This week in Santa Cruz County business: Report finds surfing contributes $194M to local economy but faces uncertain future; wineries still feeling CZU effects

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.

New study finds that surfing is a major economic driver locally – accounting for nearly $200 million annually – but climate change threats loom large 

A new study finds that surfing contributes a whopping $194.7 million to the Santa Cruz County economy, a number that the report’s authors say is at increasing risk from the impacts of climate change. 

Nonprofit organizations Save the Waves Coalition and Black Surf Santa Cruz spearheaded what they say is the most in-depth local analysis on record to determine the economic value of the county’s surf industry. As Carly Kay detailed for Lookout last year, the groups hoped the research would provide better understanding of how to defend the region’s most popular surf spots from climate vulnerabilities. They studied 31 different surf breaks within a 7-mile stretch of the Santa Cruz World Surfing Reserve, surveyed 500 people and spoke with residents, advocacy groups and business owners.

Among the report’s findings:

• There are approximately 783,000 surf-related visits to Santa Cruz County each year, generating an estimated $44.5 million annually.
• Spending on surf-related equipment and services contributes approximately $150.2 million to the local economy each year.
• Each trip to the water has an average value of $56.82, a number calculated using a model of travel costs (estimated at 72 cents per mile) plus opportunity cost.

However, the report also finds that the sport’s significant contributions to the local economy face an uncertain future amid a changing climate. According to the report, without adaptation measures, quality will break down at 31 surf breaks studied, and some could be lost completely. Potential adaptive measures could include things like removing man-made retaining walls in favor of more nature-based approaches, such as what’s known as managed retreat, which involves stepping back and allowing natural coastal erosion to take its course. In some areas, this could help preserve the beach area, researchers observed.

Researchers found that sea level rise in the area could cause an estimated loss of $12.8 million in recreational value with just 1 foot of sea level rise; 2 feet could result in a loss of an additional $12.6 million. While there’s some uncertainty in projecting the impact of climate change, a 2024 report by the Ocean Protection Council estimated the state’s average sea level could rise as much as 2 to 3 feet between 2060 and 2120.

ICYMI: From fire to fallout: CZU’s lasting impact on Santa Cruz County’s wine industry

Five years after the CZU Lightning Complex fire tore through the Santa Cruz Mountains, winemakers in the area are still feeling some of the effects. Bradley Brown, owner of Big Basin Vineyards, lost 2,000 cases of wine from his 2020 vintage as a result of what’s known as smoke taint. He also lost equipment and storage buildings in the fire, and almost lost his home.

Brown is just one local winemaker who suffered major losses in the fire, as Lily Belli detailed in her recent article.

For local winemakers and vineyards, the fire and its resulting impacts are just one of many challenges they’ve struggled with in recent years. Declining wine sales, changing drinking habits and rising operational costs are taking a toll on wineries around the state. Locally, that’s prompted wineries in the Santa Cruz Mountains to push for a new funding mechanism via what’s known as a wine improvement district. You can read my story on those efforts here.

Ch-ch-changes

• Felton bagel bakery closing at end of month: J & M Sourdough Bagels is shutting down at the end of this month. The business sold its bagels through pop-ups and a storefront on Highway 9. In a post on the business’ social media channels, owner Marisa Abzug said she was ending the venture after almost two years due to financial challenges. The last day in business will be Sunday.

• Travel magazine names Santa Cruz Beach Boardwalk the nation’s best: In a new ranking, Fodor’s Travel named the Santa Cruz Beach Boardwalk the best boardwalk in the U.S. The local landmark was No. 1 out of 10 selections, which also included New York City’s Coney Island and Ocean City, Maryland. See the full list here.
• Children’s resale store opening in Pleasure Point: A new store focused on secondhand children’s clothing is slated to open at 3341 Portola Dr. on Oct. 1. Hand It Down will specialize in selling, buying and trading gently used children’s attire.
• Longtime county defense attorney promoted to judge: Gov. Gavin Newsom appointed Mandy Tovar to the Santa Cruz County Superior Court, replacing Timothy Volkmann, who retired last year. Tovar has worked as a defense attorney in the county public defender’s office since 2022. She previously was a defense attorney with Biggam, Christensen & Minsloff, the law firm to which the county had outsourced its public defense work prior to June 2022.
• West Coast Community Bank hires new IT executive: Michael Manning is the new senior vice president and director of information technology at West Coast Community Bank, formerly Santa Cruz County Bank. Manning will work out of the Santa Cruz offices, leading daily IT operations, strategic initiatives and security efforts across the four counties the bank does business in. Manning previously worked at Utah-based Sunwest Bank.
• Monterey chef to take over Watsonville airport restaurant: The restaurateur behind Woody’s at the Airport at the Monterey Regional Airport is expected to take over the spot formerly home to Ella’s at the Watsonville Airport. Ella’s at the Airport closed in June after a decade. Tim Wood’s Monterey restaurant has won repeat accolades for being among the best sit-down airport restaurants in the country. Wood’s planned proposal for Watsonville will still need the green light from the Watsonville City Council, which is expected to weigh in next month. Read more from Lily Belli here.
• Bay Federal Credit Union’s Marina branch now open: Santa Cruz-based Bay Federal Credit Union’s newest branch in Marina is now open for business. Located at 140 10th St., Suite 20, in Marina, this marks the credit union’s eighth full-service location.
• Winery’s second tasting room opens in Capitola: Rexford Winery, a father-son business that has operated a tasting room on the Westside of Santa Cruz for over a decade, now has a second location in Capitola. The new tasting room is located at 309 Capitola Ave. and is open Thursday to Sunday from 1 to 5 p.m.
• National fitness center chain to open gym in Watsonville: Crunch Fitness, which operates gym and training centers across the country, is opening a new facility in the former Big Lots location at 1986 Freedom Blvd. Crunch Watsonville, a 40,000-square-foot state-of-the-art fitness facility, is slated to open before the end of the year. Fitness Ventures, a Crunch Fitness franchise, will run the location, which will be its fourth in California and 77th nationally. Big Lots closed at the end of last year following its parent company’s bankruptcy filing.

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

What’s new on the Lookout Job Board

• Dining Senior Food Service Worker at UC Santa Cruz
• Clinic Nurse II at The City of Santa Cruz
• Assistant Director for the Colleges at UC Santa Cruz
• Engineering Technician I/II at Scotts Valley Water District
• Pop up/Catering staff at Sleight of Hand Pizza

Want more? Browse all openings on our job board. | Hiring? Post your job today!

Looking at the numbers

• 5.6%: That was the unemployment rate for August in Santa Cruz County, marking a slight drop from July’s rate of 6.1%. Statewide, the unemployment rate held steady at 5.5%. From July to August, the county gained 700 jobs in the government and private education and health services sectors, but lost 100 in the hospitality and leisure segment.

Save the date 

• Thursday, Sept. 25: The Pajaro Valley Chamber of Commerce will hold a “mix and mingle” event at the Hillcrest Residences, a new housing development at 511 Ohlone Parkway, Watsonville. The free event takes place from 5 to 7 p.m.
• Saturday, Sept. 27: New Leaf Community Markets will host the grand opening of its new store in Gateway Plaza on River Street in Santa Cruz, with special activities and discounts planned from 10 a.m. to 2 p.m. The new store replaces the former downtown location on the corner of Pacific and Soquel avenues.
• Saturday, Sept. 27: El Pajaro Community Development Corporation will hold Mujer al Mando, a business and leadership conference for women from Santa Cruz, Monterey and San Benito counties. The event includes interactive workshops, panel speakers and networking opportunities. It takes place from 9 a.m. to 2:30 p.m. in the community room of the Watsonville Civic Plaza. Tickets, which are $30 in advance or $40 at the door, are available here.
• Wednesday, Oct 1: The Pajaro Valley Chamber of Commerce is hosting a ribbon-cutting for Habitat for Humanity Monterey Bay’s relocated administrative offices. The new office is located at 555 Main St., Watsonville. To RSVP for the event, scheduled for 5:30 to 7 p.m., email development@habitatmontereybay.org. 
• Thursday, Oct. 2: The Santa Cruz Area Chamber of Commerce, Santa Cruz County Business Council and the Downtown Association of Santa Cruz will hold a business mixer open to members of business associations across Santa Cruz County. The event takes place from 5:30 to 7:30 p.m. at the Santa Cruz Museum of Art & History. Tickets can be purchased here.

• Wednesday, Oct. 8: The Santa Cruz Area Chamber of Commerce will host a “women’s business after hours” event at the Walnut Avenue Family and Women’s Center, 303 Walnut Ave. in Santa Cruz, from 5 to 7 p.m. The event will feature guest speakers, refreshments, live music and a donation drive. Registration is here.
• Friday, Oct. 17: Registration is now open for the 2025 State of the Region event, hosted by the Monterey Bay Economic Partnership. The event takes place at the University Center at Cal State Monterey Bay in Seaside from 9 a.m. to 4 p.m. The event focuses on economic opportunities and challenges in Santa Cruz, Monterey and San Benito counties. Among the speakers are Robert Rivas, speaker of the California State Assembly, and Assemblymember Lori D. Wilson.
• Thursday, Oct. 30: The Santa Cruz Area Chamber of Commerce will hold the Women’s Leadership Summit at Mission Springs Conference Center in Scotts Valley from 9 a.m. to 3 p.m. Speakers include state Assemblymember Gail Pellerin, Santa Cruz Regional Transportation Commission Executive Director Sarah Christensen, Capitola Police Chief Sarah Ryan and Judi Oyama, Hall of Fame skateboarder, among others. Tickets are $125 for chamber members and $150 for non-members. More details here.
• Thursday, Oct. 30: Access2Employment is hosting a job fair at The Grove, formerly known as the Cocoanut Grove, in Santa Cruz from 4 to 6 p.m. Registration is here. Businesses that plan to hire in the coming months are invited to sign up to participate; more 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

• They were promised a taste of America. They got abuse and exploitation. (The New York Times)
• The protein bar king and the battle for the holy grail of fat substitutes (Men’s Health)
• Own your income: America’s ‘solopreneur’ business model is booming, from Florida to California (CNBC)

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