This week in Santa Cruz County business: Paystand’s progress, food and beverage spots for lease, Joby inks Abu Dhabi partnership

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.

Paystand continues growth trajectory with new acquisition

It’s been a busy year for Scotts Valley-based Paystand, including new partnerships inked, the launch of its philanthropic arm and now, a new acquisition that will help the company expand the services it offers. It’s all part of the company’s efforts to become “the Venmo of business-to-business payments.”

Last week, Paystand announced it was acquiring Teampay, a New York-based company specializing in purchasing and spend management software. The acquisition will add Teampay’s network of 250,000 companies to Paystand’s own network of more than 800,000 companies. That’s key to the company’s goal of building an industry-wide decentralized finance (DeFI) network. 

In layman’s terms, DeFi is a way to do finance without relying on intermediaries like banks or brokers. Instead, it uses blockchain, cryptocurrencies and peer-to-peer networks to allow transactions to be made more directly and according to proponents, more securely. Paystand is built on blockchain technology, which is basically a distributed database or ledger that’s managed on a peer-to-peer network of computers.

It’s the second acquisition Paystand has made since it was founded in 2014; the company also acquired Mexican accounts-payable company Yaydoo in 2022. Terms of the deal weren’t disclosed.

Read more about Paystand’s trajectory here.

Santa Cruz seeking food businesses for Pacific Ave. kiosk, Tannery Arts Center and Cedar Street

Looking to start a food business or seeking a new location? The City of Santa Cruz just might have a spot for you. City officials are currently seeking a tenant for one of the kiosks on Pacific Avenue, just outside the Del Mar Theatre. The 60-square-foot space previously housed Cafe Campesino for many years, but that closed during the pandemic. Priority review for applications begins May 15; more details here.

Also up for rent is 1016 Cedar St. in Santa Cruz, the former Cafe Limelight location. The 1,210-square-foot space includes a 208-square-foot outdoor dining area, and city officials are hoping to find an experienced operator interested in a long-term lease. The price is set at $2,300 a month or 10% of sales. Priority review of applications starts May 27. The city is also seeking a tenant for the cafe at the Tannery Arts Center campus, an approximately 780-square-foot space with an outdoor patio. Lease term is dependent on experience and proposal; rent is $2 per square foot plus utilities. More information and applications for both locations is here.

ICYMI: Santa Cruz acquires Toadal Fitness site for downtown library project after lengthy negotiations 

Last week, the City of Santa Cruz formally purchased the downtown Toadal Fitness building on Lincoln Street for $2.5 million, following months of negotiations. As Christopher Neely reported, the purchase is part of the city’s plan for the downtown library mixed-use development. Toadal Fitness will remain in the location for the coming months, but will be moving to Ocean Street after that.

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

• Doon to Earth wine tasting room closes: The joint Ser Winery-Bonny Doon Vineyard tasting room in the Aptos Village poured its last glasses this past weekend, shuttering after two years in operation. The closure, announced last week, was blamed on insufficient profits, as Lily Belli reported.
• Joby Aviation inks partnership with Abu Dhabi, expands Marina facility: Joby Aviation has signed a deal that will give the Santa Cruz-based company rights to operate and scale air taxi services in the United Arab Emirates (UAE) region, including exclusive rights to run air taxi services in Dubai. That could start as soon as next year. Joby competitor Archer Aviation has also inked a deal to bring its services to the UAE region. Meanwhile, Joby Aviation has also broken ground on the expansion of its Marina manufacturing facility, which company officials say will allow them to increase production to 25 aircraft per year. That expansion was supported in part by a $9.8 million state grant awarded last fall.

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

Save the date

• Wednesday, May 1 – Saturday, May 18:  The Reel Work Labor Film Festival continues through the next couple of weeks, screening films relating to all things labor at various locations throughout the county. More details here.
• Friday, May 3: The 2024 Santa Cruz County Small Business Summit will bring together more than 200 local entrepreneurs and small business owners for a day of networking, presentations and educational sessions. The event will be held at Cabrillo College’s Samper Recital Hall. More details and registration here.
• Friday, May 3: The Monterey Bay Economic Partnership will host its 2024 Regional Economic Outlook from 8 a.m. to 1 p.m., bringing together a slate of speakers to discuss the economic landscape for Monterey, Santa Cruz and San Benito counties, including Santa Cruz County Administrative Officer Carlos Palacios. The event will be held at the Embassy Suites in Monterey. Register here.
• Friday, May 10: The Scotts Valley Chamber of Commerce will host its annual awards reception at Roaring Camp Railroads’ Bret Harte Hall from 5 to 10 p.m. More info here.
• Thursday, May 16: The Santa Cruz County Chamber of Commerce hosts a ribbon-cutting for the Santa Cruz Community Credit Union’s new branch at 55 River St. in Santa Cruz, from 5 to 7 p.m. More details here.
• Thursday, May 23: The Aptos Chamber of Commerce will hold its annual Par-Tee on the Green Golf Scramble and networking event at Seascape Golf Club. Check-in begins at 11 a.m.; it’s $180 per player. More info here.

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

Business news worth reading

• California fast food chains are now serving sticker shock (Wall Street Journal)
• California Disney characters are unionizing decades after Florida peers. Hollywood plays a role (Associated Press)
• Has California reached peak Tesla? Sales dip for second straight quarter in key EV market (Bloomberg)

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