Quick Take

Jessica M. Pasko's weekly look at local business includes an update on Joby Aviation's suit alleging corporate espionage by a competitor and recaps a contentious meeting on the fate of a downtown Santa Cruz landmark.

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.

Federal judge to hear motion to dismiss next month from Archer, Joby Aviation in corporate trade secrets case

A lawsuit filed by Joby Aviation accusing one of its main rivals of committing corporate espionage is scheduled for a hearing before a federal judge in San Jose next month. 

The Santa Cruz-based electric helicopter company filed the suit against Archer Aviation and a former employee in November. Joby claims the employee downloaded sensitive information from the company before he resigned, and then used that information to help his next employer, Archer, secure a deal with a real estate developer. While the case was filed in Santa Cruz County Superior Court, attorneys for Archer sought to move jurisdiction to U.S. District Court in San Jose.

In a response to the allegations filed last month, Archer claims the case is baseless and that Joby is using litigation to attempt to thwart marketplace competition.

Read more here.

ICYMI: Residents “vehemently oppose” proposed Catalyst project as developers, city officials present plans

The Catalyst nightclub on Pacific Avenue in downtown Santa Cruz
The Catalyst has been a beacon for music lovers throughout Northern California for 50 years. A new housing proposal raises questions about the iconic club’s future. Credit: Kevin Painchaud / Lookout Santa Cruz

At a meeting last week to share more information on a proposed development that would tear down The Catalyst nightclub and build 64 residential units, residents and business owners expressed concerns around noise, housing costs and gentrification.

Many shared their experiences at the storied music venue and called on the city and developers to preserve the space, but city officials say their hands are mostly tied given the state’s housing mandates. 

Under the proposal, the existing buildings at 1009, 1011 and 1015 Pacific Ave. in downtown Santa Cruz would be demolished to make room for a seven-story mixed-use building. Peter Givens, representing Mountain View-based GSH Ventures, told attendees that the developer is willing to work with The Catalyst’s owners to potentially move the venue to the ground floor of the new building. He said they’ve already been in talks with audio engineers to understand what’s feasible. 

The Catalyst’s longtime manager, Igor Gavric, said he saw the proposal as a way to potentially save the venue, albeit in a new form. 

“The [current] location isn’t built for a concert venue. It’s not ideal,” Gavric told the Zoom meeting on Thursday night. “This can be viewed as a really good opportunity to create something that the community can have for another 50 years, because in its current capacity, there’s no guarantee that The Catalyst would keep operating in that building for any amount of time.”

GSH Ventures will hold two open houses for the public to share more feedback on the project and ask questions. Those are scheduled for Feb. 25 and March 25 from 9:30 to 11:30 a.m. at The Catalyst. Comments also can be emailed to santacruzinfo@gsh-ventures.com. 

 Read more here.

Ch-ch-changes

  • West Coast Community Bank CEO named to Federal Reserve Bank board: West Coast Community Bank Chairman and CEO Krista Snelling was elected to serve as a director on the Federal Reserve Bank of San Francisco’s head office board of directors. The bank serves the 12th district, the largest in the Federal Reserve system, which represents nine western states (Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah and Washington) plus American Samoa, Guam and the Commonwealth of the Northern Mariana Islands. In this role, Snelling will represent member banks in those regions and share real-world insights to help guide the Federal Reserve’s work.
  • Volunteer Center executive director retires: Karen Delaney will step down from her role as executive director of the Volunteer Center of Santa Cruz County after more than 40 years at the helm. Shawn Peterson was promoted to director of operations and impact, and will oversee the center’s internal operations and impact strategy. The board of directors has created an executive search committee to find Delaney’s successor. 
  • Zero Motorcycles issues safety recall for twisted brake hose: Zero Motorcycles has issued a voluntary recall for some of its electric motorcycles due to an issue that could result in brake leakage fluid or potential loss of front brake pressure. The recall involved certain 2024 and 2025 DS, DSR, DSRP and DSR/X models, and around 120 motorcycles sold in the U.S. may be affected. The full recall notice is here. Zero Motorcycles moved its headquarters from Scotts Valley to the Netherlands last year but maintains its engineering and research and development departments here in Santa Cruz County.
Ryan Alfaro is adding another branch to the family tree with his Farm Cottage Wines.
Ryan Alfaro is adding another branch to the family tree with his Farm Cottage Wines. Credit: Via Ryan Alfaro
  • Aptos winemaker named a “winemaker to watch”: Ryan Alfaro of Farm Cottage Wines is one of 15 winemakers recognized by wine publication, VinePair, as one to watch in 2026. Alfaro started Farm Cottage Wines several years ago and is also the head winemaker at his family’s business, Alfaro Family Vineyards. See the full list here.
  • Cove Lifestyle Boutique moves to Capitola: Secondhand resale boutique Cove Lifestyle has closed its downtown Santa Cruz shop and is moving to Capitola Village. The store, which specializes in vintage women’s fashion and more, will reopen at 212 Capitola Ave. 
  • Santa Cruz libraries gets Carnegie Corporation grant: Santa Cruz Public Libraries has received a $20,000 grant from the Carnegie Corporation. The grant honors the 250th anniversary of the signing of the Declaration of Independence. Read more here.

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

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Looking at the numbers

  • 51.6%: That was the hotel occupancy rate in December in Santa Cruz County, a slight drop from 2024. It was also down slightly from November 2025 (58.4%) and October 2025 (65.7%), according to the latest statistics from Visit Santa Cruz County. Average daily room rate was up to $146, a 5% increase from the prior year. 

Save the date 

  • Tuesday, Feb. 10: Digital NEST will hold a grand reopening and open house at its Watsonville facility. The free event will feature tours, an opportunity to meet with staff and hands-on activities. It takes place from 5 to 7 p.m. at 349 Main St., Suite 202, in Watsonville. More information here.
  • Wednesday, Feb. 11: The Santa Cruz Area Chamber of Commerce and the Community Foundation of Santa Cruz County will host a workshop for business leaders on mastering difficult conversations, held at the Community Foundation’s Aptos headquarters. The presenter is Candice Elliott, vice president of people and culture at Lime Technology and the founder of Fortress and Flourish, a human resources strategy firm based in Santa Cruz. Tickets are $50 for chamber members and $75 for others. Details and registration here.
  • Thursday, Feb. 26: Santa Cruz Pride will hold a workshop for executives, business owners, human resources professionals and managers at the Hotel Paradox in Santa Cruz from 9 a.m. to noon. The event, titled Elevate LGBTQ+ Workplace Inclusion: The Power of Belonging, will include real stories from local businesses, networking and more. Speakers include Santa Cruz County Supervisor Monica Martinez and Sharon Papo, the CEO of LGBTQ eLearning. Register here to attend.
  • Friday, March 13: The Capitola-Soquel Chamber of Commerce’s annual awards gala takes place from 5:30 to 9 p.m. at Chaminade Resort and Spa in Santa Cruz. Nominations are currently open for person of the year, business of the year, educator of the year, outstanding youth and the community spirit awards. For registration, details and the nomination form, click here.
  • Thursday, April 16: The Santa Cruz Area Chamber of Commerce will hold its annual community recognition awards event at The Grove in Santa Cruz from 5:30 to 9 p.m. Early bird registration is available through March 15.

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

Business news worth reading

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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, New York, where she covered everything...