SANTA CRUZ >> Dunkin’ Donuts is coming in to join Habit Burger and The Starving Musician is moving out.

Derek Timm of Ocean Commons LLC, which owns the property, confirmed the global doughnut chain has leased space in a development under construction at 1314 Ocean St.

The multimillion-dollar project, the first under the city’s new Ocean Street guidelines with wider sidewalks, fancier streetlights and built around redwood trees, got underway with demolition in August.

“We hope to open by summer,” Timm said.

For decades, doughnut lovers have stopped across the street at locally-owned Ferrell’s Donuts, and before that Winchell’s.

Dunkin’ Donuts applied last week for a permit for tenant improvements, according to BuildZoom.com.

This Dunkin’ Donuts, the first in Santa Cruz County, will have “a local Monterey Bay owner,” Timm said.

T-Mobile, a global wireless company, has leased space in the complex, he added, leaving one space of 2,100 square feet that could go to a deli operator.

Framing for the new building is going up next to The Starving Musician, 1400 Ocean St., which will move downtown after 15 years to make way for a driveway and a parking lot with 60 spaces for Habit Burger, Dunkin’ Donuts and T-Mobile.

Demolition of the music store building is scheduled for January.

“We are not closing, we are merely moving,” said Jeff “Stretch” Riedle, 61, Starving Musician manager and drum guy who opened for surf rock guitarist Dick Dale this month.

Riedle has worked at the store 13 years and will oversee the move after the Christmas rush.

“You’re looking at prime real estate,” he said of the properties on Ocean Street, traversed by millions trekking to the beach and Boardwalk.

Initially, Riedle was told the music store must be out by Dec. 31.

That’s been extended to Jan. 15.

The Starving Musician will move to 1003 Pacific Ave., occupied by Union Grove Music for 26 years, and fill what otherwise would be an empty spot next to the Catalyst in Santa Cruz’ Music Row.

Richard Gellis, who opened Union Grove Music in 1972, started a going-out-of business sale in November and plans to retire.

Riedle, a longtime Santa Cruz resident, works for Jeff White and Dave Stein, who own three Starving Musician stores.

A staff of seven works at the Santa Cruz location, which is packed with musical instruments, new and used, and for all levels, beginning, intermediate and high end.

Musicians are welcome to try out guitars.

“You need to touch an instrument before you buy it,” said Riedle, acknowledging the competition brick-and-mortar stores face from sellers online.

“We always match prices on new stuff,” he said, explaining the store’s longevity. “We guarantee everything, including used. We have a 90-day warranty on used.”

He expects to be even busier downtown.

“Union Grove will be the best thing that ever happened to us,” he predicted.

Stacey Croft, 42, of Ben Lomond, shopping with a pal Wednesday, said of all the music stores in Santa Cruz, “This is my favorite.”

Elihu Escovedo, 35, of Santa Cruz, playing a guitar, welcomed the move. He spends more time downtown.

“I like this store,” he said. “They have great prices, fair prices.”

Santa Cruz County Bank is financing the new development.

The general contractor is Ocean St. Builders LLC, a joint venture of OM Builders of Soquel and Don Hays Builder of Santa Cruz, which is using local subcontractors.

Timm said he expected Habit Burger to post hiring notices in April.

THE STARVING MUSICIAN

What: Store selling new and used musical gear to move to 1003 Pacific Ave., Santa Cruz, in mid-January.

Where: 1400 Ocean St., Santa Cruz.

Manager: Jeff “Stretch” Riedle, aka Drum Guy.

Information: 831-426-1975 or StarvingMusician.com.