This site is to the right in the image above, across River Street from the San Lorenzo Lumber parking lot, and adjacent to the old deco-style motel (that building will remain). The developer wants to demolish the existing house (behind the white picket fence) and build a 27-unit condominium building, which will share a long driveway with the old deco-style building. This stretch of River Street has many narrow-but-deep lots that end at the river levee, which dictates the narrow-but-deep shape of developments.
The City of Santa Cruz has scheduled a pre-application informational meeting. From the City project page:
Below is an image from the developer's plan set: