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HomeMy WebLinkAbout7/18/2023 Item 7a, Hermann and L. Johnson - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: July 18, 2023 TO: Mayor and Council FROM: Greg Hermann, Deputy City Manager Lee Johnson, Economic Development Manager Molly Cano, Tourism Manager VIA: Derek Johnson, City Manager SUBJECT: ITEM 7A - ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE Staff received the following questions, regarding the Economic Development Strategic Plan (EDSP) Update. The questions are below with staff’s response shown in italics: 1. Can you please clarify what the additional $150K will go to in the 23-25 Financial Plan, above and beyond what was being funded before? Answer: Due to the update of the EDSP occurring after the 2023-2025 Financial planning process it was decided to set aside $75,000 per year for two years to fund projects that would be identified during any new work efforts that were initiated because of the EDSP process. At this point no funding allocation decisions have been made, but the following examples are some of the initiatives that could require funding over the next two years as tasks are completed and evaluated for funding: - 1.1.3 Expand business outreach efforts with a formal Business Retention and Expansion program that assists new and existing businesses, monitors employer trends, and pinpoints enterprises and sectors that require support. Funding needs could include materials, website updates, survey creation and tracking tools. - 2.3.3. Restart discussions with partners regarding the potential of a conference facility and explore potential funding structures (i.e., public, private, or public- private partnership). Funding needs could include additional studies or consultant work if the process moves forward prior to the next budget cycle. - 3.3.1. Leverage existing tourism marketing materials and strategies detailed in the TBID marketing plan to support any new talent attraction efforts. Funding needs could include modifications or enhancements to current or new TBID materials to focus on a different target audience or target market. 2. What was the cost of the contract to develop this plan with the contractor? Answer: $100,000. For reference, in 2019 the City released a Request for Proposals for an EDSP update with a budget of $75,000 and there were no responses. ITEM 7A - ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE Page 2 3. On page 108 of the packet, it says this: Another notable change relates to the reframing of HOH jobs. Changes in society and community feedback led to revisiting the HOH job classification to assess how well the term aligns with the City’s inclusivity goals and national best practices. The process involved evaluating numerous options to define and track quality jobs. Ultimately, it was determined that using the City’s moderate-income levels as specified in the current Below Market Rate Housing Standards would create greater alignment with an existing reference and be better understood Citywide. The moderate-income guidelines also allow for target income levels to vary based on household size to adjust to changing conditions over time. Adding the + symbol to moderate income represents that jobs with an income level above moderate are welcome and that the other criteria related to the former HOH job classification remain (career ladder, education level and technical skill, employer sponsored benefits, and stability). The resulting quality job indicator going forward, and referenced here, will be Moderate Income+. Can you please explain more about how and why the Below Market Rate Housing Standards were used in your analysis? Answer: In early 2012, San Luis Obispo created its first Economic Development Strategic Plan (EDSP). The intent behind the 2012 EDSP was to improve the City’s economic development function through the creation of targeted strategies aimed at increasing the number of Head of Household (HOH) jobs. During the public engagement for this update, it was communicated multiple times in various forums that the term “Head of Household” was outdated and not inclusive. City staff worked with the consultants to find a new reference point that was inclusive, standardized, readily available and regularly updated. In discussions with the Community Development Department it was determined that using the moderate income level associated with the City’s “Below Market Housing Standards” would be appropriate for this reference point. The Moderate-income levels from table 1 of the standards are highlighted below: ITEM 7A - ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE Page 3 4. Can you please explain the activities that will occur to further these two items in the action plans: 2.5.2. Evaluate a more structured community-based neighborhood planning effort with the Community Development Department and the Community Services and Support group for inclusion in the 2025– 2027 goal-setting process. 3.3.3. Facilitate stronger connections among students, employers, and the broader community to help retain graduating high school and college students. Answer: Action 2.5.2 was a concept that has been discussed between the Community Development Department and the Economic Development and Tourism Program during the 2023-25 Goal setting process. The general idea is that resources would be set aside for the relevant City departments to meet with both residents and businesses in the various neighborhoods in the City to discuss what the City can do and work with the neighborhood to determine prioritization and opportunities for partnership. Given the recent, current and planned changes in management in the Community Development Department, the Community Services Group and the Office of Economic Development and Tourism it was decided to postpone further discussions of the concept until the 2025-27 goal setting process. For action 3.3.3, while the concept of connecting with current residents prior to their entering the workforce to retain them once they enter the workforce is an ongoing effort, a defined program or process has not been developed to this point. In the short term, the next steps will involve discussion with the Center for Innovation and Entrepreneurship and Workforce Investment Board and then work back through the “pipeline” (Cal Poly, Cuesta and San Luis Coastal Unified School District) to determine the longer-term actions.