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HomeMy WebLinkAboutDowntown talking Points CITY OF SAN LUIS OBISPO Big Sky Closure – Downtown & Economy Talking Points Key Message We recognize that Big Sky has been a popular destination here for many for decades. We know that many factors impact a business’ decision to close, and the City is working harder than ever to promote our local businesses and ensure the long-term economic resilience of San Luis Obispo. We thank the Big Sky team for all their contributions to the community and encourage everyone to continue to shop and dine at local businesses. Related talking points: • San Luis Obispo’s economy is doing well, but there are many factors that impact a business’ decision to close. o Economic metrics:  Sales tax revenues are up by 10% for the first quarter (calendar year) over the same period in 2019, indicating that people are shopping more than before the pandemic. The City is waiting on final data for the second quarter.  From January to August 2023, 16 storefronts have closed and 23 new businesses have opened in the downtown according to recent data collected by our partners at Downtown SLO. o Challenges for businesses:  Inflation: • Rising inflation can lead to increased costs for raw materials, rent, utilities, and other operational expenses. • Inflation can also reduce consumers' purchasing power, leading to reduced discretionary spending. • Higher gas prices can also impact transportation costs for both suppliers and customers. • Inflation can disrupt supply chains, leading to delays and shortages in essential goods and materials.  Labor Shortages and Rising Wages: As payroll costs increase due to higher wages and a competitive job market, local businesses may struggle to attract and retain qualified employees.  Adapting to Changing Consumer Behavior: Local businesses may need to adapt to changes in consumer behavior, such as a preference for online ordering or contactless transactions.  Changes to Downtown Parking: The systems we use to manage parking are changing and parking rates have increased to support the long-term vitality of the downtown, but they can have a short-term impacts to downtown businesses. • The City is doing more than ever before to support local business and a resilient economy: o The City team is continuing to look at ways to improve the user experience and address the financial impact to people coming downtown. CITY OF SAN LUIS OBISPO Big Sky Closure – Downtown & Economy Talking Points o In addition, the City is working to address the broader economic challenges by:  Planning for fun and exciting ways to activate the downtown, including: • “Artober” in October featuring interactive activities throughout Downtown • Light Up Downtown and winter holiday activities as well as the Buy Local Bonus program in November and December • Eat Local Bonus program to support local restaurants in January • Lunar New Year celebration in February  Creating additional Downtown specific marketing for September through December for online media, print and KSBY.  Working with Downtown SLO, the SLO Chamber and other partners to continue to improve the business climate and promote the business community. o The City has a five -year Economic Development Strategic Plan that focuses on :  Helping businesses and entrepreneurs grow, thrive and adapt in the face of challenges and opportunities  Increasing awareness of local amenities and fostering a sense of belonging here  Attracting and retaining a skilled and diverse workforce o To address the downtown parking challenges, the City has:  Maintained the cost level for employees parking downtown.  Provided a park local program for County residents to receive one-hour free parking.  Worked to improve the user experience.  Created incentives for businesses to use the validation program.  Announced free parking days and times for the upcoming holidays.