City Council Agenda
City of Campbell, 70 N. First St., Campbell, California
NOTE: To protect our constituents, City officials, and City staff, the City requests all members of the public follow the guidance of the California Department of Health Services', and the County of Santa Clara Health Officer Order, to help control the spread of COVID -19. Additional information regarding COVID-19 is available on the City's website at www.campbellca.gov.
This City Council meeting will be conducted in person as well as telecommunication and is compliant with provisions of the Brown Act.
The City Council meeting will be live -streamed on Channel 26 or Channel 88, the City's website and on YouTube https://www.youtube.com/user/CityofCampbell for those who only wish to view the meeting.
Those members of the public wishing to provide public comment virtually are asked to register in advance at: https://campbellca-gov.zoom.us/webinar/register/WN_YG86Y6gVQQuv1FUb3Hot-A.
After registering, you will receive a confirmation email containing information about joining the meeting. Members of the public may attend the meeting in person at Campbell City Hall.
Public comment will also be accepted via email at [email protected] prior to the start of the meeting. Written comments will be posted on the website and distributed to the Council. If you choose to email your comments, please indicate in the subject line “FOR PUBLIC COMMENT” and indicate the item number.
STUDY SESSION OF THE CAMPBELL CITY COUNCIL
Tuesday, December 5, 2023 – 5:30 p.m.
Ralph Doetsch Conference Room
70 N. First St., Campbell, California
CALL TO ORDER
ROLL CALL
PUBLIC COMMENT
NEW BUSINESS
1. Economic Development Strategy Study Session
Recommended Action: That the City Council provide input and direction for the economic development strategy recommendations.
ADJOURN
IMPORTANT NOTICE: Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection with the agenda packet
in the lobby of City Clerk’s Office, 70 N. First Street, Campbell, CA 95008, during normal business hours. These materials will also be available on the City website at https://www.ci.campbell.ca.us/agendacenter with the agenda packet following the last item of the agenda, subject to staff’s ability to post the documents prior to the meeting. All documents not posted prior to the meeting will be posted the next business day.
In compliance with the Americans with Disabilities Act, listening assistive devices are available for all meetings held in the City Council Chambers. If you require accommodation, please contact the City Clerk’s Office, (408) 866-2117, at least one week in advance of the meeting.
City
Council
Report
TITLE: Economic Development Strategy Study Session
RECOMMENDED ACTION
That the City Council provide input and direction for the economic development strategy recommendations.
BACKGROUND
On September 5, the City Council was given an update on the Phase I “Existing Conditions” of the economic development strategy process. The presentation included a summary of the Strategy Advisory Committee and Economic Development Subcommittee’s work session held on July 27 at which the existing conditions were presented and discussed. In addition, a list of the committees’ priority “Assets, Challenges and Opportunities” that emerged from the existing conditions was also presented and discussed at the Council meeting.
At the conclusion of the Council meeting, the City Manager stated that a study session with the Council would be scheduled to move forward with Phase II of the strategy process--the development of strategy recommendations.
The purpose of the December 5 study session is to:
1) Facilitate a Council discussion to address the question “where does the City want to be?” and “where does the City want to be in the future?” based on Phase I findings and guiding principles from the General Plan 2040. The outcome of this discussion will be included in the final economic development strategy report. 2) Obtain Council feedback and direction on the draft strategy initiatives, actions and tactics developed by the consultants based on Phase I findings and alignment with the General Plan 2040 Vision, Objectives and Economic Development Element as guiding principles.
The December 5 Council study session will be held in the Doetsch Room at City Hall from 5:30 pm to 7:30 pm.
DISCUSSION
Item:
Category:
Meeting Date:
1 NEW BUSINESS
December 5, 2023
1 Packet Pg. 3
Economic Development Strategy Study Session Page 2 of 3 The City’s Economic Development Strategy Process consists of three phases that are framed by three key questions:
Phase I: Where are we now?
Existing conditions’ “Working Papers”, stakeholder input and percepts, findings, brand architecture
Phase II: 1) Where do we want to be?
2) Where do we want to be in the future?
Guided by the 2040 General Plan Vision and Objectives and input and direction from the City Council
Phase III: How do we get there?
Final Report of Strategic Actions and Tactics
Phase I entailed a review of existing conditions that was organized into categories which are summarized in Attachment A of this report. Nine detailed “working papers” were prepared for each category which provided an assessment of the existing conditions. Phase I also addressed marketing for the City including “brand story and messaging” and accompanying “concepts” which were the subject of a work session held with the Strategy Advisory Committee and the Economic Development Sub - committee on August 28. A summary and discussion of that work session will be presented at a Council meeting to be scheduled in the near future.
The December 5 Council study session is part of Phase II which focuses on the question “Where do we want to be”? The information and findings gathered in Phase I, combined with their own experience and expertise, enabled the consulting team to develop actions, tactics and initiatives that are grouped into three categories:
1. Foundational – the base or foundation of the economic development program
2. Collaborative – the partners needed for implementation of the program
3. Aspirational -- where should the economic development effort go in the future and what will it take
The recommended actions and tactics will be presented for the Council’s discussion, input, and direction at the study session. (See Attachmen t B for a copy of the consultants’ study session presentation.) Feedback from the Council on a final question of “where does the City want to be in the future?” will be included in the “aspirational” category of recommended actions, tactics, and initiatives.
Next Steps
1 Packet Pg. 4
Economic Development Strategy Study Session Page 3 of 3 The Council’s input and direction regarding the strategy’s recommended actions, tactics and initiatives will help guide the final economic development strategy plan which is Phase III of the strategy process. The final plan will be presented to the City Council in the first quarter of 2024.
FISCAL IMPACT
Overall, the economic development strategy is expected to have a fiscal benefit to the City as it will develop strategies to support economic development and the fiscal health of the City. Any specific actions resulting from the implementation of the economic development strategy and plan that has fiscal impacts will be included in the City’s final Economic Development Strategy.
Attachments:
A. Summary of Existing Conditions
B. Study Session Presentation
Prepared by:
Leslie Parks, Economic Development
Reviewed by:
Rob Eastwood, Community
Development Director
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Summary of Existing Conditions
b. Study Session Presentation
1 Packet Pg. 5
Attachment A: Summary of Existing Conditions
1. Economic Scan: an overview of City economic and demographic indicators and data points) that included the three key business drivers or sectors that create economic activity in the City. The drivers are: Traded Sector, Visitor Potential and Population Driven.
2. Market Co nditions: The City offers a strong business environment and is a desirable location for businesses because of its proximity to Silicon Valley and access to major freeways. There is demand from retailers and business owners to locate in the City, as evidenced by low vacancies for industrial and retail space.
3. Real Estate Vacancy: (commercial, office and industrial) The retail and industrial vacancy rates are considered healthy or acceptable rates relative to the region. The office vacancy rate is higher than rates in surrounding communities (around mid-20 percent). High office vacancy is expected to continue for at least three years.
4. Sales Tax: For most cities, sales/use tax is the primary source of revenue for general funds. The total of retail sales tax and business sales tax revenue is the second largest revenue producing category, after property tax, according to the City’s 2022 budget.
5. Economic Centers: The consulting team identified economic centers to further analyze how they perform both in economic activity and sales tax generation and to help guide prioritizing economic development efforts. Once the economic centers were identified, a “story map” was created which is a web-based tool that provides a visual depiction of key areas of the City that generate economic impact.
Below are links to the story maps that will be available on the City’s Economic Development web page.
Economic Centers
Downtown Campbell
The Dell Avenue area is the highest generator of sales tax for the City followed by the East Hamilton Corridor and the Pruneyard.
6. Social Media Presence: T he consulting team reviewed the City’s marketing efforts and channels to fully understand the current social media presence effort with residents, businesses, visitors, and real estate brokers/developers. The team also reviewed other stakeholder organizations and private business social media that market the City. This review helps the consulting team evaluate opportunities
1.a
Packet Pg. 6
Attachment: Summary of Existing Conditions (Economic Development Strategy Study Session) to enhance social media presence, followers, and messaging to target audiences and prepare the marketing strategy. (See “Social Media Working Paper”.)
7. Website Review: Websites are major channels for businesses and residence to access city information. The website review conducted for the existing conditions scan entailed a content review, technical review, and usage. The City’s website was reviewed with three perspectives in mind:
1. From a user
2. From a site functionality (content and structure)
3. From a marketing perspective
Numerous inconsistencies and errors that affect functionality and make the search more difficult for the user to find information are noted in the review. Many of the findings have already been used by staff to make changes and corrections to the City’s website.
8. Perceptions: Three stakeholder groups—businesses, residents, and real estate brokers—were used to gauge perception through meetings, interviews and two on- line surveys, one for residents and one for businesses to provide perspectives and opinions. Interviews were also held with individuals, businesses, and other entities outside of Campbell to gather perceptions. It is important for the marketing and economic development strategy to understand the perspectives of these groups as they help define current perceptions of the City, shape the marketing and branding architecture and build the City’s brand story and the marketing plan.
9. Assets, Challenges and Opportunities : The review of existing conditions was essentially a SWOT analysis (strengths, weaknesses, opportunities, and threats) that produced key themes regarding the City’s assets, challenges, and opportunities. Many of the assets identified below align with the City’s General Plan Vision and Economic Development Goals. The latter serves as guiding principles that validate the actions and strategies of the economic development strategic plan.
Assets Challenges Opportunities
Small town feel
Good place to raise a
family
Send of safety
Location proximity to
Silicon Valley
One of a few cities with
concentration of lower
cost flex space for
Zoning and permitting complexities
(particularly as they relate to time
and cost for businesses).
Capacity and resources of City
and partner organizations are
limited (noted in interviews
conducted for the existing
conditions review)
Very limited vacant land to
accommodate large format retail
Shorten time
delays for zoning
and permitting.
Market, promote
and position the
City as
competitive
location for
businesses
1.a
Packet Pg. 7
Attachment: Summary of Existing Conditions (Economic Development Strategy Study Session) established and new
businesses
Active Downtown with
restaurants and retail
and campus style development
opportunities
Focus on growing
and retaining
existing
businesses.
1.a
Packet Pg. 8
Attachment: Summary of Existing Conditions (Economic Development Strategy Study Session) Strategy Study Session
C I TY O F C A M P B E L L
DAT E : O C TO B E R 1 7 , 2 0 2 3
1.b
Packet Pg. 9
Attachment: Study Session Presentation (Economic Development Strategy Study The following is the consulting team’s
initial actions/tasks outline based on
what we have learned, heard and our
own experience and expertise in the
field. These fall into three pillars:
1. Foundational
2. Collaborative
3. Aspirational
PHASE II
WHERE DO YOU WANT TO BE?
Today’s Objective
1. Share draft actions and tactics within the three
pillars.
2. Answer Council questions – why these, why pillars,
what about...
3. Receive input “Where do you want to be in the
future?”
1.b
Packet Pg. 10
Attachment: Study Session Presentation (Economic Development Strategy Study Quick Review
1.b
Packet Pg. 11
Attachment: Study Session Presentation (Economic Development Strategy Study Why Economic
Development?
Economic Development is a business-facing
department providing programs, policies or
activities that seek to improve the economic
well-being and business climate for a
community.
Economic Development can help maintain
financial sustainability for the community (i.e.
sales tax generators).
Economic Development can focus concerted
actions for purposes of economic progress
within a specific area (i.e. retail).
Economic Development helps increase
economic multiplier effects from which
community benefits are realized.
1.b
Packet Pg. 12
Attachment: Study Session Presentation (Economic Development Strategy Study Economic Development
Strategy Process
Capacity & Tools
Perceptions
Portfolio & ACO
Assessment & Input
Vision & Objectives
Outcomes Achieve Vision & Objectives
Phase I – Where are we now?
Working Papers, Stakeholder Input &
Perceptions, Findings, Marketing
Architecture
Phase II – Where do you want to be?
Input from Council
Phase III – How do you get there?
Implementing Strategic Actions & Tactics
1.b
Packet Pg. 13
Attachment: Study Session Presentation (Economic Development Strategy Study Guiding Principle 1
General Plan Vision
In 2040, Campbell is a highly desirable community to live, learn, work and recreate.
It has maintained its small-town feel while maturing into an attractive, vibrant, and sustainable city that celebrates its historical and architectural heritage and embraces cultural diversity.
Campbell is a healthy community with quiet and attractive residential neighborhoods, a thriving downtown, well
maintained infrastructure, excellent schools and recreational amenities connected by a seamless network of trails and paths.
The community is prosperous and fiscally sound, offering abundant employment opportunities to its diverse and
creative workforce through a balanced mix of land uses that capitalize on employment opportunities in the Silicon Valley, while maintaining a strong sense of community identity.
Role of Economic
Development in achieving
the General Plan Vision
• Marketing
• Brand Story
• Honor cultural diversity in
businesses?
• Maintaining and refreshing
downtown
• Leverage the greater region
• Marketing – community identity
– how to be unique
1.b
Packet Pg. 14
Attachment: Study Session Presentation (Economic Development Strategy Study Guiding Principle 2
General Plan
Objectives – 2040
1. Address issues and concerns identified by city residents, businesses, decision-makers, and other stakeholders;
2. Capitalize on Campbell’s location within the Silicon Valley to provide high tech jobs that enable Campbell to be a
live/work community while maintaining Campbell’s small
town community identity;
3. Protect and enhance Campbell community character, and sense of community;
4. Proactively plan for and accommodate local and regional growth in a balanced and sustainable manner, with an
emphasis on maintaining Campbell’s unique character;
5. Attract and retain businesses and industries that provide high-quality and high-paying jobs;
6. Support and enhance Campbell’s small business community to sustain a vibrant city with a strong downtown core and community identity;
7. Address emerging transportation, housing, and employment trends;
8. Encourage mixed use corridors that promote vibrant
commercial and residential areas.
Role of Economic Development
in achieving 2040 Objectives
• Address Challenges
• Business development
• Marketing – community
identity
• Brand Story
• Existing business
retention/expansion
• Small business services
• Downtown Business Mix &
Vibrancy
• Watch trends, regional context
• New developments – business
friendly
1.b
Packet Pg. 15
Attachment: Study Session Presentation (Economic Development Strategy Study Guiding Principle 3
2040 General Plan
Economic
Development Element
• Aligning strategy and actions with 2040
General Plan Economic Development
Element.
• Sustain a healthy, balanced economy
• Business retention, expansion
• Business diversification
• Business development in key areas
• Sensitivity to sales tax generation
businesses as a key component.
• Focus on filling vacancies.
1.b
Packet Pg. 16
Attachment: Study Session Presentation (Economic Development Strategy Study AOC - Stakeholder Engagement & Consultant Findings
Assets Challenges Opportunities
▪ Small town feel, place to raise family
▪ Community-oriented, sense of place
▪ Sense of safety, security
▪ Strong heritage, cultural diversity, valued
▪ Proximity in the Silicon Valley region
▪ Major transportation routes
▪ Business mix
▪ Companies anticipating growth
▪ Great place to do business
▪ Business recovery
▪ Small business, business longevity
▪ Talent pipeline growing
▪ Population diversity
▪ Low vacancy rates
▪ Small entrepreneurial businesses
▪ Small niche of tech companies
▪ Downtown key asset
▪ Quality of life, hiking, trails
▪ Responsive City
▪ Chamber & DCBA
▪ Permitting and Zoning
▪ Resources are strained
▪ Physical build out of community
▪ Employee recruitment, difficult for
businesses
▪ Keep Downtown vibrant
▪ Increasing homeless and perceived
safety
▪ Parking-related problems (more than
downtown)
▪ Trash and recycling services
▪ Limited commercial and industrial space
▪ Some vacant space not to code
▪ No vacant sites
▪ Limited flex & R/D space
▪ High office vacancy, limited office
development
▪ High cost of doing business
▪ Shopping online
▪ Childcare affordability and availability
▪ Affordable housing
▪ Streamline permit, shorten timeline
▪ Position & promote city as a unique
quality city with small town feel
▪ Focus on existing businesses
▪ Leverage visitor opportunities, i.e.,
Superbowl 2026
▪ Support local-small business
▪ Start “live local” campaign
▪ Downtown strategy – refresh and
support vibrancy
▪ Is PBID feasible in downtown?
▪ Reuse of key opportunity site – Fry’s
▪ Work closely with brokers on retail
▪ Leverage small technology
companies
▪ Work on business challenges
▪ Chamber & DCBA Partnership
▪ Infrastructure improvements
▪ Enhance communications with
businesses
1.b
Packet Pg. 17
Attachment: Study Session Presentation (Economic Development Strategy Study Strategy Mindmap
1.b
Packet Pg. 18
Attachment: Study Session Presentation (Economic Development Strategy Study Strategy
Mindmap
1.b
Packet Pg. 19
Attachment: Study Session Presentation (Economic Development Strategy Study I. Foundational
1.b
Packet Pg. 20
Attachment: Study Session Presentation (Economic Development Strategy Study Economic Development Core
Obj: Build Economic Vitality
1. Organization and tools i.e., Customer Relations Management (CRM)
2. Existing Businesses
1. Retail – address Sales Tax Contributors
2. Dell & McGlincy
3. Business Challenges
3. Retail Vacancies - meeting with center managers,
evaluating potential uses, targeting
4. Office – meeting with owners, developers, are there
potential reuses? Feasibility studies
5. Emerging Businesses – positioning for new growth, new businesses
6. Visitors – collaboration - hotels, Chamber, DCBA, new venues, Superbowl 2026
General Plan ED Ref: ED3d, ED3e, ED4g, ED6b
1.b
Packet Pg. 21
Attachment: Study Session Presentation (Economic Development Strategy Study Market Conditions
Obj: Create Market Opportunities
1. Portfolio – maintaining a real estate
portfolio of buildings attractive to users
2. Economic Centers – vacancies, key
opportunity sites (vacancies)
3. Zoning & Permitting – streamline,
change perceptions, be prepared for new
uses
4. Broker Network – build trusted
relationship
5. Ombudsman / business champion
6. Supply & Demand – research General Plan ED Ref: ED2a, ED3b, ED3a, ED3e
1.b
Packet Pg. 22
Attachment: Study Session Presentation (Economic Development Strategy Study II. Collaborative
1.b
Packet Pg. 23
Attachment: Study Session Presentation (Economic Development Strategy Study Provider Ecosystem
Obj: Strengthen & Leverage Resources
1. Chamber – Small Business, Shop Local,
Entrepreneur Programs
2. DCBA – Builds Organic and Experiential
Image
3. Small Business Development Center –
Technical Assistance Provider
4. SVEDA – Professional Network
General Plan ED Ref: ED2f, ED6f, ED1K
1.b
Packet Pg. 24
Attachment: Study Session Presentation (Economic Development Strategy Study Marketing
Obj: Focus Economic Development
Messaging & Promotions
1. Focus on audience decision makers – build database
◦ Retail - Industrial – Office
◦ Emerging industries
2. Articulate strong value proposition – Why Campbell?
(for each audience)
◦ Products – Assets - Talent
◦ Maps – economic centers – property sheets
3. Implement economic development communications
1. Building relationships,
2. addressing “doing business in Campbell challenges”,
3. promote business first attitude
4. Update economic development website page and
social media (Linked-In)
General Plan ED Ref: ED2f, ED6f, ED1K
1.b
Packet Pg. 25
Attachment: Study Session Presentation (Economic Development Strategy Study III. Aspirational
1.b
Packet Pg. 26
Attachment: Study Session Presentation (Economic Development Strategy Study Place
Obj: Create Placemaking Economics
1. Position Campbell to attract talent – Campbell
has what they value
2. Leverage Campbell’s authentic image, build
the experiential image, continue to build
community pride, and attract attention of
creating quality place.
3. Downtown – Property Based Improvement
District, ULI Panel
4. Initiate placemaking strategies
1. Downtown to Pruneyard
2. Other centers, corridors
3. Mixed use developmentsGeneral Plan ED Ref: ED6c, ED6d, ED4b
1.b
Packet Pg. 27
Attachment: Study Session Presentation (Economic Development Strategy Study
1.b
Packet Pg. 28
Attachment: Study Session Presentation (Economic Development Strategy Study What we have identified
for actions address:
1. Gaps that currently exist in the economic
development program,
2. Actions that can be taken based on the product
and assets available,
3. Challenges that constrain Campbell from being
successful in the marketplace,
4. Opportunities to differentiate and position
Campbell in the market.
1.b
Packet Pg. 29
Attachment: Study Session Presentation (Economic Development Strategy Study Where do
you want to
be in the
future?
Consultant’s Assumptions:
1. Build a strong, solid economic development program
with a business champion reputation?
2. Address and mitigate real or perceived challenges
that have given Campbell a reputation as a difficult
place to do business……change that perception?
3. Build on the small business base, great place to
operate – create a market niche in the valley by
developing a small business entrepreneur identity
where new emerging businesses will want to locate?
4. Continue to build on Campbell’s image as a
community with a sense of place, well-being and
belonging – initiate Placemaking Strategies starting
with Downtown and always keeping Campbell
relevant and robust which is desired by up and
coming talent?
Draft Goal:
Continue to create a place valued by
residents, businesses and visitors by
being a forwarding thinking
community that attracts talent,
entrepreneurs and offers opportunity
for meaningful engagement.
1.b
Packet Pg. 30
Attachment: Study Session Presentation (Economic Development Strategy Study
NEXT STEPS
1.b
Packet Pg. 31
Attachment: Study Session Presentation (Economic Development Strategy Study