Until five or six years ago, Bella Napoli on Water Street was my favorite Italian restaurant in Santa Cruz. Then the chef left, things went downhill, and the place closed about a year later. Another Italian place replaced it, but it never caught on and closed a few months ago.
Now Bella Napoli is back with a new name: Limoncello. It is in the same location (on Water near Ocean), has the same chef, and even the same waiters.
Limoncello serves very good, mostly southern Italian dishes. It has the feel of a neighborhood place. Entrees range from the mid-teens to the low $20 range. It has only been open three weeks or so, so it's not crowded yet. But it will be soon.