Quick Take

In her weekly look at local business, Jessica M. Pasko updates the progress of Santa Cruz Athletic Club, taking shape in the former Midtown Rite Aid, and highlights hirings, numbers, events and other news to know.

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.

The column will pause for the holiday season on Wednesday, Dec. 25, and Wednesday, Jan. 1, returning on Wednesday, Jan. 8.

Santa Cruz Athletic Club eyes spring 2025 opening

From the ashes of a former Rite Aid store, a new 23,000-square-foot state-of-the-art fitness and wellness center is set to rise next spring. 

Chris Ellis (left) and Camile Periat are building out Santa Cruz Athletic Club in the former Midtown Santa Cruz Rite Aid. Credit: Kevin Painchaud / Lookout Santa Cruz

Chris Ellis and Camile Periat, who have owned Santa Cruz Power Fitness on Water Street since 2018, have been hard at work turning the old pharmacy next to Whole Foods on Soquel Avenue into their vision for a new kind of fitness center. Gone are the old metal shelves, checkout lanes and pharmacy window; in their place are new walls and a completely new floor plan that includes a 44-person heated yoga studio, a gym and multiple rooms that will house everything from saunas to “recovery rooms.”

The Santa Cruz Athletic Club won’t be just another gym, according to Ellis and Periat. It will go beyond gym equipment to offer different alternative therapies, various fitness classes and a full range of wellness treatments. The goal is to become a one-stop shop for Santa Cruz County residents who don’t want multiple gym memberships and are seeking different types of treatment that aren’t widely available locally. 

Ellis and Periat have also set out to create a facility that prioritizes aesthetics, and they’re working closely with local artists like Made Fresh Crew on several murals and art installations that will adorn the building. Also planned for the space are a posing room for bodybuilders, a private personal training area,  a weight room and even a podcast recording room, where the pair hope to bring in local wellness and fitness professionals to record episodes. They’re already in conversation with athletic directors at several local schools to see how they can assist with training programs for student-athletes as part of yet another initiative. 

During a tour of the in-process buildout last week that underscored this all-under-one-roof approach, Ellis pointed out where they plan to set up a contrast therapy area, including a sauna and a plunge pool for a treatment that involves alternating between hot- and cold-water immersion. Proponents say it improves circulation, reduces pain and swelling and speeds healing. Another room will include facilities for red-light therapy and other medical spa services (such as IV treatments of nutrients and vitamins) under a physician’s supervision. There will also be rooms for massage therapists, physical therapists and other services. Those won’t be part of the standard gym membership but will, rather, be add-on or à la carte services people pay for separately. 

Ellis and Periat are not cutting corners, either. They say they’re pulling out all the stops when creating their facilities. 

The locker rooms will feature infrared saunas and specially designed extremely cold showers for contrast therapy post- and pre-workout, an effort to make the treatment more accessible to everyone, said Ellis. 

While there’s still a lot of work ahead, the goal is for the Santa Cruz Athletic Club to open in March 2025. Pre-opening memberships are already being sold in three different tiers ranging from $68 per month to $248 per month and include access to all gym facilities, unlimited studio classes and unlimited heated classes, among other amenities. 

Ellis and Periat’s current gym, Santa Cruz Power Fitness, has around 2,000 members, but with the bigger space and expanded offerings, they’re looking to more than double membership.

“We’re hoping for 4,000 members by the end of our first year and 6,000 by the end of Year 2,” said Ellis. 

ICYMI: State-approved Workbench project will be Scotts Valley’s first affordable housing development in decades. City leaders don’t want it.

A plan to build a new affordable housing complex in Scotts Valley – the first in decades – is meeting resistance from city leaders. The 100-unit project, put forth by local developer Workbench, will help make a significant dent in the city’s state-mandated housing obligations, but not everyone’s welcoming the proposal with open arms. Some city officials say that while they are enthusiastic about affordable housing, they disagree with the project’s plans to demolish an existing 42,000-square-foot office building that once housed an international data center for Seagate Technology. They argue that the building is one of just a few in Scotts Valley that will enable the city to attract tech tenants. Check out Christopher Neely’s story here.

And in other Workbench news, CEO Tim Gordin has stepped down from the county planning commission amid growing conflict-of-interest concerns. 

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

  • Santa Cruz Museum of Art and History picks new lead: The Santa Cruz Museum of Art and History in downtown Santa Cruz has named Ginger Shulick Porcella its new executive director. She takes the reins from interim director Marla Novo, who stepped in after Robb Woulfe resigned in May. Porcella is a longtime curator with previous experience running museums in Tucson, Arizona, San Diego and Oakland, among others.
  • Local financial services institutions named among America’s best banks and credit unions: Newsweek selected Santa Cruz Community Credit Union and Santa Cruz County Bank for its annual list of the top regional banks and credit unions in the U.S. The rankings are based on analysis of the institutions’ credit quality, profitability, loans and leases, media coverage and customer reviews. 
  • Deadline extended for proposals for new downtown Santa Cruz complex: Santa Cruz city officials extended the deadline for proposals to lease a new 3,688-square-foot retail space at 810 Pacific Ave. The space is part of the Metro Pacific Station South project on Pacific Avenue between Cathcart and Laurel streets downtown. The seven-story mixed-use building includes 70 affordable housing units. Preliminary review of proposals will begin Feb. 1. Details and submission forms are here.

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

Looking at the numbers

$80- $100: That’s the estimated average price of a real Christmas tree this year, according to the American Christmas Tree Association, a nonprofit organization focused on the Christmas tree industry. It marks a 10% increase from 2023, largely due to inflation and drought.

What’s new on the Lookout Job Board

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Save the date 

  • Wednesday, Dec. 18: Pajaro Valley Business Builders will hold a holiday mixer from 11:30 a.m. to 1 p.m. at El Alteno Restaurant, 323 Main St. in Watsonville. 
  • Wednesday, Jan. 15: Santa Cruz Works has rescheduled its eighth annual Titans Awards ceremony, celebrating individuals who have made a significant contribution to Santa Cruz, Monterey or San Benito counties through their innovation, leadership and dedication to making a positive impact. The ceremony is at Kuumbwa Jazz, 320-2 Cedar St., Santa Cruz. Tickets and details here.
  • Saturday, Jan. 18 – Monday, Jan. 20: Annual hackathon CruzHacks returns to the UC Santa Cruz campus for its 11th year, bringing together more than 400 aspiring innovators. To apply to participate, go 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...