This week in Santa Cruz County business: Joby’s next steps, win for local broadband, permanent outdoor dining permit process inches toward approval

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 moves closer to goalpost with FAA approval of its software operating system

Electric vertical takeoff and landing (eVTOL) company Joby Aviation has received Federal Aviation Administration approval for its proprietary software suite, an important step toward its goal of launching commercial service as soon as next year. 

The Santa Cruz-headquartered company announced last week that it’s received approval for its ElevateOS software suite, which includes operational software, a pilot app and a consumer-facing rider app. This lays the foundation for an on-demand air taxi service, which the company plans to launch first in New York City and Los Angeles as soon as 2025. It’s also inked an exclusive deal to provide service in Dubai.

Joby officials say the company is leading the pack when it comes to checking off the lengthy list of certifications, compliance and other preparations that must be completed before commercial service can begin. In a presentation last week, the company went through its “pre-flight checklist,” which includes developing a pilot training program and conducting various simulations. When commercial service does launch, officials say it will be similar to how a rideshare app like Lyft or Uber works. In fact, the company acquired Uber Elevate, the air taxi division of Uber, in 2021. The former head of Uber Elevate is now Joby’s chief product officer.

Among the other steps Joby has taken to meet its launch goal is developing an aircraft-specific training course that prepares qualified commercial pilots to fly Joby’s aircraft in under two months. It’s also begun private pilot training as part of its future pilot training academy.

Read my full story here. 

State awards $45 million to expand broadband access in Santa Cruz County and Central Coast

Residents in the rural Santa Cruz Mountains area may soon have high-speed broadband access thanks to new funding from the California Public Utilities Commission for a trio of infrastructure projects. Three regional internet service providers were awarded a total of over $45 million that will help expand internet access to more than 2,000 underserved areas in Santa Cruz, San Benito, Monterey, Santa Clara and San Luis Obispo counties.

That includes Santa Cruz County-based Surfnet Communications, which is getting $10.8 million for its Three County Fiber Project to bring affordable, reliable, high-speed broadband access to nearly 500 homes in the Santa Cruz Mountains. The company’s project, which includes locations in Santa Cruz, Santa Clara and San Luis Obispo counties, is set to begin with installation of fiber optic cables this summer, and the first customers could see expanded service this fall. Full implementation is expected to take 18 months. Cruzio Internet and LCB Communications LLC were awarded $5.65 million and $29.5 million, respectively, for similar projects that will expand access in parts of rural Santa Cruz County and beyond.

Read more about these efforts here. 

Updated outdoor dining permit rules advanced to Santa Cruz City Council

Following intense debate, the Santa Cruz City planning commission last week greenlit revised rules for outdoor dining permits, but with a caveat that the city council take careful consideration when it comes to them for review next. Efforts to codify a permanent outdoor dining permit process in the city have been a lengthy, arduous process as city staff worked to balance the concerns of local business owners with state and city regulations. After initial outcry from business owners, city staff revised the proposal to offer a streamlined option for permits and extensively researched similar policies in other California cities.

Under the reworked plan, businesses have a streamlined option to obtain a permanent outdoor plan if their space is under 300 square feet. Several business owners have argued that even the revised plans remain cost-prohibitive, but city staff say their hands are largely tied by state requirements regarding things like capacity and restroom requirements. 

After an impassioned public hearing Thursday, planning commissioners ultimately ushered the plan to the next step – going before the city council for review and approval. That’s expected to happen sometime later this year. City officials previously extended the expiration date for the temporary outdoor dining permits to May 2025.

ICYMI: Is the old (but new) shopping center on Mission Street close to reopening?

In his latest installment of Ask Lookout, Max Chun gets the scoop on the future of the shopping center at Mission and King streets on Santa Cruz’s Westside. The strip mall’s last two operating businesses, La Cabana Taqueria and Arrow Surf Shop, vacated last summer, and both plan to return once construction is completed. But the timeline for that happening remains somewhat murky.

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

• Santa Cruz Metro campaign lauded with state award: The California Transportation Foundation named the Santa Cruz Metropolitan Transit District’s One Ride at a Time campaign its “public outreach program of the year.” The award recognizes the transit agency for its work to showcase the environmental benefits of public transit and encourage bus ridership. The California Transportation Foundation is a nonprofit organization focused on achievement and innovation in the state’s transportation sector.
• Rove Goods opens on Westside: Local designer Ted Holladay’s new store is dedicated to bags, specifically for various tech gear, from laptops to cords to cameras. Holladay is also the owner of design and branding firm Studio Holladay. The shop, Rove Goods, is located at 719 Swift St., Suite 57, Santa Cruz.
• School district’s proposed purchase of the former Pacific Cultural Center moves forward: The Santa Cruz City Schools district’s plan to purchase 1307-1313 Seabright Ave. passed review by the city’s planning commission last week, though the commission recommended the district not demolish the building. Earlier this year, the district announced it sought to buy the property to use for parking for Gault Elementary School and as a dedicated meeting space for teachers, administrators and the community. The property and building, owned by nonprofit The Hanuman Fellowship, is listed for $2.6 million. 

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

Looking at the numbers

• 4%: That’s the unemployment rate in Santa Cruz County for May, down from 6.7% the prior month and down from 5.7% in May 2023, according to numbers from the state’s Employment Development Department. Statewide, May’s unemployment rate was 5.2% with 43,700 nonfarm payroll jobs gained, marking the largest such job increase since October 2023.

Save the date

• Wednesday, June 26: The Santa Cruz Planning and Community Development Department is hosting a second community meeting focused on the proposed multistory Clocktower Center development for 2020 North Pacific Ave. The virtual meeting will be held via Zoom at 6:30 p.m. Link here.
• Saturday, June 29: The Santa Cruz County Chamber of Commerce will host its Forks, Corks and Kegs Festival at Kaiser Permanente Arena in Santa Cruz from 3 to 7 p.m. General-admission tickets are $95. Details and more information here.
• Wednesday, July 17: Santa Cruz Works hosts its next CEO luncheon with Steph Tsatsos, president of Rapid RevOps. She’ll be speaking about how businesses can gain traction with EOS, a business software suite. The event takes place from 11:30 a.m. to 1:15 p.m. at productOPs’ offices, 110 Cooper St., Suite 201, Santa Cruz. Register here.
• Tuesday, July 23: Kelsey Knox and Cindy Mediavilla, coauthors of a new book that explores the critical role of women workers in the development of the Disneyland project, will read excerpts and speak about their research. The event takes place from 5 to 6:30 p.m. in the Special Collections and Archives Reading Room at UC Santa Cruz’s McHenry Library. More info here.
• 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.

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

Business news worth reading

• One decade of Onewheel (Good Times)
• Downtown Santa Cruz’s 12-story, 1,600-unit SoLa vision around new Warriors arena aims to thread multiple needles (Lookout)
• High court blocks anti-tax measure from California ballot (CalMatters)

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