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HomeMy WebLinkAbout10-16-2012 b2 economic development strategic plan adoptioncouncil MeetingOat eOct 16, 201 2acen6a nepont !tern tuber B2 C I T Y O F S A N L U I S O B I S P O FROM : Michael Codron, Assistant City Manage r Prepared By :Claire Clark, Economic Development Manage r SUBJECT :ECONOMIC DEVELOPMENT STRATEGIC PLAN ADOPTIO N RECOMMENDATIO N Adopt the Economic Development Strategic Plan (EDSP). REPORT IN BRIEF The EDSP has been developed to guide the activities of City's Economic Development Program fo r the next five years . Presented to Council in draft form on August 7, 2012, the EDSP was reworke d to reflect the input from citizens, the Planning Commission, Tourism Business Improvemen t District Board, Promotional Coordinating Committee, the Chamber of Commerce, the Steerin g Committee and the Council . The attached Legislative Draft (Attachment 1) shows the change s made to the four overarching strategies, including renaming two of the strategies in response t o comments . •In addition specific direction from Council was incorporated into the EDSP . DISCUSSIO N Backgroun d The Economic Development Strategic Plan (EDSP) is the product of Council direction via th e Major City Goal for economic development : "Increase focus on economic development . Support creation of head-of-househol d jobs through developing strategies for infrastructure, focusing on promising growt h sectors, and expediting desired economic activity . Expand collaboration with Ca l Poly, Cuesta, the business community and responsible agencies ." As a guide for the City's Economic Development Program, the EDSP identifies existing wor k efforts that will continue, sets new program goals, and provides methods for measuring progres s toward the goals . The first draft of the EDSP was reviewed by Council on August 7, 2012 . Th e hearing on the first draft provided an opportunity for public input and Council direction . The EDSP continues to be organized into four overarching strategies, including : •Break Down Barriers to Job Creatio n •Actively Support Knowledge & Innovatio n •Promote and Enhance the San Luis Obispo Quality of Life •Build on Existing Efforts and Strengthen Regional Partnerships B2-1 Economic Development Strategic Plan Page 2 • The strategies are further refined in response to input from Council and the community . Each strategy and underlying action item is grounded in the findings and information presented i n Appendix A : Background Report, which reflects the consultant's research and community inpu t through a variety of forums, workshops, advisory body hearings and Steering Committee meetings . The EDSP and Appendix A : Background Report can be found on-line at www .slocity.org . While all action items are linked to findings, not all findings generated action items . All four overarchin g strategies are equally important as they are intended to form the foundation of the Economi c Development Program over the next five years . Council Directio n At the August 7`h Council meeting, the City Council had the opportunity to hear a presentation o f the EDSP and additional public input on the proposed plan . The City Council provided staff wit h comments and direction on the overall plan and on seven key issues . The specific items of direction provided by Council included the following : 1.There should be continued focus on improving the permitting process withou t compromising the City's public review process or environmental standards ; 2.The study of infrastructure financing must be informed by existing policy related to th e costs of development (Land Use Element Policy 1 .13) and should include a review of cit y standards for infrastructure and timing of fee collection ; 3.Direct financial incentives to developers should not be part of the strategy ; 4.The Plan should include more information and strategies relating to the airport, smal l businesses, and Cuesta College ; 5.The Plan should be flexible and allow an entrepreneurial approach to opportunities fo r job creation; and 6.Metrics to track the Plan's progress should be more specific . Additional input is still needed from the Council on one outstanding item, which is whether or no t the income associated with the "head-of-household job" definition should be a range or a targe t number . DISCUSSION Head of Household Job Definitio n Before settling on a workable definition for a Head-of-Household job, it is important to identif y how the definition will be used . In the case of the EDSP., direct incentives that would rely on th e definition to sort projects qualifying for incentives have been eliminated . Instead, the definitio n will be used to measure progress toward the goal of job creation and, as a result, staff is recommending that it include an income range based on household composition . As recommended by the Steering Committee following its deliberation on the issue, the EDS P includes the Self-Sufficiency Standard (Standard) as the foundation to define "head of househol d job ." Following the discussion by the Council on August 7, staff compared the Standard's incom e guideline to the minimum income needed to purchase the median priced home in San Luis Obispo . Staff also reviewed statistics relating to area household incomes available through the U .S . Census . • B2-2 • • Economic Development Strategic Plan Page 3 Staff found that the income required for the median-priced home is substantially the same as th e income shown on the self-sufficiency table for a two adult household, a common type of househol d in the City . Furthermore, review of fast growing businesses in the City, such as MindBody an d Sports Warehouse, revealed a different type of "household job" where the wages reflect a mor e youthful worker that also needs the benefits of health insurance, a retirement plan, and who benefit s from possibilities for advancement and educational requirements needed to get the job or advance i n the company. Since the Standard is a performance measure that provides realistic and detailed data on wha t individuals need to be self-sufficient – such as housing, food, child care, out-of-pocket medica l expenses, transportation, and other necessary spending – a small range of incomes is recommende d to illustrate the income range for a head of household job, specifically $42,105 to $57,562 per adult . This range will be updated annually to reflect changes to the Standard . However, it is further recommended that all jobs that meet four of the five criteria shown in Figur e 1 be counted in the head-of-household job creation calculation . For the purposes of trackin g progress in head-of-household job creation, this definition provides a flexible, easy to appl y standard . Figure 1 - Head-of-Household Job Characteristic s Permit Processing Improvement s Significant changes were made to the permit streamlining strategy to align it with ongoing work o n the Community Development Department's Organizational Assessment . These changes provide a framework that has moved this initiative forward as the EDSP was being reworked. This effort will result in a comprehensive review of permit streamlining including : •Improved communication with applicant s •Evaluation of administrative level review while protecting public input on project s Employer Spo scrod Benefit s Income Level ..-,__. pays a salary tha tfd1ame 4c~ Stability The posrfion is permanent, not temporar yseasonal, and provides a stable incom ece Career Ladder Promotional and/or °sal expanson oppor-tunities ecst within the corrtipany _ Education Level & Technical Skil l The position requires a certain leve l of education or a specific techni- cal stdl . Head-of- Househol d Job B2-3 Economic Development Strategic Plan Page 4 ••Evaluating ways to streamline environmental review documents and conditions whil e assuring environmental review standards are still me t •Evaluating efficiency of existing methods to meet the needs of expanding businesse s •Considering project management training for lead development review staff •Examining nonresidential uses permit requirements in business park zone s •Evaluation of opportunities to make the environmental review process more transparent and predictable Furthermore, it should be noted that nothing in this strategy is designed to impair environmenta l review or advisory body review of projects . As is currently City policy, projects that fully meet th e City's design guidelines and environmental standards may be handled at the staff level . Infrastructure and Incentive s The proposed Infrastructure Study has been modified to be more specific with respect t o infrastructure financing strategies . _ The Study, funded in the current fiscal year, will identif y strategic infrastructure projects, provide for a series of study sessions relating to infrastructur e impact fees, and explore available financing strategies . State infrastructure finance law and grant funding for regional transportation infrastructure will b e evaluated in an ongoing effort : A second phase of the review of infrastructure will includ e investigation of infrastructure plans to assure they are "right-sized" for the community . Thi s particular action item has been expanded to include implementation of low impact development standards, which have the potential to lower construction and maintenance costs . As noted by the Council and Chamber of Commerce, the Chevron project continues to be a n important place for business expansion . However, it is not specifically called out in the EDS P because opportunities for business expansion exist throughout the three specific plan areas, Airpor t Area, Margarita Area and Orcutt Area . All projects, including the Chevron project, will have a n opportunity to benefit from new or different approaches for infrastructure financing that result fro m implementation of the EDSP . In keeping with Council direction, all proposed direct financial incentives for development hav e been eliminated from the EDSP . Airport, Small Businesses, Green Business, and Cuesta Colleg e The EDSP has been updated with references to the work of the Business & Entrepreneurship Cente r at Cuesta College . In particular, Cuesta is a valuable partner in economic development activitie s that support knowledge and innovation and building on existing efforts to support businesses . Support for the efforts to expand the airport has also been added in recognition of the importance o f this facility to businesses . In addition, expansion of rail service is a recognized need that affect s both businesses and tourism so additions can be seen in Strategy 3, Promote and Enhance the Sa n Luis Obispo Quality of Life, and Strategy 4, Build on Existing Efforts and Strengthen Regiona l Partnerships . A new program to promote the green business ethic in the City has been added t o Strategy 3 . This program aims to promote sustainable business practices through a progra m patterned after the SLO Regional Rideshare program . • B2-4 • Economic Development Strategic Plan Page 5 Recognizing that small businesses are the majority type for San Luis Obispo, continuing an d expanding efforts to support all sizes of small businesses is a larger part of Strategy 4, Build o n Existing Efforts and Strengthen Regional Partnerships . Because these efforts are most effectiv e when done in conjunction with regional partners, more emphasis has been placed on building o n current work of the EVC and the Chamber of Commerce . Entrepreneurial Approac h One of the specific interests expressed by Council was the desire that the Economic Developmen t Program be more entrepreneurial and that the EDSP remain a flexible document that can chang e with changing needs . The Economic Development Program's current approach to supporting businesses that want t o expand or locate in our City is cognizant of the speed of business . A hallmark of the Program is th e ability to prioritize the provision of information to businesses in a way that conveys the City's desire for their success and prioritizes projects across the organization . This approach will continu e and be improved upon . In keeping with the flexible and entrepreneurial approach, the EDSP programs will be reassesse d regularly to evaluate the success of individual strategies and make adjustments on that basis . Thes e adjustments will take into account the resources available for accomplishing the strategies . Figure 2 - Adaptive Management of Strategies Flowchar t • epriorifize Strategies or ne-tune Strategie s fiat sh Targets for=.Success 4E : ivldud Matrix Changes to the Summary Matrix beginning at page 31 of the EDSP aim to provide more specifi c data about progress (under the Metrics column) and more clarity regarding the vision (i .e . in the Outcomes column). Allocation of resources to accomplish the strategies contained in the plan must • still be reviewed by Council in light of other competing interests as part of the financial plannin g process every two years . The Matrix will be updated as strategies are implemented and as funding i s B2-5 • Economic Development Strategic Plan Page 6 allocated to new strategies so that it remains a "living" document and a current reference for th e community and City decision-makers . An additional table has been added at page 45 which sorts the strategies by timing, allowing a glimpse of the year over year goals for the Economic Development Program . Next Step s Upon approval by Council, the EDSP will be published in final form with access to electroni c copies on-line on the City's website . Additionally, aspects of the EDSP that can be implemente d now will be integrated into the City's work program . Other aspects that require resources beyon d that which is available in the current financial plan will be proposed and considered durin g upcoming financial planning periods . CONCURRENCE S The Community Development Department and Utilities Department have been involved in th e development of the EDSP via service on the Steering Committee, service on the committe e evaluating consultant proposals, review of the scope of work for the request for proposals, an d review of the EDSP . FISCAL IMPAC T The EDSP will require fiscal allocations throughout implementation as is evidenced in the time - frames outlined in the Matrix under the "Resources" heading . Funding and/or staff resources abov e those available in the existing Financial Plan will be needed to implement aspects of the EDSP, an d will be requested through future financial plans . There are no immediate budgetary action s requested with adoption of the EDSP . ALTERNATIV E 1 . Continue review : The Council may continue the item and direct staff to take a differen t approach with the EDSP or include additional information . ATTACHMENT Legislative Draft : Tracked Changes to Strategies 1 -4 LINKED DOCUMENT S 1.Final Draft Economic Development Strategic Pla n 2.Appendix A : Background Repor t s\ 0I file,://fr \Council%20AVenda%20Repo rts\2012\2012-10-16\Economic%20Development°/20SVatee,ic%20PIan /o20Adontron%20(Codron - Clark \CAR EDSPFinalAdoption .docx • • B2-6 11sa wis e planning economies noloral resources ATTACHMENT 1 •City of San Luis Obisp o Economic Development Strategic Pla n Legislative Final Draft Strategic Pla n September 28, 201 2 BREAK DOWN BARRIERS TO JOB CREATIO N Major barriers to job creation in San Luis Obispo include the development review process and the lack o f backbone infrastructure in the expansion areas '_ of the City . The development review process is considered an important component of a city's attractiveness to investors and ability to create head-of-household jobs . Developers often cite speed and predictability i n permit processing as a key requirement for successful real estate development . The City and fou r benchmark communities were analyzed to serve as a comparison point for procedural requirements , permitting timeframes, and fees .The benchmar k jurisdictions studied were San Luis Obispo County, th e City of Barbara, the City of Davis, and the City of Paso Robles .(See Appendix A, Chapter 4, for the complet e analysis).The fees paid per square foot of building were much higher in the City of San Luis Obispo than i n the benchmark communities . Furthermore,though the City appears to process permits efficiently (showin g some of the shortest processing times), processing time and predictability continues to be cited as a barrie r to investment and job creation . While the results of this benchmarking study provide useful and interestin g information for the City, it is based on a relatively small data set and only offers a glimpse into the comple x systems underlying development fees and processing time . As a result, Strategy 1 .1 requires a more in - depth review of the City's permit processing . Opportunities fornonresidential development are available throughout the City ; however,the primary opportunity sites for creating spaces for never buildings that could house significant numbers of head-of- household jobs are located in the southern portion of the City within the Urban Reserve Line . In particular , the Airport Area and Margarita Area Specific Plans, located approximately 2 .5 miles south of downtown, offer approximately 1,900 acres with almost 1,170 acres (71%) dedicated to business services, business park , manufacturing, and government facilities . Both fans focus on .fanning for ob creation includin s head-of: household ositions throu"h coals, development standards, allowed land uses, and design of the specifi c plan areas, as detailed in the text box below. Although the Airport and Margarita Area Specific Plans include sufficient land for nonresidentia l development and provide a strong foundation for community planning,many of the development sites ar e large, may need to be subdivided, and lack supporting infrastructure . The lack of infrastructure within th e larger developable areas and cost of extending existing water, sewer and transportation systems are majo r barriers to new job creation and expansion of existing businesses . Several strategies call for the City to tak e ''The expansion areas include the Marga r ita Area Specific Plan (MASP), Orcutt Area Specific Plan (GASP'), and Airpor t Area Specific Plan (AASP) areas . 983 Oros Street, San Luis Obispo, CA 93401 1805 .595 .1345 I www .lisawiseconsultina .com 1 B2-7 • lisa wise consulting, inc .ATTACHMENT 1 panning economics natural resource s specific and proactive steps to create more shovel-ready sites in the Airport Area and Margarita Area . Thectrategie ;in his;cetion are dividedinto two ccb :cc n . P r:c.s ein,an I o a structur e tiers . • • 983 Osos Street, San Luis Obispo, CA 93401 1 805 .595 .1345 1 www.lisawiseconsultina .com 2 B2-8 • • ATTACHMENT 1 planning economics natures resource s Key Finding s Break Down Barriers to Job Creation See Backgroun d Repor t (Appendix A ) 1 . Within the City's expansion areas there are limited "shovel ready" sites fo r new construction due to the scale and cost of required public infrastructure . Sec . 5.4 I pp . 49, 5 0 2. Key opportunity sites need to be subdivided and/ or lack infrastructure These ;.. constraints add to the time and complexity to bring projects online . Sec 2.1 I p . 1 3 3. There are limited built office and business park spaces large enough t o accommodate the expansion of some companies currently in the City an d companies looking to relocate to the area . Sec .5 .3 I pp. 46,4 7 Sec. 5 .4 p. 50 4. The City has done a good job of identifying the infrastructure needed t o support development. It has; in addition, developed a fee program to pay for infrastructure so that new development pays its share of the costs per the City's General Plan policies? However, the burden of installing thi s infrastructure often falls on private development and in most cases new development is looked to as a means of building more infrastructure than i s needed to serve that particular project . The ability of private development to be the "bank" for new City infrastructure is limited by tighter lending policie s as a result of the recent recession . Sec . 4.3 I pp.35, 3 8 sec .53 I pp . 44i 46, 47 sec . 5 -4 1 p . 49 5 . Feedback from the community indicates that there is adesire to explore th e balance between high quality infrastructure and the costs of development because infrastructure costs are a significant impediment to development . Sec 5.3 I pp .44, 45 Sec . 5.4 j p . 4 9 b . Improved communication between City departments is desired by the development community m order to provide project applicants with accurat e and timely information and to streamline the development review process Sec . 5.3 i p. 45 Sec . 5.4 f p . 4 9 NOTES 1 . General Plan Policy 1 .13 Costs of Growth : The costs of public facilities and services needed for new developmen t shall be borne by the new development, unless the community chooses to help pay thecosts for a certain developmen t to obtain community-wide benefits . The City will adopt adevelopment-fee program and other appropriate financin g measures, so that new development pays its share of the costs of new services and facilities needed to serve it . 983 Osos Street, Son Luis Obispo, CA 93401 805 .595 .1345 1 v,ww .lisawiseconsuliinq .com 3 B2-9 iisa wise consulting, Inc . planning economics natural resources ATTACHMENT 1 Strategies to Break Down Barriers to Job Creatio n The strategies below identify actions/commitments that will improve the economic climate by being mor e responsive to business, and bringing more certainty to the permitting process and City fees . To achiev e desired results, these activities need to be mutually supportive . The strategies in this Section are divide d into two subsections : Processing; and Key Sites, Infrastructure & Fees, as detailed below . Processing 1 .1 Identify opportunities fo r to-review-permit streamlininqprocessing with the goal of reducing permit processin g times,seeking opportunities to increaseing internal coordination, and improving cros s department focus on development review.Incorporate consideration of : Improving communication with applicants, including requirements for complet e applications . ▪Establishing Evaluating projects at the administrative levelr'viev -when applications meet City policies and design guidelines . Creating standard conditions of approval and prelims narn- em ironmental review documents to facilitate development of key sites . Evaluating capacity and potential effectiveness of a proposed progr am to create and update a portfolio of available prop er ties ready for development as an advanced plannin g tool for property owners, developers, and area residents . •Evaluatin efficiencv of existing efforts to provide site selection assistance, busines s liaison services,pre-application meet uum aaick response team. meetings and fast-trac k permitting and review . Evaluating effectiveness of reporting relationships, staff authority, and staffing levels . Considering project management training for lead staff on development applications . _•Allowing more nonresidential uses by right in business parks . Creating standard conditions ofapproval for key site . Evaluating the City's environmental review process for opportunities to make the proces s more transparent and predictable for applicants . Developing a master conditional use program for shopping complexes to expedite th e natural turnover in retail and office buildings . 1 .2 Continue to build on existing efforts that offer site selection assistance, business liaiso n services, pre-application meetings, quick response team meetings, and fast-trac k permitting and review . Key Sites, Infrastructure &Fee s 983 Osos Street,San Luis Obispo, CA 93401 1 805 .595 .1345 1 +www iismuseconsultina .com B2-10 4 find `.'. t :5f'consulting,111.0.. ATTACHMENT 1 planning economics natural resource s • • 1A-Prepare and update quarterly-a portfolio of 'available properties' ready for development i n accordance with the findings of the streamlining outcomesenumerated in Strategy 1 .1 . This advanced planning tool would include information for commercial brokers, businesses, an d developers that includes the type and scope of development suitable for the site(s), zoning , available infrastructure, and (in some cases) entitlements in place . Where possible, use th e portfolios to develop standard conditions of approval and design guidelines for key sites t o streamline development when proposed . 1 .3 1 .4 Complete an infrastructure financingassessment to establish priorities for City investmen t in infrastructure expansion that includes the following :, _ _ - - _ - - • - _, - .., emnental constraints, etc .) in theexpansion anion of the City and prioritizingareas with thegrnatcst potential fo r nea r term development thatsupports ew head of household jobs . reduce the cost of these facilities,, where poscibie . The-analysis should include reviewin g Cityengineering standards, transportation plans, inetallatien timing,and ether cost infrastructurefinancingdistricts, business improvement districts, sale:;tax jobsite nu b permit;; for construction contractors, the property based financing mechanisms identifie d in the City's specificplans, and the City's prior pro gram for financing fees . Identify one or more strategic infrastructure projects that the City could invest in t o benefit a wide variety of residents, businesses, employees and property owners b y providing a significant return on investment to the City in the form of increased economi c activity, business retention and expansion, and head of household job creation . Evaluate existing infrastructure impact fees applied in the City and determine if Cit y policy supports increased cost sharing for projects that provide City-wide benefits . Ensure that the fair-share structure includes a •ronriate •ercenta_es for eac h portion of the infrastructure costs . Utilize the consultant to lead a series of study sessions with the City Council on the City's impact fee structure guided by existing policies an d options for the City to consider related to how impact fees are determined, calculated, an d applied . _Exploreiag financing strategies for infrastructure that address timing and/or the cos t burden of infrastructure, including development agreements, reimbursement agreements , infrastructure financing districts, business improvement districts, sales tax iohsite sub .. permit,-for construction contractors, theproperty-based financing mechanisms identifie d in the City's specific plans, and the City's ex stingprior program for financing fees . 1 .5 Evaluateing the supply of land and space for residential and nonresidential developmen t (i .e ., general type, square footage, access to amenities, transportation access , environmental constraints, etc .) in the expansion areas of the City and prioritizeing area s with the greatest potential for near term development that supports new head-of - 983 Osos Street, San Luis Obispo, CA 93401 805 .595 .1 45 I `!G^'w",iisowiseconscciinq .coni 5 B2-11 lisa wise consu ll 2 ATTACHMENT 1 planning economics natural resource s household jobs . 1 .6 Analyzeing infrastructure plans to ensure they are "right-sized" for the community an d reduce the cost of these facilities, where possible, consistent with General Plan Land Us e Element Policy 1 .13 . The analysis should include reviewing City engineering standards , transportation plans, installation timing, and other cost drivers to identify opportunities t o reduce the barriers to new development while not negatively impacting safety, access , or long-term City maintenance costs .This evaluation should include implementation of low impact development (LID) standards, which could lower construction an d maintenance costs . nsideratien-eft tate infra ; tnuctu so development bydecrgacing feet below the justifie d fee amount for a spedlic pericd of tunaor a specificamount ofconstruction . le-Ways toovercome theadministrative challesgdsassociated with collecting impact foes at the time of -1.Conductingan economic benefit-analyairas part ofis s elopment r,s iew to it-family potential economi c benefits ofa prajccta : oteaes S c r„fnet-fr0.- 4:€oe rebate programs . bCityto conduct environmh ntai review upKey sites tudefray some cost :_ borne bydeve l opers . T,81 .5 Monitor changes in State infrastructure finance law that increase financing option s as a way to fund new investments in infrastructure (new bills are being introduced i n response to the elimination of redevelopment agencies). 1X91 .6 Aggressively-Sseek grant funding for regienei-transportation facilities that positio n areas for development and have the potential to reduce development impact fees . • • 983 Osos Street, San Luis Obispo, CA 93401 1805 .595.1345 I www .lisewiseconsuftra .cem B2-12 6 lisa wise consulting, inc .ATTACHMENT 1 planning economics natural resource s • 2 . ACTIVELY SUPPORT KNOWS, DGE & INNOVA T IO N The Knowledge & and innovation Services Cluster comprises generated and:supported bya wide range o f businesses, including computer systems design, software publishers, colleges, universities, and professiona l schools, advertising services, printing services, and general professional, scientific, management, and technical services . According to the EVC Economic Strategy, these industries are some of the fastest growin g in the region with average annual growth in jobs of 4 .8 percent between 1995 and 2008 . The Knowledge & Innovation Services cluster presents opportunities for job creation due to existing relationships, and th e proximity of Cal Poly and Cuesta, and the County's fiber optic cable landings . According to the EVC Economic Strategy, the region could benefit by : Growing involvement of the academic community in helping cluster companies as measured by (1 ) amount of assistance to start ups, (2) number of students working collaboratively on projects for cluste r companies, (3) number of faculty engaged in projects with local companies, (4) growing cluste r company presence in Cal Poly Tech Park, and (5) expansion of degree and certification programs , contract education, and transfer agreements to prepare local residents for jobs and career advancement s with cluster companies . Key Finding s Actively Support Knowledge & Innovation See Background Report (Appendix A ) 1 .Cal Poly offers opportunities to capitalize on innovation and research with an emphasis Sec. 12 1 pp . 3,4,5 Sec. 3.1 Fig_ 3 .5, 311,3 .1 4on areas of expertise related to high tech development .I T:able 32g Sec . 53 1 pp- 44, 45, 46 ,.. Sec. 5 .4 I p . 49 2.The local business environment would benefit from a more robust "vertical value chain " to support start-ups as well as thriving businesses (e .g. local legal expertise and capital). The Business & Entrepreneurship Center at Cttesta College provides valuable su ort of Sec . 5 .3 I pp:46, 48 Sec . 5 .4 I pp .49, 50 ..this tV 3 .Local trends in telecommuting and home-based businesses are an opportunity fo r creation of jobs : - Sec . 3 2 I Fig. 3 .1820 Sec . 5 .3 I p 44 ,. Sec 54 p. 49 4 .The Countys unique fiber optic beachhead presents an untapped opportunity for jo b creation. Sec . 5 .3 I p 44 Sec .5 .4 Ip.49 983 Osos Street, San Luis Obispo, CA 93401 1805 .595 .1345 I w-ww .lsaeviseconsuitina .com 7 • B2-1 3 ?C . planning economics natural resources ATTACHMENT 1 • Strategies to Actively Support Knowledge & Innovatio n The I':+x edcc .md Inns-otionKnow!edee & Innovation strategies identify specific areas on which the Cit y should focus to spur opportunities for job growth and help build awareness of the City's competitiv e advantage. The specific areas are Entrepreneurship and Access to Broadband . Entrepreneurshi p 2 .1 Continue to work with Cal Poly,Cuesta,the Chamber of Commerce, the busines s community, and the EVC to define, develop, and promote an entrepreneuria l ecosystemenvironment supportive of entrepreneurs and start-up businesses .This ma y include facilitating the creation of . 4-•A business incubator (office, light manufacturing, ag tech, laboratory, storage & warehouse) to assist start-ups and/or spin-offs from Cal Poly .Consider business licens e tax exemptions for businesses located in incubator spaces . An innovation marketplace that serves as a forum for showcasing innovation and loca l companies and as a place for idea exchange for local industries in conjunction wit h existing efforts such as Central Coast Software & Technology Association (SOFTEC) an d Cal Poly Center for Innovation and Entrepreneurship (CIE). a-°A co-location workspace to foster idea exchange and support the growth of innovativ e businesses . Support for home be edsinall business owners seeking to grow their businesses . Access to Broadban d 2 .2 Convene a cross-department team at the City, with input from local industry experts, t o facilitate expansion of broadband infrastructure, including : L'A system for public-private partnerships . _Exploration of opportunities with CENIC, the County, and Cal Poly . :~-•Adoption of a policy that requires installation of vacant conduit when trenching occurs i n the public right-of-wav for unrelated work . 4-• Expedited permitting of new installations . Adoption of a policy that guides City decisions regarding use of existing fiber opti c infrastructure, including vacant conduit . 2 .3 In partnership with Countywide economic development organizations, explore th e concept of a regional technology master plan to link the cross-Pacific landing sites an d local jurisdictions . This will include researching potential business opportunities derived fro m the cable landings that connect the Central Coast with Asia, Central America, South America, an d 983 Osos Street, San Luis Obispo, CA 93401 ,I 805 .595 .1345 I www.11sawiseconsuifirtcLcoe . B2-14 • 8 lrsa wise consulting;inc .ATTACHMENT 1 planning economics natural resource s New Zealand . If deemed valuable, support pursuit of methods to capitalize on the cabl e connections . 3 .PROMOTE AND ENHANCE THE SAN LUIS OBISP O QUALITY OF LIFE TO ENHANCE BUSINESS OPPORTUNITIE S Throughout the public outreach process, quality of life, lifestyle advantages, and access to outdoo r recreation were mentioned as the top attributes that attracted and kept people in San Luis Obispo . Aspects of the San LuisObispoquality of'i-SW 1l:ife- that were considered for the Strategic PlanEDSP include: •Performing and visual art s •Arts education group s •Public open space in and around the Cit y •Recreational amenities in the regio n City support of the arts and recreation via Grants in Aid and other suppor t Programs and events Wine and Agriculture Theeconomic strategies in thisSection focus on theattributes of the community that comp3se the 5LO Life and the economic efforts theyhave en jobcreation through bucines e retention and expanciun .The cultura l industries not only directly contribute to economic development for the City, they also are an essentia l aspect of the City's ability to attract and grow businesses and create jobs . Industries in the cultural sector add value by leveraging a "sense of place" into a commodity that i s embedded in the qualities of the goods and services produced locally . This sense of place is derived fro m the physical qualities of the place, its history, meaning and social relations, and by a common understandin g of what the place means to a broader audience .The City approaches development from a holisti c ers ective taking into account how much and what tv e of growth can be sustained both envimnmental l and economically : San Luis Obispo's historic context, environmental setting, and cultural fabric all driv e City policy including the General Plan and specific plans . 983 Osos Street, San Luis Obispo, CA 93401 805 .595.1345 www .lisawiseconsultina .corn 9 B2-1 5 • fitting,Inc . planning economics natural resources ATTACHMENT 1 • Key Finding s Promote See Backgroun d Report (Appendix A ) 1 .A thriving downtown contributes to San Luis Obispo's position as the cultural and economic hub of the region, and increases general awareness of San Lui s Obispo as a special place. Sec . 5 .3 p .45 2 .San Luis Obispo has high levels of volunteerism and a large number of non- profits . Active civic engagement contributes to the local quality of life and helps build a more resilient local economy. Sec . 1 .2 I pp .3-6 Sec . 5 .3 I p. 44 3 .The strong arts scene in San Luis Obispo, which is supported by the City's Community Promotions program, presents an opportunity to capitalize on an d enhance the SLO brand . Sec . 5 .3 I pp . 44,45 Sec . 5 .4 I pp .49,5 1 4 .San Luis Obispo,and the Central Coast in general, is increasingly associated with a healthy and innovative lifestyle. Sec . 5 .3 I pp .44,45 Sec . 5 .4 j p.49 5 .SLO County is widely known for agriculture and wine production .Local food availability throughout the County is a major asset and makes a healthy and locally-oriented lifestyle more feasible. Sec . 5 .3 I pp .44 6 ... The City's beautiful and expansive greenbelt provides recreational opportunities Sec . 5 .3 I pp . 44,4 5 for residents,defines our urban edge, prevents urban sprawl,and preserves our sense of .lace. 983 Osos Street, San Luis Obispo, CA 93401 1 805 .595 .1345 www.iso is nsubna B2-16 • 1 0 lisa L 'ise consulting,inc:,. ATTACHMENT 1 planning economics natural resource s Strategies to Promote and Enhance the SLO San Lui s Obispo Quality of Life to Enhance Busines s Opportunitie s The strategies below identify local cultural arts, community organizations, open space, and-recreationa l amenities and sustainable practices(attributes commonly referred to as the cSi,"San Luis Obisp o Quality of Life)that contribute to the City's ability to grow jobs through business attraction and retention . Many of these attributes are included in the City's support of arts and recreation through Grants in Aid , through support of the Chamber of Commerce Green Business Awards,and other means, an -are all key t o the SW-quality of13-ife strategies . Tourism initiatives should be cognizant of reinforcing the sense of plac e and cultural brand of San Luis Obispo . Similarly, funders of community arts organizations, educationa l programs, and community events should - -onsider further capitalizing on that- these attribute s are-as opportunities for economic development . 3 .1 Integrate administration of the City's tourism/community promotion efforts into the City's Economic Development Program to recognize-further capitalize onthe role that cultura l industries can-play in economic developmen t 3 .2 Formulate a proqram to encourage businesses to implement voluntary actions t o enhance, preserve, and improve the environment beyond what current laws require wit h the help of representatives from the business and environmental communities .klre-aa 3 .3 Prepare a City of San Luis Obispo"viewbook" to make available to businesses potentiall y interested in locating in the City . The finished product would be available on=line and woul d Nghlight how the San Luis Obispo quality of life can contribute to opportunities and benefits fo r _business owners and employees in terms of the local business environment lifestyle an d recruitment . 3 .4 Continue and increase programs that add diversity, attract different interests,capitaliz e on outdoor sportinq eventsand local recreational opportunities,and highlight uniquel y SLO characteristics, such as the marathon, Savor the Central Coast, bike events, family - friendly activities, activities for young professionals, and ethnic group-related activities to help promoteSanLuis Obispo's healthy, active lifestyle. 3>...--+---s---Furfiher-capitalize-on-a ents-an ioca4-recreationa l 3.5 4Work with the-Countywide arts organizations to identify existing arts programs that resul t 983 Osos Street, San Luis Obispo, CA 93401 1805 .595.1345 www .lisawiseconsuitinq,co m • 1 1 B2-17 itsa wise colnsulting, inc .ATTACHMENT 1 planning economics natural resource s in the greatest job and economic development benefits and develop a strategy for Cit y support of such programs . 3 .6 Explore opportunities for marketing the City as a place to do business via the airport an d train depots . • • 983 Osos Street, San Luis Obispo . CA 93401 805 .595.13 v .sawis°ccnsuitinn .com.1 2 B2-18 Pisa wise consulting,Inc , .planning economics natural resources ATTACHMENT 1 • 4 .BUILD ON EXISTING EFFORTS WITH AND STRENGTHE N REGIONAL PARTNERSHIP S Economic development in the City is closely linked to the region . A successful framework for local an d regionaleconomic development must strategically integrate regional goals and resources and support soli d and enduring partnerships with other regional stakeholders . Successful collaborations are marked by a focus on common projects and regular, dynamic communication . The systemic creation of quality jobs an d the building of regional wealth requires capable leadership, regional partnerships, private-secto r involvement, and an emphasis on workforce development . The City 's Economic Development Program has many areas of focus as shown in Figure a.?G . This repor t evaluates which of the existing focus areas should be built on to help achieve the goal of head-of-househol d job creation in addition to introducing strategies that will expand Economic Development programming . This Section provides strategies that strengthen the alignment of local and regional goals and resources an d leverage City resources to encourage business investment and expansion of head-of-household jobs . • 983 Osos Street, San Luis Obispo, CA 93401 1805 .595 .1345 I www.lisawiseconsultinp .corn 1 3 B2-19 lisa tivise consulting,Inc .ATTACHMENT 1 planning economics natural resource s Key Finding s Build on Existing Efforts Regiona l Partners See Backgroun d Repor t (Appendix A ) 1.Building a systematic approach-requires working relationships with a range of...institutions, sectors, and government agencies . Strong partnerships with higher educatio n institutions and schools are critical ......... Sec . 3 .2 p . 26 (Tab. 3 .2) Sec. 5.3 I pp . 44,45, 47 IS Sec.5.4 I p .50 2 Business retention and expansion programs need to be highly proactive, especially fo r high-growth, high-wage, and high productivity jobs in technology-based and emergin g industries . Sec. 5.3 r pp . 46, 47,.48Sec. 5.4 I pp . 49, 50 3.The local workforce is well educated . However, due to competition and rapidly advancing technology a high level of skill is required even at the entry level . Set 3.2 i p . 20 (Fig . 3 .5) Sec 3.2 214.Demographic data demonstrates a lower of City residents in the "life-building"'percentage p .(Figs. 3 :8 & 3 .9 ) age group of approximately 35-44, often correlated with middle-management positions . More jobs are needed in the City for this group to retain local talent . 5 It is important to recognize that a jobs/housing imbalance exists in the City . More people Sec 433.p . work in San Luis Obispo than live in the Gty : This is due to the City's roles as center of commerce for the region and the County seat . ±1221 (Fig . 3 .16) 6.Government einplovers make up several of the largest employers in the City . Maintaining Sec . 3.2 p . 26(Tab. 3 .2) this employment base is important to the local economy and the creation of head-of- household lobs,- 6-7 The level of service in nit and train transportation needs to be protec ted and expanded .Sec 1B I p .7Sec n3 I p.44, The loss or reduction of transportation service was ulenti ied as a significant threat to local 4 7 businesses and economic development . 983 Osos Street, San Luis Obispo,CA 93401 1805 .595 .1345 i www.lisaeviseoo,isultinq .com B2-20 • • 1 4 115 . `v ise L'Czl ti I ...g,inc . ATTACHMENT 1 planning economics natural resource s Strategies to Build on Existing Efforts with-and Strengthe n Regional Partnerships , The following strategies focus on increasing efficiency, productivity, and competitiveness through industry partnerships, partnerships w tth Ca] Poly and Cuesta,and cluster-based efforts . Note that these activities ar e intended to be mutually supportive . Achieving results requires long-term, ongoing commitment from al l levels of City government and community members .Several of the strategies below are aimed at supportin g small businesses . (See Strategies 4 2,4 3, 4 .6 and 4 7 See also Strategy 2 .1). The specific areas are Busines s Retention, Business Attraction, Business Support, anti Support for Downtown . Business Retentio n 5:4 .1 Pursue collaborativ e development-efforts with regional-via partnerships that4 a cili -ach.si4easateaeverxsent-at common-geols,to grow and retain public and private sectoremployees in the City , including : Partnerships for business retention activities . •Welcomin g businesses to the area . •Building,on the "SLO Open for Business" website (www .openforbusinesinssio .com) t o provide a welcome mat, business statistics and data . Developing an ongoing outreach strategy that proactiveiv seeks information on how th e City can help businesses stay, thrive and expand in the City . 4.2 Work with regional partners such as the Chamber of Commerce and EVC to brin g attention to existing businesses . 4 .3 Continue to look for opportunities toenhance data collection that is useful for assessin q business growth including : a.Continued support for the Annual Economic Forecast Projec t b.Through policy changes, enhance data collection using the business licensing progra m {HdL) in order to facilitate collection of employment and other data about local companies . &c . Identify all businesses with ten or fewer employees within the City_ •Conduct a survey of these business owners (including home occupations) to determin e what small businesses need to aa_.~a •Develop an action plan that helps businesses of this size grow . 4 .4 Lookfor opportunities to build on partnerships to facilitate data collection, analysis and storage ., 983 Osos Street, San Luis Obispo, CA 93401 805 .595 .1345 I www .iisawiseconsuitinq .coro 1 5 B2-21 Lisa wise consulting,Inc .ATTACHMENT 1 planning economics natural resource s Business Attractio n 4 .5 Develop a plan for business attraction that builds on our localeconomic assets, including : a.Broadband,both the trans seine lines and access within the Citt see also Strategy 2 .2 an d 2.31 . b.Opportunities that can he developed with Cal Poly and (Mesta alumni .. c.Opportunities for specialized manufacturing in the Airport Area . d . Improve opportunities for real estate brokers, business ownersand startups to obtain information more quickly about the suitability of existing sites or future developmen t sites . e . Take ever- ouportunitt~ to support enhanced air and rail service . Business Suppor t 4.6 Continue to provide support for businesses requiring assistance with Cityprocesses , informationand/or guidance,including neighborhood serving and regional retail . Support forDowntown , 4 .7 Continue to support the downtown as a vibrant destination and resource for resident s and visitors . head ofhevseksthil-jabs- 11983 Osos Street, Son Luis Obispo, CA 93401 1805 .595 .1345 1 v,ww .lisowlseconsultino .com 1 6 B2-22 • FhrauDh-pons-y-£~-hanges, enhance data }r .e ..ie .to facilitate-c ills idea thesebusinessowners4 i to- grow-and-elevele faan-aEtisn-ple t tio n bring-greater-rec-o-gnitien-o ,•r s „•'^asses : L=ab„sh n-annual award %recogntition program for comkanicc with innovativebusines s practices an d Developa elcor and a mica l ate menage ti : Support the downtown as a vibrant doctinatien for residents andv°ritorc . Research ways to encourage resident-serving businesses without limiting the ability o f building owners to choose tenants _ _ ,;aContinue to help facilitate retail and office opportunities that further define Sa n Luis Obispo as the hub of the County for retail, jobs, and social activities . Reestablish a Shop Local effort building on the lessons learned from past Shop Local . campaigns . Continue to provide support for key Downtown development . ATTACHMENT 1 planning economics natural resource s • Wok the advantages to doing businas in l thatfacilitate::reponiren~.:'.o the nee&oflocal buain :cc . • 983 Osos Street, San Luis Obispo, CA 93401 1 805 .595 .1345 1 www .lisawiseconsulfinq .cont 1 7 B2-23 Page intentionally left 0 blank .