Quick Take

In her weekly look at local business, Jessica M. Pasko reports that Santa Cruz County's tourism nonprofit sees some choppy waters ahead. She's also got news on downtown development, comings and goings and events to get on your calendar.

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.

Note: The column will be off on May 14, returning May 21.

“Not so much about travel itself, but about expenditures”

As the state’s tourism industry prepares for what could be a significant drop in international tourism due to tariffs, economic uncertainty and federal policies, the county’s nonprofit tourism marketing organization is looking to capitalize on the “Only in California” uniqueness of Santa Cruz. 

“Historically, foreign visitors have seen California – and Santa Cruz is a big part of that conversation – as separate from the rest of the United States; we’re different in our culture, we’re different in what we can offer to visitors,” said Christina Glynn, director of communications for Visit Santa Cruz County. 

That difference includes having diverse environments, like the redwoods and the ocean, to offer visitors a variety of choices.

Visit California, the nonprofit organization representing the state’s tourism industry, is forecasting a 9.2% decline in international visitors compared to 2024.

The Santa Cruz Beach Boardwalk from the air
Credit: Kevin Painchaud / Lookout Santa Cruz

In recent years, Visit Santa Cruz County has made a bigger push to attract visitors from abroad. In fact, representatives from the organization recently joined a delegation from California to meet with journalists, influencers, tour operators and travel agents in Germany, France and the United Kingdom to share information about vacationing in Santa Cruz County. And last year, the organization said it was exploring new opportunities to encourage visitation from China and South Korea. Canadians, usually a big target for the organization, are among the international visitors tourism officials expect to see drop this year.

Domestic travel is also expected to decrease; Visit California expects a 0.7% drop in the total number of visits to the state this year. Glynn and Visit Santa Cruz County Terence Concannon said that echoes the concerns they’re hearing about expenses and unpredictability. 

“It’s not so much about travel itself, but about expenditures,” said Concannon. “The economy right now is in a place where we don’t know what’s going to happen. I think people are really hanging onto their wallets a little bit more; maybe they’ll still take trips, but they may consider taking a shorter trip or going someplace that’s closer rather than spending a lot of money on travel.” 

Read the story here.

ICYMI: Santa Cruz’s housing boom sees significant slowdown as economic fears deepen 

Housing, or more specifically, the lack of affordable housing, was one of the big themes at last week’s 2025 Regional Economic Outlook event held by the Monterey Bay Economic Partnership.

Santa Cruz City Manager Matt Huffaker told attendees the city is starting to see a “significant” slowdown in housing department applications, while Cabrillo College President Matt Wetstein and UC Santa Cruz Chancellor Cynthia Larive shared concerns over the schools’ joint affordable housing project due to the costs of materials like steel and lumber. Read Max Chun’s full report here.

The changing face of downtown Santa Cruz: What’s behind the long-term vacancies and could a grocery store be on the way

The downtown Santa Cruz construction zone.
Credit: Kevin Painchaud / Lookout Santa Cruz

Lookout’s series on the changes in downtown Santa Cruz continues this week with two pieces examining what leads to longtime vacancies and what the possibility is of another grocery store coming to the area. 

Lily Belli examined why some spaces stay vacant for years, examining the factors that can lead to empty storefronts even while others are snapped up quickly. The answer, she found, is complicated; it’s a mix of shape, location, permits and more. One such long-term vacancy – the old Logos building – looks to be getting a new tenant soon, however. Read her story here.

Speaking of vacancies, the departure of New Leaf Community Market from its storefront at Pacific and Soquel avenues left a big hole downtown. Wallace Baine recently spoke with consultant and “urbanist” Robert Gibbs about the potential for another grocery store downtown and got a closer look at the challenges and opportunities. Check out his story here.

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

  • Bay Federal promotes assistant vice president: Sean Carter is now the assistant vice president of mortgage lending operations at Bay Federal Credit Union. He joined the credit union in 2022 as mortgage operations manager, with several years of experience in roles at Bank of America, Wells Fargo and Sacramento-area SAFE Credit Union. In his new role, he’ll oversee the underwriting, processing and funding of first and second mortgages, among other responsibilities.
  • Anthropologie slated to open store on Pacific Avenue: Instead of organic oranges and bulk nuts, shoppers at the corner of Soquel and Pacific avenues in downtown Santa Cruz might soon be purchasing home decor and women’s apparel. National retailer Anthropologie is expected to take over the storefront formerly occupied by New Leaf Community Market, which closed last fall in preparation for opening its new, larger store in Gateway Plaza.
  • Santa Cruz Shakespeare names new company manager: Skyler Rose Marshall has joined Santa Cruz Shakespeare as company manager as the theater company prepares for its next season. Marshall, a native of Benicia, is currently a doctoral student and teaching assistant at UC Santa Cruz. As company manager, she’ll be responsible for administrative and logistical operations of the company’s upcoming productions. Santa Cruz Shakespeare’s summer season opens July 18 at the Grove at DeLaVeaga Park and includes not only Shakespeare’s “A Midsummer Night’s Dream” but also “Into the Woods,” the company’s first summer musical in decades.
Jennifer Herrera will become interim director of Santa Cruz County’s Health Services Agency effective June 4. Credit: County of Santa Cruz
  • County names interim health services agency director: Santa Cruz County officials announced that Jennifer Herrera will serve as interim director of the Health Services Agency starting June 4. Herrera is currently the agency’s assistant director and previously served as chief of public health and director of nursing. She takes over the role following the resignation last month of Mónica Morales.
  • VinoCruz bids adieu; Home restaurant plans for new spot: Soquel wine bar VinoCruz closed last month, but its menu is expected to live on over at Adorable French Bakery in Scotts Valley. The Soquel location won’t stay empty long; as Lily Belli reports, the team behind nearby Home restaurant is planning to open a breakfast and lunch spot there this summer. 
  • Toasted Jewelry opens second location in Pleasure Point: Toasted Jewelry, which specializes in permanent jewelry, has opened its second location at 925 41st Ave. The business, which started in 2017, also operates a storefront on Fair Avenue on the Westside of Santa Cruz.
  • Private Press tasting room to open in Swift Street complex: Private Press Brewing, a brewery focused on barrel-aged imperial stouts and barleywines, is opening a new tasting room on Saturday. The tasting room takes over the former Equinox location at 334C Ingalls St. on the Westside of Santa Cruz. Private Press is owned by Brad Clark, who co-owns Santa Cruz Mountain Brewing with his partner, Adair Paterno, the owner of Capitola-based Sante Adairius Rustic Ales. The new tasting room will be open Saturdays and Sundays from noon to 6 p.m.
  • Longtime Driscoll’s board member retires; new board member appointed: Neil P. DeFeo is retiring from the Watsonville berry producer’s board of directors after 27 years, the company said Tuesday. He will be replaced by Berry Marttin, who served on the managing board of Netherlands-based bank Rabobank.

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 

  • Friday, May 9: The Santa Cruz County Small Business Development Center will hold its annual Small Business Summit from 8 a.m. to 4 p.m. at Cabrillo College’s Samper Recital Hall in Aptos. More than 200 local small business owners are expected to attend, along with local business leaders and other industry representatives. Registration and additional details here.
  • Friday, May 9: The Scotts Valley Chamber of Commerce will hold its annual awards gala at the Bret Harte Hall at Roaring Camp Railroads in Felton from 5 to 10 p.m. Among this year’s honorees is Kissed by an Angel Wines owners Larry and Lisa Olivo. More details here.
  • Friday, May 9: The Downtown Association of Santa Cruz will hold a ribbon-cutting ceremony for the Salty Otter Sports Grill at 5 p.m. The sports bar has taken over 110 Walnut Ave., the former location of 99 Bottles, Firefly Tavern and CT Lights Lounge.
  • Wednesday, May 14: The Santa Cruz Volunteer Center will hold its annual Be the Difference Awards to celebrate volunteers, organizations and businesses making a difference in the county. The event runs from 11:30 a.m. to 1:30 p.m. at the Cocoanut Grove Ballroom in Santa Cruz. Tickets and details here.
  • Friday, May 16: Event Santa Cruz and Santa Cruz Vibes will be honoring local businesses, entrepreneurs and community leaders at the annual NEXTies Awards from 5:30 to 8:30 p.m. The event will be held at Woodhouse Blending & Brewing at 119 Madrone St. in Santa Cruz. Tickets and details here.
  • Monday, May 19: The Monterey Bay Economic Partnership will bring together local business leaders, elected officials, community members and tech executives for the 2025 Regional Broadband Summit from 9 a.m. to 3 p.m. at Seascape Golf Club in Aptos. Speakers include Santa Cruz County Chief Information Officer Tammie Weigl, Etheric Networks CEO and co-founder Alexander Hagen and Jacqueline Leon, marketing and programs manager for Loaves, Fishes and Computers. Tickets are $49 for MBEP members, $79 for non-members. Register here.
  • Wednesday, May 21: The eighth annual Santa Cruz Launchpad career fair and student pitch competition will be held at the Cocoanut Grove Ballroom. The student pitch competition takes place from noon to 4 p.m., with the job fair following at 5 p.m. to 7  p.m. The event is free and open to the public, but advanced registration is requested. 

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...