This week in Santa Cruz County business: Save the Catalyst ballot drive comes up short; proposal to help small winemakers heads to Assembly

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.

Effort to save Catalyst nightclub via ballot initiative falls short, but supporters remain undeterred 

A group of concerned citizens spent the weekend collecting signatures for a last-ditch effort to save The Catalyst nightclub, which faces impending demolition to make way for a mixed-use, seven-story residential building. City officials, however, say that even the proposed ordinance is unlikely to save the venue.

Hector Marin, a local educator and candidate for Santa Cruz City Council, has helped spearhead an effort to get a new ordinance on November’s ballot that could potentially save the historic nightclub. 

The Downtown Cultural and Historic Preservation Act is aimed at establishing new city regulations that would limit the demolition and development of historic performance venues in downtown Santa Cruz – unless certain conditions are met. Marin and his team of volunteers needed to collect 5,000 signatures in just five days in order to meet the deadline for getting the ordinance on this year’s ballot. 

On Tuesday, Marin said his team was able to collect close to 2,500 signatures of Santa Cruz city voters in just a few days, fanning out at locations across the city. They’d hoped to secure an extension to continue gathering more signatures, but weren’t successful.

“We brought our community together and that’s the biggest win from all of this,” said Marin. “We are looking forward to working with the city council and the historic preservation commission to make The Catalyst – and similar cultural venues – into a historical preservation landmark.”

Late last year, a Silicon Valley developer filed a pre-application with the city planning commission that calls for tearing down 1009, 1011 and 1015 Pacific Ave., combining the three lots into one and building 64 residential units. The Catalyst has occupied 1009 and 1011 Pacific Ave. since 1976. The current lease with the music venue’s operator, Usually Hip, Inc., is set to expire in mid-2028.

In a community meeting held in January, representatives for the developer told local residents that they hope to work with Catalyst management to relocate the storied music venue on the ground floor of the new building. 

GSH Ventures, the developer behind the proposal, has until next month to file a completed application. From there, the proposal would go to the city planning commission for review before it goes to the city council.

Previously, city officials have said their hands are tied when it comes to how much power they have to prevent the demolition. Even obtaining historic status for the building wouldn’t help because it wasn’t listed on any historic registry at the time the developer filed the pre-application.

Erika Smart, a spokesperson for the city, said that the ordinance that the Save the Catalyst team is pushing for is unlikely to help protect the Catalyst from demolition.

“The proposed ordinance would not apply to the Catalyst project. Because a pre-application has already been submitted, state law allows the project to proceed under the standards in place at that time, provided required milestones are met,” she said. “The applicant also has options to extend timelines or maintain those standards through a new pre-application if needed.”

Smart also said that the measure potentially conflicts with state housing laws that limit the application of new restrictions, so that even if it makes it to the ballot and voters pass it in November, it would still have limited applicability to projects already in process and could face broader enforceability challenges.

Proposal aimed at helping small wineries moves to California Assembly

A measure aimed at making it easier for small winemakers to sell wine and offer tastings at certified farmers markets is headed to the state Assembly for consideration.

The state Senate passed Senate Bill 917, championed by Sen. John Laird, last week. (Laird’s district includes all of Santa Cruz, San Benito and Monterey counties, as well as part of San Luis Obispo County.)

Under current laws, winemakers can sell wine at farmers markets only if it’s produced exclusively from what are known as “estate-grown grapes,” meaning all grapes must be grown on-site. But many small wineries source grapes from California growers rather than growing their own. Additionally, the law limits farmers markets to just one permit-holder for tastings, regardless of market size. 

Laird’s bill would expand the options to allow non-estate wineries to sell wine at farmers markets, and give more access to small producers. The effort comes as wineries around the country, especially smaller producers, are struggling amid rising costs, changing consumer habits and climate impacts such as wildfires.

ICYMI: How Santa Cruz County cannabis businesses will benefit from recent reclassification of medical marijuana

A recent decision by the federal government to reclassify medical marijuana could help buoy the local cannabis industry.

The Department of Justice will reclassify state-licensed medical marijuana as Schedule III, putting it in the same category as Tylenol with codeine, ketamine and steroids. Full reclassification could come as early as this year, and that would potentially help cannabis businesses by lowering taxes and supporting financing and trade opportunities.

Dieter Holger spoke to leaders of some Santa Cruz County cannabis businesses to learn more about how the move could affect them. Read his piece here.

Ch-ch-changes

• Scotts Valley wine tasting rooms on the move: Kissed by an Angel will close its Pinnacle Pass tasting room on Mount Hermon Road in Scotts Valley with a celebration on Saturday, May 9. The winery will be moving its tasting room just down the road to the Kings Village Shopping Center, in the former Saison Cellar and Wine Bar location. Neighboring Inversion Wines closed its tasting room in Pinnacle Pass this past weekend, and will be moving to a new location that has not yet been announced. 
• Driscoll’s announces two leadership moves: Watsonville-based berry giant Driscoll’s has appointed Wyard Stomp to the newly created role of chief operating officer. Stomp will continue to lead the company’s Europe, Middle East and Africa business in addition to the new role. Stomp joined Driscoll’s in 2012 and has held several senior leadership roles in Europe and the U.S. Additionally, the company will expand the role of Shaily Sanghvi, who is currently chief financial officer of the Americas. Her role will now also encompass global responsibility for financial strategy.
• River Street Java Junction gets a reprieve: A little over a week after owner Michael Spadafora announced he’d be closing the Java Junction location in Santa Cruz’s Gateway Plaza, the decision has been reversed. In a post Friday on the cafe’s Instagram, it was announced that the cafe will be staying open after all. The move comes after a local restaurant owner agreed to purchase the business, as Lily Belli reports. Spadafora owns two other locations of the coffeehouse, in Seabright and the Santa Cruz Harbor. 

• Jeffery’s restaurant location up for rent: The longtime home of Jeffery’s has been listed for lease, just a few months after the diner suddenly closed. The nearly 50-year-old diner at the corner of Soquel Avenue and Capitola Road closed at the end of January, and a sign posted on the door then noted it was “temporarily closed.” At the time, owner Jeffery Walsh told Lookout’s Lily Belli that he wasn’t comfortable discussing the restaurant’s closure or status. Now, the 4,645-square-foot space is up for lease, along with three retail spaces in the adjacent Harbor Center. 
• New CPR training center opens in Watsonville: Safety Training Seminars, a California-based company specializing in first aid training and certification, has opened a new facility in Watsonville. The new center, located at 563 Auto Center Dr., Suite 203, provides emergency training courses and first aid certification designed for everyone from medical and healthcare providers, childcare providers and anyone interested in learning lifesaving skills. Safety Training Seminars runs centers throughout the state, including one on Capitola Road.
• UC Santa Cruz to pilot employee homeownership program: UC Santa Cruz will try out a new program aimed at helping university employees purchase homes. Designed by UCSC and the California Housing Finance Agency (CalHFA), eligible employees will be offered what’s known as a shared appreciation loan to cover up to 20% of a home’s purchase price. That money can be applied toward a down payment and closing costs, and employees will be able to get a fixed-interest rate mortgage through CalHFA. If the pilot program is successful, university officials said it could provide a model for other University of California campuses. Employees interested in the program can contact UCSC Employee Housing at employeehousing@ucsc.edu. 
• Commercial salmon season opens after three-year hiatus: California’s commercial salmon season opened Friday for the first time in three years, following the opening of the recreational season last month. Both recreational and commercial salmon fishing in the state were canceled in 2023 and 2024; limited recreational fishing was allowed last year. While there are still some limitations – including closures during certain weeks of the spring and summer – state officials announced earlier this year that salmon populations were improving.  

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

• Principal Financial Analyst at UC Santa Cruz
• Pediatric Dental Office Manager / Financial Coordinator at Alison K Jackson Children’s Dentistry
• Crop Production Assistant & Weekend Farm Steward at Homeless Garden Project
• Executive Assistant to the Associate Vice Chancellor at UC Santa Cruz
• Health Center Manager at The County of Santa Cruz
• Conference Services Coordinator at UC Santa Cruz

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

Looking at the numbers

• 68.6%: That was the occupancy rate for Santa Cruz County hotels in March, a significant climb from 59.5% in February and 51.6% in January. Across the board, occupancy rates, room prices and consumer demand were up in March 2026, marking a high point for the county’s tourism and hospitality industry. By comparison, the occupancy rate for March 2025 was 62.2%. The average daily room rate rose to $183 from $174 the prior month. That’s according to the latest numbers from Visit Santa Cruz County. The numbers are expected to continue to climb as we approach the summer months, the region’s busiest tourism season.
• 6.9%: That was the unemployment rate for Santa Cruz County in March, compared to the statewide rate of 5.3%. However, it marked an improvement from February’s 7.2% rate and the county’s March 2025 unemployment rate of 7.4%. The county gained 1,700 jobs compared to the prior month, with farming accounting for 1,000 of those. The local leisure and hospitality sector also saw a gain of 400 jobs. The sectors that lost jobs from February to March included government, professional and business services, information and mining/logging/construction.

Save the date 

• Wednesday, May 6: The Santa Cruz Area Chamber of Commerce will host a luncheon with the county’s new executive officer, Nicole Coburn. Coburn took the reins from Carlos J. Palacios, who retired at the end of last year. Coburn will speak about county budget matters, funding opportunities for local businesses and recommendations for how to do business with the county. The event is at the Live Oak Community Center, 979 17th Ave., from 11 a.m. to 1 p.m. Registration is available here.
• Wednesday, May 6: Santa Cruz Works will hold its Rooftop New Tech event at the Anton Pacific building at 800 Pacific Ave. in Santa Cruz from 6 to 8 p.m. The event will feature a networking reception and presentations from six founders of startup companies. More details and tickets are available here.
• Thursday, May 7: The Pajaro Valley Chamber of Commerce will hold a cornhole tournament and mixer at GaryAir hangar, 50 Aviation Way, Watsonville, from 5 to 7 p.m. Details and registration are here.
• Friday, May 8: The Scotts Valley Chamber of Commerce will hold its annual community awards event at Bret Harte Hall at Roaring Camp Railroads in Felton. The event takes place from 5 to 10 p.m. More details here.
• Wednesday, May 13: The Santa Cruz Launchpad job and recruitment fair takes place at The Grove on 400 Beach St. in Santa Cruz from 5 to 7 p.m. More details here.
• Friday, May 15: The Monterey Bay Economic Partnership will hold its 2026 Regional Economic Outlook, bringing together business, government and community leaders from Santa Cruz, Monterey and San Benito counties. Featured speakers include Jon Haveman, executive director of the National Economic Education Delegation, and Sylvain Leduc, an executive director with the Federal Reserve Bank of San Francisco. The event takes place from 9 a.m. to 1 p.m. at the Embassy Suites in Seaside. Registration, tickets and more details are available here.

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

Business news worth reading

• Robotaxis can break traffic laws without fines under new California rules (The Mercury News)
• Pacific Valley Bank posts stronger quarter as expansion strategy gains traction (Silicon Valley Business Journal)
• Electric motorcycles and scooters face hacking risks to security and rider safety (Security Week)

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