Applications for the Downtown Pops! program are open for 701 Front St.

Program Description:

Downtown Pops! is the City's program designed to lower the barriers to entry for businesses looking to open a brick and mortar space. In addition, the program intends to reduce the risk for property owners to take on new tenants during challenging times. Through the program, the City enters a master lease with downtown commercial property owners with vacant spaces on Pacific Avenue, provides a guaranteed minimum rent, and then sub-leases these spaces to various pop-up tenants for a six-month term. Lease terms are set at a percentage of monthly sales. Long term lease options may be negotiated with the broker or property owner based on initial six-month term.

Who Should Apply?

We invite established businesses or groups interested in:

• Shared Retail Space: Collaborate with other retailers to create a vibrant and diverse shopping experience.

• Temporary Expansion: Test new products or concepts in a prime downtown location.

• Unique Retail Concepts: Offer innovative and engaging shopping experiences.

How does the lease structure work?

Selected business tenants in the program would pay the greater of a) 10% of sales, or b) $1/ square foot ($1,320), not to exceed $1.50/ square foot ($1,980).

If your 10% of monthly sales are less than the equivalent of $1/sq. ft. ($1,320), the City, would supplement the percentage rent to meet $1/sq. ft. rent.

For example, if you made $10,000 in adjusted gross sales for the month, 10% is $1,000. Since this is less than $1/ square foot ($1,320); the City would supplement your rent with $320 to reach the minimum rent of $1320.

Any additional rent collected would be reserved by the City on the tenant’s behalf to support months where the minimum rent is not reached, the tenant’s future expansion into a permanent business concept, or returned at the end of the term. All initial lease terms will be for six months.

For example, if you made $20,000 in adjusted gross sales for the month, 10% is $2,000. Since this is more than $1.50/ square foot ($1,980); the City would roll over the additional $20 towards a month where sales did not reach the minimum rent of $1,320.

A note for multi-tenant applicants: While we will only accept a single monthly rent payment from the group, the allocation of rent among individual tenants is a matter to be determined by the group themselves. We encourage open communication and a fair distribution of costs based on factors such as square footage, sales volume, and other relevant considerations.

Calculating your Financial Projections:

• Security Deposit: You'll pay a security deposit of $1.50 per square foot of your leased space.
  • $1.50 x 1,320 sq. ft. = $1,980

• First Month's Rent: The initial month's rent is a flat rate of $1 per square foot.
  • $1.00 x 1,320 sq. ft. = $1,320
• Monthly Rent Structure: Following the first month, you pay the greater of a percentage of your adjusted gross monthly sales as rent (currently set at 10%), or $1-$1.50/ sq ft.
  • For example, if you made $10,000 in adjusted gross sales for the month, 10% is $1,000
• Minimum Rent Guarantee: The City guarantees a minimum rent of $1 per square foot to the landlord, even if sales are low. If needed, the city will contribute to ensure the total rent reaches the minimum $1 per square foot. This provides peace of mind during slower months.
  • $1.00/sq. ft. x 1,320 sq. ft. = $1,320 Minimum rent
  • $1,320- $1,000 (your 10%) = $320 paid by the City to reach minimum rent
• Growth Incentive: If your sales are strong and total rent exceeds asking price ($1.50 per square foot = $1,980), the extra amount is held to cover lower sales months or returned at the end of the lease term if funds remain.

How do property owners get involved?

We are seeking Downtown Santa Cruz property owners with vacant ground-floor spaces, primarily on Pacific Avenue, interested in participating in the program. Property owners can complete this interest form or contact Sarah Domondon at [email protected] to learn more and sign up.

Past Downtown Pops! Businesses:

Inspired by her search for quality toys for her young daughter, owner Dyane Villalobos started thinking about the idea of starting her own toy store. Villalobos’ vision is to create a clean, modern and welcoming space that celebrates the magic and wonder of toys, and offers a family-friendly destination. As a woman-owned, minority-owned, queer-owned independent business, creating a culture of openness, inclusivity and community is core to the Childish ethos.

Read more about Childish's journey in this great Lookout Santa Cruz article!

Terra and Self is a sustainable skincare brand focused on celebrating all beauty through fun and simple formulas. Owner Kenne Johnson-Scianna created Terra and Self not to be a brand that “makes” you beautiful, but one that sees your beauty now and celebrates who you are, uniquely and naturally. Now at their new location on 347 Soquel Ave, Terra and Self continues to feature sustainable and clean skincare products created by Kenne herself, alongside local goods from other women of color-owned businesses.

Founded in Capitola Village in August of 2019, Curated by the Sea (now M.K. Contemporary Art) regrouped and relocated to a light filled, 4,600 sq. ft. empty storefront in the heart of downtown Santa Cruz. The gallery represents the work of 30+ local and regional artists as well as exhibit a rotating series of themed shows and special events.

A staple in the Downtown design community, Stripe held a temporary pop-up at 1528 Pacific Ave. as they reimagined their Walnut Avenue space. Owner Suna Lock led the brand's transition from an airy boutique carrying apparel, gifts & vintage items to a thoughtfully curated showroom, focusing on the brand's roots of design, homewares and furnishings. You’ll find both new and old, familiar things in their newly reimagined space at 107 Walnut Ave.

RREVV is an artist-run gallery, featuring industrial chic leather handbags and accessories, custom furniture, bespoke lighting, jewelry and other local art. Artists Rachel and Rigel Hunter opened the gallery on Pacific Avenue in December 2021, featuring their personal work along with revolving guest artists.