Quick Take:

Jessica M. Pasko gives you the latest in local business news, including Joby Aviation and Toyota expanding their partnership, Driscoll's facing a new class action lawsuit over pesticide use, and upcoming events.

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.

Joby Aviation and Toyota expand manufacturing partnership

Could electric helicopters be churned out just as quickly and with the same quality standards as a Toyota Prius? That’s the theory underpinning an expansion of an ongoing partnership between Santa Cruz-based electric helicopter company Joby Aviation and Toyota Motor Corporation. 

While Toyota has long been an investor in Joby, the manufacturing partnership announced last week will pair Toyota’s deep expertise in manufacturing vehicles quickly and scale with Joby’s electric aviation work. With demand for electric vehicles expected to grow in the next couple of years, Toyota will help Joby build more electric helicopters more quickly and with consistent quality.

As Joby continues to make progress on the steps needed to obtain the necessary  Federal Aviation Administration certification needed for commercial passenger flights, the company – and other electric helicopter companies – has gotten a boost from a federal pilot program aimed at speeding up deployment of the vehicles. Under the program, Joby could bring early operations to 10 states, including New York and New Jersey, as early as this year. 

Meanwhile, the company is still working toward a goal of launching commercial service in the United Arab Emirates this year. New York City and Los Angeles are expected to be the first U.S. cities where commercial helicopter passenger service launches. Commercial service will operate similarly to Uber or Lyft, with customers using an app to hail an electric taxi that can carry up to four passengers and fly at speeds of up to 200 mph.

With commercial deployment on the near-horizon, Joby will need to speed up and scale up manufacturing, with its current production goal set at four vehicles per month by 2027. The company recently acquired another manufacturing facility in Dayton, Ohio, as it works to ramp up production.

Driscoll’s faces new class action suit over pesticide use

A suit filed last month in federal court in San Jose by six consumers in four states accuses Watsonville-based Driscoll’s, Inc. of failing to disclose the presence and/or use of what are known as “forever chemicals,” or persistent fluorinated pesticide compounds. The suit accuses the berry giant of inaccuracy in its marketing, labeling and sale of conventional berries, claiming that the company’s failure to disclose the potential presence stands in contrast to its claims that its fruit is “subject to rigorous food safety and quality standards.” The suit argues that Driscoll’s “only the finest berries” tagline is misleading and claims that independent testing has found the presence of these compounds in some berries. The plaintiffs argue the company is in violation of consumer protection laws in Illinois, Massachusetts, New Jersey and New York. According to court records, an initial hearing in the case is set for September in front of a San Jose federal judge. 

This latest filing comes on the heels of a whistleblower suit filed last month in Ventura County that claims the company retaliated against an employee who raised concerns over state and federal pesticide regulations. As first reported by the Ventura County Star, former employee David Harada worked as the company’s food and safety regulatory compliance manager for the U.S. and Canada until last fall. In his suit, Harada claims he disclosed to his superiors that the company was selling produce in violation of state and federal pesticide regulations and Canadian food safety regulations and was then forced to resign when he declined to help cover the information up. Driscoll’s has denied Harada’s claims and a hearing is set for that case in January.

Meanwhile, the company has also faced pesticide-related criticism on its home turf, including a recent protest held outside the company’s Watsonville headquarters calling for increased pesticide protections near Pajaro Valley schools, Driscoll’s has launched a new webpage detailing the county health department’s recent findings on child cancer rates. In a press release shared last month, Driscoll’s executives maintained that all of its independent growers operate “within a highly regulated system, with oversight from federal, state and local agencies including the U.S. Environmental Protection Agency and the California Department of Pesticide Regulation.” In the release, a statement from CEO Soren Bjorn stated, “Our community is at the center of this conversation. We’ve listened carefully and take these concerns seriously. This is where my family lives and where many of our growers and employees have built their lives. Conversations about children’s health are deeply personal, and families deserve compassion and clear, accurate information.”

ICYMI: Santa Cruz County eased rules for ‘granny flats’ – so why did construction plummet by half?

ADU - Andrew Shepard
Elizabeth Whiteley (left) and husband Andrew Shepard outside the ADU at their home in Live Oak. Credit: Kevin Painchaud / Lookout Santa Cruz

In recent years, state and local reforms have removed some of the red tape from building accessory dwelling units, or ADUs. The county saw an ensuing boom in the number of permits applied for in the county’s unincorporated areas between 2021 and 2024.

However, as reporter Dieter Holger found, that growth quickly slowed. Building permits fell by more than half in 2025 from 2024, which means these so-called granny units aren’t making much of a dent in meeting the county’s housing goals. The biggest factors behind this slowdown appear to be high interest rates, rising construction costs and increased insurance prices. Read more from Dieter here.

Ch-ch-changes

  • Capitola-headquartered credit union named to Forbes list: Bay Federal Credit Union was selected by Forbes magazine as one of America’s best-in-state credit unions for 2026. The ranking is based on a survey of thousands of U.S. customers and publicly available reviews, and looks at institutions that operate in 14 states or fewer and aren’t online-only operators. Bay Federal opened its first location in 1957 and now operates eight branches in Santa Cruz and Monterey counties.
  • Lingerie store re-opens in Aptos Village: After many years of operating on Soquel Avenue, Amoureuse lingerie and gift store has reopened at 136 Aptos Village Way, Suite 200.
  • Capitola Wharf businesses get reprieve from new RFP process: Capitola city council members late last month rejected a controversial proposal that would have standardized leasing for city-owned property. The proposal drew backlash from supporters of long-standing businesses like Capitola Boat and Bait, which argued that the changes could push out businesses that have operated in city-owned spaces for years. Under the rejected proposal, most leases for city-owned property would have been made subject to a regular request for proposals process, during which other potential tenants would be allowed to bid for the lease.
Locals flocked to the Capitola Wharf for its September 2024 reopening following 2023 storm damage. Credit: Natasha Loudermilk / Lookout Santa Cruz
  • San Lorenzo Valley preschool opens second location: Busy Bees Playschool, a home-based child care facility in Boulder Creek, is opening a new location in Ben Lomond this week. Busy Bees Playschool Two is located at 7985 Highway 9 in Ben Lomond. As the Press Banner reported, the new facility is run by Michelle Matthews and Kim Scalla, two veteran educators who are bringing their shared vision to the new center.
  • Two new vice provosts at UC Santa Cruz: Guido Bordignon has been appointed vice provost for global engagement at UC Santa Cruz, after joining the university in 2020 as a professor of molecular, cell and developmental biology. He currently serves as faculty director of international exchange, helping oversee global learning opportunities and expand international partnerships for students. Roze Hentschell was named vice provost and dean of undergraduate education, joining UCSC after serving as chief academic officer for the Colorado State University system. Hentschell is an alumnus of UC Santa Barbara, where she earned her master’s and doctorate degrees.
  • Heating and cooling supply store expands to Santa Cruz County: A Bay Area business specializing in facilities maintenance supplies has opened a new location on 17th Avenue. Johnstone Supply specializes in supplies and equipment related to heating, ventilation and cooling (HVAC). The new store is located at 2450 17th Ave., Suite 100 in Live Oak.

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

What’s new on the Lookout Job Board

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Looking at the numbers

69.4%: That was the hotel occupancy rate for Santa Cruz County in May, up from 67.4% the prior month. That was higher than the rate in May 2025, 68.2%. Average daily room rate was also up compared to last year, moving from $181.94 in May 2025 to $202.99 in May 2026, according to the latest numbers from Visit Santa Cruz County. Also of note: While the bulk of visitors (78.3%) came from elsewhere in California, Virginians marked the next biggest percentage at 2.8%. The leisure and hospitality industry remained a major driver for local jobs, accounting for 15,000 jobs in May. 

Save the date

  • Friday, July 10: A ribbon-cutting and grand opening is set for ROOM Real Estate’s new location at 1142 Soquel Ave. in Santa Cruz. The event takes place from 3 p.m. to 5 p.m. Register here.
  • Sunday, July 12: So Fresh Clothing will mark 19 years in business with a downtown Santa Cruz block party, featuring vendors, music and food. The event runs from noon to 5 p.m. outside 911 Cedar St., between Church and Locust streets.
  • Thursday, July 16: The Santa Cruz Area Chamber of Commerce will hold a workshop with Carmel Business Sales on business transitions and how to create an exit plan. The event takes place from 11:30 a.m. to 1:30 p.m. at the Santa Cruz Veterans Memorial Building at 846 Front St. in Santa Cruz. Details and registration are here.
  • Saturday, July 18: The Pajaro Valley Chamber of Commerce and Agriculture will host its 64th annual awards dinner and auction from 4 to 9 p.m. at the Santa Cruz County Fairgrounds. Among this year’s honorees are C&N Tractors and Michele Bassi, chief development officer for Second Harvest Food Bank of Santa Cruz County. Tickets are available here.
  • Wednesday, July 29: Santa Cruz Works will hold its next CEO Luncheon with Tobey Corey, a seasoned entrepreneur who is now the founder and CEO of BrandCapsule. The event takes place at productOps’ headquarters, 110 Cooper St., Suite 201, in downtown Santa Cruz. Registration and additional details are available here.
  • Thursday, July 30: The Santa Cruz Area Chamber of Commerce will hold its next Women in Business luncheon at Joby Aviation’s Santa Cruz headquarters. Joby executives will join Chamber Executive Director Kristen Brown for a panel discussion. The event takes place from 11 a.m. to 1 p.m. at 377 Encinal St., Santa Cruz. Register here.
  • Thursday, July 30: The Santa Cruz Area Chamber of Commerce, Pajaro Valley Chamber of Commerce and Salinas Valley Chamber of Commerce will host a business after hours event at K&D Landscaping in Watsonville, recognizing the business’ 40th anniversary. Networking and a ribbon-cutting will take place between 5 to 7 p.m. at 62C Hangar Way in Watsonville. Register here.

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

Business news worth reading

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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...