Quick Take

A business improvement district for Santa Cruz's Midtown area is on hold to allow for more discussion, Jessica M. Pasko reports in her weekly look at local business. She's also got an update on a new contract for some unionized city workers, a deal for the Santa Cruz startup that appeared on "Shark Tank" and plenty more.

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.

Santa Cruz city officials delay formation of Midtown business improvement district

City officials in Santa Cruz pressed pause on plans to form a new business improvement district (BID) in Midtown to allow more time for discussion. 

In September, the city council greenlit plans to move forward with the creation of a BID incorporating businesses within an area bounded roughly by Soquel Avenue between Branciforte and Pacheco avenues. Within a BID, businesses pay an additional fee or assessment that funds projects within the district’s boundaries, such as neighborhood improvements and marketing efforts. In the city of Santa Cruz, there’s currently just one such district — downtown Santa Cruz.

Efforts to establish a Midtown BID began more than a year ago, spearheaded by business owners looking to create a more cohesive coalition to do everything from improving sidewalk safety to helping promote local shopping. Following multiple community workshops and extensive discussion, city officials moved forward with plans to create the district, with a goal of starting to collect assessments in January 2026. 

Under the current proposal, businesses would be assessed based on the square footage of the space they occupy in a building, business type, and a flat base fee of $100 per business. About 112 businesses are currently within the proposed jurisdiction.

Looking east down Soquel Avenue in Santa Cruz.
Looking east down Soquel Avenue. Credit: Kevin Painchaud / Lookout Santa Cruz

A meeting on Oct. 28 to hear public testimony – the next step in the formation process – was postponed after city leaders received additional questions from Midtown business and property owners, making it clear more education and outreach was needed, said Rebecca Unitt, the city’s economic development manager. 

Those questions included inquiries about the assessment rates, how the BID will be governed, how the services provided by a BID differ from what the city provides, and what the boundaries of the district would be. 

“Because BIDs are business-driven and governed by those who pay the assessment, the city and steering committee determined that pausing the formation process to allow additional time for outreach and engagement was the best course of action,” said Unitt.

The steering committee for the Midtown BID and city staff will hold additional workshops for business owners in the proposed district, with renewed outreach efforts to begin in early 2026. Business owners in the area can sign up here for updates on those meetings.

ICYMI: Santa Cruz City workers ratify tentative agreement, approving three-year contract

Santa Cruz city workers represented by the Service Employees International Union Local 521 voted this week to approve a tentative agreement with the city. On Monday, union officials said 93% of voting members approved the three-year contract the union and city had negotiated since early summer. It includes a 13.5% cost-of-living adjustment spread over the next three years and a reduction in retirement contributions that employees have to pay, among other changes.

Read more from Max Chun here.

Ch-ch-changes

  • Dominican Hospital CEO set to retire: Dr. Nanette Mickiewicz will retire from her role as CEO of Santa Cruz’s Dominican Hospital in early 2026. She’s worked as an administrator at Dominican Hospital for over 25 years, and has held the CEO role since 2006. Read more from Max Chun here.
  • New food and beverage director at Aptos hotel: Dominic Gerardi is the new director of food and beverage at the Seacliff Inn in Aptos. He has more than 30 years of experience in the industry, including previous stints at the Hotel Paradox and the Dream Inn in Santa Cruz.
  • New head chef at DeLaveaga golf course restaurant: The Grille at DeLaveaga in Santa Cruz hired Julia Carazza Myall, a California Culinary Academy graduate, as its new head chef. She previously taught cooking in France, has published five cookbooks and has extensive experience as a personal chef and caterer. 
The Surf Skull helmet created by a Santa Cruz startup. Credit: Surf Skull
  • Santa Cruz company gets deal with “Shark Tank” investor: The founders of Surf Skull, a Santa Cruz-based startup that’s invented a new kind of surf helmet, walked away from their recent appearance on business reality show “Shark Tank” with a deal. Davon Larson and Paul Huang’s pitch earned them an investment of $50,000 for 20% equity from Daniel Lubetzky, founder of KIND Snacks. Stay tuned for my conversation with Huang and Larson in the coming weeks.
  • Santa Cruz, Scotts Valley Starbucks employees join national strike: Baristas at the Starbucks on Soquel Drive and Mount Hermon Road in Scotts Valley are taking part in a national strike this week as contract negotiations between the coffee giant and the Starbucks Workers United union continue. Approximately 1,000 employees are striking this week in more than 40 cities across the country. Read more here.

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

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Looking at the numbers

  • 98.2: That was the small business optimism index for October, according to the National Federation of Independent Business, a nonprofit small business advocacy organization founded in San Mateo in 1943. That was a drop of 0.6 points from September, but still above its 52-year-average of 98. The Small Business Optimism Index is a composite of 10 seasonally adjusted components that gauge how small businesses feel about the state of the economy. It is based on the answers of around 620 members to questions that include whether they plan to increase hiring, their current job openings and if they intend to increase inventories.

Save the date

  • Wednesday, Nov. 19: The San Lorenzo Valley and Scotts Valley Chambers of Commerce will hold a business mix and mingle event from 5:30 to 7 p.m. at Kissed by Angel Wines, 75 Mount Hermon Rd., Scotts Valley.
  • Saturday, Nov. 22: The UC Santa Cruz Startup Club, with support from Santa Cruz Works and PieFi, will host a student demo day from 5:30 to 8:30 p.m. The event takes place at 100 Panetta Ave., Santa Cruz. Register here.
  • Friday, Nov. 29: The Santa Cruz Area Chamber of Commerce will host a ribbon-cutting grand opening for Beck’s Shoes new location in Pleasure Point from 10 a.m. to 2 p.m. The new store, in the former Billabong location at 4105 Portola Dr., is the company’s third overall and second in Santa Cruz County. The fifth-generation, family-owned Beck’s, founded in 1919, is currently run by siblings Adam Beck and Julia Beck-Gomez, who grew up in the Santa Cruz Mountains.
  • Wednesday, Dec. 3: The Santa Cruz Area Chamber of Commerce will host a holiday business mixer and food drive at Woodstock’s Pizza, 720 Front St., Santa Cruz, from 5 to 7 p.m. Register here.
  • Thursday, Dec. 11: Hwy17 Studios will host an open house and ribbon-cutting with the Santa Cruz Area Chamber of Commerce from 5 to 7 p.m. Hwy17 Studios at 831 Almar Ave. in Santa Cruz is a new 22,500-square-foot film and event production facility. To register, click 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...