Quick Take

In her weekly look at local business, Jessica M. Pasko examines the effects of downtown Santa Cruz's vibrancy ordinance, notes a continued population decline in the city and passes along numbers, names and dates to know.

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.

Downtown Santa Cruz vibrancy ordinance marks first full year

Three properties in downtown Santa Cruz have had to pay a registration fee to the city under the city vibrancy ordinance that went into effect last year. Under the terms of the Downtown Vibrancy Ordinance, owners of storefronts along Pacific Avenue that have sat vacant for longer than two years must pay to register the vacancy with the city. The property owners must also provide a plan for upkeep while the space is empty, retain a local property manager and meet annually with city government representatives. 

The three spaces subject to the registration fee include the retail space at Nanda on Pacific, the mixed-use residential building that opened at 1547 Pacific Ave. in 2020. The other two spaces are the E.C. Rittenhouse building, at Pacific and Church Street, and 803 Pacific Ave. 

Rebecca Unitt, economic development manager with the city, said the ordinance has had a “pretty successful implementation thus far.” While three buildings must pay for registration, another outcome of the ordinance is that it has brought new spaces into the city’s “Downtown Pops!” program. (Properties with pending/active permit applications or those that participate in the Downtown Pops! program are exempt from the registration fee.) Launched in 2021 to help revitalize the local economy, Downtown Pops! aims to reduce barriers to entry for small business owners who want to open a brick-and-mortar while also decreasing the risk for property owners. Essentially, the city helps subsidize short-term leases for these business owners, with an option for longer lease terms. 

downtown vibrancy ordinance
The former home of Logos Books & Records on Pacific Avenue hosted holiday pop-up events last year as part of the Downtown Pops! program. Credit: Kevin Painchaud / Lookout Santa Cruz

Since last year, the former Palace Art & Office Supply space and the old Logos Books & Records spot joined Downtown Pops!, and both spaces hosted holiday markets and events during the Christmas 2025 season. Additionally, Unitt said her team has just gotten approval to use 1339 Pacific Ave. as a temporary outpost for the Santa Cruz Museum of Natural History, which will be leaving its Seabright home for a while as the East Cliff Drive property undergoes a major renovation.

Additionally, property owners have until June 12 to participate in the city’s Vacant Storefront Window Covering Pilot Program, which provides and installs free decorative window clings to help storefronts meet vibrancy ordinance standards.

Unitt said the ordinance’s passing has helped city officials have more communication with property owners overall, including discussing ways to help find tenants for vacant spaces.

“It’s an ongoing relationship,” she said. “We’re working with brokers to [also help] fill the new retail spaces coming downtown, like RiverRow.” 

That also includes working with the team behind the new Anton Pacific construction to fill that ground-floor retail space along with the new spaces coming online as new residential buildings open. Unitt said the city is working with the respective building owners to get those new spaces activated as quickly as possible. 

Aspects of the vibrancy ordinance could also potentially be expanded to other parts of the city, but that remains to be determined, said Unitt: “This has been a good pilot test.”

ICYMI: Santa Cruz’s population decline has widened. Low-wage jobs and high housing costs are reasons why.

Santa Cruz experienced one of the biggest yearly population drops for small cities last year. It ranked second in California and ninth in the U.S., based on an analysis of U.S. Census Bureau data. 

The city’s population was around 61,797 in 2025, a decrease of about 1.3% since 2024 and 3.7% since 2020.

The decline is part of a broader trend of residents leaving expensive places in California where they struggle to find high-paying jobs. Santa Cruz has consistently been one of the country’s most expensive places to live, and renters comprised around 60% of city residents in 2021 – higher than 40% across the country.

Dieter Holger recently took a closer look at the estimates to find out what they really mean and what they forecast for the city moving forward. See his story here.

Ch-ch-changes

  • Santa Cruz chef opening new spot in Los Gatos: David Kinch will open a new location of his popular Aptos restaurant, Mentone, in the Junction, a new retail area that will be built at the North 40 housing development in Los Gatos. Also planned for the space is another location of Manresa Bread, the bakery-cafe Kinch launched with baker Avery Ruzicka. Manresa Bread currently has locations in Palo Alto, Los Altos, Campbell and Santa Cruz, where an expansion is currently underway.
Trustees listen to a public speaker during the May 20 meeting of the Pajaro Valley Unified School District board in Watsonville. Credit: Hillary Ojeda / Lookout Santa Cruz
  • Pajaro Valley Unified School District approves latest layoffs: Pajaro Valley Unified School District leaders last week agreed to eliminate the equivalent of 100 full-time positions, including special education staff, mental health clinicians and counselors. The school board previously approved preliminary layoffs for about 160 full-time positions, but that number was trimmed after adjusting for retirements and employee departures. Read more from Hillary Ojeda here.
  • Dream Inn hires new executive chef: Michelle Gomez has taken the helm at the Dream Inn in Santa Cruz as executive chef, overseeing all culinary programming at the property. That includes the Jack O’Neill Restaurant and Lounge as well as room service, the hotel’s coffee cart and poolside food and beverage services. Gomez joined the Dream Inn after nearly two years as executive chef at The Alfond Inn in Winter Park, Florida.

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 

  • Thursday, May 28: The Scotts Valley Chamber of Commerce will hold a ribbon-cutting for Kissed by an Angel’s new wine tasting room. The winery recently moved from Pinnacle Pass on Mount Hermon Road to the former Saison Cellar and Wine Bar location in the Kings Village Shopping Plaza down the street. The ribbon-cutting celebration takes place from 5:30 to 7 p.m.
  • Saturday, May 30: Hand It Down, a resale shop for children’s apparel, will host an opening celebration at its new downtown Santa Cruz location from noon to 5 p.m. at 119 Walnut Ave. The Downtown Association will hold a ribbon-cutting for the store at 12:15 p.m.
  • Thursday, June 11: The Santa Cruz Area Chamber of Commerce will host a business after-hours event with Lookout Santa Cruz. Attendees will get to tour the newsroom, meet the staff and learn more about Lookout. Tickets for chamber and Lookout members are $10; $20 for non-members. The event takes place at 1523 Pacific Ave., Santa Cruz, from 5 to 7 p.m. Details and registration here.
  • Thursday, June 11: All Things Meetings and Visit Santa Cruz County will host a daylong workshop for corporate, association and social event planners, featuring networking with representatives from local venues, hotels and more. The event takes place at The Grove (formerly the Cocoanut Grove) from 10 a.m. to 2:30 p.m. Registration here.
  • Friday, June 12: Santa Cruz Works will host a company spotlight breakfast at the headquarters of Future Motion, the company behind OneWheel. The event takes place from 8:00 to 9:30 a.m. and includes a tour of the studio at 1201 Shaffer Rd. in Santa Cruz. Attendance is free for Santa Cruz Works members and $10 for non-members. Registration and additional details are here.
  • Friday, June 12: A ribbon-cutting is planned for 11 a.m. to noon at Si Se Puede Behavioral Health Center at 161 Mills Lane, Watsonville. Register here.

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...