Quick Take

The Santa Cruz community gets a chance next week to learn more about the development proposed for the site of The Catalyst nightclub, Jessica M. Pasko reports in her weekly look at local business. Meanwhile, home decor and retail chain Anthropologie is set to open on Pacific Avenue on Wednesday.

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.

Community meeting scheduled for proposed Catalyst demolition, housing project

Community members will have an opportunity this month to learn more about a proposed development in downtown Santa Cruz that calls for tearing down the current home of The Catalyst nightclub.

The city will hold a virtual public meeting next Thursday, Jan. 29, from 6 to 7:30 p.m. to provide more information about the proposal. Late last year, a Silicon Valley developer filed a pre-application to build a new seven-story, mixed-use building on the site of the storied music venue. Mountain View-based GSH Ventures is proposing to tear down the buildings at 1009, 1011 and 1015 Pacific Ave., combine the three lots into one and construct 64 residential units with ground-floor retail space. The nightclub could potentially be relocated there. 

The Catalyst occupies 1009 and 1011 Pacific Ave., where previous owner Randall Kane relocated the nightclub in 1976. Kane, who owned the building, died in 2009, and his heirs listed it for sale in July. The music venue is operated by Usually Hip, Inc., which rents the space. That lease is set to expire in mid-2028.

The proposal has drawn outcry from many community members, with nearly 10,000 people signing an online petition that calls for saving The Catalyst by having the city designate it as a historical preservation cultural landmark. 

Anyone can attend the public meeting on Zoom. It will also be recorded and posted on the city’s website here.

Anthropologie opens retail store in downtown Santa Cruz

Anthropologie’s location at Pacific and Soquel avenues in downtown Santa Cruz is set to open Wednesday. Credit: Kevin Painchaud / Lookout Santa Cruz

Home decor and retail chain Anthropologie will officially open its doors Wednesday at its new Pacific Avenue store. The retailer takes over the former Bank of Italy building, previously occupied by New Leaf Community Markets.

Anthropologie is the third store owned by parent company URBN to operate in downtown Santa Cruz. It also owns the brands Urban Outfitters and Free People, both located on Pacific Avenue. The company did not respond to a request for comment on the opening or how many employees the new store has hired.

Anthropologie fills the vacancy left when New Leaf moved out in October 2024 to move to a larger store in Gateway Plaza on River Street. It marks the first large retailer to open in downtown Santa Cruz following several high-profile closures in the past couple of years, including Rip Curl and O’Neill Surf Shop.

ICYMI: One year after massive fire at Moss Landing battery storage facility, nearby residents have more questions than answers

Cleanup continues in Moss Landing a year after a massive blaze ignited in the battery storage facility there. Credit: Kevin Painchaud / Lookout Santa Cruz

It’s been a year since the massive blaze at a battery energy storage facility in Moss Landing set off community discussion and opposition due to concerns about the safety of such facilities. The facility, owned by Texas-based Vistra Corp., was the second-largest battery storage plant in the world. 

The Jan. 16, 2025, fire burned for three days, and reignited a month later. 

Tania Ortiz took a deeper look at the fallout from the fire, the ensuing investigation and the implications for additional battery plants that store solar power as state officials aim for a carbon-free California by 2045. Read her piece here.

Ch-ch-changes

  • Bay Federal Credit Union promotes assistant vice president: Felisa Garcia is now the assistant vice president, branch manager for Bay Federal Credit Union’s River Street branch in Santa Cruz. In her new role, Garcia will oversee branch operations, provide leadership and coaching to her team, and ensure exceptional member experience. Garcia started with the credit union nearly 20 years ago as a member services representative. 
  • West Coast Community Bank named one of America’s best regional banks: Santa Cruz-headquartered West Coast Community Bank has been named among America’s 500 best regional banks for a second year in a row. The list, compiled by Newsweek and Plant-A Insights Group, is based on a review of profitability, more than 70,000 customer surveys and millions of mobile app reviews. See the full list here.
  • Capitola restaurant reopens following 2024 fire: El Toro Bravo in Capitola Village will host its grand reopening Wednesday from 11:30 a.m. to close. The Mexican restaurant on Monterey Avenue closed after a fire on Dec. 25, 2024, destroyed a small apartment building connected to the back of the building. El Toro opened in 1967, making it one of the oldest restaurants in Capitola Village.
  • Talmadge Construction founder stepping down: Jeff Talmadge, founder of Aptos-based Talmadge Construction in 1984, is retiring from the helm of the home remodeling firm. His son, Andrew Talmadge, will run the company as president, along with lead architect Danielle Grenier and the rest of the team. In the past 40 years, Talmadge has remodeled hundreds of homes, from kitchen and bath projects to full renovations. 

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

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Looking at the numbers

5.9%: That was the unemployment rate in Santa Cruz County in November 2025, up slightly from 5.7% in November 2024. Statewide, the unemployment rate improved to 5.5% in November 2025 compared to 5.6% in September. Because of the federal government shutdown, statewide and county unemployment rates weren’t available for October, according to the state Employment Development Department. The county lost 1,900 farm jobs in November, but gained 500 jobs in non-farm sectors, including 400 in the trade, transportation and utilities sector.

Save the date 

  • Thursday, Jan. 22: The Aptos Chamber of Commerce will host a luncheon with the county’s new executive officer, Nicole Coburn, from 11:30 a.m. to 1 p.m. at Seascape Golf Course in Aptos. Tickets are $35. Register here.
  • Sunday, Jan. 25: The 3D Entrepreneurs Club will launch its afterschool entrepreneurship clubs in 10 schools in Santa Cruz and Monterey counties this year, following successful pilot programs in 2025. An official launch event will be held at the Museum of Art & History in Santa Cruz from 2 to 4 p.m. The event will open with a panel featuring leading Santa Cruz tech entrepreneurs discussing how parents and schools can prepare students for the AI era. There will also be a mini “Shark Tank”-style showcase for students to show off their 3D-printed creations. Additional details and registration are available here.
  • Wednesday, Jan. 28: The Santa Cruz Area Chamber of Commerce will host its annual employment law workshop, focused on new employment laws in 2026. Michael Manoukian, partner with Lathrop GPM, will lead the workshop, to be held at the Museum of Art & History in Santa Cruz from 9 to 11:30 a.m. Register here.
  • Wednesday, Jan. 28: Santa Cruz Works will present the 2025 Titans Awards, which recognize individuals for their achievements in business, technology and entrepreneurship in the Monterey Bay region. The event takes place at the Kuumbwa Jazz Center from 6 to 8:30 p.m. Tickets can be purchased here. Read about this year’s awardees here.
  • Wednesday, Jan. 28: The Pajaro Valley Chamber of Commerce will host a ribbon-cutting and mixer at Circle & Square Bistro in Corralitos at 2904A Freedom Blvd. The event takes place from 5 to 7 p.m.
  • Thursday, Jan. 29: The Monterey Bay Economic Partnership will hold its 10th anniversary gala at the Monterey Bay Aquarium from 6:30 to 9:30 p.m. Attendees will include business leaders, policymakers and community leaders working to tackle the tri-county region’s most pressing challenges. For tickets and additional details, go 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.

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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...