This week in Santa Cruz County business: Airspace makeovers for air taxis; summer tourism slump

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.

Ambitious project to connect region’s four rural airports slated to begin in November

Armed with more than $7 million in state funding, a regional nonprofit is aiming to start work as soon as November on an ambitious plan to connect four rural airports in the Monterey Bay region to handle a new era of air traffic that includes electric air taxis and unmanned drones.

The Monterey Bay Economic Partnership helped secure the $7.45 million state grant to create special aerial pathways among the airports in Watsonville, Salinas, Marina and Hollister. These pathways work like highways in the sky, helping flying vehicles avoid collisions as the airspace becomes increasingly crowded with electric air taxis and autonomous drones, in addition to traditional airplanes and other aircraft.

The project, called the California Advanced Air Mobility Corridors Initiative, is being touted as the state’s first Federal Aviation Administration-compliant flight corridor. MBEP said it plans to complete the work within two years. 

The goal is to help support the area’s growing advanced air mobility ecosystem, which includes air taxis, drones and other electric aerospace vehicles, by putting in the infrastructure and safeguards to keep vehicles from crashing into each other or other structures. 

To create these aerial corridors, workers will install new equipment including sensors, signs, charging stations for electric aircraft, and digital navigation aids, according to Lavera Alexander, chief growth officer of MBEP, who leads the project.

“Think of it like preparing roads for electric cars, except for the skies,” she said. “On roads, we have stoplights, signs and lane stripes that keep traffic organized and moving safely. In the sky, we need digital systems that play the same role, mapping out routes, guiding the right of way and ensuring all types of aircraft can safely share the airspace.”

The project also includes building a new communications network for advanced aircraft and training workers to operate it. Like all aviation projects, this system must meet FAA safety standards before it can begin operating.

The network will serve as a testing ground for companies developing new aircraft. Several electric air taxi companies already operate in the region, including Santa Cruz-based electric air taxi company Joby Aviation. San Jose-based electric air taxi company Archer operates a testing facility near Salinas, and Mountain View-based Wisk Aero, another electric air taxi company, operates facilities in Salinas and Hollister.

Connecting these airports could help those companies with their testing and certification processes, while also potentially attracting more companies to the Monterey Bay region, ultimately creating new job opportunities and supporting more investment in the area, Alexander said: “It will be major for the state.”

While it hasn’t been decided where work will begin first, leaders at all four airports are on board with the project, Alexander said. 

California officials see advanced air transportation as a major source of future economic growth and local organizations are working to make the Central Coast a leader in this field. Last year, MBEP joined with UC Santa Cruz and nonprofit Monterey Bay Drone, Aviation and Robotics Technology to create the Monterey Bay Tech Hub, which works to attract companies, secure grants and develop workforce training programs.

ICYMI: Santa Cruz sees a dip in summer tourism – blame politics

While official numbers for August aren’t available yet, the summer of 2025 is shaking out to have been a quieter tourism season than in previous years. 

Local tourism officials were bracing for a slightly slower season amid pending tariffs and other federal policies that have sparked negative sentiment toward the U.S. That was in line with their peers across the state; Visit California, the state’s tourism marketing organization, forecast international visits would decline by 9.2% in 2025.

So far, however, signs show this year’s dip wasn’t as dramatic as it could have been here in Santa Cruz County. 

Wallace Baine took a closer look at how federal policies under the Trump administration might have affected the demographics of tourists to Santa Cruz County this summer. Read his piece here.

Ch-ch-changes: 

• Verve removes 5% service fee: After employee backlash, Verve Coffee Roasters has removed a controversial service fee from its cafés. The Santa Cruz-based coffee company added the fee last month to support health benefits for full-time employees, but café employees pushed back, arguing that almost none of them had full-time hours and therefore, weren’t receiving benefits. The fee also caused confusion among customers. Read Lily Belli’s full article here.

• New assistant winemaker for Big Basin Vineyards: Big Basin Vineyards promoted David Johnson to assistant winemaker. Johnson has been part of the winemaking team since 2022, and started out working in the tasting room in Boulder Creek. 
• Watsonville hospital seeking partners amid looming federal cuts: Watsonville Community Hospital leaders are looking to partner with regional health care providers to help manage the hospital’s day-to-day operations as it prepares for significant revenue drops following new federal spending cuts. Impending cuts to reimbursement from Medicaid and Medi-Cal are expected to have a huge impact on the hospital. Read more from Tania Ortiz here.
• Scotts Valley’s vice mayor resigns: Alan Timms, who was first elected to the Scotts Valley City Council in 2022, has stepped down from his position as vice mayor. At last week’s city council meeting, Timms announced his departure, and said he was moving out of Scotts Valley. City officials have until Nov. 4 to decide whether to fill the vacancy by appointment or special election, and they’re scheduled to discuss next steps at the Sept. 17 city council meeting.
• Spirit Halloween store opening in former Forever 21 location: Spirit Halloween is once again opening a temporary store in downtown Santa Cruz. The seasonal costume and accessory retailer is setting up shop starting this month at 1200 Pacific Ave., which has been vacant since fast-fashion retailer Forever 21 closed in January. The chain will also operate a location in the Capitola Mall for the Halloween season.

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

• After School Care Teacher at Gateway School
• Clinic Nurse II at The City of Santa Cruz
• Assistant Director for the Colleges at UC Santa Cruz
• Engineering Technician I/II at Scotts Valley Water District
• Pop up/catering staff at Sleight of Hand Pizza

Want more? Browse all openings on our job board. | Hiring? Post your job today!

Looking at the numbers

• $10,800,000: That’s the going price for Seabright Plaza Shopping Center, a commercial plaza in Midtown Santa Cruz that includes Ace Hardware, Surecuts, Real Thai Kitchen and other longtime businesses. Also included in the sale is 110 Gault St., a 5,706-square-foot parcel of land that’s adjacent to the commercial shopping center and is used for overflow parking. The listing notes this property’s zoning could allow for it to be developed as a high-density (as many as 250-300 units) residential mixed-used project with ground-floor retail.

Save the date 

• Tuesday, Sept. 16: The Santa Cruz Area Chamber of Commerce, Dientes and Santa Cruz Community Health will host the next business after-hours event from 5 to 7 p.m. The event takes place at the outdoor plaza between the new Santa Cruz Community Health Center and Dientes clinic at 1500 Capitola Rd. The CEOs from both organizations will speak at the event, which also includes networking and refreshments. Register here.
• Wednesday, Sept. 24: Santa Cruz Works hosts its next CEO luncheon with Becca Davis, an organizational communications expert. The event takes place from 11:30 a.m. to 1:15 p.m. at productOps, 110 Cooper St., No. 201, in Santa Cruz. Tickets and registration are here.
• Saturday, Sept. 27: El Pajaro Community Development Corporation will hold Mujer al Mando, a business and leadership conference for women from Santa Cruz, Monterey and San Benito counties. The event includes interactive workshops, panel speakers and networking opportunities. It takes place from 9 a.m. to 2:30 p.m. in the community room of the Watsonville Civic Plaza. Tickets, which are $30 in advance or $40 at the door, are available here.
• Thursday, Oct. 2: The Santa Cruz Area Chamber of Commerce, Santa Cruz County Business Council and the Downtown Association of Santa Cruz will hold a business mixer open to members of business associations across Santa Cruz County. The event takes place from 5:30 to 7:30 p.m. at the Santa Cruz Museum of Art & History. Tickets can be purchased here.
• Friday, Oct. 17: Registration is now open for the 2025 State of the Region event, hosted by the Monterey Bay Economic Partnership. The event takes place at the University Center at Cal State Monterey Bay in Seaside from 9 a.m. to 4 p.m. The event focuses on economic opportunities and challenges in Santa Cruz, Monterey and San Benito counties. This year’s speakers haven’t been announced yet. 

• Thursday, Oct. 30: The Santa Cruz Area Chamber of Commerce will hold the Women’s Leadership Summit at Mission Springs Conference Center in Scotts Valley from 9 a.m. to 3 p.m. Speakers include state Assemblymember Gail Pellerin, Santa Cruz Regional Transportation Commission Executive Director Sarah Christensen, Capitola Police Chief Sarah Ryan and Judi Oyama, Hall of Fame skateboarder, among others. Tickets are $125 for chamber members and $150 for nonmembers. 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

• Patagonia changed the apparel business. Can it change food, too? (The New York Times)
• Why Tesla just threw $1 trillion at Elon Musk (CNN)
• A six-story apartment building is tearing this small California town apart (The Wall Street Journal)

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