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Santa Cruz County Business Beat Your monthly pulse on Santa Cruz business and community issues. The Santa Cruz Business Beat is a monthly roundup of the most relevant local news stories, trends, and issues affecting Santa Cruz County. Each edition highlights topics important to business and community leaders, including education, workforce development, housing, transportation, climate, health, and local government updates. Our goal is to keep you informed, connected, and ahead of the curve on the issues shaping our community and economy. Living Local SC Planning Commission Votes to Streamline Affordable Housing: The Santa Cruz Planning Commission voted 4–2 in December to move forward with eliminating public hearings for 100% affordable housing projects, shifting approval to a streamlined, ministerial process that would still include early community meetings but no formal hearings before the commission or City Council. The proposal also creates a new zoning overlay allowing qualifying affordable projects to bypass discretionary review and environmental analysis if they meet objective standards, while excluding sensitive environmental areas and updating heritage tree rules. Supporters argue the change would speed up much-needed affordable housing and help the city meet state housing requirements, while opponents worry it reduces transparency and removes an important safeguard for catching errors. The proposal now heads to the Santa Cruz City Council for consideration at their January 27th meeting. Learn more in this Lookout article. Upcoming Public Hearing on Catalyst Housing Proposal: A virtual public meeting will be held on January 29th at 6pm to discuss a proposal to replace The Catalyst nightclub in downtown Santa Cruz with a seven-story mixed-use building. The plan, submitted by a Silicon Valley developer, would combine three lots to create 64 residential units with ground-floor retail, and could potentially relocate the nightclub on-site. The proposal has sparked community opposition, including a petition with nearly 10,000 signatures seeking historical preservation for the venue, and the meeting will provide details and allow public input. Learn more here. On The Move Murray Street Bridge Partial Reopening This Month: The Murray Street Bridge is set to partially reopen by the end of January - ahead of schedule - restoring one shared lane for vehicles and bicycles along with full pedestrian access in both directions. This early reopening will improve connections between the Eastside, the harbor, and nearby neighborhoods, even as construction continues. The City is exploring temporary traffic and access adjustments to ease circulation during ongoing work, with options still under review based on feasibility and funding, and additional updates expected as the project progresses. Learn more on the City of Santa Cruz Website. Capitola Avenue Bridge Reopening in Sight: Local officials are nearing completion of the long-delayed Capitola Avenue Bridge project and are targeting the end of January for reopening, nearly two years after construction began and following several schedule extensions. The bridge work is part of broader Highway 1 improvements intended to enhance safety and connectivity, and while final timelines may still be affected by weather or construction conditions, the project is now in its final stages with reopening expected soon. Learn more in this Santa Cruz Sentinel article. Eco Update Supervisors Approve Draft Battery Storage Regulations: Santa Cruz County’s Board of Supervisors advanced a revised set of draft regulations for siting and overseeing large battery energy storage facilities, aiming to keep local authority over how and where such systems are developed while moving the ordinance toward further review and eventual approval later this year. The updated rules, shaped in part by earlier feedback, still must undergo environmental review and be considered by both the Planning Commission and Agricultural Policy Advisory Commission before final action. The effort comes as a proposed large-scale facility near Watsonville awaits permitting under these emerging standards amid mixed public reaction. Learn more in this Santa Cruz Local article. Climate Change Threatens Surf-Based Economy: Santa Cruz’s iconic surf breaks are increasingly threatened by climate change and coastal erosion, with rising sea levels, stronger storms, and shoreline protection efforts potentially altering the wave dynamics that make the area a world-class surf destination. A recent report from the Save the Waves Coalition indicates that damage to local surf breaks could result in the loss of millions of dollars in surfing-related economic activity for the city. As a result, surf advocates, scientists, and planners are urging coastal management approaches that protect public safety while also preserving the environmental, cultural, and economic importance of surfing in Santa Cruz. Learn more here. County Fights Offshore Drilling: Santa Cruz County has brought back a veteran environmental organizer to help coordinate opposition to the federal administration’s renewed push to open parts of the California coast to offshore oil and gas drilling, drawing on his experience leading similar campaigns in the 1980s. The county and a coalition of coastal communities are preparing to defend longstanding local bans and sanctuary protections that prohibit onshore infrastructure tied to offshore drilling, arguing that the federal plan will test the strength of those rules and require coordinated resistance to prevent new oil development off the state’s shoreline. Learn more in this Lookout article. Campus & Community New Law Streamlines Housing on College Campuses: A new law born from Assembly Bill 357, the Student & Faculty Housing Success Act, took effect on January 1st and aims to streamline the development of student and faculty housing on coastal university campuses. The bill reduces redundancies in the Coastal Commission’s approval process, allows colleges to determine parking requirements, and aims to speed up project timelines and lower costs. It was created through collaboration between students from UC Santa Cruz, UC San Diego, and other student organizations, along with Assemblymember David Alvarez, to help universities build housing more efficiently and increase the number of available units. The law works in conjunction with earlier legislation, Assembly Bill 130, to further shorten permitting times and reduce obstacles, with the ultimate goal of alleviating student homelessness and improving housing security on coastal campuses. Learn more in this Santa Cruz Sentinel article. Policy Pulse Monica Martinez Named 2026 Board of Supervisors Chair: Santa Cruz County’s Board of Supervisors has selected Monica Martinez to serve as the chair for 2026, making her the first openly LGBTQ+ and Latina leader of the board, with fellow supervisor Manu Koenig named vice chair. Martinez, who was elected in 2024, has focused her first year on protecting essential services, supporting vulnerable residents, enhancing wildfire preparedness, and increasing community engagement, and as chair she will guide board meetings, help set priorities, and represent the county in regional and state matters. Learn more in this SF Gate article. Donna Lind Appointed Scotts Valley Mayor: Donna Lind has been appointed mayor of Scotts Valley by the City Council, succeeding Derek Timm. This marks her fourth time serving as the city’s mayor, reflecting her extensive experience and long-standing involvement in local government. Lind has been a fixture in the community for decades and brings institutional knowledge as the city navigates upcoming challenges, including state-mandated growth and infrastructure planning. Alongside Lind, Steve Clark was named vice mayor, and the council emphasized collaboration as they entered the new year, focusing on continuity and preparing for the city’s future priorities. Learn more in this Santa Cruz Sentinel article. Federal Cuts Impact County: Santa Cruz County officials warn that recent federal policy changes could leave a large budget gap of roughly $15?million to $54?million in the fiscal year 2026–27, forcing tough choices for local services. They are particularly concerned about cuts to health care and food assistance programs like Medi-Cal and CalFresh, potential loss of housing support, and new administrative penalties that could strain the county’s general fund. Predicting the exact impact remains difficult, but thousands of residents may lose benefits, and the county is planning increased coordination with community partners to mitigate financial and social challenges ahead. Learn more in this Santa Cruz Sentinel article. The Business Beat Joby Leads Urban Air Mobility Expansion: Santa Cruz Area Chamber Member Joby Aviation is partnering with Metropolis Technologies to build a network of 25 vertiports across the United States to support its upcoming electric air taxi service. The plan involves converting existing parking infrastructure into landing and takeoff hubs, making urban air mobility more accessible and integrated with ground transportation. This expansion is aimed at accelerating early air taxi operations in major cities, providing a faster and more sustainable transportation alternative. Learn more in this LA Times article. Anthropologie Opens Downtown: Anthropologie has opened a new store on Pacific Avenue in downtown Santa Cruz, taking over the former Bank of Italy building previously occupied by New Leaf Community Markets. This marks the first major retail addition to the area following several recent closures and is the third downtown location for the company’s parent, URBN, which also owns Urban Outfitters and Free People nearby. The opening fills the vacancy left by New Leaf’s move to a larger location on River Street.
Santa Cruz County Business Beat
Your monthly pulse on Santa Cruz business and community issues.
The Santa Cruz Business Beat is a monthly roundup of the most relevant local news stories, trends, and issues affecting Santa Cruz County. Each edition highlights topics important to business and community leaders, including education, workforce development, housing, transportation, climate, health, and local government updates. Our goal is to keep you informed, connected, and ahead of the curve on the issues shaping our community and economy.
Living Local
SC Planning Commission Votes to Streamline Affordable Housing: The Santa Cruz Planning Commission voted 4–2 in December to move forward with eliminating public hearings for 100% affordable housing projects, shifting approval to a streamlined, ministerial process that would still include early community meetings but no formal hearings before the commission or City Council. The proposal also creates a new zoning overlay allowing qualifying affordable projects to bypass discretionary review and environmental analysis if they meet objective standards, while excluding sensitive environmental areas and updating heritage tree rules. Supporters argue the change would speed up much-needed affordable housing and help the city meet state housing requirements, while opponents worry it reduces transparency and removes an important safeguard for catching errors. The proposal now heads to the Santa Cruz City Council for consideration at their January 27th meeting. Learn more in this Lookout article.
Upcoming Public Hearing on Catalyst Housing Proposal: A virtual public meeting will be held on January 29th at 6pm to discuss a proposal to replace The Catalyst nightclub in downtown Santa Cruz with a seven-story mixed-use building. The plan, submitted by a Silicon Valley developer, would combine three lots to create 64 residential units with ground-floor retail, and could potentially relocate the nightclub on-site. The proposal has sparked community opposition, including a petition with nearly 10,000 signatures seeking historical preservation for the venue, and the meeting will provide details and allow public input. Learn more here.
On The Move
Murray Street Bridge Partial Reopening This Month: The Murray Street Bridge is set to partially reopen by the end of January - ahead of schedule - restoring one shared lane for vehicles and bicycles along with full pedestrian access in both directions. This early reopening will improve connections between the Eastside, the harbor, and nearby neighborhoods, even as construction continues. The City is exploring temporary traffic and access adjustments to ease circulation during ongoing work, with options still under review based on feasibility and funding, and additional updates expected as the project progresses. Learn more on the City of Santa Cruz Website.
Capitola Avenue Bridge Reopening in Sight: Local officials are nearing completion of the long-delayed Capitola Avenue Bridge project and are targeting the end of January for reopening, nearly two years after construction began and following several schedule extensions. The bridge work is part of broader Highway 1 improvements intended to enhance safety and connectivity, and while final timelines may still be affected by weather or construction conditions, the project is now in its final stages with reopening expected soon. Learn more in this Santa Cruz Sentinel article.
Eco Update
Supervisors Approve Draft Battery Storage Regulations: Santa Cruz County’s Board of Supervisors advanced a revised set of draft regulations for siting and overseeing large battery energy storage facilities, aiming to keep local authority over how and where such systems are developed while moving the ordinance toward further review and eventual approval later this year. The updated rules, shaped in part by earlier feedback, still must undergo environmental review and be considered by both the Planning Commission and Agricultural Policy Advisory Commission before final action. The effort comes as a proposed large-scale facility near Watsonville awaits permitting under these emerging standards amid mixed public reaction. Learn more in this Santa Cruz Local article.
Climate Change Threatens Surf-Based Economy: Santa Cruz’s iconic surf breaks are increasingly threatened by climate change and coastal erosion, with rising sea levels, stronger storms, and shoreline protection efforts potentially altering the wave dynamics that make the area a world-class surf destination. A recent report from the Save the Waves Coalition indicates that damage to local surf breaks could result in the loss of millions of dollars in surfing-related economic activity for the city. As a result, surf advocates, scientists, and planners are urging coastal management approaches that protect public safety while also preserving the environmental, cultural, and economic importance of surfing in Santa Cruz. Learn more here.
County Fights Offshore Drilling: Santa Cruz County has brought back a veteran environmental organizer to help coordinate opposition to the federal administration’s renewed push to open parts of the California coast to offshore oil and gas drilling, drawing on his experience leading similar campaigns in the 1980s. The county and a coalition of coastal communities are preparing to defend longstanding local bans and sanctuary protections that prohibit onshore infrastructure tied to offshore drilling, arguing that the federal plan will test the strength of those rules and require coordinated resistance to prevent new oil development off the state’s shoreline. Learn more in this Lookout article.
Campus & Community
New Law Streamlines Housing on College Campuses: A new law born from Assembly Bill 357, the Student & Faculty Housing Success Act, took effect on January 1st and aims to streamline the development of student and faculty housing on coastal university campuses. The bill reduces redundancies in the Coastal Commission’s approval process, allows colleges to determine parking requirements, and aims to speed up project timelines and lower costs. It was created through collaboration between students from UC Santa Cruz, UC San Diego, and other student organizations, along with Assemblymember David Alvarez, to help universities build housing more efficiently and increase the number of available units. The law works in conjunction with earlier legislation, Assembly Bill 130, to further shorten permitting times and reduce obstacles, with the ultimate goal of alleviating student homelessness and improving housing security on coastal campuses. Learn more in this Santa Cruz Sentinel article.
Policy Pulse
Monica Martinez Named 2026 Board of Supervisors Chair: Santa Cruz County’s Board of Supervisors has selected Monica Martinez to serve as the chair for 2026, making her the first openly LGBTQ+ and Latina leader of the board, with fellow supervisor Manu Koenig named vice chair. Martinez, who was elected in 2024, has focused her first year on protecting essential services, supporting vulnerable residents, enhancing wildfire preparedness, and increasing community engagement, and as chair she will guide board meetings, help set priorities, and represent the county in regional and state matters. Learn more in this SF Gate article.
Donna Lind Appointed Scotts Valley Mayor: Donna Lind has been appointed mayor of Scotts Valley by the City Council, succeeding Derek Timm. This marks her fourth time serving as the city’s mayor, reflecting her extensive experience and long-standing involvement in local government. Lind has been a fixture in the community for decades and brings institutional knowledge as the city navigates upcoming challenges, including state-mandated growth and infrastructure planning. Alongside Lind, Steve Clark was named vice mayor, and the council emphasized collaboration as they entered the new year, focusing on continuity and preparing for the city’s future priorities. Learn more in this Santa Cruz Sentinel article.
Federal Cuts Impact County: Santa Cruz County officials warn that recent federal policy changes could leave a large budget gap of roughly $15?million to $54?million in the fiscal year 2026–27, forcing tough choices for local services. They are particularly concerned about cuts to health care and food assistance programs like Medi-Cal and CalFresh, potential loss of housing support, and new administrative penalties that could strain the county’s general fund. Predicting the exact impact remains difficult, but thousands of residents may lose benefits, and the county is planning increased coordination with community partners to mitigate financial and social challenges ahead. Learn more in this Santa Cruz Sentinel article.
The Business Beat
Joby Leads Urban Air Mobility Expansion: Santa Cruz Area Chamber Member Joby Aviation is partnering with Metropolis Technologies to build a network of 25 vertiports across the United States to support its upcoming electric air taxi service. The plan involves converting existing parking infrastructure into landing and takeoff hubs, making urban air mobility more accessible and integrated with ground transportation. This expansion is aimed at accelerating early air taxi operations in major cities, providing a faster and more sustainable transportation alternative. Learn more in this LA Times article.
Anthropologie Opens Downtown: Anthropologie has opened a new store on Pacific Avenue in downtown Santa Cruz, taking over the former Bank of Italy building previously occupied by New Leaf Community Markets. This marks the first major retail addition to the area following several recent closures and is the third downtown location for the company’s parent, URBN, which also owns Urban Outfitters and Free People nearby. The opening fills the vacancy left by New Leaf’s move to a larger location on River Street.