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By Kristen Brown, Executive Director, Santa Cruz Area Chamber of Commerce The City of Santa Cruz is moving forward with a number of thoughtful strategies to breathe new life into our downtown, support local businesses, and plan for future growth. From tackling long-term vacancies to exploring new infrastructure funding tools and expanding the downtown footprint, the City is laying the foundation for a more vibrant, welcoming, and resilient community. Keeping Downtown Active and Inviting The recently adopted Downtown Vibrancy Ordinance is all about bringing more energy and activity to our downtown. It’s focused on reducing long-term vacancies, especially along Pacific Avenue, and setting expectations for how those empty storefronts are maintained. If a storefront has been vacant for more than two years, the property owner will need to register with the City and share details like their contact information, a local property manager, a maintenance plan, the building’s square footage, its last legal use, and any future plans they have for the space. To improve the look and feel of downtown in the meantime, the ordinance also requires property owners to install either decorative vinyl window coverings (selected from City-approved designs) or curated art displays. For now, the City is covering the cost of installing these coverings through June 12, 2026 for eligible properties. Options include City-branded themes or designs that highlight leasing opportunities. This ordinance is just one piece of a broader effort to boost local business activity. Other incentives include waived permitting fees for new businesses, free pre-application review meetings, and a $50,000 storefront window design program. The City is also providing temporary space to new businesses, investing in local theaters and alleyway activation projects with seating, art, and gathering spaces and expanding its ‘Downtown Pops!’ initiative. ‘Downtown Pops!’ is a City initiative that helps small businesses access retail space while offering some stability to property owners with vacant storefronts. The City leases empty spaces on Pacific Avenue from commercial property owners, guaranteeing a base rent, and then subleases them to short-term tenants for six months. These pop-up tenants pay rent based on a percentage of their monthly sales, and if the initial term goes well, they may have the opportunity to negotiate a longer lease directly with the broker or property owner. Together, these steps are helping create a more attractive and accessible downtown for both businesses and the community. Planning for Long-Term Infrastructure Investments While the City works on near-term improvements, it's also looking ahead. One promising tool under consideration is the creation of an Enhanced Infrastructure Financing District, or EIFD. These districts were authorized by the state in 2014 and allow cities and counties to use a portion of future property tax growth to fund public infrastructure projects. An EIFD wouldn’t raise or add new taxes. Instead, it would capture future increases in property tax revenue within a defined area and reinvest that money into projects like safer streets, improved utilities, public spaces, and affordable housing. In March 2025, the City Council approved a Resolution of Intention to explore forming an EIFD, and is now working with Kosmont Companies Inc. on a feasibility analysis. The goal is to focus investments around key opportunity areas, including older commercial centers and priority housing sites identified in the City’s Housing Element. An EIFD can remain active for up to 45 years after the first bond is issued, offering a long-term path to infrastructure funding without affecting residents’ tax bills. Expanding the Vision for Downtown The Downtown Plan Expansion is a big-picture effort to grow and reimagine the southern end of downtown, extending toward the beach and boardwalk. The goal is to bring in new housing, commercial space, and public amenities, all while maintaining walkability, good design, and strong community connections. One of the most exciting possibilities in this plan is the development of a permanent arena for the Santa Cruz Warriors. Conceptual designs were presented to the City Council on May 13, 2025, and the expansion plan was approved shortly after. The new arena would likely be larger than the existing temporary facility and could include upgraded locker rooms, a permanent team office, improved training space, and increased seating capacity. It’s also being designed with multiple uses in mind - from concerts and comedy shows to other large-scale events that would bring people downtown.The vision is to integrate the arena with nearby housing and commercial projects as part of a unified, active downtown district. Through these coordinated initiatives, the City of Santa Cruz is taking bold, balanced action to strengthen its downtown economy, enhance quality of life for residents and visitors, and shape a more vibrant future for the entire community. The Chamber looks forward to staying involved throughout these efforts.
By Kristen Brown, Executive Director, Santa Cruz Area Chamber of Commerce
The City of Santa Cruz is moving forward with a number of thoughtful strategies to breathe new life into our downtown, support local businesses, and plan for future growth. From tackling long-term vacancies to exploring new infrastructure funding tools and expanding the downtown footprint, the City is laying the foundation for a more vibrant, welcoming, and resilient community.
Keeping Downtown Active and Inviting
The recently adopted Downtown Vibrancy Ordinance is all about bringing more energy and activity to our downtown. It’s focused on reducing long-term vacancies, especially along Pacific Avenue, and setting expectations for how those empty storefronts are maintained. If a storefront has been vacant for more than two years, the property owner will need to register with the City and share details like their contact information, a local property manager, a maintenance plan, the building’s square footage, its last legal use, and any future plans they have for the space.
To improve the look and feel of downtown in the meantime, the ordinance also requires property owners to install either decorative vinyl window coverings (selected from City-approved designs) or curated art displays. For now, the City is covering the cost of installing these coverings through June 12, 2026 for eligible properties. Options include City-branded themes or designs that highlight leasing opportunities.
This ordinance is just one piece of a broader effort to boost local business activity. Other incentives include waived permitting fees for new businesses, free pre-application review meetings, and a $50,000 storefront window design program. The City is also providing temporary space to new businesses, investing in local theaters and alleyway activation projects with seating, art, and gathering spaces and expanding its ‘Downtown Pops!’ initiative.
‘Downtown Pops!’ is a City initiative that helps small businesses access retail space while offering some stability to property owners with vacant storefronts. The City leases empty spaces on Pacific Avenue from commercial property owners, guaranteeing a base rent, and then subleases them to short-term tenants for six months. These pop-up tenants pay rent based on a percentage of their monthly sales, and if the initial term goes well, they may have the opportunity to negotiate a longer lease directly with the broker or property owner. Together, these steps are helping create a more attractive and accessible downtown for both businesses and the community.
Planning for Long-Term Infrastructure Investments
While the City works on near-term improvements, it's also looking ahead. One promising tool under consideration is the creation of an Enhanced Infrastructure Financing District, or EIFD. These districts were authorized by the state in 2014 and allow cities and counties to use a portion of future property tax growth to fund public infrastructure projects.
An EIFD wouldn’t raise or add new taxes. Instead, it would capture future increases in property tax revenue within a defined area and reinvest that money into projects like safer streets, improved utilities, public spaces, and affordable housing. In March 2025, the City Council approved a Resolution of Intention to explore forming an EIFD, and is now working with Kosmont Companies Inc. on a feasibility analysis.
The goal is to focus investments around key opportunity areas, including older commercial centers and priority housing sites identified in the City’s Housing Element. An EIFD can remain active for up to 45 years after the first bond is issued, offering a long-term path to infrastructure funding without affecting residents’ tax bills.
Expanding the Vision for Downtown
The Downtown Plan Expansion is a big-picture effort to grow and reimagine the southern end of downtown, extending toward the beach and boardwalk. The goal is to bring in new housing, commercial space, and public amenities, all while maintaining walkability, good design, and strong community connections.
One of the most exciting possibilities in this plan is the development of a permanent arena for the Santa Cruz Warriors. Conceptual designs were presented to the City Council on May 13, 2025, and the expansion plan was approved shortly after.
The new arena would likely be larger than the existing temporary facility and could include upgraded locker rooms, a permanent team office, improved training space, and increased seating capacity. It’s also being designed with multiple uses in mind - from concerts and comedy shows to other large-scale events that would bring people downtown.The vision is to integrate the arena with nearby housing and commercial projects as part of a unified, active downtown district.
Through these coordinated initiatives, the City of Santa Cruz is taking bold, balanced action to strengthen its downtown economy, enhance quality of life for residents and visitors, and shape a more vibrant future for the entire community. The Chamber looks forward to staying involved throughout these efforts.