HomeMy WebLinkAboutb2economicdevelopmentstrategicplan
FROM: Michael Codron, Assistant City Manager
Prepared By: Lee Johnson, Economic Development Manager
Molly Cano, Tourism Manager
SUBJECT: ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE 2013-2014
RECOMMENDATION
Receive a progress report on implementation of the Economic Development Strategic Plan (EDSP).
DISCUSSION
Background
On October 16th, 2012 the City Council approved the adoption of the EDSP. The EDSP focuses on
creating a system that supports and sustains industries creating head of household jobs. The EDSP
continues to be organized into four overarching strategies including:
• Break Down Barriers to Job Creation
• Actively Support Knowledge & Innovation
• Promote and Enhance the San Luis Obispo Quality of Life
• Build on Existing Efforts and Strengthen Regional Partnerships
Each strategy has an underlying list of actions, metrics and outcomes that contribute towards
achieving the goals of the strategic plan. Table 3 of the EDSP includes a summary matrix of the
strategies, including timeframe to complete. The strategies identified as Short-Term and Ongoing
have been incorporated into the Economic Development Major City Goal for the 2013-2015
Financial Plan. Medium and Long-Term strategies will be incorporated into the Economic
Development work program in future financial plans.
While the EDSP is managed by the Economic Development Program, the actions are cross-
departmental and require the support and cooperation of many people in the City organization and
partner organizations. The remainder of the update focuses on each of the overarching strategies,
the status of each strategy and the focus for the next 12 months. The EDSP and Appendix A:
Background Report can be found on-line at www.slocity.org. A copy is provided in the Council
Reading File and is available to the public at the City Clerk’s Office.
Break Down Barriers to Job Creation
The first overarching strategy is breaking down the barriers to job creation. The primary actions are
grouped into two sub-areas, (1) Processing, and (2) Infrastructure and Fees.
Meeting Date
Item Number 3/18/14
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Economic Development Strategic Plan Update 2013-14 Page 2
1. Processing (Strategies 1.1 and 1.2)
A. Update. All processing strategies are considered to be ongoing and progress has been made
in key areas. In particular, the recommendations from the Community Development
Departments (CDD) Organizational Assessment have been used to develop a project plan to
execute a permit streamlining process. A Development Review Team (DRT) is in place to
ensure a consistent and expedient approach across all involved departments. Changes to the
DRT process are being implemented to provide a mechanism to track overdue plan checks
and track workflow commitments. A Continuous Improvement Group (CIG) has been
formed to ensure that there is cross department and cross-functional input, action and
alignment with the improvement process. The CIG is currently reviewing the major
processes from end to end and developing changes to improve the process.
The City has had success on specific projects using various proactive approaches like pre-
application meetings, quick response teams, fast track permitting and pre-determinant
scheduling. A perfect example of this success is the new MindBody Corporate Headquarters
located on Tank Farm Road. By working with the applicant, staff was able to commit to a
schedule that resulted in the project moving through the permitting process in 15 weeks. In
the past, similar projects have taken between 20-30 weeks.
B. Moving Forward. The focus of the CIG will be will be to continue to identify opportunities
for improvement in the permitting process. The next major milestone will be the
implementation of EnerGov in June. The tools available in the new system will allow staff
to have measurements in place to be able to determine the success of the improvement
efforts. While the anecdotal evidence has been positive, accurate measurements of the
process and the service levels will be extremely powerful in helping to improve the
processes and procedures. Staff will continue to use the creative proactive approaches to
streamline the current process while work continues on the long-term changes.
The CIG is making every effort to identify process improvements within the context of the
existing policy environment. Once the CIG group has implemented an array of process
changes that improve the timing and efficiency of permit processing within the existing
policy framework, the group will work to identify any policy changes that would require
Council consideration and approval that could further streamline the review process.
Staff will also be focused on continuing to assist in moving major projects like Chevron
Tank Farm Road, Garden Street Terraces, Parking Lot 10 and China Town through the
process and to conclusion.
2. Infrastructure and Fees (Strategies 1.3 to 1.9)
A. Update. There are two short term strategies related to infrastructure and fees (Strategies 1.4
and 1.5). These strategies are being implemented in part by the current infrastructure
financing assessment project. In the first quarter of 2014, the City’s consultant, EPS, led
three sessions to lay the foundation for future infrastructure financing in the City. This work
has included an assessment of the City’s current impact fee program, options and tools for
B2 - 2
Economic Development Strategic Plan Update 2013-14 Page 3
financing important infrastructure projects, and a review of policies to guide future impact
fee program updates.
B. Moving forward. After the completion of the third EPS session and based on Council’s
direction, staff will develop a plan to implement the next action in the strategy (Strategy
1.5.a). The 2014-15 budget includes funding for a strategic infrastructure analysis – a project
to identify one or more projects with citywide benefits that the City could invest in to
support the creation of head of household jobs. The strategic infrastructure analysis is timed
to follow the Land Use and Circulation Element Update so that it will take all future projects
into account.
Actively Support Knowledge and Innovation
Focusing on businesses and infrastructure that rely on knowledge and innovation is a critical aspect
of the EDSP (Strategies 2.1 through 2.3). Given the unique aspects of San Luis Obispo, this strategy
was split into the two subareas of Entrepreneurship and Access to Broadband. Strategy 2.1 includes
items that are short term and ongoing.
1. Entrepreneurship (Strategy 2.1)
A. Update. The Economic Development Program is actively working with our partners to
promote an environment that supports entrepreneurship and start-ups. The City continues to
support the SLO HotHouse financially and professionally. In September, the economic
development manager participated in the assessment of the “accelerator” companies and
helped to select those that would move onto a two-year incubation process. In 2013, the
HotHouse started 10 new businesses, counseled 69 new clients, created 46 jobs and had an
overall investment in the companies of more than $16 million. The City also worked with a
new private entity in San Luis Obispo that will be an incubator for “hands on” businesses
that require access to equipment such as metal working machines, wood working tools and
3-D printers.
B. Moving forward. The City will continue to work productively with its partners in 2014.
Some key ideas to explore are: how to continue to grow the City’s entrepreneurial culture,
how to develop more co-working opportunities, how to leverage our diverse tourism
marketing efforts to attract existing and potential entrepreneurs to the City, and how to build
a database of local companies at the County level to increase interaction between
organizations and help attract companies and individuals to the area.
2. Access to Broadband (Strategies 2.2- 2.3)
A. Update. The City has recently expanded our agreement with Digital West that will
significantly expand access to broadband in the Downtown core. This expansion of
broadband is a major improvement and a large step toward our EDSP goals. Although these
strategies are considered medium to long-term, staff has been able to make progress on
specific projects, and develop important relationships through its regional partners that will
be useful in the future.
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Economic Development Strategic Plan Update 2013-14 Page 4
B. Moving forward. The City will transition the Ad Hoc committee that worked with Digital
West on the recent agreement into a full time committee (Strategy 2.2). The new committee
will have additional support of various departments in the City plus outside industry experts.
The primary goal of the committee will be working to expand broadband infrastructure
across the City. In addition, this committee will explore partnering with a similar committee
in formation at the EVC to ensure that the City remains connected to tri-countywide efforts
(Strategy 2.3).
Promote and Enhance the San Luis Obispo Quality of Life
The EDSP recognizes that the same aspects that attract tourists also benefit residents and attract new
and potential businesses. The Tourism Manager, who oversees the City’s Community Promotions
program, is now part of the economic development team as called for by Strategy 3.1. Community
Promotions is now fully integrated into the City’s economic development efforts to promote the
value of quality of life activities across multiple fronts. Strategies 3.1 and 3.4 are short term and
ongoing, all other actions are medium or long term.
1. Tourism and Community Promotions (Strategies 3.1 and 3.4)
A. Update. In 2012-13, the City collected over $5.5 million in TOT, a 6% increase over the
previous year. In addition, in every month (with the exception of November) the City
surpassed the collections from the banner year of 2007-08. The TBID also developed a 5-
year strategic clarity document. Together, the TBID and PCC supported over 10 major
events within the City. Events serve a dual purpose: they are enjoyed by residents and
attract visitors to our community. In addition, the PCC funded promotional grants through
the annual grants-in-aid process for nearly 30 local not-for-profit organizations.
There was an 11% increase in the visits to the SanLuisObispoVacations.com site, the length
of time on the site increased by 14% and the bounce rate decreased by almost 7.5% which
supports that traffic coming to the site was intentional. Additional web stats:
- Direct traffic up 92% (11,160 more visits)
- Organic search traffic up 75% (33,727 more visits)
- Inbound referrals up 6% (2,541 more visits)
- Mobile traffic has doubled from 15% of users to 30% of users
B. Moving forward. The TBID will set the foundation for the implementation of the strategic
clarity document. Target goals for the next five years include: 25% growth in TOT, 15%
growth in occupancy during the shoulder months, further developing the SLO brand and
work on eliminating the consumer confusion of competing internal SLO brands, building
meaningful partnerships, contributing to an unforgettable SLO experience, and building the
engagement of hoteliers in the tourism programs. The PCC is working to develop a free
events app to further support and promote all of the special events that take place in SLO.
Both organizations are working on streamlining the event promotion application process to
evaluate events requesting funding. The TBID is also evaluating the proposed County wide
Tourism Marketing District (TMD), a study session with the City Council on this issue is
targeted for May 2014.
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Economic Development Strategic Plan Update 2013-14 Page 5
Build on Existing Efforts and Strengthen Regional Partnerships
The City’s regional partnerships are critical to our economic development as a City. These
partnerships allow the City to build, retain and attract businesses. At this time, the primary
partnerships include: (in alphabetical order); Cal Poly, Chamber of Commerce, Central Coast
Economic Forecast (CCEF), Cuesta College, California Central Coast Research Partnership
(C3RP), Downtown Association, Economic Vitality Corporation (EVC), San Luis Obispo County
and the SLO HotHouse. Strategies 4.1 through 4.7 cover four topics: Business Retention, Business
Attraction, Business Support, and Support for Downtown. Strategies 4.3, 4.6, and 4.7 are identified
as ongoing.
A. Update. Relationships with the primary partners (Strategy 4.1 & 4.2) continue to be strong
throughout the change of personnel in the position of economic development manager.
Meeting schedules have been coordinated, current programs have been reviewed and initial
discussions about future opportunities have taken place. Some highlights include: increased
focus with the Chamber on specific business attraction opportunities; coordination with the
EVC on airport expansion and broadband funding; coordination with the Chamber, CCEF
and C3RP on data development; participation with and presentations to committees at the
Chamber, the Downtown Association and the EVC; as well as the efforts highlighted above
with the SLO HotHouse. The City has also joined in a new initiative with Cal Poly through
participation in the President's Cabinet Ad Hoc Economic Development Committee.
The process is underway to build an economic development dashboard (Stregies 4.3 & 4.4)
to help assess the impact of our activities as well as quantify the economic health of the
City. The San Luis Obispo Chamber of Commerce, the EVC and other stakeholders are
being consulted on this project.
B. Moving forward. Cooperation with the regional partners will form the basis for external
activities in the coming year. Staff will continue to focus on the core economic
development functions of business building, business retention and business attraction. In
addition to the expansion of the ongoing initiatives, staff will focus on coordinating efforts
to provide access to information for current and potential businesses through multiple
channels with particular focus on upgrading our web presence (Strategy 4.1). We are also
working to gain access to data that will provide greater clarity to the economic situation
specific to the City of San Luis Obispo (Strategy 4.3 & 4.4). Staff continues to support the
Downtown Association efforts as well as working on projects in the downtown including
Garden Street Terraces and Parking Lot #10 (Strategy 4.7).
CONCURRENCES
Community Development, IT and Finance all concur with the information provided in this update.
FISCAL IMPACT
All the programs and initiatives outlined are fully funded by the 2013-15 Financial Plan.
B2 - 5
Economic Development Strategic Plan Update 2013-14 Page 6
ALTERNATIVES
1. Provide different direction to staff. The City Council can provide additional or different
direction to staff than recommended in this agenda report. Major changes to the direction at
this time are not recommended due to the fact that the actions outlined to execute the EDSP
are the result of community input and the Council’s goal setting process.
2. Continue this item. Continue the discussion and provide staff direction on additional
information needed to receive and file the report.
ATTACHMENTS
Attachment 1: EDSP Table 3 – Economic Development Strategy Summary Matrix
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE
Economic Development Strategic Plan
t:\council agenda reports\2014\2014-03-18\economic dev strategic plan (codron-johnson)\economic development strategic plan update march 2014.docx
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