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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. On The Move Highway 17 Corridor Plan Underway: Caltrans and the Santa Cruz County Regional Transportation Commission are developing a long-term strategy for the Highway 17 corridor connecting Santa Cruz and the Santa Clara Valley that focuses on improving safety, reducing congestion, and preparing the roadway for climate-related impacts such as storms and landslides. Proposed concepts include roadway and interchange improvements, additional shoulders, and other safety upgrades, along with expanded transit options like enhanced Highway 17 Express bus service and better multimodal connections to help reduce traffic. The effort is currently in the planning and public engagement phase, with draft recommendations expected later this year and major projects likely dependent on securing significant future funding. Learn more in this Lookout article. RTC Considered Funding Options for Rail Study: The Santa Cruz County Regional Transportation Commission is considering asking federal lawmakers for funding to continue studying a potential passenger rail system along the county’s rail corridor after identifying a roughly $15 million shortfall needed for environmental review and preliminary engineering. Staff say few competitive grants exist for early planning stages of large transit projects, so the agency may pursue congressional earmarks through representatives such as Jimmy Panetta, Adam Schiff, and Alex Padilla, while also exploring possible funding through the California state budget with support from John Laird. The funding would help advance the proposed zero-emission passenger rail project and associated environmental analysis needed before any construction decisions can be made. Learn more in this Santa Cruz Sentinel article. Two-Way Traffic on Murray Street Bridge Ends Early: A temporary effort to allow two-way traffic on the Murray Street Bridge lasted only about a week before being discontinued due to safety concerns. The bridge had reopened in late January with only eastbound traffic after a lengthy closure for construction, prompting nearby businesses and community members to request restored access in both directions. In response, the city tested a one-lane, alternating traffic system controlled by automated signals beginning in early March. After reviewing conditions during the trial period, officials ended the program and returned the bridge to one-way eastbound traffic. Learn more in this Santa Cruz Sentinel article. Living Local Pacific Avenue Affordable Housing Applications Now Open: Applications are now open for Pacific Station North, a seven-story affordable housing development at 902 Pacific Ave. in downtown Santa Cruz. The project will include 128 units for lower-income households, with some reserved for people experiencing or at risk of homelessness, as well as ground-floor commercial space and resident amenities. Applications are due by March 21st. Learn more in this Santa Cruz Local article. Housing Authority Prepares for Housing Voucher Changes: The Housing Authority of Santa Cruz County is preparing for the end of federal emergency housing vouchers later this year and is also watching potential federal changes that would tighten citizenship and eligibility rules for rental assistance, concerns that could make it harder for some low-income households to keep their homes; local officials are trying to plan alternatives and ensure current voucher holders remain housed even as funding and policy shifts loom. Learn more in this Lookout Santa Cruz article. Santa Cruz Council to Consider Coral Street Rezone: The Santa Cruz City Council is set to review a proposed rezoning of the Coral Street area that would create an overlay district allowing temporary housing, shelters, and fully affordable housing, with taller building heights than current zoning permits. The Planning Commission recommended sending the proposal to the council with a reduced maximum height to address neighborhood concerns while still meeting state housing requirements. The council will consider balancing these state mandates with local goals for housing, services, and community character. Learn more in this Santa Cruz Sentinel article. Eco Update Funding Secured for Santa Cruz Wharf Repair: In response to significant storm damage that partly destroyed the end of the historic Santa Cruz Municipal Wharf, Congressman Jimmy Panetta has secured $3.15?million in federal funding to support the Wharf Resilience and Rehabilitation Project, including a new south landing for boats and upgrades to better withstand climate impacts and earthquakes, with local officials saying the money represents one of the largest capital investments in the structure’s history and will help support businesses and community use. Learn more in this Pajaronian article. Policy Pulse Mayor Shares State of the City at Annual Chamber Breakfast: At the Santa Cruz Area Chamber’s Annual Member Breakfast in late February, Mayor Fred Keeley delivered his final State of the City address of his four-year term, reflecting on the city’s progress in housing and homelessness. He highlighted efforts such as new funding measures and major housing projects while noting that housing affordability and support for people experiencing homelessness remain ongoing challenges for Santa Cruz. Learn more in this Lookout Santa Cruz article. Santa Cruz Primary Election Races Are Set: Most of the local contests for the June?2nd Santa Cruz County primary are locked in now that filing has ended. On the Santa Cruz City Council ballot, District?4 will see incumbent Scott Newsome face Hector Marin again, and in District?6, incumbent Renee Golder is challenged by Gabriella Noack. The mayoral field includes several hopefuls with varied backgrounds since the current mayor isn’t seeking reelection. For the County Board of Supervisors, District?3 is uncontested with incumbent Justin Cummings returning, while District?4 has Elias Gonzales and Tony Nuñez competing against Supervisor Felipe Hernandez. The primary winner could be decided outright if they secure a majority; otherwise top vote-getters move to November. Learn more in this Lookout Santa Cruz article. The Business Beat United Way to Lead Your Future Is Our Business Program: United Way of Santa Cruz County will take over the programs of the long-running nonprofit Your Future Is Our Business starting July?1, ensuring the continuation and growth of its mission to connect local students with internships, mentorships, and career opportunities. The transition allows United Way to expand the program’s reach and impact, guided by a leader with deep experience in its work, while preserving the legacy of 34?years of supporting youth career development. Learn more in this Lookout Santa Cruz article.
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.
On The Move
Highway 17 Corridor Plan Underway: Caltrans and the Santa Cruz County Regional Transportation Commission are developing a long-term strategy for the Highway 17 corridor connecting Santa Cruz and the Santa Clara Valley that focuses on improving safety, reducing congestion, and preparing the roadway for climate-related impacts such as storms and landslides. Proposed concepts include roadway and interchange improvements, additional shoulders, and other safety upgrades, along with expanded transit options like enhanced Highway 17 Express bus service and better multimodal connections to help reduce traffic. The effort is currently in the planning and public engagement phase, with draft recommendations expected later this year and major projects likely dependent on securing significant future funding. Learn more in this Lookout article.
RTC Considered Funding Options for Rail Study: The Santa Cruz County Regional Transportation Commission is considering asking federal lawmakers for funding to continue studying a potential passenger rail system along the county’s rail corridor after identifying a roughly $15 million shortfall needed for environmental review and preliminary engineering. Staff say few competitive grants exist for early planning stages of large transit projects, so the agency may pursue congressional earmarks through representatives such as Jimmy Panetta, Adam Schiff, and Alex Padilla, while also exploring possible funding through the California state budget with support from John Laird. The funding would help advance the proposed zero-emission passenger rail project and associated environmental analysis needed before any construction decisions can be made. Learn more in this Santa Cruz Sentinel article.
Two-Way Traffic on Murray Street Bridge Ends Early: A temporary effort to allow two-way traffic on the Murray Street Bridge lasted only about a week before being discontinued due to safety concerns. The bridge had reopened in late January with only eastbound traffic after a lengthy closure for construction, prompting nearby businesses and community members to request restored access in both directions. In response, the city tested a one-lane, alternating traffic system controlled by automated signals beginning in early March. After reviewing conditions during the trial period, officials ended the program and returned the bridge to one-way eastbound traffic. Learn more in this Santa Cruz Sentinel article.
Living Local
Pacific Avenue Affordable Housing Applications Now Open: Applications are now open for Pacific Station North, a seven-story affordable housing development at 902 Pacific Ave. in downtown Santa Cruz. The project will include 128 units for lower-income households, with some reserved for people experiencing or at risk of homelessness, as well as ground-floor commercial space and resident amenities. Applications are due by March 21st. Learn more in this Santa Cruz Local article.
Housing Authority Prepares for Housing Voucher Changes: The Housing Authority of Santa Cruz County is preparing for the end of federal emergency housing vouchers later this year and is also watching potential federal changes that would tighten citizenship and eligibility rules for rental assistance, concerns that could make it harder for some low-income households to keep their homes; local officials are trying to plan alternatives and ensure current voucher holders remain housed even as funding and policy shifts loom. Learn more in this Lookout Santa Cruz article.
Santa Cruz Council to Consider Coral Street Rezone: The Santa Cruz City Council is set to review a proposed rezoning of the Coral Street area that would create an overlay district allowing temporary housing, shelters, and fully affordable housing, with taller building heights than current zoning permits. The Planning Commission recommended sending the proposal to the council with a reduced maximum height to address neighborhood concerns while still meeting state housing requirements. The council will consider balancing these state mandates with local goals for housing, services, and community character. Learn more in this Santa Cruz Sentinel article.
Eco Update
Funding Secured for Santa Cruz Wharf Repair: In response to significant storm damage that partly destroyed the end of the historic Santa Cruz Municipal Wharf, Congressman Jimmy Panetta has secured $3.15?million in federal funding to support the Wharf Resilience and Rehabilitation Project, including a new south landing for boats and upgrades to better withstand climate impacts and earthquakes, with local officials saying the money represents one of the largest capital investments in the structure’s history and will help support businesses and community use. Learn more in this Pajaronian article.
Policy Pulse
Mayor Shares State of the City at Annual Chamber Breakfast: At the Santa Cruz Area Chamber’s Annual Member Breakfast in late February, Mayor Fred Keeley delivered his final State of the City address of his four-year term, reflecting on the city’s progress in housing and homelessness. He highlighted efforts such as new funding measures and major housing projects while noting that housing affordability and support for people experiencing homelessness remain ongoing challenges for Santa Cruz. Learn more in this Lookout Santa Cruz article.
Santa Cruz Primary Election Races Are Set: Most of the local contests for the June?2nd Santa Cruz County primary are locked in now that filing has ended. On the Santa Cruz City Council ballot, District?4 will see incumbent Scott Newsome face Hector Marin again, and in District?6, incumbent Renee Golder is challenged by Gabriella Noack. The mayoral field includes several hopefuls with varied backgrounds since the current mayor isn’t seeking reelection. For the County Board of Supervisors, District?3 is uncontested with incumbent Justin Cummings returning, while District?4 has Elias Gonzales and Tony Nuñez competing against Supervisor Felipe Hernandez. The primary winner could be decided outright if they secure a majority; otherwise top vote-getters move to November. Learn more in this Lookout Santa Cruz article.
The Business Beat
United Way to Lead Your Future Is Our Business Program: United Way of Santa Cruz County will take over the programs of the long-running nonprofit Your Future Is Our Business starting July?1, ensuring the continuation and growth of its mission to connect local students with internships, mentorships, and career opportunities. The transition allows United Way to expand the program’s reach and impact, guided by a leader with deep experience in its work, while preserving the legacy of 34?years of supporting youth career development. Learn more in this Lookout Santa Cruz article.