This week in Santa Cruz County business: Westside dispensary moves forward, local companies named top green tech businesses, search for new Open Studios leader

Quick Take

In this week's roundup of Santa Cruz County business, Jessica M. Pasko reports on a cannabis dispensary proposed for the former Emily's Bakery location, local companies making a green tech splash and other notes, numbers and events.

Each week, we’ll be 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.

Mission Street dispensary gets permit following public hearing, district opposition

The Santa Cruz Planning Commission granted a permit for a new cannabis dispensary in the former Emily’s Bakery on Mission Street, following a contentious public hearing Thursday.

A vocal opposition to the proposed dispensary called into question its close proximity to Santa Cruz High School, with district officials among those asking the planning commission not to permit the project to move forward.

In a letter to the planning commission, Kris Munro, Santa Cruz City Schools superintendent, wrote, “I know that having the dispensary farther away will not eliminate the problem of student cannabis use, but I believe we have a moral obligation to mitigate access in whatever way we can. … Having access to a supply so close to our schools will have a negative impact.”

At Thursday’s meeting, city planning commission staff outlined the proposed plan and detailed the arguments against the dispensary but also said that the city police department hadn’t shared any concerns about the location, which complies with current regulations.

State and local laws require that cannabis retail stores must be at least 600 feet from schools, day care centers and parks with playgrounds. The new location of The Hook dispensary is about 850 feet from Santa Cruz High School and over 1,300 feet from Mission Hill Middle School.

The commission heard from numerous residents on both sides of the debate at Thursday’s meeting before approving the permit to move forward with conditions. Among those is the requirement that the store will sell only to those 19 years old and over to reduce the chances of selling to high school students. Under state law, cannabis can be purchased only for recreational use by customers age 21 and over; it can be purchased for medicinal use by those age 18 or older with a physician’s recommendation.

Opponents have 10 days after the ruling to file an appeal, which would then go before the city council.

Bryce Berryessa, co-founder and president of The Hook Outlet, said he plans to speak with district officials to try to alleviate their concerns, and he has set up a fact sheet that lays out how the store complies with state and local regulations. One thing that sets his business apart, he said, is that he’s partnering with WAMM Phytotherapies, a public benefit corporation that specializes in providing cannabis to patients with serious diseases. WAMM works with dispensaries to offer free and sliding-scale products. Berryessa’s company also operates The Hook locations in Watsonville and Capitola, and Treehouse in Soquel.

Berryessa said he hopes to get the store open as quickly as possible, and has already filed for the permit from the city. He first checked out the new location last spring and bought it in July. As part of the partnership with WAMM, the Westside store will be an additional pickup point for WAMM’s patients; Treehouse is currently a pickup spot.

Time magazine names four local businesses among U.S. top green companies

A new list released by Time magazine ranks the nation’s 250 top sustainability-focused companies, based on criteria including positive environmental impact, financial strength and innovation. Nearly half of them are headquartered in California and four are in the Monterey Bay area, including two here in Santa Cruz County.

Scotts Valley-based Ambient Photonics was ranked at 108. The company, founded in 2019, has invented a low-light energy-harvesting technology to replace disposable batteries in devices like remote controls and computer mice. Late last year, the company raised another $30 million for its efforts. What differentiates the company from other solar cell technology, according to its leaders, is that Ambient’s solar cells are built for real-world, low-light applications – such as indoor offices with few windows— compared to more expensive solar technologies that require brighter conditions.

Also on the list at No. 155 is Santa Cruz-based Cruz Foam, creators of sustainable packing materials that are aimed at replacing single-use plastics like the kind used to package wine bottles or keep perishable foods cold during shipping. The products are made from chitin, the material that makes up crustaceans’ shells, and have earned Cruz Foam the attention of notable investors like actors Leonardo DiCaprio and Ashton Kutcher, among others. Last year, Time selected the company’s eco-friendly cooler, Cruz Cool, as one of the top 200 inventions of 2023. Topping the list of best green tech companies was Hollister-based ZeroAvia, which is developing hydrogen-electric planes. And in neighboring Monterey County, Moss Landing-based Verdagy, which is working to produce hydrogen affordably without the use of fossil fuels, ranked No. 93 for its work in the renewable energy space.

See more about Time’s methodology here.

State creates new job council to drive workforce development, business growth

A new state council will be focused on creating jobs around California, including awarding $182 million grants to regional councils Gov. Gavin Newsom announced last week.

The California Jobs First Council will help “guide the state’s investments in economic and workforce development to create more family-supporting jobs and prioritize industry sectors for future growth,” according to a release from Newsom’s office. That includes talent retention efforts and projects to encourage more businesses to come to California as well as incentives for encouraging current businesses to expand. The council also will work with the 13 regional Jobs First Collaboratives throughout the state to support and encourage efforts at the local level. Newsom has awarded $14 million to each of these groups to spur and accelerate workforce projects. Among those is Uplift Central Coast, a regional organization that represents Santa Cruz, San Benito, Monterey, San Luis Obispo, Santa Barbara and Ventura counties.

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

Santa Cruz Metro names new CEO: Corey Aldridge will take over as head of the county’s transportation system, replacing outgoing CEO Michael Tree. Aldridge comes to the Santa Cruz Metro from Montana, where he served as CEO of Mountain Line transit in Missoula. See more from Max Chun here.
Capitola Wharf demolition begins: The buildings that housed the Wharf Restaurant and Capitola Boat and Bait are being torn down this week, following extensive damages from 2023 storms. The city aims to reopen the wharf this summer.
New leader sought for Open Studios: Longtime Open Studios Director Ann Ostermann is retiring this year after close to 20 years at the helm of the organization. The 2024 Open Studios this fall (the annual event during which artists around the county open their studios to the public) will be the last one she oversees and Arts Council Santa Cruz County is looking for someone to carry the torch. A new combined position includes leading the Open Studios endeavor and managing the Tannery Arts Center programs. The Arts Council hopes to hire someone by the end of May. Details here.
Humble Sea reopens at Santa Cruz Wharf: Humble Sea Brewing Company’s outdoor beer garden on the Santa Cruz Wharf is back open for the season. Current hours are Friday-Sunday from noon to 6 p.m., with expanded hours planned.

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

Looking at the numbers

$13,000: Looking to start a brewery? The former location (and the equipment) of New Bohemia Brewing Co., which closed last month, is for lease for $13,000 a month. Included in the listing is a three-barrel brewery system in a 3,200-square-foot space with two bars and a parking lot on 41st Avenue in Pleasure Point.
7.3%: That was the unemployment rate for Santa Cruz County in January, according to the latest numbers released by the California Employment Development Department. It marks an increase from 6.7% in December and 6.3% in January 2023. It’s also more than the state’s overall rate, which was 5.7%.

Save the date

Wednesday, March 13: UC Santa Cruz professor David Lee will present a lecture on designing human-AI ecosystems for education, work and community. The reception and talk will be held on Zoom and at UCSC’s Silicon Valley campus, starting at 5 p.m. Details and in-person registration are here; go here for online registration.
Wednesday, March 13: Santa Cruz Works hosts “Remarkable AI,” featuring a book signing with Guy Kawasaki (see my interview) and presentations from industry leaders focused on emerging artificial intelligence technology. The event takes place from 6 to 8:30 p.m. at the Cocoanut Grove at the Santa Cruz Beach Boardwalk. Tickets range from $20-$50. More details, and registration, are here.
Saturday, March 16: The Pajaro Valley Unified School District is hosting a recruiting fair from 10 a.m. to noon at 294 Green Valley Rd., Watsonville. Find details here.
Monday, March 18: The Santa Cruz Transportation and Public Works Commission will host an “open house” for the community to speak with commissioners and public works engineers about 12 local construction projects. The event takes place from 6 to 8 p.m. at Santa Cruz Bible Church, 440 Frederick St. More information is here.
Thursday, March 21: The Pajaro Valley and Aptos chambers of commerce will host a joint mixer at California Coffee at 9105 Soquel Dr. in Aptos with live music, beer, wine, coffee and appetizers. The event goes from 5 to 7 p.m. and costs $5 to attend.
Thursday, March 21: Monterey Bay Economic Partnership President Tahra Goraya will join UC Santa Cruz Professor Chris Benner for a discussion on the recently released report, “Building an inclusive economy in the Monterey Bay.” The free event goes from 5:30 to 7:30 p.m. and will be held at the Civic Plaza Community Room, 250 Main St. in Watsonville. Registration required.