Scotts Valley council unanimously approves resolution consenting to Santa Cruz Mountain Wine Improvement District

The Scotts Valley City Council voted unanimously to adopt Resolution No. 2070, consenting to the County of Santa Cruz’s formation of the Santa Cruz Mountain Wine Improvement District, a self-funded benefit assessment program to market the Santa Cruz Mountains American Viticultural Area (AVA).

The district would authorize a marketing assessment on participating wineries to fund regionwide promotion. Kiki McKay, executive director of the Santa Cruz Mountain Winegrowers Association, told the council the district is modeled on tourism marketing districts and would allow wineries to pool resources for digital advertising, billboards and regional events. “We anticipate the budget moving about an an extra $450,000, annually,” McKay said, adding that roughly half of that would be allocated to marketing.

The proposal asks jurisdictions within the AVA to pass consent resolutions so the county can be the lead agency forming the district. McKay said the Santa Cruz Mountains AVA is geographically large and widely dispersed—about 450,000 acres with roughly 1,500 acres planted in vine—and that collective branding is important because there is no single contiguous “wine country” downtown.

Pelican Ranch owner Phil Cruz and Mary Lindsey of Munns Vineyard spoke in support, describing the region’s historic and current vineyard activity and saying the district could help drive direct-to-consumer sales and tasting-room traffic. Cruz said the city center planned for Scotts Valley could provide a focal point for tasting rooms and events that would benefit from coordinated wine marketing.

Council members asked about projected revenues and whether the district could attract more tasting rooms or wineries; McKay cited examples from other regions and said some areas have shown double-digit increases in direct-to-consumer sales after forming similar districts. Councilmember comments noted outreach to the four wineries operating in Scotts Valley and described their responses as positive.

The council’s consent does not itself create the district or set an assessment rate; rather, it authorizes the county to proceed with formation steps requiring participating wineries’ assessments and further public hearings. The resolution passed by voice vote with no recorded roll-call tally. The council recorded no objections and the motion passed unanimously.

Council members and members of the winegrowers association said they expect next steps to include county-led notification to affected wineries, further stakeholder meetings and implementation details to be developed by the county and the association.