This week in Santa Cruz County business: New Midtown, wine districts; Joby joins FAA air taxi program; Capitola Mall redevelopment

Each week, we’re 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.

Business improvement districts for Midtown, Santa Cruz Mountains wines move forward

Two local initiatives to create business improvement districts (BID) are moving forward following last week’s meetings of the Santa Cruz City Council and Santa Cruz County Board of Supervisors. 

Business improvement districts offer a way to improve local public services and revive commercial areas, without raising general taxes. Annual assessments are paid by businesses and/or property owners within the boundaries of a pre-designated geographic area. The Downtown Association of Santa Cruz is a prime example; the nonprofit manages the downtown business district and collects annual fees from business owners that are used for everything from operating the downtown kiosks to providing security services and sidewalk cleanup.

In Santa Cruz, a long-in-the-making effort to establish a BID for the Midtown area will move forward after the city council voted to greenlight the plans last week. Rebecca Unitt, the city’s economic development manager, said she expects the new BID to start collecting fees early next year. The Midtown BID will encompass businesses along Soquel Avenue (and direct side streets) stretching roughly from South Branciforte Avenue to Pacheco Avenue. (See map here.)

Santa Cruz County will take the lead on forming what’s known as a wine improvement district for the wine businesses within the Santa Cruz Mountains appellation. That totals roughly 80 wineries and 200 growers in an area that includes parts of Santa Cruz, San Mateo and Santa Clara counties, according to Keiki McKay, executive director of the Santa Cruz Mountain Winegrowers Association. 

Read my full story for a deeper dive on these business improvement districts and how they’re helping businesses amid an uncertain economy.

Joby Aviation joins new federal pilot program to accelerate air taxi deployment

Santa Cruz-based electric air taxi company Joby Aviation is among the initial participants in a new federal pilot program that’s aimed at speeding up deployment of these new vehicles.

The Federal Aviation Administration’s Electric Vertical Takeoff and Landing (eVTOL) Integration Pilot Program will focus on developing new regulations for safe operation and forming partnerships with private sector companies and state and local governments. The goal is to help establish U.S. dominance in this technology by removing some of the barriers to operation, including allowing the testing of unmanned and piloted aircraft before they complete FAA certification. 

The program will involve at least five pilot projects, according to federal officials. Possible projects could focus on anything from short-range air taxis to longer-range, fixed-wing flights for use cases that range from emergency management, medical transport or cargo transportation. 

Joby competitor Archer Aviation, headquartered in San Jose, has also said it will participate in the program. As the electric air taxi industry grows, a local coalition has kicked off efforts to improve infrastructure at three rural airports in the Monterey Bay region, including Watsonville. Armed with a $7.54 million state grant, the Monterey Bay Economic Partnership is leading this project to help promote further growth of local companies working in this space and attract new businesses.

ICYMI: With city council vote, path to Capitola Mall redevelopment begins to take shape

A long-stalled project to transform the aging Capitola Mall into a major housing development is closer to moving forward following a vote by the Capitola City Council last week.

Councilmembers unanimously voted to push ahead with zoning code updates for the shopping center, a process that’s expected to involve multiple public meetings. The goal is to have the site rezoned for development as soon as January. After that, the mall’s owner and developer would be able to design a project and submit a formal application for approval.

Redevelopment of the 50-year-old Capitola Mall has been under consideration for almost a decade. 

Read more from Max Chun here.

Ch-ch-changes

• Santa Cruz Warriors promote general manager: Zach Harris is the new general manager of the Santa Cruz Warriors, the NBA G League affiliate of the Golden State Warriors. Harris served last season as the team’s assistant general manager; that role will now be filled by Noah Robotham. Harris joined the Warriors after previously working for the G League’s Grand Rapids Gold as a basketball strategy coordinator and for the Capital City Go-Go as a basketball operations assistant. 
• O’Neill Surf Shop’s Aptos store closes: The Aptos Village location of O’Neill Surf Shop has shuttered after five years, making it the chain’s second store in the county to close this year. The company also closed its downtown Santa Cruz store in January. O’Neill Surf Shop’s general manager, Tanner Beckett, said in a statement that the store closed Sept. 7 as part of the company’s ongoing efforts to “consolidate operations in an evolving retail landscape.” Three other locations, including two stores on 41st Avenue in Capitola and one at the Santa Cruz Beach Boardwalk, remain open. Wetsuit inventor Jack O’Neill founded O’Neill Surf Shop in 1952. 
• Santa Cruz plant and gift shop expands with new children’s store: Botanic & Luxe is opening a second store in downtown Santa Cruz with a focus on children’s items, including toys, clothing and blankets. Botanic & Luxe Littles will be located at 109 Cooper St., across the street from Botanic & Luxe’s main location. A ribbon-cutting and grand opening is set for Friday, Sept. 26.
• SwellCycle awarded a NEXTie for its environmental contributions: Santa Cruz-headquartered SwellCycle, which is using recycled plastic to 3D-print surfboards, is among the winners of the inaugural NEXTies: Earth and Sea awards. The awards are a spinoff of the NEXTies, the annual awards celebration focused on Santa Cruz entrepreneurial culture, that honors local people engaged in ocean sciences and environmentalism. SwellCycle will receive “The Spark Award” for invention/inventors. The company and its fellow awardees will be honored at a ceremony on Friday, Oct. 3, at the Seymour Marine Discovery Center in Santa Cruz.
• Driscoll’s hires first global chief marketing officer: Watsonville-headquartered Driscoll’s has appointed Jiunn Shih as its first global chief marketing officer as the berry giant continues to expand its worldwide operations. Shih has more than two decades of experience in consumer goods and agricultural business, and most recently served as chief marketing, innovation and sustainability officer for Zespri, the world’s largest kiwifruit company. Shih started his new role this week, and will be based in Hong Kong. Founded in 1904, Driscoll’s is now the world’s largest berry company, with growing operations in 21 countries.
• Santa Cruz Area Chamber of Commerce hires new operations associate: Elyse Mitchell is the chamber’s new operations associate, bringing nearly a decade of experience in marketing, sales and communications. Mitchell moved to Santa Cruz from Colorado in 2017. 
• Seascape Beach Resort hosting Skydio drone event: San Mateo-based drone manufacturer Skydio is holding its annual Ascend conference for current and prospective customers in Aptos on Wednesday and Thursday. The invitation-only event will showcase the company’s drone technology, which is used by military and public safety agencies, including police departments.
• La Selva Beach-based drone company gets $3.7 million Navy contract: Parallel Flight Technologies was awarded a $3.74 million contract from the Office of Naval Research to modify its flagship aircraft, Firefly, for maritime operations. Parallel Flight specializes in what are known as heavy-lift, hybrid-powered unmanned aerial systems; essentially, special drones that can carry loads of up to 100 pounds over long distances and reach speeds of 60 to 100 mph. The naval contract will enable the La Selva Beach company to make changes to Firefly that will make it better suited for use from naval vessels. That includes making it less susceptible to saltwater corrosion, equipping it with flotation devices and other capabilities. The goal is to use Firefly for activities including underwater vehicle detection and hydrographic surveys.

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

What’s new on the Lookout Job Board

• After School Care Teacher at Gateway School
• Clinic Nurse II at The City of Santa Cruz
• Assistant Director for the Colleges at UC Santa Cruz
• Engineering Technician I/II at Scotts Valley Water District
• Pop up/Catering staff at Sleight of Hand Pizza

Want more? Browse all openings on our job board. | Hiring? Post your job today!

Save the date 

• Wednesday, Sept. 24: Santa Cruz Works hosts its next CEO luncheon with Becca Davis, an organizational communications expert. The event takes place from 11:30 a.m. to 1:15 p.m. at productOps, 110 Cooper St., No. 201, in Santa Cruz. Tickets and registration are here.
• Thursday, Sept. 25: The Pajaro Valley Chamber of Commerce will hold a “mix and mingle” event at the Hillcrest Residences, a new housing development at 511 Ohlone Parkway, Watsonville. The free event takes place from 5 to 7 p.m.
• Saturday, Sept. 27: El Pajaro Community Development Corporation will hold Mujer al Mando, a business and leadership conference for women from Santa Cruz, Monterey and San Benito counties. The event includes interactive workshops, panel speakers and networking opportunities. It takes place from 9 a.m. to 2:30 p.m. in the community room of the Watsonville Civic Plaza. Tickets, which are $30 in advance or $40 at the door, are available here.
• Thursday, Oct. 2: The Santa Cruz Area Chamber of Commerce, Santa Cruz County Business Council and the Downtown Association of Santa Cruz will hold a business mixer open to members of business associations across Santa Cruz County. The event takes place from 5:30 to 7:30 p.m. at the Santa Cruz Museum of Art & History. Tickets can be purchased here.
• Friday, Oct. 17: Registration is now open for the 2025 State of the Region event, hosted by the Monterey Bay Economic Partnership. The event takes place at the University Center at Cal State Monterey Bay in Seaside from 9 a.m. to 4 p.m. The event focuses on economic opportunities and challenges in Santa Cruz, Monterey and San Benito counties. Among the speakers are Robert Rivas, speaker of the California State Assembly, and Assemblymember Lori D. Wilson.
• Thursday, Oct. 30: The Santa Cruz Area Chamber of Commerce will hold the Women’s Leadership Summit at Mission Springs Conference Center in Scotts Valley from 9 a.m. to 3 p.m. Speakers include state Assemblymember Gail Pellerin, Santa Cruz Regional Transportation Commission Executive Director Sarah Christensen, Capitola Police Chief Sarah Ryan and Judi Oyama, Hall of Fame skateboarder, among others. Tickets are $125 for chamber members and $150 for non-members. More details here.

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

Business news worth reading

• California trucking firms go under, fueling wider industry fears (The Wall Street Journal)
• O, Canada! Americans — and their businesses — miss their neighbors up north (Business Insider)
• How Bad Bunny made Puerto Rico’s economy boom during hurricane season (CNN)

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