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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 METRO Proposes Sales Tax on November Ballot: Supporters of Santa Cruz Metro are working to place a half-cent countywide sales tax on the November 2026 ballot to sustain and expand bus service after temporary state funding runs out. The measure is intended to prevent major service cuts, layoffs of about 100 workers, and reduced frequency, while maintaining programs like free fares for youth and potentially expanding free or reduced transit to seniors, people with disabilities, and low-income riders. If approved, local sales tax rates would increase, but the funding would preserve recent service improvements whereas failure could lead to significant reductions in transit service starting in 2027. Learn more in this Santa Cruz Local article. RTC Continues Separation From Rail Line Operator: The Santa Cruz County Regional Transportation Commission is working toward an amicable split from its current rail operator, Progressive Rail, through a negotiated agreement that includes a financial settlement, allowing both parties to avoid litigation after a dispute over control of the rail line. The move would enable the commission to take greater control of the corridor, advance its rail-and-trail plans, and establish a new nonprofit entity to oversee operations, while also pursuing a contract with a different company to continue limited freight service in South County. Learn more in this Lookout Santa Cruz article. Living Local UCSC Recognized for Housing Strategy: UC Santa Cruz received a national innovation award for a long-range housing strategy that centers student success while addressing severe local housing challenges, including high costs and difficult building conditions. The plan emphasizes equity, inclusion, and sustainability, and outlines multiple projects and partnerships that significantly expand housing capacity for students, families, and the broader campus community. Developed through cross-department collaboration, the approach connects housing development to academic outcomes and long-term campus growth, and is being recognized as a model that other universities can replicate. Learn more here. Capitola Mall Site Zoned for Additional Housing: Capitola has reached a key milestone in updating zoning rules for the Capitola Mall area, completing a major step required to align with state housing mandates and pave the way for future redevelopment. The changes establish new standards that allow for significantly increased housing, mixed-use development, and greater building heights, helping the city meet long-term housing goals while creating a framework for revitalizing the aging mall site. Although no specific project has been approved yet, the updated zoning provides the foundation for developers to submit proposals that could transform the area into a higher-density residential and commercial hub. Learn more in this Santa Cruz Sentinel article. Workforce Housing Underway in Santa Cruz: A 100-unit workforce housing development has begun construction in Santa Cruz, to provide below-market rental homes for teachers and school staff, addressing local affordability challenges and helping improve educator recruitment and retention. The project is being built on district-owned land and is funded through voter-approved bonds, with design and construction led by Bogard Construction in partnership with architects and the local school district. Once completed, the multi-story complex will offer a mix of studio to three-bedroom apartments and is expected to open in 2028, creating long-term housing stability for employees of Santa Cruz City Schools. Learn more here. Eco Update Santa Cruz Launches Erosion Study: Santa Cruz is taking an initial step toward studying erosion risks and future project options at Lighthouse Point as part of a broader effort to better understand and manage long-term coastal change along West Cliff Drive. City officials recently approved funding for a consultant-led study that will assess hazards, the rate of erosion, and potential strategies ranging from shoreline protection measures to more nature-based or relocation approaches. The work is tied to a longer-term planning effort aimed at protecting public infrastructure, recreation areas, and economically important surf breaks while preparing for worsening coastal impacts over time. Learn more in this Santa Cruz Sentinel article. Santa Cruz Wharf To Fully Reopen This Month: The Santa Cruz Wharf is set to fully reopen on April 29th following more than a year of storm-related repairs that rebuilt the damaged end of the structure. The project restores a small section of the pier that was lost in severe winter waves, but it does not replace the entire collapsed portion or some former attractions. The updated design includes improved safety features, fewer openings for wildlife viewing to strengthen the structure, and basic visitor amenities like seating and parking. City officials say the work is part of a broader effort to make the wharf more resilient against future storms while supporting its role as a major local economic and tourism hub. Learn more from KSBW. Policy Pulse Supervisor Cummings Runs Unopposed: Santa Cruz County Supervisor Justin Cummings faces no declared opponent in the upcoming election cycle, leaving him positioned for an uncontested re-election. The race is part of a broader local electoral landscape in which several county and city offices are drawing limited competition. The Chamber’s upcoming public candidate forum will give residents an opportunity to hear from Supervisor Cummings and other local candidates as part of its effort to increase civic engagement ahead of the primary election. Learn more about this event on our website. County Considers Half-Cent Sales Tax Increase: Santa Cruz County leaders are considering a ballot measure that would ask voters to approve a temporary half-cent sales tax increase to help offset expected reductions in federal funding and stabilize local safety-net services such as health care, food assistance, and other county programs. The proposal would require state approval before it can go before voters and could generate tens of millions of dollars annually if passed. County officials say the additional revenue is aimed at preventing service cuts and addressing growing demand on local systems. Learn more in this Santa Cruz Local Article. The Business Beat Promote Your World Cup Watch Parties: With the FIFA World Cup 2026 approaching, the local business community is invited to be part of the excitement and help bring the global tournament atmosphere to our community. Businesses planning to show World Cup matches can use this survey to share which games they’ll be airing, their business type, hours, and other details. Learn more on the Visit Santa Cruz County website.
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
METRO Proposes Sales Tax on November Ballot: Supporters of Santa Cruz Metro are working to place a half-cent countywide sales tax on the November 2026 ballot to sustain and expand bus service after temporary state funding runs out. The measure is intended to prevent major service cuts, layoffs of about 100 workers, and reduced frequency, while maintaining programs like free fares for youth and potentially expanding free or reduced transit to seniors, people with disabilities, and low-income riders. If approved, local sales tax rates would increase, but the funding would preserve recent service improvements whereas failure could lead to significant reductions in transit service starting in 2027. Learn more in this Santa Cruz Local article.
RTC Continues Separation From Rail Line Operator: The Santa Cruz County Regional Transportation Commission is working toward an amicable split from its current rail operator, Progressive Rail, through a negotiated agreement that includes a financial settlement, allowing both parties to avoid litigation after a dispute over control of the rail line. The move would enable the commission to take greater control of the corridor, advance its rail-and-trail plans, and establish a new nonprofit entity to oversee operations, while also pursuing a contract with a different company to continue limited freight service in South County. Learn more in this Lookout Santa Cruz article.
Living Local
UCSC Recognized for Housing Strategy: UC Santa Cruz received a national innovation award for a long-range housing strategy that centers student success while addressing severe local housing challenges, including high costs and difficult building conditions. The plan emphasizes equity, inclusion, and sustainability, and outlines multiple projects and partnerships that significantly expand housing capacity for students, families, and the broader campus community. Developed through cross-department collaboration, the approach connects housing development to academic outcomes and long-term campus growth, and is being recognized as a model that other universities can replicate. Learn more here.
Capitola Mall Site Zoned for Additional Housing: Capitola has reached a key milestone in updating zoning rules for the Capitola Mall area, completing a major step required to align with state housing mandates and pave the way for future redevelopment. The changes establish new standards that allow for significantly increased housing, mixed-use development, and greater building heights, helping the city meet long-term housing goals while creating a framework for revitalizing the aging mall site. Although no specific project has been approved yet, the updated zoning provides the foundation for developers to submit proposals that could transform the area into a higher-density residential and commercial hub. Learn more in this Santa Cruz Sentinel article.
Workforce Housing Underway in Santa Cruz: A 100-unit workforce housing development has begun construction in Santa Cruz, to provide below-market rental homes for teachers and school staff, addressing local affordability challenges and helping improve educator recruitment and retention. The project is being built on district-owned land and is funded through voter-approved bonds, with design and construction led by Bogard Construction in partnership with architects and the local school district. Once completed, the multi-story complex will offer a mix of studio to three-bedroom apartments and is expected to open in 2028, creating long-term housing stability for employees of Santa Cruz City Schools. Learn more here.
Eco Update
Santa Cruz Launches Erosion Study: Santa Cruz is taking an initial step toward studying erosion risks and future project options at Lighthouse Point as part of a broader effort to better understand and manage long-term coastal change along West Cliff Drive. City officials recently approved funding for a consultant-led study that will assess hazards, the rate of erosion, and potential strategies ranging from shoreline protection measures to more nature-based or relocation approaches. The work is tied to a longer-term planning effort aimed at protecting public infrastructure, recreation areas, and economically important surf breaks while preparing for worsening coastal impacts over time. Learn more in this Santa Cruz Sentinel article.
Santa Cruz Wharf To Fully Reopen This Month: The Santa Cruz Wharf is set to fully reopen on April 29th following more than a year of storm-related repairs that rebuilt the damaged end of the structure. The project restores a small section of the pier that was lost in severe winter waves, but it does not replace the entire collapsed portion or some former attractions. The updated design includes improved safety features, fewer openings for wildlife viewing to strengthen the structure, and basic visitor amenities like seating and parking. City officials say the work is part of a broader effort to make the wharf more resilient against future storms while supporting its role as a major local economic and tourism hub. Learn more from KSBW.
Policy Pulse
Supervisor Cummings Runs Unopposed: Santa Cruz County Supervisor Justin Cummings faces no declared opponent in the upcoming election cycle, leaving him positioned for an uncontested re-election. The race is part of a broader local electoral landscape in which several county and city offices are drawing limited competition. The Chamber’s upcoming public candidate forum will give residents an opportunity to hear from Supervisor Cummings and other local candidates as part of its effort to increase civic engagement ahead of the primary election. Learn more about this event on our website.
County Considers Half-Cent Sales Tax Increase: Santa Cruz County leaders are considering a ballot measure that would ask voters to approve a temporary half-cent sales tax increase to help offset expected reductions in federal funding and stabilize local safety-net services such as health care, food assistance, and other county programs. The proposal would require state approval before it can go before voters and could generate tens of millions of dollars annually if passed. County officials say the additional revenue is aimed at preventing service cuts and addressing growing demand on local systems. Learn more in this Santa Cruz Local Article.
The Business Beat
Promote Your World Cup Watch Parties: With the FIFA World Cup 2026 approaching, the local business community is invited to be part of the excitement and help bring the global tournament atmosphere to our community. Businesses planning to show World Cup matches can use this survey to share which games they’ll be airing, their business type, hours, and other details. Learn more on the Visit Santa Cruz County website.