This week in Santa Cruz County business: Joby's latest acquisition, Vallarta Supermarket opens in Watsonville and Colligan Theater's future

Quick Take

Xwing, which develops autonomous flight systems for aviation and defense, is now under the Joby Aviation umbrella as the company eyes its 2025 goal for launching its electric air taxi. Elsewhere on the local business scene, Watsonville has a new supermarket, the City of Santa Cruz looks for a new tenant for the Colligan Theater and happenings, names and dates to know from Jessica M. Pasko.

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 acquires Xwing’s autonomy division to drive autonomous flight technology

Santa Cruz-headquartered Joby Aviation has acquired the autonomy division of Xwing, Inc. to further its efforts to launch electric air taxi operations next year. San Francisco-based Xwing develops autonomous flight systems for aviation and defense.

With this acquisition, Joby gains advanced technology that will help accelerate the company’s roadmap and potentially aid with existing and future Department of Defense contracts. Xwing, founded in 2016, has completed 250 fully autonomous flights and over 500 auto-landings. It was the first company to receive Federal Aviation Administration certification for a large unmanned aerial system and earlier this year, the company was the first to receive a military airworthiness designation from the Air Force. Terms of the acquisition were not disclosed.

As Joby’s 2025 goalpost for launching commercial air service inches closer, the company will hold a virtual presentation next week on its preparations. Joby executives will provide an update on the company’s work to meet the regulatory and operational requirements needed to run an on-demand electric air taxi service, followed by a question-and-answer session. The webcast starts at 11 a.m. PT on Thursday, June 20.

Vallarta Supermarket opens Wednesday in Watsonville

The newest grocery store in Watsonville officially opens its doors Wednesday in what used to be the Kmart at 1702 Freedom Blvd. Vallarta Supermarkets, a Hispanic grocery chain based in Southern California, operates over 50 stores throughout Southern and Central California, including one in Salinas.

Vallarta Supermarkets, a Hispanic grocery chain based in Southern California, operates over 50 stores throughout Southern and Central California, including one in Salinas. — Credit: Kevin Painchaud / Lookout Santa Cruz

Last month, the Watsonville Planning Commission also approved the chain’s application for a taproom and restaurant co-located with the store,but a company spokesperson said this week that’s not currently in the plans.

The store’s location has been empty since Kmart closed in August 2021 following a bankruptcy filing by its parent company, Sears, Roebuck and Co. Watsonville city officials later sought to declare the property a public nuisance due to illegal camping and sanitation issues, but were able to work with the property owner to abate many of those issues.

ICYMI: In the post-Jewel era, what is to become of the Colligan Theater?

After the final curtain call for the Jewel Theatre Company, Santa Cruz city officials are looking for a new operator to take over the Colligan Theater at the Tannery Arts Center. But the theater comes with some very specific requirements during what’s been a challenging period for the local arts scene overall. Wallace Baine has more here on what’s potentially next for the 182-seat theater.

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

Local health tech startup awarded National Science Foundation grant: Santa Cruz-headquartered Immergo Labs is getting $1 million to help transform physical rehabilitation with virtual reality. The Small Business Innovation Grant from the National Science Foundation will fund research and development for the company’s efforts to build a new kind of health care platform for full-body physical rehabilitation with a goal of reducing costs for clinics and patients while also improving accuracy and accessibility of care. Immergo Labs was founded in 2020 by three UC Santa Cruz alumni.
Alderwood Santa Cruz names new executive chef: Following the March departure of Jeffrey Wall, Alderwood has announced its reopening its Walnut Avenue restaurant Friday with a new executive chef at the helm. Mikey Adams, a Santa Cruz native, has worked throughout Northern California and beyond, including previous stints at Soif in Santa Cruz, Restaurant 1833 in Monterey and Angler in San Francisco. The restaurant is also hiring for several positions, including sous-chef and dining and beverage manager. Stay tuned for Lily Belli’s story later this month.

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

Looking at the numbers

63%: That’s the approximate number of roads in unincorporated Santa Cruz County deemed to be in “deplorable condition,” according to the latest report from the county’s civil grand jury. Read more about this in Christopher Neeley’s latest story on the county’s budget crunch and the sad state of local roads thanks to recent climate disasters.

Save the date

Tuesday, June 18: The Pajaro Valley Chamber of Commerce and the Rotary Club of Freedom will host the chamber’s June mixer at El Vaquero Winery, 2901 Freedom Blvd. in Corralitos from 5 to 7 p.m. More here.
Thursday, June 20: The downtown branch of the Santa Cruz Public Library is hosting Tenant Sanctuary, a tenants’ rights education service, for a special panel discussion focused on LGBTQ+ issues in housing in alignment with Pride Month. Attendees can learn about their rights as a renter, get their questions answered and sign up for a one-on-one conversation with a lawyer. Details here.
Thursday, June 20: The Santa Cruz County Chamber of Commerce will hold a ribbon-cutting for the new Edward Jones office at 5:45 p.m. at 2121 41st Ave., Suite 207, Capitola. The office is led by financial advisor Mark Gerber.
Thursday, June 20: The Santa Cruz County Regional Transportation Commission is hosting a groundbreaking for the North Coast Rail Trail at Wilder Ranch State Park, 1401 Coast Rd., Santa Cruz, from noon to 1:30 p.m. The North Coast Rail Trail project is a 7.5-mile bicycle and pedestrian trail that extends along the railroad corridor from Wilder Ranch to Davenport. Here’s more on the groundbreaking.
Saturday, July 27: The Pajaro Valley Chamber of Commerce hosts its 2024 awards dinner and auction at the Santa Cruz County Fairgrounds in Watsonville. Details and registration here.
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.