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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 RTC Responds to Grand Jury Findings: The Santa Cruz County Regional Transportation Commission (RTC) responded to the Civil Grand Jury’s findings regarding its operations and oversight, pushing back on several of the report’s conclusions while acknowledging areas where improvements could be made. The RTC emphasized its existing accountability measures, clarified how transportation funding and decision-making work, and outlined steps it is taking to address the Grand Jury’s concerns. The response reflects a broader effort by the agency to provide additional context around its responsibilities and demonstrate that it is actively working to improve transparency, governance and public confidence. Read more in this Santa Cruz Sentinel Article. City of Santa Cruz Refutes Grand Jury Claims: The City of Santa Cruz is pushing back on most of the Civil Grand Jury’s criticism of pedestrian safety, arguing that it has already taken significant steps toward Vision Zero and continues to invest in traffic safety improvements. City officials point to projects such as safer crossings, protected bike lanes and roadway upgrades, as well as an upcoming safety action plan. The city also disputes the Grand Jury’s assessment of police enforcement, saying speeding and DUI enforcement are both addressed based on data and available resources. Officials acknowledged some room for improvement in public awareness of hazard-reporting tools and in proactively identifying sidewalk and crosswalk issues. Read more in this Santa Cruz Sentinel article. Campus & Community Pell Grants Expand to Short-Term Job Training: The new Workforce Pell program expands federal financial aid to qualifying short-term job training programs, giving lower-income students a new way to afford career-focused education without taking on debt. Beginning in 2026, eligible programs lasting roughly 8 to 15 weeks can qualify for Pell funding if they prepare students for high-demand careers and meet requirements for completion, job placement and employer demand. The change could make shorter workforce credentials more accessible while helping employers address critical staffing needs, though California is still working through the systems and approval process needed to fully implement the program. Learn more here. Living Local Keeley Addresses Downtown Investments: In his recent Mayor's Message, Santa Cruz Mayor Fred Keeley highlights the city’s major investments in downtown Santa Cruz as part of a long-term effort to strengthen the heart of the community. The message points to ongoing projects and public improvements aimed at creating a more vibrant, accessible and economically resilient downtown, while also emphasizing the importance of supporting local businesses and attracting new investment. Keeley frames the work as a long-term commitment that will shape downtown Santa Cruz for future generations. Read the full message here. MidPen Opens 50-Unit Housing Development: MidPen Housing has completed and opened Jessie Street Terrace in Santa Cruz, transforming a former 14-room hotel into 50 studio and one-bedroom permanent supportive housing units for residents earning 20% to 50% of the area median income. About half of the homes are designated for veterans, with additional units serving people who have experienced homelessness. The development also provides on-site services and case management through partnerships with the VA and Santa Cruz County Health Services Agency, adding both affordable housing and supportive services for some of the community’s most vulnerable residents. Learn more here. Eco Update Santa Cruz Advancing West Cliff Improvements: The City of Santa Cruz is advancing two projects to improve safety and preserve public access along the West Cliff path as erosion and coastal conditions continue to threaten existing infrastructure. Near Lighthouse Field and It’s Beach, a vulnerable viewing area will be permanently closed and the site restored with native landscaping, while near Getchell Street, the path will be moved farther inland as the bluff edge approaches the existing route. The Getchell project will remove eight parking spaces and require a temporary traffic detour during construction. Both projects received consideration by the Planning Commission and City Council in August and are now moving toward construction and bidding. Policy Pulse Scotts Valley City Manager Announces Resignation: Scotts Valley City Manager Mali Lagoe has announced her resignation after serving as the city’s top administrator, marking a leadership transition for the city. Lagoe’s departure will require the City Council to begin the process of identifying her successor and managing the transition in the city manager’s office. The change comes as Scotts Valley continues to oversee major municipal priorities, including development, infrastructure and long-term planning. Learn more here. Business Beat Santa Cruz Launching New Customer Portal: The City of Santa Cruz is launching a new Access Santa Cruz customer portal on October 5 to streamline permitting, licensing and service requests. The centralized system will allow customers to apply for permits, make payments, track application status and submit service requests in one place. The City will provide additional information as the launch approaches, and no action is required from customers at this time. Learn more here. Bagelry Under New Ownership: The Bagelry, a Santa Cruz institution founded in 1977, is entering its 50th year under new ownership after founder John Hamstra retired and sold the business to longtime employee Sidney Grant and his wife, Tal Kamran. Grant, who worked at the Bagelry for six years and grew up visiting the local cafés, plans to preserve the business’s longstanding menu, affordable pricing and staff across its three locations in Santa Cruz County. The transition marks a new chapter for the nearly five-decade-old local business while maintaining the character that has made it a community favorite. Learn more in this Lookout article. Two Chamber Members Receive Sunset Travel Awards: Sunset Magazine’s 2026 Travel Awards recognized Santa Cruz as a standout West Coast destination, with both the Dream Inn Santa Cruz and La Bahia Hotel & Spa included among the honored properties. The recognition highlights Santa Cruz’s continued appeal as a coastal travel destination, showcasing its oceanfront accommodations, local character and proximity to attractions such as the Beach Boardwalk and Wharf. 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
RTC Responds to Grand Jury Findings: The Santa Cruz County Regional Transportation Commission (RTC) responded to the Civil Grand Jury’s findings regarding its operations and oversight, pushing back on several of the report’s conclusions while acknowledging areas where improvements could be made. The RTC emphasized its existing accountability measures, clarified how transportation funding and decision-making work, and outlined steps it is taking to address the Grand Jury’s concerns. The response reflects a broader effort by the agency to provide additional context around its responsibilities and demonstrate that it is actively working to improve transparency, governance and public confidence. Read more in this Santa Cruz Sentinel Article.
City of Santa Cruz Refutes Grand Jury Claims: The City of Santa Cruz is pushing back on most of the Civil Grand Jury’s criticism of pedestrian safety, arguing that it has already taken significant steps toward Vision Zero and continues to invest in traffic safety improvements. City officials point to projects such as safer crossings, protected bike lanes and roadway upgrades, as well as an upcoming safety action plan. The city also disputes the Grand Jury’s assessment of police enforcement, saying speeding and DUI enforcement are both addressed based on data and available resources. Officials acknowledged some room for improvement in public awareness of hazard-reporting tools and in proactively identifying sidewalk and crosswalk issues. Read more in this Santa Cruz Sentinel article.
Campus & Community
Pell Grants Expand to Short-Term Job Training: The new Workforce Pell program expands federal financial aid to qualifying short-term job training programs, giving lower-income students a new way to afford career-focused education without taking on debt. Beginning in 2026, eligible programs lasting roughly 8 to 15 weeks can qualify for Pell funding if they prepare students for high-demand careers and meet requirements for completion, job placement and employer demand. The change could make shorter workforce credentials more accessible while helping employers address critical staffing needs, though California is still working through the systems and approval process needed to fully implement the program. Learn more here.
Living Local
Keeley Addresses Downtown Investments: In his recent Mayor's Message, Santa Cruz Mayor Fred Keeley highlights the city’s major investments in downtown Santa Cruz as part of a long-term effort to strengthen the heart of the community. The message points to ongoing projects and public improvements aimed at creating a more vibrant, accessible and economically resilient downtown, while also emphasizing the importance of supporting local businesses and attracting new investment. Keeley frames the work as a long-term commitment that will shape downtown Santa Cruz for future generations. Read the full message here.
MidPen Opens 50-Unit Housing Development: MidPen Housing has completed and opened Jessie Street Terrace in Santa Cruz, transforming a former 14-room hotel into 50 studio and one-bedroom permanent supportive housing units for residents earning 20% to 50% of the area median income. About half of the homes are designated for veterans, with additional units serving people who have experienced homelessness. The development also provides on-site services and case management through partnerships with the VA and Santa Cruz County Health Services Agency, adding both affordable housing and supportive services for some of the community’s most vulnerable residents. Learn more here.
Eco Update
Santa Cruz Advancing West Cliff Improvements: The City of Santa Cruz is advancing two projects to improve safety and preserve public access along the West Cliff path as erosion and coastal conditions continue to threaten existing infrastructure. Near Lighthouse Field and It’s Beach, a vulnerable viewing area will be permanently closed and the site restored with native landscaping, while near Getchell Street, the path will be moved farther inland as the bluff edge approaches the existing route. The Getchell project will remove eight parking spaces and require a temporary traffic detour during construction. Both projects received consideration by the Planning Commission and City Council in August and are now moving toward construction and bidding.
Policy Pulse
Scotts Valley City Manager Announces Resignation: Scotts Valley City Manager Mali Lagoe has announced her resignation after serving as the city’s top administrator, marking a leadership transition for the city. Lagoe’s departure will require the City Council to begin the process of identifying her successor and managing the transition in the city manager’s office. The change comes as Scotts Valley continues to oversee major municipal priorities, including development, infrastructure and long-term planning. Learn more here.
Business Beat
Santa Cruz Launching New Customer Portal: The City of Santa Cruz is launching a new Access Santa Cruz customer portal on October 5 to streamline permitting, licensing and service requests. The centralized system will allow customers to apply for permits, make payments, track application status and submit service requests in one place. The City will provide additional information as the launch approaches, and no action is required from customers at this time. Learn more here.
Bagelry Under New Ownership: The Bagelry, a Santa Cruz institution founded in 1977, is entering its 50th year under new ownership after founder John Hamstra retired and sold the business to longtime employee Sidney Grant and his wife, Tal Kamran. Grant, who worked at the Bagelry for six years and grew up visiting the local cafés, plans to preserve the business’s longstanding menu, affordable pricing and staff across its three locations in Santa Cruz County. The transition marks a new chapter for the nearly five-decade-old local business while maintaining the character that has made it a community favorite. Learn more in this Lookout article.
Two Chamber Members Receive Sunset Travel Awards: Sunset Magazine’s 2026 Travel Awards recognized Santa Cruz as a standout West Coast destination, with both the Dream Inn Santa Cruz and La Bahia Hotel & Spa included among the honored properties. The recognition highlights Santa Cruz’s continued appeal as a coastal travel destination, showcasing its oceanfront accommodations, local character and proximity to attractions such as the Beach Boardwalk and Wharf. Learn more here.