THE DRAFT ENVIRONMENTAL IMPACT REPORT FOR A SANTA CRUZ PROJECT HAS IDENTIFIED SEVERAL ENVIRONMENTAL ISSUES, THAT MAY SLOW DOWN THE PLAN. THE ARTIST LIVE-WORK COLONY, TO BE CONSTRUCTED ON THE SITE OF THE OLD SALZ TANNERY, WOULD POTENTIALLY CHANGE THE HISTORIC VALUE OF THE PROPERTY, AS WELL AS IMPACT TRAFFIC. THE OTHER MAJOR CONCERN (BROUGHT FORWARD BY THE E.I.R.) IS THAT THERE IS A SIGNIFICANT FLOOD HAZARD (POSED BY THE SAN LORENZO RIVER) IN THAT AREA.