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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 Santa Cruz Adopts Active Transportation Plan: The City of Santa Cruz recently adopted an updated Active Transportation Plan that sets the framework for improving walking, biking, and rolling infrastructure across the City. The plan outlines a network of projects and policies aimed at making it safer and more convenient to travel without a car, including upgrades to bike lanes, sidewalks, and street crossings, along with programs to support safer routes to schools and key destinations. It also emphasizes equity, climate goals, and community input as central parts of implementation, with a focus on expanding access for people of all ages and abilities while reducing car dependence over time. Learn more in this Santa Cruz Sentinel article. Living Local Housing Lawsuit Could Reshape Development Rules: Multiple housing developments in Santa Cruz County are facing lawsuits that could significantly influence how future projects are reviewed and approved. The legal challenges center on disputes over state housing laws, including the “Builder’s Remedy,” timing of state housing plan certification, and whether local governments properly applied or delayed approvals for several multi-unit proposals. Developers argue that state law should allow their projects to proceed with fewer local barriers, while opponents and some officials contend the rules were misapplied or used to bypass local standards. The cases together involve hundreds of planned housing units and are being closely watched because their outcomes could clarify how much control cities and counties retain over development decisions amid California’s broader push to increase housing production. Learn more in this Santa Cruz Local article. Campus & Community Eco Update Battery Storage Developer Seeks State Approval: The developer behind a proposed battery energy storage facility near Watsonville is shifting course to seek approval from the California Energy Commission instead of continuing with Santa Cruz County’s permitting process. The move is driven by concerns about meeting project deadlines tied to state grid requirements, as well as delays and new local ordinance requirements that the company says could create financial and scheduling risks. By pursuing the state “opt-in” process, the project would be reviewed under a faster, centralized approval system that still includes environmental review, safety standards, and coordination with local emergency responders, but would reduce the county’s direct control over permitting decisions. Learn more in this Mercury News article. Policy Pulse Santa Cruz Begins City Charter Updates: The City of Santa Cruz is reviewing proposed updates to its governing charter as part of a modernization effort aimed at improving clarity and consistency with current state law. The changes include updating language to be more inclusive, refining rules around elections and public meetings, and eliminating outdated or conflicting provisions. The proposals will be considered at an upcoming public hearing on May 26, with residents invited to provide feedback in advance, including written comments submitted to the City Clerk before the May 25 deadline. The amendments are being prepared for potential placement on the November 2026 ballot. Learn more here. County Unveils $1.29B Proposed Budget: Santa Cruz County has introduced a proposed $1.29 billion budget for the upcoming fiscal year that aims to maintain essential public services while navigating significant financial pressures. The spending plan funds roughly 2,700 positions and relies on a mix of ongoing revenues and one-time reserves to close a projected gap between income and expenses. Major cost drivers include employee compensation, rising benefits and insurance expenses, and increased service demand in areas like health and human services, which account for the largest share of spending. County officials note that reduced federal and state funding, combined with structural budget imbalances and inflationary pressures, will require longer-term adjustments beyond the current cycle, even as the plan avoids layoffs and preserves core programs for now. The County is holding a series of budget hearings to allow for input from the public: Wednesday, June 10, 2026 at South County Government Center, 500 Westridge Dr., Watsonville; Thursday, June 11, 2026 at Board Chambers, 701 Ocean St., Santa Cruz; Wednesday, June 24, 2026 at South County Government Center, 500 Westridge Dr., Watsonville. Learn more in this Santa Cruz Sentinel article. The Business Beat South End of Santa Cruz Wharf Reopens: A community celebration marked the reopening of the Santa Cruz Wharf’s southern end after completion of extensive repairs following storm damage that had closed the area for more than a year. Local officials, city staff, and residents gathered for brief remarks and a festive public event that included family-friendly activities, live entertainment, and opportunities to explore the restored section of the wharf. The reopening was presented as a milestone for both public access and local businesses, restoring a popular gathering place with views of Monterey Bay while highlighting ongoing efforts to strengthen the structure against future storm impacts. Learn more in this Santa Cruz Sentinel article. Capitola Mall Site Zoned For Future Development: The Capitola Mall site is slated for a major transition as long-awaited redevelopment plans begin moving forward. Local officials have approved zoning changes that open the door for a large-scale mixed-use transformation, potentially adding housing, a hotel, conference space, and updated commercial areas while retaining some existing retail tenants. The property has experienced gradual decline in traditional mall activity over time, but has also evolved into a mix of local businesses and community uses. The new plans aim to revitalize the site into a more modern destination that blends residential, commercial, and visitor-serving development while maintaining its role as a regional shopping and gathering place. Learn more here.
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
Santa Cruz Adopts Active Transportation Plan: The City of Santa Cruz recently adopted an updated Active Transportation Plan that sets the framework for improving walking, biking, and rolling infrastructure across the City. The plan outlines a network of projects and policies aimed at making it safer and more convenient to travel without a car, including upgrades to bike lanes, sidewalks, and street crossings, along with programs to support safer routes to schools and key destinations. It also emphasizes equity, climate goals, and community input as central parts of implementation, with a focus on expanding access for people of all ages and abilities while reducing car dependence over time. Learn more in this Santa Cruz Sentinel article.
Living Local
Housing Lawsuit Could Reshape Development Rules: Multiple housing developments in Santa Cruz County are facing lawsuits that could significantly influence how future projects are reviewed and approved. The legal challenges center on disputes over state housing laws, including the “Builder’s Remedy,” timing of state housing plan certification, and whether local governments properly applied or delayed approvals for several multi-unit proposals. Developers argue that state law should allow their projects to proceed with fewer local barriers, while opponents and some officials contend the rules were misapplied or used to bypass local standards. The cases together involve hundreds of planned housing units and are being closely watched because their outcomes could clarify how much control cities and counties retain over development decisions amid California’s broader push to increase housing production. Learn more in this Santa Cruz Local article.
Campus & Community
Eco Update
Battery Storage Developer Seeks State Approval: The developer behind a proposed battery energy storage facility near Watsonville is shifting course to seek approval from the California Energy Commission instead of continuing with Santa Cruz County’s permitting process. The move is driven by concerns about meeting project deadlines tied to state grid requirements, as well as delays and new local ordinance requirements that the company says could create financial and scheduling risks. By pursuing the state “opt-in” process, the project would be reviewed under a faster, centralized approval system that still includes environmental review, safety standards, and coordination with local emergency responders, but would reduce the county’s direct control over permitting decisions. Learn more in this Mercury News article.
Policy Pulse
Santa Cruz Begins City Charter Updates: The City of Santa Cruz is reviewing proposed updates to its governing charter as part of a modernization effort aimed at improving clarity and consistency with current state law. The changes include updating language to be more inclusive, refining rules around elections and public meetings, and eliminating outdated or conflicting provisions. The proposals will be considered at an upcoming public hearing on May 26, with residents invited to provide feedback in advance, including written comments submitted to the City Clerk before the May 25 deadline. The amendments are being prepared for potential placement on the November 2026 ballot. Learn more here.
County Unveils $1.29B Proposed Budget: Santa Cruz County has introduced a proposed $1.29 billion budget for the upcoming fiscal year that aims to maintain essential public services while navigating significant financial pressures. The spending plan funds roughly 2,700 positions and relies on a mix of ongoing revenues and one-time reserves to close a projected gap between income and expenses. Major cost drivers include employee compensation, rising benefits and insurance expenses, and increased service demand in areas like health and human services, which account for the largest share of spending. County officials note that reduced federal and state funding, combined with structural budget imbalances and inflationary pressures, will require longer-term adjustments beyond the current cycle, even as the plan avoids layoffs and preserves core programs for now. The County is holding a series of budget hearings to allow for input from the public: Wednesday, June 10, 2026 at South County Government Center, 500 Westridge Dr., Watsonville; Thursday, June 11, 2026 at Board Chambers, 701 Ocean St., Santa Cruz; Wednesday, June 24, 2026 at South County Government Center, 500 Westridge Dr., Watsonville. Learn more in this Santa Cruz Sentinel article.
The Business Beat
South End of Santa Cruz Wharf Reopens: A community celebration marked the reopening of the Santa Cruz Wharf’s southern end after completion of extensive repairs following storm damage that had closed the area for more than a year. Local officials, city staff, and residents gathered for brief remarks and a festive public event that included family-friendly activities, live entertainment, and opportunities to explore the restored section of the wharf. The reopening was presented as a milestone for both public access and local businesses, restoring a popular gathering place with views of Monterey Bay while highlighting ongoing efforts to strengthen the structure against future storm impacts. Learn more in this Santa Cruz Sentinel article.
Capitola Mall Site Zoned For Future Development: The Capitola Mall site is slated for a major transition as long-awaited redevelopment plans begin moving forward. Local officials have approved zoning changes that open the door for a large-scale mixed-use transformation, potentially adding housing, a hotel, conference space, and updated commercial areas while retaining some existing retail tenants. The property has experienced gradual decline in traditional mall activity over time, but has also evolved into a mix of local businesses and community uses. The new plans aim to revitalize the site into a more modern destination that blends residential, commercial, and visitor-serving development while maintaining its role as a regional shopping and gathering place. Learn more here.