Santa Cruz rolls out fee cuts and incentives to revive its downtown storefronts

SANTA CRUZ COUNTY, Calif. (KION-TV) -- Downtown Santa Cruz could soon see a surge in new business activity, thanks to a new city plan aimed at cutting red tape and attracting entrepreneurs to long vacant storefronts.

“I’ve noticed a lot of vacancies in the past six or seven years, and it seems to be increasing,” David Jones vendor Downtown Santa Cruz said.

“It’d be a shame for those to stay vacant for another six months or a year,” the owner added.

The city currently tracking 16 vacant businesses on pacific avenue and around 20 throughout the rest of downtown. 

In response, the City Council recently approved a series of economic development incentives, including waiving up to $14,000 in permit and planning fees for the first 20 qualifying businesses.

“The City Council approved removal of up to $14,000 in planning and building permit fees for businesses that are doing tenant improvements on vacant ground floor commercial spaces,” Rebecca Unitt, Economic Development Manager, said.

Unitt said it’s part of a larger effort to streamline the process and attract new investment.

“This is part of a package of incentives we’ve put together to support businesses, save them time and money in the permit process, and really incentivize new business activity in the city,” Rebecca Unitt said.

Many local businesses see it as a step in the right direction.

“I think if the city’s willing to waive almost $14,000 in permit fees for new businesses, that would generate a lot of interest,” Dyane Villalobos, owner of Childish Toy Shop on Pacific Avenue said. “Everything has been going up in price, every little bit helps."

Still, some say the problems downtown go beyond permits and fees.

“I think that’s a small enticement. It might catch some people’s attention,” one vendor said. “But the element down here needs some work. When you have vacant areas, it attracts more vagrants and some of the homeless, just because no one’s there,” the vendor said.

Another major change in the plan, businesses like restaurants and salons, which normally need special permits costing thousands and taking months, will be able to skip that step if they move into a space with an already approved permit.

“The process of waiting to get the use permit took months to the point where I almost backed out,” Dyane Villalobos, owner of Childish Toy Shop on Pacific Avenue said. “We had to be fast-tracked to get it done. That’s money lost for business owners.”

Others agreed that shortening the timeline and lowering costs could have a big impact.

“If that portion could be cut in half, I think a lot more people would give downtown a shot,” Dyane Villalobos, owner of Childish Toy Shop on Pacific Avenue said. “Waiving some fees and fast-tracking the process would absolutely benefit everyone."

The fee waiver is available now for businesses making improvements in vacant storefronts, If you’re interested, reach out soon, only the first 20 businesses will qualify.