This week in Santa Cruz County business: Hot summer for tourism

Quick Take

In this week's local business roundup, Jessica M. Pasko reports on a second summer of growth for Santa Cruz County's tourism industry; eight local startups being picked to compete for seed funding; new executive hires at Universal Audio and changes at other local businesses.

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.

Rising temperature = Uptick in local tourism season

After a banner year in which revenues rebounded significantly from pandemic lows, the summer of 2024 is promising to be another big one for the local tourism industry.

According to the latest numbers from Visit Santa Cruz County, occupancy rates in June were up for both hotels (76.4%) and short-term vacation rentals (52.9%) compared to June 2023. The average daily rate for hotels was also up, $216.02 compared to $214.12 last year. Overall, occupancy rates have shown a steady incline since January, trending higher than last year. Hotel revenue accounted for $22 million countywide in June, a 6.5% increase from $20.65 million year-over-year. While July numbers won’t be available until next month, all signs are pointing to an upward trajectory.

Rising temperatures around the state are also likely attracting more visitors from inland parts of California as they seek to beat the heat. Summer is always a busy time for O’Neill Yacht Charters, but manager Jenny Duckart said this year’s chartered sails have been especially busy. She chalks increased interest up to not just high temperatures, but a flurry of whale and shark activity. That’s really drawing people in this year, she said.

Read my full update here.

Santa Cruz Accelerates picks 8 startups for training, chance at seed funding

Santa Cruz Accelerates has selected eight startups to participate in its 15-week business accelerator program. Santa Cruz Accelerates is a program that helps support entrepreneurs in Santa Cruz and Monterey counties with business advice, networking events and more. At the end of the 15 weeks, participants can attend an annual pitch competition with the chance to receive as much as $50,000 to $100,000 in seed funding.

The companies selected to participate this year are Cascarita, focused on technology for soccer league management; Eivie, a new electric vertical landing and takeoff (eVTOL) company; Good Talk, an app aimed at helping people navigate challenging conversations by practicing with chatbots; Light Links, which is developing a new type of wireless technology; Talllyrus, which uses AI to tackle essay grading; TerraNova Bio, a team of UC Santa Cruz alumni, students and staff working on a new method for recycling polyurethane; Treeswax, a company creating a new type of surf wax that it says is petroleum-free and more eco-friendly; and Xraise, a company using AI to make the process of finding grants, loans and other funding sources easier for small businesses and startups.

The program kicked off July 30. More than 50 businesses have gone through the Santa Cruz Accelerates program since its founding in 2015.

ICYMI: Morning at the Silver Spur — where old-line Santa Cruz goes for breakfast

customers at the Silver Spur diner in Soquel — On its busiest days, the Sliver Spur can serve up to 300 plates before its mid-afternoon closing time. Credit: Kevin Painchaud / Lookout Santa Cruz

For more than 60 years, The Silver Spur in Soquel has been serving up eggs, sausage and much more to locals, attracting a loyal group of regulars even as the restaurant has changed hands. Wallace Baine spent a recent Saturday morning learning just what has earned this restaurant such a strong customer base. Check out his slice of life story here.

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

Universal Audio brings on two new executives: Scotts Valley-based Universal Audio has hired Dana Ruzicka as chief operating officer and Ethan Kaplan as chief digital officer. Ruzicka is a lifelong musician with nearly 30 years of experience in the industry, including working for Avid Technology’s audio business unit. Kaplan joins the company from Smash Capital, where he led AI investments, and has also worked for Fender Music, Live Nation Labs and Warner Music Group. Universal Audio specializes in audio and sound production technology.
Firefly Tavern changes name, owner: Firefly Tavern in downtown Santa Cruz is now CT Lights Lounge. The Walnut Avenue business, once home to 99 Bottles, changed hands earlier this year, and has reopened with the same chef but a new owner and name, Lily Belli reports here.
Scotts Valley company nets award for innovative design: CIONIC, a startup in the neurotechnology field, has received an Innovation by Design award from Fast Company. The company is developing special clothing to support people with mobility issues and has been recognized for its neural sleeve, a legging that’s embedded with sensors and electrodes to stimulate muscles and improve mobility. The Innovation by Design awards recognize businesses and designers tackling some of the world’s biggest challenges. CIONIC was founded in 2018 by Jeremiah Robison, who sought alternatives to traditional crutches, walkers and wheelchairs for his daughter with cerebral palsy.
Scotts Valley cannabis tech company partners with testing company: Neatleaf, a local startup focused on using AI and analytics for cannabis cultivation, is partnering with a Massachusetts company specializing in genetic and pathogen testing. VerneBio provides cannabis growers with easy-to-use, fast testing kits for some of the most common pathogens and risk factors, in addition to conducting testing at its labs. Now, the company will gain access to the data and analytics that the Neatleaf Spyder system collects from plants around the correlation between pathogens and plant health, which will help it refine its testing and diagnostic processes further.

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

Looking at the numbers

Just over $2 million: That’s how much money UC Santa Cruz will receive in funding to support education and training programs for undergraduates, graduate students and working professionals to help improve local climate resilience. The funding is part of a larger federal grant from the National Oceanic and Atmospheric Administration (NOAA) Climate Resilience Regional Challenge. All together, the California Marine Sanctuary Foundation and its partners will receive $71.1 million to work on projects to increase the resilience of coastal communities amid rising sea levels and other climate change impacts. As part of this, UC Santa Cruz will help develop a skilled local workforce to plan, lead and implement climate resilience actions in the coming years.

Save the date

construction in downtown Santa Cruz in August 2023 — Construction in downtown Santa Cruz in August 2023. Credit: Kevin Painchaud / Lookout Santa Cruz

Wednesday, July 31: Lookout is hosting a two-part housing panel to explore all things related to affordable housing and ongoing development locally. The in-person event is sold out, but you can join the Facebook Live stream from 6 to 8 p.m.
Wednesday, July 31: Join Woodstock’s Pizza and the Santa Cruz County Chamber of Commerce for a ribbon-cutting and grand reopening of the Santa Cruz pizzeria following its recent renovation. There will be food, drinks and a raffle, from 5 to 7 p.m. Attendees are asked to RSVP by July 27.
Friday, Aug. 2: The city of Santa Cruz is hosting a Swift Street block party from 5 to 7 p.m. celebrating some of the local businesses on this portion of the Westside. Vice Mayor Renee Golder will hold a ribbon cutting at 5:30 p.m. to celebrate some of the newest businesses in the area, including Rove Goods and Rye Home.
Wednesday, Aug. 7: The Santa Cruz County Chamber of Commerce will host a women’s networking mixer from 5 to 7 p.m. outside the Dientes and Santa Cruz Community Health clinics on Capitola Road. Details here.
Wednesday, Aug. 28: The Santa Cruz County Chamber of Commerce hosts a luncheon with Rep. Jimmy Panetta at Roaring Camp Railroads in Felton from 11 a.m. to 1 p.m. Register here to attend.
Saturday, Sept. 28: The El Pajaro Community Development Corporation and the Regional Women’s Business Center will hold its Latina Entrepreneurship Leadership Conference from 9 a.m. to 2:30 p.m. at the Watsonville Civic Plaza. Tickets and registration here.
Saturday, Oct. 5: Santa Cruz Community Health will mark its 50th anniversary with a fundraising gala at the Hotel Paradox in Santa Cruz, from 6 to 10 p.m. The event will feature speakers, a sit-down dinner and a no-host bar. Early bird tickets are now available for $150 and prices will increase Aug. 1. For details and to purchase tickets, go here.