Quick Take

A proposed new policy regarding leases of city-owned property has the owner of Capitola Boat & Bait worried her business could be priced off the wharf, Jessica M. Pasko reports in her weekly column.

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.

The column will be off next Wednesday, July 1, returning July 8. 

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

Longtime Capitola Wharf business calls on community for support as Capitola City Council weighs new RFP process

Three Capitola businesses could face an uncertain future as the city council prepares to vote on a new policy regarding leases of city-owned property.

The City of Capitola currently holds leases with three businesses for commercial use of city-owned property: Capitola Boat & Bait on the Capitola Wharf, Capitola Beach Company in Esplanade Park and a patio area outside Britannia Arms that formerly housed Cafe Lido.

Currently, there is no formal policy to regulate the process and procedure for leasing city-owned property. At the direction of the city council, city staff has put together a proposed policy that would formalize the process, include advertising leasing opportunities and require requests for proposals (RFPs) from businesses. The proposed policy would allow the council to approve leases with nonprofits and public agencies without following an RFP process.

The goal of establishing the policy is to balance the city’s financial interests with community benefits and ensure the responsible and equitable management of publicly owned assets, according to city staff reports. But existing tenants worry that if the formal policy is passed, they’d have to bid for the properties they’ve long occupied – and that could price them out. 

Tina Williams and her brother took over Capitola Boat & Bait from their mother after the 2023 storms that damaged the Capitola Wharf; she’d run it since 1997. The store offers boat, kayak and paddleboard rentals in addition to selling a full array of fishing gear. In nearly three decades in business, Williams and her family have given many local youth their first jobs and helped them get started in the boat business. That includes her own son, who started working at the shop when he was 16 and used his experience and connections to get a job doing fiberglass repair for boats. 

Williams’ current lease expires at the end of this year, and she says she’s worried the new policy could mean the end for her family’s business. 

“I’m the first one on the chopping board if the [new] bid comes in higher,” said Williams, who said she received an email from the city earlier this month letting her know about the possible changes. 

Williams’ business has already faced significant adversity. After the severe storms that significantly damaged the Capitola Wharf in early 2023, the business reopened in 2024 in a temporary structure on the wharf.

The city council is expected to hear from staff on the proposed policy – followed by a public hearing – at Thursday’s meeting, scheduled for 4 p.m. in the city council chambers at 420 Capitola Ave. 

ICYMI: Dispute between RTC, Aptos Village property owners heading to court

The parking area in front of the Bayview Hotel and Trout Gulch Crossing along the rail line in Aptos Village.
The Santa Cruz Branch Rail Line running through Aptos Village. Credit: Kevin Painchaud / Lookout Santa Cruz

A court case involving the Regional Transportation Commission (RTC) and property owners in Aptos Village is slated for a hearing in Santa Cruz County Superior Court next month.

As the RTC continues its Coastal Rail Trail project, the agency needs to use a section of land currently used for parking by two property owners.  Segment 12 of the rail trail will stretch a little over a mile from State Park Drive to Rio Del Mar Boulevard. While Segments 9,10 and 11 will be built on top of the railroad tracks, Segment 12 will run adjacent to the tracks. While the RTC owns the rail line, it doesn’t own the adjacent land; that land belongs to the Bayview Hotel and Trout Gulch Crossing next door. Trout Gulch Crossing houses several local businesses and is currently owned by Betty Burgers owner Laurie Negro. At issue is what level of access or ownership each party (the RTC, Negro and the Bayview Hotel) has under current legal terms. Read more from Max Chun here.

Ch-ch-changes

  • Outdoor sports and recreation store opens in Aptos: Seacliff Surf & Skate held its grand opening last week. The new store, at 234A Santa Cruz Ave., features a full array of surfboards, skateboards, apparel, accessories and beach rentals.
  • FoodWhat’s seasonal farm stand ready for summer: Youth nonprofit FoodWhat has reopened its affordable farm stand for the summer. The stand is open from 3:30 to 5:30 p.m. on Tuesdays outside Pajaro Valley Unified School District’s Wellness Center at 530 Palm Ave., Watsonville. 
  • Yakitori Toriman’s new storefront opens in Capitola: The owners of popular yakitori pop-up, Yakitori Toriman, have opened a new, permanent location in Brown Ranch Marketplace in Capitola. Still in its soft opening phase, Toriman sells yakitori for dining in along with an array of prepared foods to go and Japanese grocery items. It’s located at 3555 Clares St., Suite G.
Davenport Roadhouse
The Davenport Roadhouse’s downstairs bar and lounge offers travelers a space to relax. Credit: Kevin Painchaud / Lookout Santa Cruz
  • Davenport Roadhouse gets new chef, glow-up under new owners: After an extensive renovation, a North Coast institution is moving into the modern era. Under owners Ginny Miller and Gavin Parsons, the Davenport Roadhouse is quickly becoming a destination. The pair purchased the struggling business last year and have transformed everything from the nine guest rooms to its menu. Read more from Lily Belli here.

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

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Save the date 

  • Wednesday, June 24: Visit Santa Cruz County will host a ribbon-cutting and grand opening celebration for its new visitors center from 4 to 6 p.m. The new center features a special area for neurodivergent travelers, a sensory-friendly space that includes weighted blankets, fidget toys and a quiet environment. It’s located at 705 Front St. in downtown Santa Cruz.
  • Wednesday, June 24: Santa Cruz Works’ next CEO Works Luncheon will focus on turning conflict into collaboration. Little Pineapple Collaborative founder Kelsey Manne Donnellan will provide insight and guidance on conflict resolution in the workplace. The event takes place from 11:30 a.m. to 1 p.m. at productOps’ headquarters at 110 Cooper St., Suite 201. Registration and additional details here.
  • Friday, June 26: The Capitola Chamber of Commerce will hold a ribbon-cutting celebration for Pet Emporium’s new location at Suite H in the Begonia Plaza on 41st Avenue in Capitola. The business has operated in Capitola for over 30 years, previously up the street at the King’s Plaza Shopping Center. The event starts at 3 p.m.
  • Saturday, June 27: Wellness and weight-loss center The Healthy Way will celebrate 40 years in business with a wellness and health fair from noon to 3 p.m. at 3251 Mission Dr. in Santa Cruz. The event includes cooking classes, food samples, demonstrations and more. 
  • Wednesday, July 1: Santa Cruz Works will host its next New Tech event at RiverRow on Front Street in downtown Santa Cruz from 6 to 8 p.m. Full program and registration details available here.
  • Sunday, July 12: So Fresh Clothing will mark 19 years in business with a downtown Santa Cruz block party, featuring vendors, music and food. The event runs from noon to 5 p.m. outside 911 Cedar St., between Church and Locust streets.
  • Saturday, July 18: The Pajaro Valley Chamber of Commerce and Agriculture will host its 64th annual awards dinner and auction from 4 to 9 p.m. at the Santa Cruz County Fairgrounds. Among this year’s honorees are C&N Tractors and Michele Bassi, chief development officer for Second Harvest Food Bank of Santa Cruz County. Tickets are available here.

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...