Once, 41st Avenue was the pride of Capitola. In the past 10 years, however, this has all changed, and taxable sales have dropped 24 percent.
Once, 41st Avenue was the pride of Capitola: a thriving, bustling shopping district that was the pride of the entire county. In the past 10 years, however, this has all changed, and taxable sales have dropped from $487 million to just $368 million, a 24 percent decline. With 82 percent of the city’s sales tax revenues coming from 41st Ave., City Council has decided to act. At a meeting tonight, they will be discussing a report prepared for them by the Applied Development Economics consulting firm on how to revitalize the area.
According to the report, the problem with 41st Ave stems from the emergence of many large big box stores in other areas that compete with the more traditional shopping district. “With increased regional competition and an outdated retail model, it is unlikely to provide the same long-term sustainable economic engine as it has in the past.” One solution they suggest is to encourage mixed-use development, with retailers occupying the bottom floors of buildings, while the upper floors are made residential. This, says the report, will add “household purchasing power.” Read more at the Santa Cruz Sentinel.
