not mean every project detail is set. Councilmember Krista Jett said it plainly after the June 2026 vote: "We have not accepted any project proposals at this point. We are just moving forward with the next step of entering into this exclusive negotiation agreement with them."

The City Council still has to negotiate and approve final project terms. More public input is part of that process. You can read more about the announcement in the Silicon Valley Business Journal's October 2026 report on the project.

Will Scotts Valley Get a New Grocery Store?

The current Town Center concept includes a grocery store as part of the plan, along with 27,500 square feet of retail space overall. For a lot of people who live around Mt. Hermon Road and Skypark Drive, that is one of the most exciting parts of this project. A walkable grocery and retail core in that part of town would genuinely change daily life for nearby residents.

But no specific grocery tenant has been named. This is a concept in negotiation, not a signed lease. Watch for City Council updates and announcements from Swenson as the development agreement process moves forward.

Will the Town Center Affect Home Values in Scotts Valley?

This is the question I get most from homeowners and sellers in this area, and I want to give you a straight answer rather than a vague one.

In my professional opinion, a successful walkable Town Center could support demand for homes nearby. Buyers consistently value convenience, community gathering places, and walkable retail. When those things materialize in a neighborhood, they tend to make the area more attractive to a wider pool of buyers. That can translate to stronger demand over time.

But the effect will not be the same for every property. Homes closest to the construction site may face short-term concerns around noise, construction traffic, and access while the project is being built. Traffic on Mt. Hermon Road and Highway 17 will be a real question as this moves through review and eventually into construction. Those are legitimate things to think about.

For sellers, the timing question is real. Construction is not targeted to start until late 2028, and completion would come after that. If you're waiting for a finished, thriving Town Center before you sell, you could be waiting several years. That may make sense for some people's goals and not for others. The right answer depends on your specific property, your financial situation, and what you're trying to accomplish. That's a conversation worth having with someone who knows this market.

Frequently Asked Questions: Scotts Valley Town Center

1. Is the Scotts Valley Town Center fully approved?
No. Swenson has been selected for an Exclusive Negotiation Agreement, but the City Council still needs to negotiate and approve final project terms. More public input is expected before any final approval.

2. When could construction start?
Construction is currently targeted for late 2028, assuming approvals move forward on schedule.

3. Will there be affordable housing in the Scotts Valley Town Center?
Yes. The current concept includes 200 affordable apartments. The City's RFP required at least 25 percent of units to be affordable to lower-income households.

4. Will there be homes for sale?
Yes. The plan includes more than 100 for-sale townhomes. However, no sales timeline, pricing, or unit details have been announced yet.

5. Should I sell my Scotts Valley home now or wait for the Town Center to be finished?
That depends on your goals, your property, and your timeline. In my professional opinion, a completed walkable Town Center could improve long-term appeal for nearby homes, but completion is still several years away. If you're trying to time a sale around this project, let's talk through your specific situation so you can make a decision that actually fits your needs.

Sirrom Alizem, Realtor | eXp Realty of Northern California Inc | DRE #02137532
Serving Santa Clara, Santa Cruz, and Monterey Counties
Phone: (650) 695-1919
Email: sirrom@realtywithsirrom.com
Website: www.realtywithsirrom.com

What's your home worth today? Call or text me at (650) 695-1919 for a free personalized home valuation. I know this market, and I'll give you a straight answer.