This week in Santa Cruz County business: Biz help from Bay Fed, Monterey Bay coalition doubles down on electric aircraft, Food Bin vote delayed

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.

Bay Fed adds commercial real estate loans to its offerings 

Businesses looking to purchase or refinance retail and office spaces – or other commercial properties – can now get a loan through Bay Federal Credit Union. The regional credit union, which operates seven locations in Santa Cruz and Monterey counties, has added commercial real estate loans to its roster. 

The loans are available to business and property owners in Santa Cruz, San Benito and Monterey counties in amounts up to $5 million for commercial properties within California. The new offering is also available to owners of multifamily residential property (those with five units or more). 

The addition of commercial real estate loans will help more local businesses gain access to flexible financing options with a local partner. Bay Fed already offers other types of business loans, including business credit cards, lines of credit and business vehicle loans, but the new program is specifically for buying or refinancing space for commercial operations, including farms and industrial-use properties. One perk of the program is that the new loans don’t have pre-payment penalties. A pre-payment penalty fee is charged by some lenders if a borrower pays off all or part of their loan early; it’s a way to compensate lenders for their financial loss if the loan is paid off early.

New tri-county tech hub focused on local eVTOL industry announces leadership council, launches website

A new coalition is focused on helping support local economic growth and job creation specifically related to what’s known as advanced air mobility – the industry that includes remotely piloted, autonomous and electric vertical takeoff and landing (eVTOL) aircraft. It’s a market that’s rapidly growing nationally – Deloitte analysts have predicted it will generate $115 billion in sales by 2035 across the country and potentially create more than 280,000 jobs – and has seen significant growth at the local level driven largely by companies like Joby Aviation and others. 

The Monterey Bay Tech Hub brings together stakeholders from San Benito, Santa Cruz and Monterey counties to support and drive workforce training, infrastructure development, innovation and entrepreneurship in this specific space. UC Santa Cruz, the Monterey Bay Economic Partnership and Monterey Bay DART (Drone Automation and Robotics Technologies) are founding members. Its new leadership council includes Santa Cruz Works Executive Director Doug Erickson, Santa Cruz County Supervisor Zach Friend, Cabrillo College President Matt Wetstein and Jacob Martinez, founder and CEO of Digital Nest, among others. 

The Monterey Bay area is home to one of the largest concentrations of efforts being made in this space, according to the Monterey Bay Economic Partnership. Among those efforts is the work being done by Joby Aviation, which is headquartered in Santa Cruz with production facilities in Marina; Wisk, a Mountain View-headquartered air taxi company and Boeing subsidiary, has a testing facility at Hollister Municipal Airport; and flying-taxi-maker Archer Aviation, which has a testing and research facility at Salinas Municipal Airport. 

Speaking of Joby Aviation: Last week, the company announced it has successfully completed its pre-production flight test program and it will now focus on the next phase of its flight testing. That phase will use its production prototype aircraft to prepare for upcoming testing it will need to go through as part of the Federal Aviation Administration’s certification process. The company’s two “pre-production” aircraft have completed more than 1,500 flights spanning a total distance of more than 33,000 miles.

ICYMI: Santa Cruz city officials delay vote on proposed development at Food Bin site

The Santa Cruz City Council punted a vote on a proposed mixed-use development project at the current site of the Food Bin & Herb Room on Mission Street last week, after a tense public hearing. As Christopher Neely reported, some councilmembers and a neighborhood representative have accused the developer, Santa Cruz-based Workbench, of acting in bad faith. A vocal contingent of residents opposes the proposed five-story, 59-unit development, with last-minute changes introduced by Workbench in question. The proposal has been kicked back to the city planning commission for another look before it returns to the city council for a vote on May 28.

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

• May is Small Business Month: This month is recognized as National Small Business Month, honoring independently owned companies across the country. There are more than 4.1 million small businesses in California, accounting for 98% of total businesses in the state and employing over 7 million people, according to state officials.
• Leadership Santa Cruz County seeking applicants: May 31 is the deadline to apply to be part of the 2024/2025 cohort of Leadership Santa Cruz County. The nonprofit program is aimed at building community leaders, providing education, networking and more over a roughly nine-month period. Former Santa Cruz city councilmember and county supervisor Ryan Coonerty currently heads up the program, which began in 1985 and has taught over 1,000 individuals.
• Santa Cruz County Bank names new executive: Natalie E. Taaffe has joined the regional bank chain as senior vice president, senior relationship manager to help serve customers throughout the greater Bay Area. She has 38 years of experience in the banking industry and most recently served as construction loan group manager for California Bank of Commerce in San Jose. (Previously on Lookout: In turbulent year for regional banks, Santa Cruz County Bank keeps growing.)
• Capitola city officials to weigh temporary-use plans for rebuilt wharf: The Capitola city council is set to make a decision this week regarding a temporary-use plan for the Capitola Wharf, which will likely reopen in August. The agenda for Thursday’s regular city council meeting includes a public hearing on a two-year plan for activities at the wharf, following extensive storm damage. The city has sought public input on the temporary plans, launching a survey earlier this year and hosting a recent town hall meeting. 

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

Looking at the numbers

• $150.4 billion: That’s the amount of money the state’s tourism industry generated last year, according to numbers released this week. State officials say it’s an all-time high, surpassing the previous record of $144.9 billion set in 2019. 

Save the date

• Friday, May 10: The Scotts Valley Chamber of Commerce will host its annual awards reception at Roaring Camp Railroads’ Bret Harte Hall from 5 to 10 p.m. More info here.
• Thursday, May 16: The Santa Cruz County Chamber of Commerce hosts a ribbon-cutting for the Santa Cruz Community Credit Union’s new branch at 55 River St. in Santa Cruz, from 5 to 7 p.m. More details here.
• Thursday, May 23: The Aptos Chamber of Commerce will hold its annual Par-Tee on the Green Golf Scramble and networking event at Seascape Golf Club. Check-in begins at 11 a.m.; it’s $180 per player. More info here.
• Wednesday, May 29: The Cocoanut Grove at the Santa Cruz Beach Boardwalk hosts the annual Santa Cruz Launchpad event from noon to 7 p.m. The event, organized by Santa Cruz Works, couples a job fair with a student business pitch competition. Details and tickets available here.
• Saturday, July 27: The Pajaro Valley Chamber of Commerce hosts its 2024 awards dinner and auction at the Santa Cruz County Fairgrounds in Watsonville. Details and registration here.

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

Business news worth reading

• Big Tech’s urban hero (Business Insider)
• A new law that goes into effect July 1 could “upend” California’s restaurant industry (Eater SF)
• Dolphin Restaurant to be demolished due to damage as city plans “reimagining” of end of wharf (Lookout)
• Westside Santa Cruz’s Onewheel celebrates 10 years (Santa Cruz Sentinel)

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