The council approved a “downtown vibrancy ordinance” with stronger requirements for property owners to keep vacant storefronts clean, a new requirement for city-approved window coverings, and a to-be-determined fee for properties left vacant for two years or more. 

The rules would apply to ground-level businesses on Pacific Avenue between Laurel and Water streets, but could expand citywide next year. The window coverings would cost $50,000 from a city trust fund for economic development.

The city council voted 6-0 to advance the vibrancy ordinance proposal. A vote on final approval is set for May 13. Councilmember Sonja Brunner, who is also the director of operations for the Downtown Association of Santa Cruz, was absent.

Nineteen commercial properties are vacant downtown, including 16 properties on Pacific Avenue, said Santa Cruz Economic Development Manager Rebecca Unitt. The city has recently seen success in bringing in new businesses with 14 stores opened downtown since November 2024, Unitt said.

Buildings recently vacated by New Leaf Community Markets and O’Neill Surf Shop may soon be filled. One shop has a lease agreement underway, and the other has interest from a potential tenant, said Deputy City Manager Bonnie Lipscomb. 

Separately, the city council advanced plans for:

• Discounted parking for downtown movie theater patrons, with a one-year pilot parking validation program that would cost $50,000 from the economic development trust fund. 
• A temporary permit program for outdoor dining in downtown alleys.

The proposals are part of a larger city effort to boost downtown businesses that began during the Covid-19 pandemic.

City staff plan to return with proposals for:

• Cheaper parking passes for people who work downtown.
• A streamlined and less expensive permit process for some new business tenants.
• A public play structure in Plaza Lane near Hidden Peak Teahouse, plus other art, lighting and pop-up events in downtown alleys. “One of my New Year’s resolutions was trying to get pickleball downtown,” said Unitt.

“While I hear podcasts, and hear on the news of other communities’ downtown sort of, really fizzling and even dying, that’s not the case with our downtown,” said Councilmember Shebreh Kalantari-Johnson. 

Santa Cruz resident Kyle Jordan said the city should close Pacific Avenue to car traffic, similar to Pearl Street in Boulder, Colo.

“They can walk, and eat food, and sit on benches and look at the beautiful views without car smog, without traffic horns honking, without anybody playing loud music out their car windows,” he said. “I think that would make for a more vibrant downtown.” 

Wharf rebuild, fire consolidation

The city council Tuesday also approved: 

• Preliminary plans to rebuild part of the Santa Cruz Municipal Wharf by early 2026. The city council could later opt to rebuild more of the lost length of the wharf. 
• Money to study possible service sharing or consolidation between the city’s fire department, Scotts Valley Fire Protection District, and Central Fire District. “It’s something we’ve been talking about for a long time,” said Golder. “I think it’ll help with calls to service and possibly training opportunities for firefighters throughout the county.”
• A new bike lane on Bay Street between California and High streets, alongside Bay Street Elementary. City staff plan to return to city council to request some Bay Street intersections next to the lanes to be closed to left turns. The council also directed staff to return with suggestions to curb unsafe e-bike use. 

Questions or comments? Email [email protected]. Santa Cruz Local is supported by members, major donors, sponsors and grants for the general support of our newsroom. Our news judgments are made independently and not on the basis of donor support. Learn more about Santa Cruz Local and how we are funded.