Quick Take

Cruz Foam is expanding the reach of its sustainable packaging, the Santa Cruz County labor movement takes another step and the latest chapter in what's become a complicated transition to outdoor dining in Santa Cruz are all topics in Jessica M. Pasko's weekly business roundup.

Each week, we’ll be taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Cruz Foam inks new partnership to expand use of sustainable packaging

Cruz Foam, the Santa Cruz-based creator of sustainable foam packaging, is partnering with Unified Global Packaging Group.

Massachusetts-based Unified Global provides customized packaging supplies and services for companies around the world, across industries including electronics, medical and food and beverage, among others. Now, the company will incorporate Cruz Foam’s protective packaging products into its purpose-fit offerings. 

Cruz Foam, founded in 2017, replaces plastic and styrofoam packing material with one made from upcycled food waste with a special focus on packaging for items that must be kept cold during shipping. The company has already racked up numerous accolades and attracted high-profile investors such as actors Ashton Kutcher and Leonardo DiCaprio, among others.

Verve Coffee and Real Good Fish are just a couple of the companies that use Cruz Foam’s packaging, but the company also works with other packaging suppliers like Atlantic Packaging, North America’s largest private packaging company. The partnership with Unified Global Packaging Group marks Cruz Foam’s first such global partnership, a Cruz Foam spokeswoman said. 

REI Santa Cruz employees vote to unionize

Workers at the REI store in Santa Cruz will move forward with unionizing after last week’s 33-12 vote. They’ll be represented by the United Food & Commercial Workers (UFCW) Union Local 5, which also represents employees of the outdoor sports and camping retailer’s Berkeley store.

The next step will be to build the bargaining committee and then move toward negotiations, said Jim Araby, director of strategy campaigns for UFCW. With this vote, Santa Cruz becomes the second REI store in the Bay Area to unionize and the 10th store nationally. As Lookout previously reported, a major motivator for the move is to establish guaranteed minimum hours for part-time employees.

City planning commission delays vote on revised outdoor dining program

Santa Cruz planning commissioners declined to issue a decision last week on revised plans for the city’s outdoor dining program for restaurants looking to establish permanent outdoor seating areas on private property.

At Thursday’s meeting, city staff recommended that commissioners advance the amended plans, which were developed following confusion and outcry over the initial plan. However, commissioners asked for a 60-day extension to allow more time for research after some restaurant owners argued the new proposal was still cost-prohibitive. 

Temporary outdoor dining provided a lifeline for businesses during the pandemic, but making these outdoor spaces permanent has proved to be a complicated process. When the city first laid out guidelines for obtaining a permanent permit, many local restaurateurs argued the new rules were prohibitive and would cost too much money. One issue was that it would require the approval of several permits plus a public hearing, which could take a few months and cost restaurant owners thousands of dollars in application fees. 

Luca Viara, co-owner and head chef of Tramonti, inside the outdoor seating area of the Seabright restaurant.
Luca Viara, co-owner and head chef of Tramonti, inside the outdoor seating area of the Seabright restaurant. Credit: Kevin Painchaud / Lookout Santa Cruz

The updated proposal streamlines the permit process significantly and eliminates the need for a design permit if establishments meet certain standards. Businesses with outdoor spaces of less than 300 square feet and without permanent overhead structures, heaters or furniture will need to undergo a simple building permit review with reduced fees and a shortened review time. Larger spaces or ones that include permanent fixtures would still require a standard building permit review, including a review of occupancy and fixture counts. Standard building permit reviews would apply, varying based on criteria like square footage and size of the overhead structure. 

As city officials continue to hammer out a finalized plan, the end date for the temporary outdoor expansion permits has been delayed multiple times. Earlier this year, city officials extended the temporary permits through May 31, 2025, to give businesses more time to obtain their permanent approvals once the updated policy is finalized.

ICYMI: New era of policing vacation rentals in Santa Cruz County pushes complaints, violations into public view 

Vacation rental owners in the county are facing renewed scrutiny thanks to policy changes that went into effect in 2022 but that are finally getting more enforcement. As Christopher Neely reports, the county zoning administrator recently heard complaints against a handful of owners of local vacation rentals. The hearing marks a new era for how county officials address violations of vacation rental license agreements.

Ch-ch-changes: Openings, closings and other developments

  • Santa Cruz Water Department promotes deputy director: Isidro Rivera, who’s been with the city’s water department since 2002, was promoted to deputy director/engineering manager for the department. He replaces Heidi Luckenbach, who took over as director of the department in February when Rosemary Menard retired.
  • Pajaro Valley Chamber of Commerce announces 2024 awardees: Gizdich Ranch’s Nita Gizdich is being honored with the 2024 lifetime achievement award from the Pajaro Valley Chamber of Commerce. Other awardees include retired Watsonville firefighter Matt Ryan; Sally-Christine Rodgers, founder of the Trash Talkers initiative to promote litter cleanup; Staff of Life Market; the Watsonville Community Band; and the Watsonville Veterans Day Parade. The winners will be recognized at the chamber’s 62nd annual awards dinner on July 27 at the Santa Cruz County Fairgrounds. 
  • Cafe Sparrow closing Sunday: Longtime Aptos restaurant Cafe Sparrow will serve its final meals on April 28, the owners announced on social media last week. The restaurant has been in operation for 38 years.
  • FreeStyle Clothing Exchange opens new spot on Pacific Avenue: A vintage clothing buyer/seller with locations in California and Nevada has opened its sixth store, in downtown Santa Cruz. FreeStyle Clothing Exchange opened last weekend at 110 Cooper St., Suite 100B.

Got hires, promotions, or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Save the date

  • Wednesday, April 24 – Saturday, May 18:  The Reel Work Labor Film Festival will screen films relating to all things labor at various locations throughout the county. That includes the debut of a new documentary about hedge fund Alden Global Capital, parent company of the Santa Cruz Sentinel and the Monterey Herald. That screening, on Saturday, April 27, at 7 p.m., will be followed by a panel discussion with the filmmakers, including local investigative reporter Julie Reynolds. More details here.
  • Thursday, April 25: The Pajaro Valley Chamber of Commerce will host an agricultural expo and job fair from 4 to 7 p.m. at the Santa Cruz County Fairgrounds. Details here.
  • Tuesday, April 30: The City of Santa Cruz business development team and the Small Business Development Center will host office hours for small business owners from 1 to 3 p.m. at Abbott Square to provide information on funding, permitting and other resources. Free to attend, but registration is recommended.
  • Friday, May 3: The 2024 Santa Cruz County Small Business Summit will bring together more than 200 local entrepreneurs and small business owners for a day of networking, presentations and educational sessions. The event will be held at Cabrillo College’s Samper Recital Hall. More details and registration here.
  • Friday, May 3: The Monterey Bay Economic Partnership will host its 2024 Regional Economic Outlook from 8 a.m. to 1 p.m., bringing together a slate of speakers to discuss the economic landscape for Monterey, Santa Cruz and San Benito counties, including Santa Cruz County Administrative Officer Carlos Palacios. The event will be held at the Embassy Suites in Monterey. Register here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

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Jessica M. Pasko has been writing professionally for almost two decades.She cut her teeth in journalism as a reporter for the Associated Press in her native Albany, NY, where she covered everything from...