How Transportation Investments Shape Santa Cruz’s Economy

By Chamber Executive Director, Kristen Brown | Santa Cruz County Chamber of Commerce

Santa Cruz County is undergoing a wave of major transportation improvements aimed at creating a more connected, efficient, and resilient network. The Murray Street Bridge seismic retrofit is underway, the Highway One multimodal project continues, the Regional Transportation Commission is considering intercity passenger rail, and the METRO Transit District continues to develop long-term countywide transit solutions. While some of these investments require temporary detours and road closures that can be disruptive to our daily lives, they are also critical to reducing congestion, improving mobility for residents, employees, and visitors, and supporting our local economy through enhanced connectivity and increased efficiency.

Santa Cruz County’s economy is closely tied to its ability to move people and goods efficiently. Investing in transportation can transform a local economy by encouraging business growth and expanding market opportunities. Strong transportation networks help businesses operate more efficiently, reach more customers, and attract a larger workforce. These investments also influence how land is used, especially in areas with transit services. Across the country, new developments have emerged around rail stations and high-quality transit stops, as businesses and investors recognize the value of high-traffic, transit-accessible locations. Additionally, projects that incorporate Complete Streets principles, such as safer bike lanes, improved sidewalks, and multimodal transit connections, encourage more foot traffic in business districts, benefiting local retailers and service providers.

A study by the U.S. Chamber of Commerce notes that when infrastructure deteriorates, businesses face significant challenges that impact efficiency and profitability. Traffic congestion leads to delays in appointments and deliveries, reducing the number of jobs service providers can complete in a day and increasing costs for companies reliant on transportation. Unsafe or closed roads and bridges force businesses to find alternative routes for moving materials, adding expenses and logistical headaches. Poor infrastructure also affects employees, making commutes longer and more costly. Additionally, roads and bridges that can’t support heavy vehicles require businesses to adjust transportation plans, further increasing operational costs and delays.

Santa Cruz County’s current local transportation and transit investments align with broader regional planning efforts led by the Association of Monterey Bay Area Governments (AMBAG), which serves as the region’s federally designated Metropolitan Planning Organization (MPO). AMBAG, which manages the region’s transportation demand models along with population and employment forecasts, is currently working to update the Metropolitan Transportation Plan/Sustainable Communities Strategy (MTP/SCS), which identifies long-term transportation needs and funding priorities. Public input will play a critical role in shaping this plan, with community meetings scheduled throughout April 2025 to gather feedback on roadways, public transit, bike infrastructure, and freight movement. Learn more about how you can shape the future of our region's transportation and transit investments at ambag.org.

A 2020 report by the American Public Transportation Association estimates that enhanced transportation investments “…can have a total effect on the economy in the range of 5 times the amount being spent annually.” While ongoing and upcoming transportation projects may require temporary adjustments, they are ultimately part of a larger plan for the kind of ongoing investment in projects and programs that are essential for long-term sustainability and economic resilience in the Santa Cruz area. Business owners and residents can help shape the future of transportation in Santa Cruz by staying informed and engaged, ensuring that Santa Cruz remains a vibrant, connected, and economically strong community.

View the original article at https://web.santacruzchamber.org/news/newsarticledisplay.aspx?ArticleID=2084