Quick Take

In her weekly roundup of news and notes from the Santa Cruz County business community, Jessica M. Pasko digs into where pharmacy closures across the county fit into the industry’s challenges nationwide, a slowdown in fall tourism, and the latest businesses opening and closing across the community.

As we emerge from the COVID-19 pandemic and its lingering effects on economies everywhere, we’ll be 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.

More changes ahead for Capitola’s King’s Plaza as Rite Aid shutters more stores

A second local Rite Aid store is slated for closure this month following the company’s bankruptcy filing. 

The pharmacy and retail store in Capitola’s King’s Plaza Shopping Center on 41st Avenue will shut down as part of an announced closure of more than 30 Rite Aid stores, which comes amid the company’s ongoing restructuring efforts. The Soquel Avenue store closed last month; the store’s Freedom, Aptos and Felton locations remain open. 

“We’ve heard differing reports but the latest we’ve heard was Dec. 18 for the closing date, according to Benjamin Ow, principal at Ow Commercial, which owns the Capitola property.

Calls to the store Tuesday were not answered. On Sunday afternoon, the shelves were already bare as the store prepared for the closure. Ow said he is just starting to consider other options for the 21,440-square-foot space. 

Meanwhile, the building next door remains empty after Lucky supermarket closed on Aug. 31. New Leaf Community Markets will be moving its store at 1210 41st Ave. into the space in 2024. There’s currently no set timeline, but a New Leaf spokeswoman said the move is expected in late summer/early fall.

Read the full story here.

State switches banks for unemployment, paid family leave and disability benefits

The California Employment Development Department is switching to a new banking partner to deliver unemployment, disability and paid family leave benefits. The state agency is moving from Bank of America to Money Network. New prepaid debit cards will be sent out starting in mid-January, in advance of the switchover in February. About 850,000 Californians currently receive such benefits.

ICYMI: As burglaries surge, local cannabis business owners call for increased enforcement

(Via Pixabay)

Local cannabis businesses are being increasingly targeted by highly sophisticated burglaries resulting in thousands of dollars in losses and damages. At least eight such burglaries have occurred in the city of Santa Cruz in the past year, Christopher Neely reports. Business owners say they’re frustrated by what they say is insufficient response by law enforcement and one owner was arrested for what he says was an attempt to defend his business during a break-in. Read more from Christopher here.

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

  • Graniterock safety manager honored with industry award: The California Construction & Industrial Materials Association recently honored Mike Herges with the Safety Professional of the Year award. Herges has been the safety and health services manager at the Watsonville-headquartered construction company for 24 years, driving many of the company’s safety initiatives.
  • Scotts Valley’s Ivy’s Porch closing: Vintage, gift and garden shop Ivy’s Porch is closing its Scotts Valley Drive store at the end of this month after 25 years, the store announced. Its last day in business will be Dec. 31.
  • New flower shop opens in Pleasure Point: Thank You Come Again is now open at 3709 Portola Dr. The women-run business offers in-person sales and delivery.
  • UC Santa Cruz opens grant program to support technology innovation: UC Santa Cruz’s Innovation & Business Engagement Hub is accepting applications for the Innovation Catalyst Grant. The grant funds training, mentorship and support for university researchers to help with early-stage technology innovation. The deadline is Jan. 12. More information here.

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

Looking at the numbers

The Hotel Paradox in Santa Cruz.
The Hotel Paradox in Santa Cruz. Credit: Courtesy Hotel Paradox
  • 6.4%: That’s the increase in occupancy rates at Santa Cruz County hotels in October compared to the same time last year, according to Visit Santa Cruz County. It marked a slight dip (down 5.7%) from September, however, as the busy summer travel season came to a close. The county’s tourism industry is continuing its post-pandemic recovery efforts, including a slate of new hotel developments and renovations. 
  • $150,000: Interested in running a math tutoring company? That’s the asking price for the established Mathnasium franchise on the Westside, which comes with three years left on the current lease at 1642 Mission St. and the option to renew. 
  • $112.4 million: That’s the total state sales tax revenue generated by California cannabis dispensaries in the third quarter of this year, according to the California Department of Tax & Fee Administration. It marks a slight decrease from the prior quarter, which accounted for $118.8 million in sales tax. This doesn’t include any locally imposed taxes or tariffs, just the statewide ones.

Save the date

  • Wednesday, Dec. 6: AI Horizons, Part 2 will bring industry luminaries together at the Cocoanut Grove in Santa Cruz to talk about rapidly developing artificial intelligence technology. Details here.
  • Thursday, Dec. 7: Monterey Bay Economic Partnership hosts its annual holiday mixer in Marina from 11 a.m. to 1 p.m. Bonny Simi, head of operations and people at Joby Aviation, and Monterey Peninsula Community College superintendent/president Marshall Fulbright will speak. 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

Humble Sea Tavern in Felton
The Humble Sea Tavern in Felton closed in August 2023 after a year and a half in business. Credit: Humble Sea Brewing Co.

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, NY, where she covered everything from...