WORKSHOP ACTIVITIES
Nonprofit Center
Affordable Housing
Grocery Store Grocery Store
Pop-ups for Businesses
Affordable Housing
Grocery Store
Affordable Housing
Free Youth Community Center
Affordable Housing
Homeownership
Business Boats (Santa Monica)
Pop-ups for Businesses
Downtown Waterfront EPA
Pier 39 Attractions
New Businesses
New Development
Cultural Center
Farmers Market
Walmart
Affordable Housing
Homeownership
At all red parcels
New Development / Businesses
New Development / Businesses
Multicultural/ethnic Restaurants
Grocery Store (Affordable)
New Development / Businesses
Affordable Housing / Rent-to-Own
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Participants of the workshop identified the following programming and investment priorities to advance inclusive economic development.
COMMUNITY WORKSHOP TAKEAWAYS
Communicate a New EPA Identity
Residents want to market a new “brand” for EPA, one
that emphasizes economic opportunity and the
cultural richness of the community.
Invest in Young Residents
Young people in EPA should be equipped with
comprehensive education, mentorship, and workforce
training to build pathways to meaningful careers.
Empower the Local Workforce
Workforce development providers should continue to
design and implement job and tech skills training
programs that prepare EPA residents to thrive in both
the local and regional economies.
Provide Tangible Support to Business Owners
Targeted grant programs and a dedicated small/micro
business resource hub will help foster growth.
Streamline Permitting & Entitlement Processes
Streamlining approvals and removing regulatory
barriers can help spur entrepreneurship and private
investment.
Support Shared Prosperity
Advancing inclusive growth and mitigating negative
impacts such as displacement to ensure EPA’s
economic gains benefit all residents.
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Participants also identified the following placemaking and development priorities that could improve quality of life and help catalyze economic development.
Activate the Waterfront
Vacant land along the waterfront and Cooley Landing
should be developed for more engaging uses, better
connecting residents and visitors with a natural asset.
Establish a Vibrant Downtown
Bay Rd and University Ave are the city’s key economic
corridors and should offer vibrant cultural and
recreational experiences for residents and visitors.
Create More Public Gathering Spaces
Community members desire places beyond traditional
parks – such as food hall, plazas, amphitheaters - in
which to foster connection with neighbors and
celebrate culture.
Devote Space for Local Entrepreneurs
Training centers, ghost kitchens, and coworking spaces
can support local business owners by offering
environments to develop skills and grow their ventures.
Provide Community-Facing Services
Community members seek access to essential everyday
services – including additional full-service grocery
stores with pharmacies and childcare - to meet their
needs.
Improve Aging Infrastructure
Key infrastructure - water systems, electrical grids,
roads, etc. – will need to be modernized to
accommodate new development and ensure long-term
sustainability.
COMMUNITY WORKSHOP TAKEAWAYS
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SWOT Analysis
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SWOT ANALYSIS | FRAMEWORK & SUMMARY
Through existing conditions analyses and stakeholder engagement, HR&A developed a SWOT analysis that summarizes EPA’s assets, challenges, and regional opportunities.
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
INTERNAL
POSITIVE
NEGATIVE
EXTERNAL
EPA assets e.g.,
• Strategic location
• Base of small / micro businesses
• Waterfront access
Regional opportunities e.g.,
• State and regional investments in economic
development
• Availability of vacant/underutilized sites
EPA challenges e.g.,
• Lack of street level vibrancy
• Unpredictable development review /
entitlement process
• Complicated and lengthy business licensing
processes
• Infrastructure upgrades needed for key sites
Regional challenges e.g.,
• Limited transit access
• Negative external perception
• Lack of County and State focus on EPA
Strengths, Weaknesses, Opportunities, Threats (SWOT)
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27| HR&A Advisors East Palo Alto Economic Development Strategic Plan DETAILS | STRENGTHS & OPPORTUNITIES
INDUSTRY &
ECONOMY
REAL ESTATE &
PHYSICAL ASSETS
POLICIES &
GOVERNANCE
COMMUNITY
• Strategic location & strong
regional economy
• Existing base of small/
micro businesses &
industries
• Waterfront
• Established business
districts
• Shared vision for key
areas
• Relative affordability
• Consensus on need for
inclusive economic
growth
• Attention to
entrepreneurship &
workforce development
• History of resilience &
self-determination
• Active & engaged
residents / nonprofits
• Rich history, culture, &
diversity
• Job growth & declining
unemployment
• Vacant parcels with
potential
• Committed development
partners
• Opportunities to
leverage California Job
First & Bay Area Job First
Collaborative resources
• Significant children & youth
population offering
opportunities to invest in
upward mobility
STRENGTHS OPPORTUNITIES
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INDUSTRY &
ECONOMY
REAL ESTATE &
PHYSICAL ASSETS
POLICIES &
GOVERNANCE
COMMUNITY
• Limited high-paying local
jobs or jobs with career
pathways
• Small / micro businesses
lacking growth support
• Significant infrastructure
& environmental
remediation needs
• Limited amenities &
retail options
• No true “main street” or
downtown
• Fiscal deficit constraining
City’s ability to directly
invest in economic
development
• Limited City capacity for
economic development
• Complicated, lengthy, and
hard-to-navigate business
licensing processes
• Development review
process perceived as
unpredictable/high-risk
• Skills gap, systemic
barriers, & limited
wraparound support
constraining access to
high-paying jobs
• High growth industries
underrepresented in EPA
• Negative external
perception & persistent
impact from historic
discrimination
• Limited transit access
• High office vacancies
regionally
• County/State not
prioritizing EPA
• Digital divide limiting
ability to take advantage of
tech economy (jobs, startup formations)
WEAKNESSES THREATS
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Opportunity
Sectors
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OPPORTUNITY SECTORS APPROACH
HR&A identified opportunity sectors for EPA based on the city’s current economic foundation and assets, regional strengths, and statewide and regional policy and funding priorities. • Existing employment base
• Top growing sectors
• EPA’s strategic location
• Available land
• Priority sectors identified in the Bay
Area CA Jobs First Plan
• Sectors with State and County
investment available
• Connection to research institutions in
the region
EPA Strengths
& Assets
Regional
Growth Drivers
State & Regional
Funding Priorities
• Existing employment base
• Top growing sectors
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OPPORTUNITY SECTORS
Based on EPA’s current economy, regional industry strengths, and alignment with regional and state funding sources through CA Jobs First / Bay Area Job First Collective, HR&A has identified the following Opportunity Sectors.
Opportunity Sector Type Sectors Goals
Primary Sectors
Sectors where EPA’s strengths/growths &
regional funding opportunities align
• Education / Childcare
• Healthcare
• Construction
• Manufacturing (incl. advanCEDD
manufacturing)
• Grow existing
businesses
• Attract new businesses /
industries
• Workforce development
& entrepreneurship
Supporting Sectors
Sectors with a foundation to grow in EPA
given local and regional context
• Food & Beverages / Hospitality
• Retail (local & destination)
• Office-Based Sectors (incl. Professional
Services)
• Tech
Supplemental sectors
Other sectors that may offer regional
funding opportunities
• Arts & Culture
• Sustainable Environmental Management
• Workforce development
& entrepreneurship
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Sector Types of Spaces Considerations
EDUCATION
/CHILDCARE
• Childcare spaces
• Space for apprenticeship programs for childcare
workers
• Community facilities for educational services
• Workforce development facilities
• Accessible location
• Adjacency to other city services,
community facilities, educational
institutions, etc.
HEALTHCARE
• Healthcare centers such as ambulatory services to
support residential growth
• Co-located care hubs that combine childcare,
adult day care, and aide support in one facility
• Upskilling and training programs for home health
aides to support EPA health workers in becoming
regionally competitive
• Accessible location
• Adjacency to other city services,
community facilities, educational
institutions, etc.
MANUFACTURING/
CONSTRUCTION
• Manufacturing spaces greater than 100,000 SF e.g.,
construction tech facilities, semiconductor
manufacturers, modular construction manufacturers
• Food manufacturing and industrial kitchens greater
than 1,000 SF
• Light industrial flex spaces that can be integrated
with other mixed-use uses
• Data centers (not priority given environmental
impact)
• Prioritize facilities that can create quality
jobs and increase revenue for the City
• Manufacturing spaces need high energy
and water supply
• Access to highway and ease of access are
critical
• Ground floor is preferred by many
industrial uses
PRIMARY OPPORTUNITY SECTORS SPACE NEEDS
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SUPPORTING OPPORTUNITY SECTORS SPACE NEEDS
Sector Types of Spaces Considerations
FOOD &
BEVERAGE/HOSPITALITY
• Small to large retail spaces for various types of
restaurants in key commercial corridors
• Subsidized space for mobile vendors and local F&B
operators to expand operations
• Incubator kitchens
• Accessible location
• Ground floor
• Affordable rents
RETAIL
• Grocery store (full-service with pharmacy)
• Regional shopping centers
• General merchandise stores
• Ground floor
• Cluster retail businesses on key corridors
OFFICE-BASED
SECTORS/TECH
• Offices in mixed-use developments
• Flex space/coworking space for small businesses
and entrepreneurship
• Office space for tech companies and professional
services companies such as law firms
• Accessible location
• Adjacency to amenities
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Economic
Development
Strategies
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ECONOMIC DEVELOPMENT VISION & GOALS
Goal 1
Boost Home-Grown
Businesses & Entrepreneurs
to generate community wealth
Goal 2
Attract Businesses &
Private Investments
to expand jobs, community amenities,
and fiscal stability
Goal 3
Make East Palo Alto
Investment Ready
by unlocking key sites, making EPA a
more dynamic place, improving
infrastructure & enhancing EPA’s brand
ECONOMIC DEVELOPMENT VISION
Expand East Palo Alto’s economy, grow community wealth, create vibrant places, and celebrate and tell EPA’s story.
Building on analytical findings and insights from initial engagement, HR&A developed an economic development vision for EPA,and three strategic goals to advance that vision.
The vision and goals were discussed and validated at the Community Workshop on Sep 4, 2025. 364
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STRATEGIES & OUTCOMES AT-A-GLANCE
Goals Strategies Desired Impact
1. Boost Home-Grown
Businesses &
Entrepreneurs
A. Provide a one-stop resource for small businesses
to start, scale, and thrive in EPA
B. Make it easier for small businesses to navigate
processes and reach customers
• More businesses launched and
sustained; higher revenues and survival
rates for local firms.
• Shorter, clearer permitting and licensing
timelines; expanded market access.
2. Attract Businesses &
Private Investments
A. Run proactive business development with a clear
EPA business case, “front door,” sector targets, and
account management
B. Invest in workforce development to connect EPA
residents to new economic opportunities and
expand EPA’s appeal for opportunity sectors
• Stronger investment pipeline and site
take-up; new, higher paying jobs, and a
larger tax base.
• ReduCEDD land / space vacancy and
visible wins (anchor tenants,
expansions).
3. Make East Palo Alto
Investment Ready
A. Strengthen EPA’s brand, activate the public
realm, and create dynamic destinations
B. Advance shovel-readiness and leverage the
entitlement process to unlock strategic sites and
incentivize priority uses
• Faster time-to-market and activation of
underutilized sites with job-generating
and community sustaining uses.
• Upgraded public realm and increased
foot traffic and visitation.
Each goal is anchored by two core strategies and tied to measurable outcomes for jobs, tax base, and community amenities.
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INITIATIVES & PRIORITIZATION APPOACH
To guide prioritization and phasing, HR&A defined 20 initiatives aligned with the six strategies.
These initiatives are organized as quick wins, mid-term, and long-term actions, each with order-of-magnitude resource estimates and potential partners.
Initiatives Phasing
1-2 year; may be able to implement with existing resources. 2-5 years; likely need new partnerships, funding sources, and additional City staff.
5-10 years; require larger investments, expanded City team, and/or greater policy shifts.
Some mid- and long-term initiatives will require near-term groundwork, even if their impact is realized over a longer horizon.
Quick-Win
Long-Term
Mid-Term
Resource Needs
(Incl. Staffing & Funding)
$: up to $75K
$$: $75K – $200K
$$$: $200K+
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1A.1 Create a small/micro business guide (digital / print) in English and Spanish, potentially including:
• How-to guides / FAQs on starting a business or a workers co-op, licenses/permitting processes, rules and regulations, contacts in different agencies • Market opportunities (e.g. events / vending / marketing opportunities) • Resource links to technical assistance and resources for small businesses (e.g small business loans, grants, etc.)
• Vacant storefronts / leasing opportunities (sourCEDD from broker network or as part of business-facing site navigator tool. See additional details in Goal 2 Strategy 2A) • Flyers with QR code leading to the digital webpage
• Listserv / monthly newsletter for local businesses to stay updated on events, new processes, etc.
$
• Community and
Economic
Development
Department
(CEDDD)
• Broker network
1A.2 Through a nonprofit partner, program the forthcoming Cityowned incubator/office space in Gateway Retail Center as a place to access free coworking space and receive referrals/warmhandoffs to City and external support services. $$ • Nonprofit operator
of coworking space
1A.3 Establish “EPA Business Commons,” a physical all-in-one small/micro business and entrepreneurship center, through partnership with an organization like the REN Center:
• Permit/license navigation
• Small business capital access / technical assistance / business planning advisory • Peer-to-peer networking
• “Pitch contest” with integrated support and exposure to investors $$$
(high initial capital cost,
likely low operational cost
through partnership)
• Nonprofit operator
of entrepreneurship
center
• Network of small
businesses/entrepre
neurs
• City investment
GOAL 1: BOOST HOME-GROWN BUSINESSES & ENTREPRENEURS
Priority Initiatives Resource Need Key Partners
Strategy 1A: Provide a one-stop resource for small/micro businesses to start, scale, and thrive in EPA Quick-Win
Long-Term
Mid-Term
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1B.1 Streamline business licensing / permitting processes and fee structure, with a focus on lowering barriers for smaller businesses with limited revenues
$
• City Finance
Department
1B.2 Create simple permits or pre-approved zones for
temporary uses and small activations (e.g., parklets on parking spaces that can be used by street vendors)
$
• City Finance
Department
• CEDDD
1B.3 Appoint an EPA Business Ambassador to serve as a
champion, promoter, technical assistant, connector, and ombudsman for existing and prospective businesses, improving their experience operating and succeeding in EPA.
$$ • CEDDD
1B.4 Create a “Shop Local” campaign and program that
highlights home-grown businesses and supports resident, worker, and visitor spending in EPA-based businesses
• City subsidy for Buy One/Get One promotions – City Finance Department could fund $25,000 annually to incentivize local purchases with discounts $
• CEDDD
• City Finance
Department
• Local businesses
GOAL 1: BOOST HOME-GROWN BUSINESSES & ENTREPRENEURS
Priority Initiatives Resource Need Key Partners
Strategy 1B: Make it easier for small/micro businesses to navigate processes and reach customers Quick-Win
Quick-Win
Mid-Term
Mid-Term
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San Carlos Holiday Passport Program
DESCRIPTION
The San Carlos Holiday Passport Program is a seasonal initiative launched by the City of San Carlos to encourage residents to shop locally during the holiday season. The program gamifies the shopping experience by offering a “passport” that participants fill with stickers earned from purchases at participating businesses.
Once completed, passports can be submitted for entry into raffles and to claim exclusive prizes like a limited-edition tote bag. The program is designed to boost foot traffic, increase local spending, and foster community spirit.
KEY RESOURCES
• City Economic Development Department
• Local businesses
• Community engagement marketing tools
STRATEGIES
• By turning shopping into a fun, goal-oriented activity, San Carlos increases engagement and repeat visits to local businesses. • The program is tied to the holiday season, leveraging natural consumer behavior and enhancing it with community-driven incentives.
• The City provides printed passports, stickers, and promotional posters at no cost to businesses, lowering barriers to entry.
GOAL 1: BOOST HOME-GROWN BUSINESSES & ENTREPRENEURS | CASE STUDY FOR INITIATIVE 1B.4 369
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Emma’s Eco-Clean (Redwood City, CA) & Worker Coop Support
DESCRIPTION
Emma’s Eco-Clean is a worker-owned, eco-friendly housecleaning cooperative in Redwood City. It grew out of a women’s support group at Families in Transition/Catholic Charities in East Palo Alto, where low-income Latina immigrants sought safer, better-paid work in the cleaning industry.
WAGES (Women’s Action to Gain Economic Security), a nonprofit co-op developer, organized and incubated the business. Since opening in 1999 with five members, Emma’s has grown to 27 co-owners; evaluations of WAGES co-ops show 40–80% income gains, new access to health insurance, and increased savings for worker-owners. KEY RESOURCES
• Co-op developers
• Local social service and communitybased organizations • Community lenders / CDFIs
• Pro bono legal partners
• Philanthropic and institutional funders
STRATEGIES
Emma’s Eco-Clean and other worker co-ops succeed when a few key ingredients are in place:
• Partnerships with trusted CBOs, clinics, churches, and service providers (as Families in Transition did for Emma’s) to recruit members from existing networks of women, immigrants, and low-income workers. • Deep, multi-stage training plus early professional management and back-office support so new co-ops can stabilize and grow. • Tailored capital tools and shared infrastructure – such as co-op loan funds, matched savings programs, and shared bookkeeping/marketing – to lower barriers to entry and help co-ops scale collectively.
GOAL 1: BOOST HOME-GROWN BUSINESSES & ENTREPRENEURS | CASE STUDY FOR WORKER COOPERATIVES While not directly linked to any specific initiative identified above, support for worker co-ops could be integrated into small/micro business and entrepreneurship offerings. This aligns with California Jobs First’s “bottom-up” approach and offers opportunities to leverage state funding to build regional hubs for co-op technical assistance and capital. 370 42| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
2A.1 Create a dedicated business development landing page with:
• Key EPA stats, strengths, and sectors it is looking to attract (drawing from EDSP) • Links to existing resources such as ZoomProspector tool that provides community information and zones eligible for major incentives
• Map of available sites and entitlement status
• Point of contact
$
• CEDDD
• Planning Division
2A.2 As an expansion of the landing page, launch a more comprehensive “Choose EPA” portal as the digital “front door” for prospective businesses and investors, providing info on:
• EPA’s comparative advantages, to make the business case for locating in EPA • Target sector profiles articulating key assets, workforce, and recent momentum • A navigator tool that allows businesses to quickly summarize Federal/State/County/local funding opportunities and incentives for relocating to EPA, and view available sites • Point of contact at the City of EPA (same person as the EPA Business Ambassador) $$ • CEDDD
• Planning Division
2A.3 Grow EPA Business Ambassador’s role to also provide concierge-style support for prospective businesses and investors.
Expand the team to also include an Economic Development Manager to conduct proactive marketing. Activities may include:
• Attending industry-focused conferences / tradeshows
• Hosting site and business district tours (e.g., bus tours) • Building relationships with regional employers/brokers/developers $$ • CEDDD
GOAL 2: ATTRACT BUSINESSES & PRIVATE INVESTMENTS
Priority Initiatives Resource Need Key Partners
Strategy 2A: Run proactive business development with a clear EPA business case, “front door,” sector targets, relevant planning efforts, and account management
Quick-Win
Mid-Term
Long-Term
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2B.1 Work with workforce development partners to provide industry-aligned trainings and support worker cooperatives, prioritizing EPA opportunity sectors and other regional growth industries. (This may include city and partners hosting regular job fairs for local and regional jobs.)
$
• Workforce
development
providers
• Bay Area Jobs First
Collaborative;
• Local employers
• Higher education
• Labor unions
2B.2 Connect local and regional talent pipeline with EPA job and entrepreneurship opportunities.
(potentially partner with schools, Stanford, community colleges, and local nonprofits on a single initiative that combines an EPA jobs and entrepreneurship portal with a program that matches students and graduates to small-business needs in tech, social media marketing, etc.). $
• Bay Area Jobs First
Collaborative;
• Local employers
• Higher education
• Labor unions
2B.3 Establish a physical job-training hub near City facilities and service access points, potentially co-located with the planned Civic Commons or the EPA Business Commons recommended in this Plan.
$$$
(high initial capital cost,
likely low operational cost
through partnership)
• Workforce
development
providers
• CEDDD
• Labor unions
GOAL 2: ATTRACT BUSINESSES & PRIVATE INVESTMENTS
Priority Initiatives Resource Need Key Partners
Strategy 2B: Invest in workforce development to connect EPA residents to new economic opportunities and expand EPA’s appeal for opportunity sectors
Quick-Win
Mid-Term
Long-Term
Note: Relevant sectors for industry attraction and workforce development are defined in the Sector Opportunities chapter. 372
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Choose Redwood City
KEY RESOURCES INVOLVED
• City Manager’s Office
• City Economic Development Department
• State/Federal business licensing and technical
assistance programs e.g., CalOSBA, SCORE
STRATEGIES
• Redwood City consolidates all business-related services— permits, zoning, financing, and workshops—into one accessible portal.
• The program connects to State and Federal resources for technical assistance and other funding
• The city adopts a biennial Economic Development Work Plan that outlines priorities such as small business support, workforce development, and customer service enhancements.
GOAL 2: ATTRACT BUSINESSES & PRIVATE INVESTMENTS | CASE STUDY FOR 2A.1 AND 2A.2
DESCRIPTION
“Choose Redwood City” is an initiative led by the City of Redwood City, California, aimed at fostering a vibrant and inclusive business environment. The program is part of the city’s broader economic development strategy and is designed to attract, retain, and support businesses of all sizes - from tech headquarters to small family-owned shops. It provides comprehensive resources for site selection, licensing, financing, and community integration, with a strong emphasis on equity, sustainability, and economic mobility. 373
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3A.1 Promote EPA as a place to live, work, visit, and invest in, potentially through the following venues:
• Hosting events/festivals/waterfront recreation
• Marketing online e.g., EPA events calendar, “a day in EPA” itinerary, and online directory telling the story of EPA’s history and rich culture (Instagram stories, signage) • Creating signage / banners for key commercial corridors or business districts to make EPA’s brand visible and enhance district identity
• Conducting business- and developer-facing marketing about the City’s recent and current planning efforts, infrastructure investments, desired uses, and customer / workforce base. $
• CEDDD
• Planning Division
• Community Service
Division
3A.2 Regularly activate key corridors and strategic corners, public spaces, and underutilized private spaces to boost small business visibility, create a sense of place, and test new ideas for more permanent investments.
• Locations may include streets, vacant storefronts, open space, stalled development sites • Programming may include markets, free concerts, farmers markets, festivals, resource fairs, and cultural / educational programming
$$ • CEDDD
• Local nonprofit
organizations
• Property
owners/managers
• Local businesses
3A.3 Engage professional branding consultant to launch a comprehensive marketing and branding campaign for the city. $$ • CEDDD
• Branding consultant
GOAL 3: MAKE EPA INVESTMENT READY
Priority Initiatives Resource Need Key Partners
Strategy 3A: Strengthen EPA’s brand, activate the public realm, and create dynamic destinations Quick-Win
Mid-Term
Long-Term
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3B.1 Leverage development requirements and entitlements to incentivize priority uses - e.g., offer zoning bonuses, accelerate approvals, and pre-entitle strategic sites.
(Eligible projects may include developments that create housing, jobs, or community amenities such as grocery stores, food hall, and spaces for entrepreneurship and job training. Identification of strategic sites and recommendations provided in the Site Opportunity Chapter.) $
• Planning Division
• CEDDD
• Labor unions
3B.2 Establish an EPA Construction Accelerator program to train up a local construction workforce and help EPA contractors compete for larger local and regional projects.
$$ • CEDDD
• Construction
companies
• Bay Area Jobs First
Collaborative
3B.3 Fund public infrastructure improvements (water/sewer, fiber, roads, placemaking, community assets, environmental remediation) at/near key sites/business districts.
(Assessment of funding streams provided in the Community Benefits and Tax Increment District chapter)
$$$ • County investment
• City investment
3B.4 Assess the impact of current development requirements and fees; as needed, tap Federal/State programs, philanthropy, and public-private partnerships to fill funding / financing gaps for catalytic projects. $$ • Planning Division
• Finance Department
GOAL 3: MAKE EPA INVESTMENT READY
Priority Initiatives Resource Need Key Partners
Strategy 3B: Advance shovel-readiness and leverage entitlement process to unlock sites and incentivize priority uses Mid-Term
Mid-Term
Long-Term
Long-Term
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DESCRIPTION
South San Francisco—While other biotech developments
are stalled in South San Francisco, SteelWave is moving forward with a life sciences project that includes a 24-hour Safeway scheduled to open in June 2026. The community
and City remained steadfast in their desire for a grocery store to serve local residents. SteelWave is waiting for market conditions to improve before moving ahead with
remaining life sciences and residential components.
KEY RESOURCES INVOLVED
• Community
• City Council
• Developer
STRATEGIES
• South San Francisco developer ensured the Safeway
included a Starbucks, a pharmacy, and a Wells Fargo
bank to offset the grocery store’s thin margins.
• The developer viewed grocery stores as an integral part of the mixed-use development’s vibrancy, making it
attractive for office workers and residents.
GOAL 3: MAKE EPA INVESTMENT READY | CASE STUDY FOR 3A.1 AND 3B.1 Community-Supported Grocery Store Attraction
DESCRIPTION
San Carlos—The local Parent-Teachers Association (PTA)
collectively wrote postcards to Trader Joe’s to advocate for a location to open in the city. Modeled after a
successful campaign by Lucky Grocery Store, which
wanted City Council approval to open a grocery store
next to a proposed Home Depot, the PTA convinCEDD
Trader Joe’s to open a store in the city. Trader Joe’s
purchased property to build a new Trader Joe’s building, the first case for the company.
KEY RESOURCES INVOLVED
• Community organization (PTA)
STRATEGIES
• Collective and persistent communication from an
organized community organization was effective in
impacting corporate decisions.
It is important to note that typical grocery chains base store location decisions on defined business criteria such as household density, income and spending power, traffic counts, co-tenancy, and real estate costs, rather than resident interest alone.
Community demand could be a useful tool to substantiate market-based case-making and would be more effective when paired with site selection support and incentives to overcome perceived challenges and make a new store financially viable. 376
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STAFFING IMPLICATIONS
Status Quo Staffing Role
Related Initiatives
(Represent a subset
of Quick Wins)
Existing City staff as
part-time economic
development support
• Provide support in technical assistance to businesses and investors
• Create resources for businesses and prospective investors 1A.1, 2A.1, 3A.1
Existing Economic
development
consultant
(25% capacity)
• Support economic development initiatives and programs • Support creating resources for businesses and prospective investors
1A.1, 2A.1
With the current staffing structure and the CEDD Department lacking dedicated full-time staff, there are limited strategies that can be implemented, primarily quick-wins.
As needed, shorter term staffing needs can be supplemented by interns embedded in city departments (e.g., a new economic development fellow position), who may later transition to part-time or full-time employee. 377
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STAFFING IMPLICATIONS
Expanded Staffing Role Related Initiative
EPA Business
Ambassador
(Initial Team Expansion,
1B.3)
• Champion and promote existing and prospective businesses • Provide personalized, technical assistance to businesses and investors navigating City processes as point of contact • Serve as an ombudsman, helping resolve issues with permitting, zoning, or other city services
• Coordinate across city departments to streamline business-related services and communication
1A.1, 1B.2, 1B.4,
2A.1, 2A.2, 3A.2
Economic
Development
Manager
(Additional Team
Expansion, 2A.3)
• Lead proactive business attraction e.g., marketing, attending industry-focused conferences and tradeshows
• Host site and business district tours for prospective investors, developers, and employers
• Build relationships with regional employers, brokers, and developers to attract new projects and partnerships
2B.2, 2B.3. 3A.1,
3B.1, 3B.2
Ideally, staffing would expand over the next 2-3 years to include two additional full-time positions.
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50| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
Lead Resource Y1-2 Y3-5 Y6-10
1A.1 Create a small/micro business guide CEDD / Small Biz Ambassador $ 1B.1 Streamline business licensing / permitting processes Finance/Permitting $ 2A.1 Create a dedicated business development landing page CEDD / BizDev Manager $ 2B.1 Work with workforce development partners to provide industry-aligned trainings CEDD / Nonprofit partner $ 1B.2 Create simple permits or pre-approved zones for temporary uses Finance/Permitting $ 3A.1 Promote EPA as a place to live, work, and visit through activations City Manager’s Office $ 1A.2 Program City-owned incubator space in Gateway Retail Center CEDD / Nonprofit partner $$ 1B.3 Appoint an EPA Business Ambassador City Manager’s Office $$ 1B.4 Create a “Shop Local” campaign and program CEDD / Small Biz Ambassador $ 2A.2 Launch a more comprehensive “Choose EPA” portal CEDD / BizDev Manager $$ 2B.2 Connect regional talent pipeline with EPA job/entrepreneurship opportunities CEDD / BizDev Manager $ 3A.2 Regularly activate key public spaces and underutilized private spaces CEDD $$ 3B.1 Update development requirements and entitlements to incentivize priority uses CEDD $ 3B.2 Establish an EPA Construction Accelerator City Manager’s Office / CEDD $$ 1A.3 Establish EPA Business Commons City Manager’s Office / CEDD $$$ 2A.3 Expand CEDD team to include an Economic Development Manager City Manager’s Office $$ 2B.3 Establish a physical job-training hub City Manager’s Office / CEDD $$$ 3B.3 Fund public infrastructure improvements City Manager’s Office / CEDD $$$ 3B.4 Fill funding / financing gaps for catalytic projects City Manager’s Office / CEDD $$ 3A.3 Engage professional branding consultant City Manager’s Office / CEDD $$
IMPLEMENTATION ROADMAP
LEGEND
Quick-win
Mid-term
Long-term
Sequence
Continued
Implementation/
Updates
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CRITICAL INITIATIVES
The full EDSP outlines 20 initiatives across three goals. Among them, eight “must-do” moves are especially critical to launching EPA on an inclusive growth path.
1. Create a small/micro business guide (1A.1). Quick Win
2. Streamline business licensing / permitting processes (1B.1). Quick Win
3. Create a dedicated business development landing page (2A.1). Over time, further expand this into a more comprehensive “Choose EPA” portal (2A.2). Quick Win
4. Work with workforce development partners to provide industry-aligned trainings (2B.1). Quick Win
5. Promote EPA as a place to live, work, and visit through activations (3A.1). Quick Win
6. Update development requirements and entitlement process to incentivize priority uses (3B.1). Mid-Term
7. Appoint an EPA Business Ambassador (1B.3). Over time, further grow the team to include an Economic Development Manager (2A.3). Mid-Term
8. Fund public infrastructure improvements (3B.3). Long-Term 380
52| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
Site Opportunities
Deep-Dive
05 381
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GUIDING PRINCIPLES FOR SITE OPPORTUNITIES
• Opportunity-sector alignment. Match potential site to opportunity sector needs. • Site condition-driven. Consider location, adjacencies, market potential, and zoning. • Defined anchors. Differentiate positioning of major clusters and identify potential anchors. • Clustering community uses. Concentrate workforce, healthcare, childcare, civic, and neighborhood retail to reinforce destinations and leverage adjacencies.
• Activation. Find mixed-use infill opportunities to strengthen corridors and the urban fabric. • Community input. Incorporate insights from stakeholder and community engagement. • BalanCEDD outcomes. Identify opportunities to grow the economy and tax base, create jobs, and support small/micro businesses while also advancing housing, services, and civic needs.
HR&A’s site opportunity recommendations are grounded in the following principles. 382
54| HR&A Advisors East Palo Alto Economic Development Strategic Plan
VISION FOR STRATEGIC SITES
• Waterfront Mixed-Use Civic Hub: hub of
community life, anchored by destinations like
Bloomhouse, proposed civic commons and
athletic fields, and leveraging waterfront access
• Bay Road Industry Hub: employment and
innovation district, building on the area's
existing industrial base and transportation
access
• Gateway Commercial Hub: well-connected
gateway to the city and region, offering
destination shopping experience and
community-serving retail, services, and local job
opportunities
• Mixed-Use Corridor: a series of sites that
integrate housing, retail, and small businesses,
supporting mixed-use neighborhood
Waterfront
Mixed-Use
Civic Hub
Bay
Road
Industry
hub
Gateway
Commercial
Hub
Mixed Use
Corridor
Guided by these principles, HR&A developed a vision framework for strategic clusters to advance EPA's community and economic development goals.
EPA Business Districts
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55| HR&A Advisors East Palo Alto Economic Development Strategic Plan
STRATEGIC SITES
HR&A assessed vacant sites in East Palo Alto and identified strategic clusters best positioned for investment to support inclusive economic development.
Major Vacant Site Clusters
Neighborhood Infill Clusters
1103 Weeks St + 1201 Runnymede, 1675 Bay Rd + 1620
Bay Rd, 1804 Bay Rd + Clarum University Corner – various owners
Gateway Cluster
Ravenswood Elementary School District + 2115 University Ave – two owners
Waterfront Cluster
East Palo Alto Waterfront Project – single ownership
Bay Road Cluster
1990 Bay Rd (The Landing) + 2020 Bay Rd – two owners
EPA Center
YMCA
Senior Center
Health
Center
City Hall
& Library
Map of Proposed Strategic Sites
EPA Business Districts
Existing Community Centers
Note: While the entirety of the EPA Waterfront Project is highlighted as a cluster, the City should maintain its focus on facilitating the development of a 4-acre pair of vacant parcels, which is not currently planned for any projects. Details on the site are provided in later slides.
Bloomhouse
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56| HR&A Advisors East Palo Alto Economic Development Strategic Plan 1 2
3 4
6 5
EPA Center
YMCA
Senior Center
Health
Center
City Hall
& Library
SITE OPPORTUNITIES AT-A-GLANCE
Strategic Site Existing Conditions
Waterfront Mixed-Use
Civic Hub
(Site 1) • Access to the waterfront
• Adjacent to local bus routes
• Primarily industrial / underdeveloped land
Bay Road Industry
Hub
(Site 2)
• Access to the waterfront
• Adjacent to local bus routes
• Primarily industrial / underdeveloped land
Gateway Commercial
Hub
(Site 6)
• Located near commercial hubs
(Gateway 101, University Circle)
• Adjacent to local bus routes
• Regionally connected via
proximity to the freeway
Mixed-Use Corridor &
Infill
(Sites 3, 4, & 5)
• Adjacent to local bus routes
• Located on major
thoroughfares (University Ave &
Bay Rd)
EPA Business Districts
Existing Community Centers
Note: Identified site opportunities are recommendations for consideration, not plans. 385
57| HR&A Advisors East Palo Alto Economic Development Strategic Plan 1 2
3 4
6 5
EPA Center
YMCA
Senior Center
Health
Center
City Hall
& Library
SITE OPPORTUNITIES AT-A-GLANCE
Strategic Site Potential Sector Focus
Waterfront Mixed-Use
Civic Hub
(Site 1) • Government / Civic
• Food & Beverages / Hospitality
• Healthcare
Bay Road Industry
Hub
(Site 2)
• Manufacturing
• Construction
• Office-Based Sectors
• Tech
Gateway Commercial
Hub
(Site 6)
• Retail (grocery store, destination
retail)
• Hotel / Hospitality
• Office-Based Sectors / Tech
• Education / Childcare
Mixed-Use Corridor &
Infill
(Sites 3, 4, & 5) • Retail (smaller scale,
neighborhood amenities)
• Food & Beverages / Hospitality
EPA Business Districts
Existing Community Centers
Note: Identified site opportunities are recommendations for consideration, not plans. 386
58| HR&A Advisors East Palo Alto Economic Development Strategic Plan
SITE OPPORTUNITIES DETAILS
Strategic Site Potential Sector Focus Potential Site Positioning / Uses Waterfront MixedUse Civic Hub
(Site 1)
Primary: Government / Civic; Food &
Beverages/Hospitality; Healthcare
Other complementary sectors: Educational Services/
Childcare; Arts & Culture; Office-Based Sectors
Civic Commons (proposed); Food Hall / Kitchen
Incubator; Healthcare/Wellness; Community Space;
Housing
Also consider: Small Business Center; Office / Co-working; Childcare/Early Learning/Education; Community college annex or Stanford University Extension program; Arts and Culture Bay Road Industry
Hub (Site 2) Primary: Manufacturing; Construction; Office-Based Sectors; Tech
Other complementary sectors: Sustainable Environmental
Management; Arts & Culture
Industrial; Office; Lab / R&D; Workforce Development
Center
Also consider: Data Centers (though need to consider
environmental impacts; Arts and Culture (heavier uses like marker / production space)
Gateway
Commercial Hub
(Site 3)
Primary: Retail (grocery store, destination retail);
Hospitality (hotel); Office-Based Sectors / Tech;
Educational Services/ Childcare
Other complementary sectors: Food & Beverages;
Healthcare
Flagship Community-Serving Retail (e.g. Grocery
Store); Office/R&D/Lab; Childcare/Early
Learning/Education; Community college annex or
Stanford University Extension program
Also consider: Housing; Healthcare/Wellness; Community Space Mixed-Use
Corridor & Infill
(Sites 3, 4, & 5)
Primary: Retail; Food & Beverages
Other complementary sectors: Office-Based Sectors (smallscale); Arts & Culture Housing; Ground Floor Retail (e.g. cafes, restaurants,
stores, doctor’s offices, urgent care)
Also consider: Community Space; Food Hall/Kitchen Incubator Second Floor Small Business Space/Office Flex; Arts & Culture Note: Identified site opportunities are recommendations for consideration, not plans. 387
59| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
UNLOCKING STRATEGIC SITES
As recommended in Chapter 4, interventions will be needed to unlock strategic development sites in ways that boost economic development and enhance community amenities.
Negative External Perception
Development Feasibility Challenges
Infrastructure Deficit
Tell the EPA Story
(Goal 3 – Strategy A)
Address Regulatory & Financial
Barriers for Development
(Goal 3 – Strategy B)
Improve Infrastructure & Site
Readiness
(Goal 3 – Strategy B)
Barriers Interventions & Relevant Strategies
Development Proposal Misaligned
with Community Needs
Make Desirable Uses Easiest to Build
(Goal 3 – Strategy B)
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Tax Increment
District Deep-Dive
06 389
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KEY QUESTIONS TO GUIDE DECISION-MAKING
To support the City’s decision-making, HR&A outlined the following guiding questions:
o Does EPA have an area that is easily defined, sufficiently sized, and has demonstratable potential for significant future growth in assessed value?
o What types of improvements would need to be funded in a tax increment district, and are there viable alternatives to fund these improvements?
o How much tax growth could the City afford to divert into a district “lockbox”? o Would the County participate in a tax increment mechanism, therefore unlocking revenues that would otherwise not be available to EPA?
o How fast does the City need incoming revenue?
o What is Council / voter sentiment toward different revenue or tax mechanisms? HR&A understands that the City is interested in evaluating whether a tax increment district mechanism would be useful in supporting economic development. 390
62| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
TAX INCREMENT MECHANISMS | OVERVIEW
EnhanCEDD Infrastructure Financing District
(EIFD)
Post Redevelopment Agency (RDA) tax-increment tool formed by a city/county to fund a wide range of infrastructure, public facilities and housing-related improvements that benefit the community. Revenues come from consenting taxing
entities’ property-tax increment (no school participation); maximum term generally up to 45 years from first debt
approval. Since 2019, EIFDs can issue bonds without a voter election, subject to the statute’s protest and hearing process.
Community Revitalization & Investment
Authority (CRIA)
“Redevelopment Authority-like” tool limited to
disadvantaged areas with specified conditions (e.g., low income, high unemployment/crime, deteriorated
infrastructure). Uses property-tax increment (no school participation) and must dedicate 25% to affordable housing; authorities have powers including property acquisition and time-limited eminent domain to carry out the plan.
Climate Resilience District (CRD)
New resilience-focused districts that build on EIFD rules but provide additional authority to fund and operate climaterelated projects such as heat, flood, and wildfire resilience.
These districts can use tax increment revenues and may also incorporate voter-approved special taxes, benefit
assessments, or property-related fees. They can be formed across multiple jurisdictions, and the enabling statute emphasizes nature-based solutions and directing resources to under-resourCEDD communities.
Infrastructure & Revitalization Financing
District (IRFD)
Tax-increment financing (TIF) district aimed at large-scale projects (e.g., base reuse, major redevelopment) governed by the city/county legislative body. Requires two-thirds voter approval to form and to issue bonds; maximum term generally up to 40 years. Cities may dedicate portions of their
Redevelopment Property Tax Trust Fund (post-RDA) to an IRFD financing plan.
There are four core tax increment district mechanisms EPA can consider. 391
63| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
TAX INCREMENT MECHANISMS | PROS & CONS
Pros
• Tax increment revenue is earmarked in a TIF District “lockbox,” protecting district priorities from General Fund fluctuations and competing citywide needs.
• Wide range of projects can be funded. (EIFD: Infrastructure and Facilities projects listed in a Public Facilities Financing Plan; CRD climate related; CRIA affordable housing)
• No new taxes or fees for property owners. (CRD can leverage multiple sources though blending TIF with special taxes/assessments) • In the long-term, TIFs can generate meaningful revenues as assessed values and capturable increment grow over time. • Additional funding can be leveraged with multi-jurisdictional participation (e.g. County, other special districts) Cons
• The City’s General Fund will forego revenue from tax growth within the TIF district, as those revenues would be redirected to the district for the duration of its existence. Agency/elected officials may resist the loss of discretionary General Fund dollars. • Revenues ramp up slowly over time. Districts will likely not see increment revenue for the first 5 to 10 years. • City share of revenue may be insufficient without County participation. County willingness to participate may be a challenge, because it must forego a portion of future incremental tax revenues. • Use of funds is generally limited to capital expenditures. (CRD can also fund operations.) 392
64| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
TAX INCREMENT MECHANISMS | EVALUATION
A limited number of
property owners
The series of required public hearings
in advance of approval of an EIFD are
subject to a majority protest by
property owners, increasing the
challenges on the road to approval.
Fewer owners simplifies the process.
An adopted specific
plan that identifies
infrastructure needs
required to enable
development
Identifying infrastructure needs and
adopting a plan in advance is critical
to communicating the need for the
EIFD,and thus its approval.
A local champion
EIFDs benefit from local champions
who can advocate for the project,
including making the case to city
departments, elected officials and
property owners.
Community support
for development
It is important to garner support with
the wider community to make the
process of approving the EIFD as
smooth as possible.
Strong regional real
estate market
Typically, areas with stronger real
estate markets generate a higher level
of revenue with lower risk.
Availability of other
sources of funding
Because funds from an EIFD ramp up
slowly over time, it could be utilized in
combination with other tools like a
CFD, which can generate an
immediate revenue stream to fund
projects.
Ability to partner with
other taxing entities
Some California cities have increased
the revenue potential of their EIFDs by
partnering with their counties, which
agree to contribute a portion of their
property-tax share to the district.
Ability to capture
significant local
property tax share
In California, general property tax
revenues are split between the county
and local jurisdiction. To be worth the
effort to form an EIFD, the local
jurisdiction should capture at least
15% of the general 1% property tax
levy.
Source: ”Report on the Use of Tax Increment Financing.” California Governor’s Office of Planning and Research, December 2020.
The appropriateness and long-term success of an EIFD or similar tax increment districts rely on multiple factors.
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TAX INCREMENT MECHANISMS | EVALUATION – EPA CONTEXT
A limited number of
property owners
Yes.
An adopted specific
plan that identifies
infrastructure needs
required to enable
development
Yes, established in
Ravenswood Specific Plan.
A local champion
TBD.
Community support
for development
Community may be split
on sentiment towards
development.
Strong regional real
estate market
Yes, though current highinterest rate, high-cost
environment makes
development challenging.
Availability of other
sources of funding
Could potentially consider
combining with other
tools like a Community
Facilities District.
Ability to partner with
other taxing entities
County participation TBD.
Ability to capture
significant local
property tax share
May be challenging given
general fund issues.
EPA, specifically Ravenswood Business District, only meet some of these conditions.
Whether EPA / Ravenswood Meets Conditions: Yes Maybe TBD 394
66| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
NON-TIF VALUE CAPTURE TOOLS
Community Facilities District
Voter/landowner-approved special tax district used to finance public facilities and, in some cases, services (police protection services, fire protection and suppression services, ambulance and paramedic services, lighting of parks, parkways, streets, traffic signals, roads, and open space, flood and storm protection and water improvement services) via pay-as-you-go revenues or bonds secured by the special tax lien; formation requires a two-thirds election of “qualified electors.” Incentive Zoning / Zoning Bonus
Locally adopted zoning program that grants extra
height/FAR/uses in return for defined public benefits (e.g., affordable housing, open space, childcare, cultural space). For housing, California’s State Density Bonus Law guarantees density bonuses and incentives/concessions when affordability thresholds are met; cities can also craft community-benefit bonus programs in specific plans (e.g., Downtown LA).
Special Assessment District
Property-owner assessment to fund improvements or
services that confer a special, proportional benefit on assessed parcels; requires an engineer’s report and propertyowner ballot. Bonding is allowed, secured by the assessments.
Incentive Agreement / Tax Subvention
Typically done under unique circumstances. Contract that rebates or shares a portion of new project-generated local taxes back to a business/developer in exchange for specified public benefits (jobs, capital investment, site improvements).
Must follow disclosure requirements including public notice, hearing, and posting of an economic development subsidy report; generally pay-as-you-go and not bondable.
Given this, EPA should consider alternative financing tools to broaden its opens for delivering community benefits.
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COMPARATIVE ANALYSIS
These mechanisms have trade-offs related to whether a new tax is instituted, their impact on the general fund, funding potential, implementation, and timing of funds (on next slide).
Type Tool Name Imposes new taxes or fees
on property owners?
Foregoes City General Fund
Revenue?
TIF EnhanCEDD Infrastructure Financing
District (EIFD) & Similar Mechanisms No Yes, forego City increment TIF + Climate Resilience District (CRD)
Not aways (Optional special
tax/assessment) Yes, forego City increment
Project-based tax
subvention Incentive Agreement No Yes, rebates net-new project taxes Special district-wide
tax / assessment
Community Facilities District (CFD) &
Special Assessment District Yes No
Regulatory Incentive Zoning / Zoning Bonus No No
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IMPLEMENTATION: A CFD requires a written Resolution of Intention and proposed Rate and Method of Apportionment and Majority Vote of Property Owners (unimproved property) or Vote of Registered Voters in District (improved property) in addition to a public hearing in order to implement.
An EIFD requires the formation of a Public Financing Authority, preparation of an Infrastructure Financing Plan, and a Public Hearing in order to implement. Getting County participation adds to time/challenge. Incentive Agreements are the most challenging to implement because the City evaluates and authorizes agreements on a case-by-case basis. Incentive zoning requires Council approval.
Lowest Highest
Easiest Most Challenging
CFD / Special Assessment
District TIF
Incentive
Agreement
CFD / Special Assessment District &
Incentive Agreement TIF
FUNDING POTENTIAL: CFDs/SADs are limited by how much special tax properties can bear; Incentive Agreements are limited by project size and eligible tax streams. TIFs generally have the highest upside by capturing a share of property-tax increment. Incentive zoning creates cross-subsidy via added density/height, but remains bounded by development feasibility.
COMPARATIVE ANALYSIS
Incentive
Zoning
Incentive
Zoning
Slowest Timing of Funds Fastest
TIF CFD
Incentive
Agreement
TIMING OF FUNDS: TIFs ramp up slowest because they rely on growth in assessed value to generate incremental property-tax revenue. Incentive Agreements can deliver funds sooner, but timing depends on the deal structure. Incentive zoning is available immediately upon adoption, though new projects take time to materialize. CFDs can generate cash fastest, since bonds may be issued soon after formation and required approvals.
Incentive Zoning
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RECOMMENDATIONS
District
candidate
Ravenswood District is the strongest candidate for a tax increment district, given its adopted Specific Plan, clearly defined infrastructure needs, established vision, and sites with significant development potential.
County
participation
County participation is a key gating factor. Early outreach to the County to understand their parameters and conditions for participating in a Tax Increment District is essential. If County participation proves to be a hard sell, the City should evaluate whether alternative mechanisms - such as CFDs or Special Assessment Districts - would better serve its needs.
Timing of
revenues
TIF revenues typically do not become available for the first 5-10 years after district formation, as assessed value growth ramps up. If upfront dollars are needed to deliver enabling infrastructure or other early investments, tools that allow near-term financing - such as CFDs, which can issue bonds shortly after formation - may be more appropriate. 398
70| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
RECOMMENDATIONS (CONTINUED)
General Fund
tradeoff
Because TIF diverts incremental property tax revenue away from the General Fund into a district-specific “lockbox,” the City must weigh the relative importance of bolstering General Fund revenues versus earmarking funds to support place-based district priorities. This policy choice should be made explicitly and in coordination with broader fiscal strategy.
Before choosing a district financing / funding tool, evaluate general fund-backed debt (e.g., General Obligation Bond) as an alternative.
Market
realities
As a small city with limited administrative capacity, tools with lower overhead costs such as Special Assessment Districts or CFDs may be easier to implement and manage. However, any value capture mechanism must be evaluated in the context of total cost to the developer and market feasibility in East Palo Alto to avoid deterring private investment. Tools should be layered carefully to avoid over-burdening projects.
Incentive
Zoning
Consider incentive zoning to leverage private value. Where investments have a strong nexus to development - for example, infrastructure or amenities that directly enable higherintensity projects - incentive zoning can be an effective regulatory tool to capture a portion of private development value to cross-subsidize needed investments. 399
71| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
TIF, CFD/Special Assessment District, and Incentive Agreement funding tools can be used in conjunction with one another, which can also be paired with incentive zoning. For example, it may be strategic for a developer to set up a CFD for funding in initial years, and an EIFD to capture value over the long-term. 0 20
40 60
80 100
120
140
CFD Revenue EIFD Revenue
Revenue
RECOMMENDATIONS | TOOLS CAN BE USED IN COMBINATION
Time 400
72| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
RECOMMENDED NEXT STEPS TO FURTHER INVESTIGATE EIFD VIABILITY • Clarify objectives & eligible investments
Define priority capital projects, their location, timing, and the portion realistically eligible for TIF. Align on success metrics (e.g. delivery speed, equity outcomes, risk tolerance). • Sketch candidate boundaries & equity lens
Draft 1–2 district boundaries tied to benefit/nexus, then screen for: protest / political risk, overlap with disadvantaged areas (e.g. CRIA eligibility), and alignment with stated community outcomes. • Establish a tax-base “reality check”
Build a baseline of assessed value (AV) and drivers: historic AV growth, development pipeline, major owners/appeals, and overlapping rates. Model conservative/base/optimistic increment scenarios. • Test partner participation & constraints
Sound out San Mateo County on potential contribution shares and conditions. Document what’s feasible without them vs. with them so TIF dependence is clear.
• Assess governance, engagement, and approval risk
Decide governing body (PFA/CRIA board) and timelines; confirm staff/consultant capacity; design a plain-English outreach plan on benefits and formation mechanics; evaluate approval pathways and political sentiment. EIFDs are governed by a Public Financing Authority (PFA) made up of 5 members of at least 3 elected officials and 2 local community members who live or work in the district area. The PFA oversees the creation of the District’s Infrastructure Financing Plan (IFP), which outlines the specific projects the District will fund. Additionally, while EIFDs are not required to set aside a specific percentage of affordable housing, all housing that is developed must be affordable. 401
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Local Employment
Strategies
Deep-Dive
07 402
74| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
WORKFORCE DEVELOPMENT - KEY PLAYERS
EPA has strong nonprofits invested in workforce development and clear opportunities to leverage local educational institutions and employers.
Nonprofit Providers For-Profit Providers Educational
Institutions
Employer / Industry
Partners Government
• JobTrain
• StreetCode Academy
• Live In Peace
• WeHope
• EPACENTER
• One EPA
• Renaissance
Entrepreneurship
Center
• Grassroots Ecology*
No physical presence Inside EPA:
• School district
Outside of EPA (with
limited programming in
EPA):
• Cañada College
• Foothill College
• Sequoia Adult
School
• Stanford University
• No direct Citysponsored
partnerships beyond
un-enforCEDD First
Source Hiring
Ordinance with
Amazon and Four
Seasons
City of East Palo Alto:
• Measure HH Pilot
supporting JobTrain,
Live In Peace, Street
Code
• EPA Career Center
operated by JobTrain
San Mateo County:
• NovaWorks
State:
• Funding through
California Jobs First
*Palo Alto w/ EPA based programming
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WORKFORCE DEVELOPMENT – PRIORITY SECTORS
EPA has strong nonprofits invested in workforce development, though workforce programs could be better aligned with strong regional industries to maximize access to quality jobs.
Training Workforce Development Providers for
Strong Regional Industries with Quality Jobs
Trainings Available for
Other Industries
Information
(Tech) Healthcare Education / Childcare Construction Manufacturing Hospitality / Culinary arts (JobTrain)
Custodial & food services (WeHope)
Entrepreneurship (REN Center)
Creative arts (EPACENTER)
Conservation (Grassroot Ecology*)
Youth employment (One EPA, Live In Peace)
JobTrain
StreetCode
Live In
Peace
JobTrain No Provider
JobTrain
Live In
Peace
No Provider
* Based in Palo Alto w/ some EPA based programming and
ad hoc and through AmeriCorps 404
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WORKFORCE DEVELOPMENT | POTENTIAL GAPS & OPPORTUNITIES
We have identified the following strengths and gaps that need to be addressed.
Strong Programs
• Tech training (Street Code, JobTrain)
• Youth / young adults employment & training
(Live In Peace, EPA Center)
Emerging
• Healthcare (limited offerings)
• Hospitality (limited offerings)
• Green jobs (ad hoc & limited offerings)
• Job placement coordination
• Counseling / mentorship
Critical Gaps
• AdvanCEDD manufacturing
• Tech beyond coding fundamentals (e.g., biotech)
Under-tapped & New Opportunities
• Employer partnerships
• Regional educational institutions
• Center for Economic Mobility
• New City-operated Entrepreneurship Center
• Regional institutions / providers
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WORKFORCE DEVELOPMENT - ROLES
Organizations and businesses can play roles to advance economic development strategies.
Type of Organization Potential Role Related Initiative
Nonprofit / For-Profit
Providers
• Program community, workforce development spaces e.g., City-owned incubator space in Gateway Retail Center
• Connect talent pipeline with EPA jobs and EPA community with regional jobs • Invest in and establish entrepreneurship centers
• Provide industry-aligned trainings and industry-specific programs e.g., EPA Construction Accelerator
2B.1, 2B.3, 3B.2
Educational Institutions • Connect talent pipeline with EPA jobs and entrepreneurship opportunities • Support workforce development and entrepreneurship programming 2B.2
1A.3, 2B.1, 2B.3
Employer / Industry
Partners
• Provide upskilling programs to employees and local EPA community • Work with EPA Business Ambassador to provide industry-specific programs that are in demand
1B.3, 2B.2
Government
• City government to provide funding for workforce development / entrepreneurship programs and spaces
• City government to connect organizations / businesses with regional funding opportunities
Overall
406
78| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
WORKFORCE DEVELOPMENT
The City and its partners can leverage existing projects funded by the Bay area California Jobs First in priority sectors.
Bay Area High-Road Manufacturing
Initiative (BAHRMI)
High Road To Early Childhood
Education Consortium Educational Institutions
• Funding: $1,500,000
• Partners: labor organizations,
educational institutions, nonprofits in
clean energy entrepreneurship
• Funding: $1,500,000
• Partners: childcare nonprofit
convening organizations, County office
of education
• Funding: $660,176
• Partners: workforce development
providers, educational institution
• Newly formed partnership that
develops a high-road manufacturing
ecosystem in the Bay Area by
improving outcomes in existing
industries and by supporting growth
of new employers in strategic sectors.
• Three pilot projects that provide
technical assistance to manufacturing
employers, strategies to improve job
quality, and stakeholder engagement
to design a battery manufacturing
industry
• Increasing the availability and
affordability of childcare/early
childcare education
• Funding enables the establishment of
a consortium to create/strengthen
support for parents, license providers
who work during non-traditional
hours, and build pipelines for
positions
• Introducing high school students to
construction career opportunities;
funding used to expand outreach to
communities, organize info sessions,
form partners, develop a curriculum,
hire qualified instructors, create
hands-on learning activities
Relevant Bay Area California Jobs First Awarded Projects 407
79| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
NJ TRANSIT TOD Advisory Consulting Services| HR&A Advisors East Palo Alto
Economic Development Strategic Plan
Summer 2025
Appendix A: Existing Conditions Report
408
80| HR&A Advisors East Palo Alto Economic Development Strategic Plan History &
Background
01 409
81| HR&A Advisors East Palo Alto Economic Development Strategic Plan The history of East Palo Alto is deeply rooted in resilience and self-determination, and the city has long been an affordable haven for residents of color in the Bay Area.
HISTORY
1960s – Facing minimal resources and racial discrimination, residents in EPA banded together to form their own institutions, including the Nairobi College
A Brief Timeline of East Palo Alto’s Recent History
1950s – “Blockbusting” practices employed, driving white flight and shifting to a majority-Black populace
1983 – East Palo Alto incorporated as a city, despite intense opposition and concerns about tax revenue
1980s & 90s – East Palo Alto struggled with drugs and gang violence, and known as the “Murder Capital”
2000s & 10s – Tech companies increased presence; the city’s populace became majority-Latino
2020s – With crime levels significantly reduCEDD, the city sheds its former label but faces tensions between growth and gentrification concerns.
19.3%
6.5% 7.7%
60.3%
22.5%
14.1% 10.6%
58.8%
66.5%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
1980 1990 2000 2010 2020
White Black Hispanic/Latino
Share of Total Population by Race, East Palo Alto
(2015-2025 YTD)
Source(s): “East of Palo Alto’s Eden: Race and the Formation of Silicon Valley”, Kim-Mai Culter; US Census Data 410 82| HR&A Advisors East Palo Alto Economic Development Strategic Plan
LOCATION
Strategically located near
major tech hubs, East Palo
Alto lacks robust transit
access and is constrained by
surrounding highways.
82 ~25 mins
To San Jose
~35 mins
To Oakland
~45 mins
To San Francisco
L
Legend
Santa Clara County
San Mateo County
East Palo Alto
Caltrain
82 411
83| HR&A Advisors East Palo Alto Economic Development Strategic Plan SIZE
With a land area of 2.5 square
miles, East Palo Alto is
significantly smaller than its
neighboring cities - a reality that
will shape development efforts.
83 9.9 sq mi
Menlo Park
11.9 sq mi
Mountain View
24.1 sq mi
Palo Alto
L
Legend
Palo Alto
Mountain View
East Palo Alto
Caltrain
Menlo Park
2.5 sq mi
East Palo Alto
83 412
84| HR&A Advisors East Palo Alto Economic Development Strategic Plan Access to the
waterfront
Invested non-profit &
private sector
partners
Proximity to Silicon
Valley & Stanford
University
Engaged community &
rich culture
While geographically and populously smaller than its neighbors, East Palo Alto has strong assets and characteristics that could be leveraged for economic prosperity.
ASSETS
413
85| HR&A Advisors East Palo Alto Economic Development Strategic Plan East Palo Alto has a strong sense of identity, a tight-knit community, and a legacy of self-advocacy. Today, it is at an inflection point: How can it maintain this identity while actively participating in—and benefiting from - the economic momentum surrounding it? 85 414
86| HR&A Advisors East Palo Alto Economic Development Strategic Plan Demographic &
Socioeconomic
Context
02 415
87| HR&A Advisors East Palo Alto Economic Development Strategic Plan
1. East Palo Alto’s population growth is slower than that of the region. In recent years, Asian and White populations have grown, while the Black population has declined.
2. East Palo Alto is younger and has larger households compared to the broader region – highlighting ability to support retail demand and community-oriented amenities and the importance of education and workforce investment and family-sustaining wages.
3. East Palo Alto has seen rising median household income and educational attainment – yet incomes remain significantly lower, and residents earn less even with a college degree.
4. Stark racial disparities persist. 70% of the population - primarily Latinx and Black households - earn an average of $25,000 less than the citywide median.
DEMOGRAPHIC & SOCIOECONOMIC CONTEXT | KEY TAKEAWAYS
416
88| HR&A Advisors East Palo Alto Economic Development Strategic Plan
OVERVIEW
$105K MEDIAN HOUSEHOLD
INCOME
+109% (2013-2023)
26% RESIDENTS WITH A
FOUR-YEAR DEGREE
+94% (2013-2023)
29,100 RESIDENTS (2023)
+2% (2013-2023)
Over the last decade, East Palo Alto has
seen modest population growth amid
rising incomes and education attainment.
Source: ACS, US Census Bureau
Study Area
Santa Clara County
San Mateo County
East Palo Alto
417
89| HR&A Advisors East Palo Alto Economic Development Strategic Plan White, 15%
Black, 12%
American
Indian/
Alaska
Native, 0.2%
Asian, 6%
Native
Hawaiian/
Other Pacific
Islander , 4%
Other, 3%
Hispanic or
Latino, 60%
POPULATION GROWTH
East Palo Alto’s population is growing at lower rates compared to the region. White, Asian, and Hispanic/Latino populations increased, while the Black population continues to decline.
1.9%
2.1%
5.0%
East Palo Alto
San Mateo County
Santa Clara County
10-YEAR POPULATION GROWTH (2013-2023)
Source: ACS, US Census Bureau
RACE AND ETHNICITY (2023)
+3%
+59%
+47%
-20%
Change 2013-2023
418
90| HR&A Advisors East Palo Alto Economic Development Strategic Plan
HOUSEHOLD SIZE AND AGE
East Palo Alto has a larger household size and a higher proportion of children and younger working age population than the region.
East Palo
Alto
San Mateo
County
Santa Clara
County
2023
Total Population 29,100 745,100 1,903,300
Total Households 8,300 264,400 654,500
Average
Household Size 3.5 2.8 2.9
Source: ACS, US Census Bureau
22.7% 19.9% 21.0%
9.7%
7.2% 8.7%
18.0%
14.4%
15.9%
39.9%
41.2%
40.0%
9.6%
17.3% 14.4%
East Palo Alto San Mateo County Santa Clara County
<18 18 - 24 25 - 34 35 - 64 65+
POPULATION BY AGE (2023)
28% -
population
ages 18-34
419
91| HR&A Advisors East Palo Alto Economic Development Strategic Plan
MEDIAN HOUSEHOLD INCOME
Despite faster growth, East Palo Alto’s median household income remains 50% lower than the regional average.
$104,832
$156,000 $159,674
East Palo Alto San Mateo County Santa Clara County
MEDIAN HOUSEHOLD INCOME (2023) & GROWTH (2013-2023 CAGR) Source: ACS, US Census Bureau, MIT Living Wage Calculator $130,000
Average Living Wage
Living wage is defined as
what one full-time
worker must earn on an
hourly basis to help
cover the cost of their
family’s minimum basic
needs where they live
while still being selfsufficient.
Average living wage in
San Mateo County for 2
adults (1 working) and 2
children household is
approximately $63/hour
or $130,000 annually for
a full-time salary. This is
$30,000 greater than the
median household
income in EPA.*
*cost of living was not considered on
the city level, which may affect the
living wage.
Growth Over Last
Decade + 8% + 6% +6%
91 420
92| HR&A Advisors East Palo Alto Economic Development Strategic Plan
HOUSEHOLD INCOME BY RACE
Stark racial inequities exist - Black, Hispanic, and Native American residents earning significantly lower than the median household income. $111,373
$40,940 $39,152
($18,632)
($23,912) ($27,737)
$(40,000)
$(20,000)
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Asian Pacific Islander White Native American Hispanic or Latino Black Source: ACS, US Census Bureau 3
Over 70% of the
population is Hispanic or
Latino, or Black.
However, the two
populations earn, on
average, $25,000 less
than the city’s median
income.
Asian, Pacific Islander,
and White populations
have been increasing
and tend to hold higher
income jobs.
$105,000
Median
Household
Income
6% 5% 12% 0.2% 62% 12%
Share in
Total
Population
92 421
93| HR&A Advisors East Palo Alto Economic Development Strategic Plan
EDUCATIONAL ATTAINMENT
Education attainment level in East Palo Alto is growing though still lags behind the region – but advanCEDD degrees do not close the income gap for East Palo Alto residents. 16%
44%
46%
26%
53%
56%
East Palo Alto
San Mateo County
Santa Clara County
+94%
+27%
+32%
Source: ACS, US Census Bureau
PERCENTAGE OF POPULATION WITH
BACHELOR'S DEGREE (2013-2023)
2013 2023
Growth
$37,995
$40,797
$142,904
$63,800
$35,531
$46,038
$154,872
$100,853
$37,461
$46,067
$164,519
$108,483
No High School Diploma
High School Diploma
College Degree
Graduate Degree
Santa Clara County San Mateo County East Palo Alto
MEDIAN INDIVIDUAL INCOME BY HIGHEST
EDUCATIONAL ATTAINMENT (2023)
422
94| HR&A Advisors East Palo Alto Economic Development Strategic Plan Industry &
Employment Base
03 423
95| HR&A Advisors East Palo Alto Economic Development Strategic Plan
1. East Palo Alto has gained back most of its jobs lost since 2013, though its employment base is still relatively small with a growth rate that lags the region.
2. High-wage jobs are growing in East Palo Alto, though low-wage jobs remain dominant locally.
3. Professional, Scientific, and Technical Services and Health Care are the largest industries in East Palo Alto - both of which could be strong sources of quality jobs and career pathways.
4. East Palo Alto does not capture the region’s most competitive industry: tech. At the same time, while the city has industrial space and districts, its manufacturing industry lacks scale.
5. EPA has strong nonprofit workforce training providers, though offerings could be further enhanCEDD to better align with strong regional industries to maximize access to quality jobs.
EMPLOYMENT & INDUSTRY LANDSCAPE | KEY TAKEAWAYS
424
96| HR&A Advisors East Palo Alto Economic Development Strategic Plan
INDUSTRIES PROFILE
Professional, Scientific, and Technical Services and Health Care are the largest industries in East Palo Alto, in line with regional trends. 34%
18% 8%
7%
7%
26%
East Palo Alto
16%
11%
10%
8%
7%
48%
San Mateo County
14%
13%
12%
8% 8%
45%
Santa Clara County
3 Accommodation and Food Services
Administrative Services
Construction
Government
Health Care and Social Assistance
Source: Lightcast.
East Palo Alto depends
more heavily on
professional services than
surrounding counties
overall. There are also
large regional industries
that do not have a strong
presence in East Palo Alto:
• Information is the
second largest and
growing industry in
San Mateo County
with growth of +107%
in the last decade.
• Manufacturing is the
third largest industry
in Santa Clara County.
• Management of
Companies and
Enterprises is the
largest growing
industry in Santa Clara
County.
TOP 5 INDUSTRIES (2024)
Information
Manufacturing
Other Services (except Public Administration)
Professional, Scientific, and Technical Services
Retail Trade
Other
96 425
97| HR&A Advisors East Palo Alto Economic Development Strategic Plan INDUSTRY SPECIALIZATION – EAST PALO ALTO
East Palo Alto’s relative strength in professional services and healthcare – both sources of good jobs - presents economic development potential. 3 Professional, Scientific, and
Technical Services, 2805 jobs
Health Care and Social
Assistance, 1545 jobs
Administrative and Support
and Waste Management and
Remediation Services, 696
jobs
Retail Trade, 636 jobs Construction, 632 jobs
Other Services (except Public
Administration), 367 jobs
Accommodation and Food
Services, 360 jobs
Transportation and
Warehousing, 320 jobs
Educational Services, 217
jobs
Manufacturing, 149 jobs
(120%)
(70%)
(20%)
30%
80%
130%
180%
0.00 1.00 2.00 3.00 4.00 5.00
East Palo Alto Sectors by Jobs, Growth and Industry Specialization % Job Growth (2013-2024)
Industry Specialization (Location Quotient) Source: Lightcast.
Industry Specialization
as Measured by
Location Quotient:
Location Quotient, as
shown on the chart’s X
axis, measures how
specialized a city’s
economy is in a sector
relative to the nation. An
Industry Specialization
level of 2.0 means a city’s
economy is twice as
specialized in that sector
than the national
average.
Information Industry:
EPA specializes in
professional services, in
line with San Mateo
County. However,
information, the most
notable industry - in the
County in size, growth,
and specialization - is
largely absent in EPA.
97 426
98| HR&A Advisors East Palo Alto Economic Development Strategic Plan INDUSTRY SPECIALIZATION – REGIONAL
East Palo Alto does not capture the region’s strengths in tech or advanCEDD manufacturing, both offering quality jobs and career pathways.
3 Professional, Scientific, and
Technical Services, 173181
jobs
Health Care and Social
Assistance, 154614 jobs
Manufacturing, 151354 jobs
Government, 101802 jobs
Information, 94544 jobs
Accommodation and Food
Services, 84980 jobs
Retail Trade, 74724 jobs
Administrative and Support
and Waste Management and
Remediation Services, 64119
jobs
Educational Services, 63394
jobs
Construction, 59938 jobs
(25%)
(15%)
(5%)
5%
15%
25%
35%
45%
55%
65%
75%
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50
Santa Clara County Sectors by Jobs, Growth and Location Quotient % Job Growth (2013-2024)
Manufacturing
Industry:
In addition to
information industry
professional services as
economic drivers, Santa
Clara County’s
manufacturing sector is
also notable in terms of
size and specialization. It
has a location quotient
of 1.6 and consists 12%
of total jobs.
While the number of
manufacturing jobs have
been declining, its
subsectors include highpaying industries in
advanCEDD
manufacturing such as
semiconductor
manufacturing that
offers high-paying jobs.
Source: Lightcast.
Industry Specialization (Location Quotient) 98 427
99| HR&A Advisors East Palo Alto Economic Development Strategic Plan
OCCUPATIONS & EARNINGS
While higher-paying occupations are growing in East Palo Alto, jobs in the city remain predominantly service-oriented and low-paying.
Software Developers, 443
jobs
Landscaping and
Groundskeeping Workers,
412 jobs
Home Health and Personal
Care Aides, 271 jobs
Cashiers, 156 jobs
Childcare Workers, 145 jobs
General and Operations
Managers, 143 jobs
Computer and Information
Systems Managers, 124 jobs
Maids and Housekeeping
Cleaners, 116 jobs
Stockers and Order Fillers,
115 jobs
Managers, All Other, 115 jobs
-50%
0%
50%
100%
150%
$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 East Palo Alto Occupations by Size, Percent Growth, and Annual Median Income* (2024)
Source: Lightcast, ACS 5-Year.
Note: *Annual Median Income is based on San Mateo County data.
Top Employers:
East Palo Alto’s top
employers are a mix of
large companies,
healthcare industry, and
the public sector.
Top 5 Employers by
Number of Employees
(2023-2024):
1. Amazon Web
Services – 1,613
2. Ravenswood Family
Health Center – 334
3. IKEA – 270
4. Ravenswood City
School District – 253
5. Four Seasons Hotel –
Silicon Valley – 214
99 Source: City of East Palo Alto 2024
Annual Comprehensive Financial
Report.
428
100| HR&A Advisors East Palo Alto Economic Development Strategic Plan
RESIDENT COMMUTE & EARNING PATTERNS
East Palo Alto sees high daytime turnover, with only 630 residents working locally - earning less than both inbound and outbound commuters.
COMMUTER INFLOW/OUTFLOW (2022)
11,737
Live in, work outside
EPA
630
Live and work
5,233
Live outside, work in
EPA
9%
18% 13%
20%
39%
22%
71%
43%
65%
Inflow Interior Outflow
$1,250 or less $1,251 to $3,333 More than $3,333
MONTHLY WORKER EARNINGS (2022)
Source: Longitudinal Employer-Household Dynamics (LEHD). 429 101| HR&A Advisors East Palo Alto Economic Development Strategic Plan Business & Retail
Landscape
04 430
102| HR&A Advisors East Palo Alto Economic Development Strategic Plan
TAKEAWAYS
This business analysis yields the following takeaways to inform strategy development and implementation planning.
1. East Palo Alto is a city of small businesses - the majority are small businesses that employ fewer than 10 people. This makes small business growth a vital pillar of its economic development.
2. At the same time, the performance of a few larger businesses has an outsized impact on the city’s job supply, tax revenues, and the overall local economy.
3. Beyond the Gateway Retail Center, the absence of physically clustered businesses, active storefronts, and workers hinders the development of vibrant commercial corridors and a strong sense of place.
4. Limited retail supply and diversity contributes to unmet demand across many categories - highlighting under-tapped potential to capture more of residents’ and workers’ spending power. 431
103| HR&A Advisors East Palo Alto Economic Development Strategic Plan Cities such as Palo Alto, Menlo Park, and Redwood City benefit from dense business clusters anchored by major companies and dynamic downtowns. 3 BUSINESSES IN SAN MATEO COUNTY AND SANTA CLARA COUNTY
PALO ALTO
Business
district by
Stanford
MENLO PARK
Downtown corridor
with some
professional
services
DOWNTOWN
REDWOOD CITY
Downtown retail and
services
MOUNTAIN VIEW
Central business district with
software company offices
Large companies
e.g., HP, VMware
META
GOOGLE
3 • Meta - tech
• Grail – health care
tech
• Exponent –
consulting
• Robinhood –
Financial tech
• Genesys Cloud
Services – tech
• Palantir – tech
• Stanford Skin Center
– health care
• Intuit – financial tech
• Stanford University
LARGEST REGIONAL
EMPLOYERS
Source: Lightcast.
EPA, in contrast, lacks large
businesses and clusters of scale.
REGIONAL CONTEXT & PHYSICAL CLUSTERS
103 432
104| HR&A Advisors East Palo Alto Economic Development Strategic Plan Over 80% of businesses employ fewer than 10 people. General retail – driven by big-boxes like IKEA and Home Depot – account for significant portions of the City’s total sales taxes. 440
102
50 48
12 6 2
1-4 5-9 10-19 20-49 50-99 100-249 250-499
BUSINESSES IN EPA BY NUMBER OF EMPLOYEES
Number of Employees
Source: Data Axle.
EPA BUSINESS LANDSCAPE | SIZE
Important to note that available data does not capture informal, home-based, micro businesses. Outreach to these businesses are underway.
Source: City of East Palo Alto
GENERAL
RETAIL
46%
CONSTRUCTION
25%
FOOD
PRODUCTS
21%
TRANSPORTATION
7%
Other
1%
SALES TAX BY TYPE OF BUSINESS (2024)
433
105| HR&A Advisors East Palo Alto Economic Development Strategic Plan Based on the City’s business license data, there are more than 1,000 EPAbased businesses that contribute to East Palo Alto’s economy, providing jobs, services, and tax revenues.
638
270
52 26 41 13 5
Real Estate Services Non-profit F&B Retail B2B Miscellaneous NUMBER OF BUSINESSES IN EAST PALO ALTO BY TYPE (2024)
Includes licensed
peddlers and
mobile vendors
Includes chain stores
and small local retailers
EPA BUSINESS LANDSCAPE | TYPE
The majority of active
businesses in East Palo
Alto are real estate and
service-oriented, including
contractors, landscapers,
beauty salons, and other
neighborhood and
business services.
It is important to note
that this data does not
capture the city’s informal
economy such as
unlicensed home-based
businesses and vendors.
Source: City of East Palo Alto Business License Data.
Note: This analysis used business license data provided by the City as a proxy for business data. The data portrayed here includes only businesses with physical location in East Palo Alto and an active business license status. This graph presents a recategorized dataset based on “busin ess type”, “rate type”, and qualitative data on type of business.
105 434
106| HR&A Advisors East Palo Alto Economic Development Strategic Plan As the City prioritizes the creation of ‘main street’ corridors, there is an opportunity to cultivate physical clusters of active storefronts and brickand-mortar businesses to support street-level vibrancy. 638
270
52 26 41 13 5
Real Estate Services Non-profit F&B Retail B2B Miscellaneous NUMBER OF BUSINESSES IN EAST PALO ALTO BY TYPE (2024)
Source: City of East Palo Alto Business License Data.
Note: This analysis used business license data provided by the City as a proxy for business data. The data portrayed here includes only businesses with physical location in East Palo Alto and an active business license status. This graph presents a recategorized dataset based on “busin ess type”, “rate type”, and qualitative data on type of business.
Likely to have consumer-facing brick-and-mortar
~20 Services businesses
have offices (e.g. Amazon,
Ropes and Gray) or physical
locations providing health
care and childcare services.
Includes services like
gardening and roofing
that may not have an
active storefront.
EPA BUSINESS LANDSCAPE | PHYSICAL PRESENCE
Includes chain stores
and small local retailers
Includes licensed
peddlers and
mobile vendors
In addition to creating
jobs and generating tax
revenue, businesses with
a physical presence - such
as retail stores and offices
- contribute to
placemaking and dynamic
sense of place.
106 435
107| HR&A Advisors East Palo Alto Economic Development Strategic Plan Clothing and Clothing
Accessories Stores
General Merchandise Stores
Food Services & Drinking
Food and Beverage Stores
Furniture and Home
Furnishings Stores
Demand Sales
RETAIL OPPORTUNITIES
EPA’s limited retail offerings do not meet its residential demand across multiple categories and are leaving spending power on the table.
RETAIL SURPLUS & LEAKAGE IN EAST PALO ALTO
Retail leakage reflects the
gap between local
consumer demand and
actual in-city sales. It is
calculated by subtracting
resident demand in dollar
amounts by sales
generated within the city.
Other than the Furniture
and Home Furnishings
Stores category, which has
a small surplus due to the
presence of destination
retailers, other shopping
categories and F&B
categories have large
leakages, meaning EPA
residents have spending
power that is leaking
outside of EPA.
-$40M
-$55M
-$10M
-$42M
Source: City of East Palo Alto, ESRI Business Analyst.
Note: Sales might not include the sales from mobile vendor activities. +$318K
107 436
108| HR&A Advisors East Palo Alto Economic Development Strategic Plan Real Estate
Conditions
05 437
109| HR&A Advisors East Palo Alto Economic Development Strategic Plan
REAL ESTATE TRENDS
The real estate analysis considers the City of East Palo Alto, as well as a custom geography (“Study Area”) that represents a 20-minute driving radius from the city. 438
110| HR&A Advisors East Palo Alto Economic Development Strategic Plan
1. Growth across all use types in East Palo Alto has been stagnant since 2015. Within that timeframe, only one new office building and one new multifamily building have been delivered.
2. With lower-than-average vacancies and rents keeping relative pace with the broader Study Area, retail and industrial uses appear to have notable growth potential within East Palo Alto.
3. Existing multifamily units are showing signs of tightening demand - rising rents and falling vacancies. The City must facilitate sufficient housing construction to accommodate future growth and ease market pressure on existing and new residents.
4. Most notable commercial and industrial properties and developments are in the City’s eight business districts. Each district’s characteristics and redevelopment potential will inform its future positioning and place-based strategies.
REAL ESTATE TRENDS | KEY TAKEAWAYS
439
REAL ESTATE TRENDS | INVENTORY
Comparative Land Use Inventory
(2025 YTD)
Multifamily Residential
(For Context) Retail Office Industrial Hotel
Inventory Growth
since 2015 Inventory Growth since 2015 Inventory Growth since 2015 Inventory Growth since 2015 Inventory Growth since 2015 City of East Palo Alto 3,880 Units +1.1% 770,458 SF 0% 790,745 SF +37.1% 470,099 SF 0% 200 Rooms 0% Study Area
(20-Minute Drive Radius)
122,205
Units +20.3% 32,217,652 SF +4.3% 121,837,206 SF +29.0% 37,397,780 SF +4.7% 20,210 Rooms +18.8% EPA Share of Total
Study Area Inventory 3.2% 2.4% 0.6% 1.3% 1.0%
Source(s): CoStar
EPA comprises a modest share of the regional real estate market. Its growth across real estate asset classes have lagged 20-min drive radius - except for office. 111 440
112| HR&A Advisors East Palo Alto Economic Development Strategic Plan
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
YTD
Retail Rents: EPA Retail Rents: Study Area Retail Vacancies: EPA Retail Vacancies: Study Area REAL ESTATE TRENDS | RETAIL
Lower-than-average vacancies suggest that demand for retail is strong in East Palo Alto.
However, available space in the city is not commanding the high rents seen elsewhere.
Comparative Retail Rents PSF & Vacancies
(2015-2025 YTD)
-4%
East Palo Alto
+14%
Study Area
CHANGE IN RETAIL
RENTS PSF
(2015-2025 YTD)
Source(s): CoStar
Note(s): Retail rent data missing for East Palo Alto in 2017 and 2020; retail vacancy data missing for East Palo Alto in 2019. 441
113| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | RETAIL
Nearly 77% (592K SF) of EPA’s retail inventory
is concentrated within the Gateway Shopping
Center. Elsewhere in the city, much of the
retail uses are scattered in small storefronts
and in older building stock.
3 Rentable Building Area (SF)
Source(s): CoStar
Retail Types Outside of Gateway Shopping Center
Neighborhood Service Small-Scale Cluster Food & Beverage 178K sq ft (23% of total)
113 442
114| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | OFFICE
Office rents in East Palo Alto increased significantly in 2016, likely due to the delivery of the new Amazon building. Vacancies have doubled since 2022, indicating slowing demand.
Comparative Office Rents PSF & Vacancies
(2015-2025 YTD)
Source(s): CoStar
Note(s): Data on office vacancies is missing for East Palo Alto in 2015 and 2017. +91%
East Palo Alto
+14%
Study Area
CHANGE IN OFFICE
RENTS PSF
(2015-2025 YTD)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
YTD
Office Rents: EPA Office Rents: Study Area Office Vacancies: EPA Office Vacancies: Study Area 443
115| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | OFFICE
The design and location of existing and proposed office campuses in East Palo Alto enable regional access but do not encourage users to engage with the broader community. 3 Existing
Pipeline
OFFICE INVENTORY
University Square
Phase II
2111 University Ave
University Circle 220K SF (Status TBD)
1900-2000 University Ave
450K SF total (three buildings)
~70% vacancy
Potential Office /
Commercial
Development
2535 Pulgas Ave
In Planning
Amazon Offices
2100 University Ave
214K SF
8% vacancy
University Circle
Phase II
1950 University Ave
180K SF
2020 Bay Rd Offices
2020 Bay Rd
~1.3M SF (Status TBD)
Developer conversations suggest
current market does not support
new office development.
Proposed
115 444
116| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | INDUSTRIAL
Despite stagnant growth in the last decade, industrial space in East Palo Alto has performed well, with rents more than doubling since 2015 and vacancies at or below 3% since 2020.
Comparative Industrial Rents PSF & Vacancies
(2015-2025 YTD)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
YTD
Industrial Rents: EPA Industrial Rents: Study Area
Industrial Vacancies: EPA Industrial Vacancies: Study Area +119%
East Palo Alto
+61%
Study Area
CHANGE IN
INDUSTRIAL RENTS PSF
(2015-2025 YTD)
Source(s): CoStar
Note(s): Industrial rent data is missing for East Palo Alto in 2022; industrial vacancy data is missing for East Palo Alto in 2016, 2017, 2021, and 2022. 445
117| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | INDUSTRIAL
Many of the city’s industrial properties are concentrated around Pulgas Ave and Demeter St, including traditional light industrial uses, a catering business, and a martial arts gym. 3 2450 Pulgas Ave
45K SF
R.E. Borrmann’s Steel
351 Demeter St
33K SF
Knotty Hole Woodworks
325 Demeter St
22K SF
Catered Too
2532-2538 Pulgas Ave
20K SF
Sequoia Upholstery, et al.
350 Demeter St
18K SF
Luna’s Tree Service
2524-2530 Pulgas Ave
20K SF
Rogue Empire, et al.
117 446
118| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | OFFICE / INDUSTRIAL
For context, in Menlo Park - just beyond
East Palo Alto’s northern border - there are
office parks that currently house 2.6M SF
of office, industrial, and flex space.
Meta’s Corporate Headquarters
Menlo Science & Technology Park
Meta has plans to redevelop the Menlo Science &
Technology Park, replacing nearly one million square
feet of “outdated buildings” with a “vibrant, walkable, mixed-use village.” The project is advancing through
approvals and will include the following uses:
• 1.6M SF of office and accessory uses
• 200K SF of retail & non-office commercial uses,
including a grocery store and pharmacy
• 1,730 residential units (312 below market-rate)
• A 193-room hotel with attached retail & dining
• Accessible open space & town square
• Pedestrian and cyclist pathways
Proposed Willow Village
Pacific Biosciences
GRAIL
Healthcare
WineBank
Intertek
118 447
119| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | HOTELS
As a luxury hotel, the Four Seasons in East Palo Alto has significantly outperformed all hotels in the Study Area. The taxes that it generates are a major asset to the City’s tax base.
Comparative 12 Mo. ADR & 12 Mo. Occupancy
(2015-2025 YTD)
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
YTD
12 Mo. ADR: EPA 12 Mo. ADR: Study Area 12 Mo. Occupancy: EPA 12 Mo. Occupancy: Study Area +26%
East Palo Alto
+7%
Study Area
CHANGE IN HOTEL 12
MONTH ADR
(2015-2025 YTD)
Source(s): CoStar 448
120| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | HOTELS
There are a handful of hotels in neighboring cities that are comparable in size - at least 150 rooms - to the Four Seasons in East Palo Alto.
3 Hotel Nia
200 Independence Dr
Upper Upscale – 250 Rooms
Sheraton Palo Alto
625 El Camino Real
Upper Upscale – 346 Rooms
citizenM Menlo Park
2 Meta Way
Upscale – 240 Rooms
Four Seasons EPA
2050 University Ave
Luxury – 200 Rooms
Westin Palo Alto
675 El Camino Real
Upper Upscale – 184 Rooms
Stanford Park Hotel
100 El Camino Real
Luxury – 162 Rooms
120 449
121| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | MULTIFAMILY RESIDENTIAL
Despite modest inventory growth, multifamily rents in East Palo Alto have increased by 27% since 2015. Vacancies have also been halved from 13% to 7%.
Comparative Multifamily Rents PSF & Vacancies
(2015-2025 YTD)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
YTD
Multifamily Rents: EPA Multifamily Rents: Study Area
Multifamily Vacancies: EPA Multifamily Vacancies: Study Area Source(s): CoStar
+27%
East Palo Alto
+19%
Study Area
CHANGE IN
MULTIFAMILY RENTS
PSF
(2015-2025 YTD)
450
122| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | MULTIFAMILY RESIDENTIAL
East Palo Alto has only seen two multifamily projects delivered in the last decade, both offering affordable units. Others are nearing completion or have been approved. 3 Existing
Pipeline
MULTIFAMILY INVENTORY
Serenity Senior Apts
2358 University Ave
41 Units
Woodland Park Apts
2001 Manhattan Ave
605 Units
Light Tree Apts
1805 E Bayshore Rd
185 Units (128 new, 57
renovated)
Colibri Commons
965 Weeks St
136 Units
122 451
123| HR&A Advisors East Palo Alto Economic Development Strategic Plan REAL ESTATE TRENDS | MULTIFAMILY RESIDENTIAL
Several larger multifamily projects have been proposed but paths to delivery may be uncertain.
3 Proposed
MULTIFAMILY INVENTORY
4 Corners Mixed-Use
1675 Bay Rd
200 Units
Formerly planned for office
Waterfront Phase I
391 Demeter St
300 Units
4 Corners Townhomes
1675 Bay Rd
95 Units
Formerly planned for office
123 452
124| HR&A Advisors East Palo Alto Economic Development Strategic Plan Gateway Retail Center
City’s primary retail hub
Ravenswood Business District
Formerly industrial land
4 Corners / Bay Road Corridor
Potential main street/downtown
University Bay Corridor
Various uses w/ smaller parcels
Pulgas East Bayshore Corridor
Southeastern gateway to EPA w/ small-scale uses
University Circle Business District
Office hub w/ hotel and other uses
Neighborhood Retail
Small businesses &
shopping areas
Laurel/Glenn Way District
Various uses w/ vacant parcels
Ravenswood Specific
Plan Boundary
BUSINESS DISTRICTS
Most notable non-residential properties and
developments noted above are in the City’s
eight business districts. Each has its own
characteristics and may need differing place-based
strategies for activation.
District Name Current Business Mix
/ Industry Focus Trajectory Sense of Place
Scale of
Redevelopment
Opportunities
Gateway Retail Center Big-box retail Stable Low
Ravenswood Business
District Industrial, vacant land Growing High
University Bay Corridor Office, civic Stable Medium
University Circle Business
District Office, hotel Growing Medium
4 Corners / Bay Road
Corridor Civic, retail, residential Growing High
Pulgas East Bayshore
Corridor Warehouse, retail Stable Low
Laurel / Glen Way / East
Bayshore District Retail, vacant land Stable Low
Neighborhood
Commercial Office, retail Stable Low
Snapshot for each district is provided in the Appendix. 124 453 125| HR&A Advisors East Palo Alto Economic Development Strategic Plan DRAFT
NJ TRANSIT TOD Advisory Consulting Services| HR&A Advisors East Palo Alto
Economic Development Strategic Plan
Summer 2025
Appendix B: Business District Profiles
454
126| HR&A Advisors East Palo Alto Economic Development Strategic Plan
GATEWAY RETAIL CENTER
3 District Overview
Located near the southern end of the city, the Gateway Retail Center is East Palo Alto’s primary business hub. The district contains several big box retailers—including IKEA, Nordstrom Rack, and Home Depot—and generates approximately 65% of the City’s sales tax revenue.
The northeastern corner of the district contains some
residential uses, with a mix of single-family homes and a condominium complex with ground-floor retail. A mortuary is located in a lot just north of the IKEA.
Opportunities • Regional access via proximity to the 101 Freeway • New uses, such as a Mega Mart and the City’s entrepreneur center, vacant Office Depot space, and parking lot could be leveraged to boost economic development / activation
Challenges • Not inviting or accessible to pedestrians • According to store managers, retail theft and street vending management present challenges
455
127| HR&A Advisors East Palo Alto Economic Development Strategic Plan
GATEWAY RETAIL CENTER
3 1
1 23
4 1700 E Bayshore Rd – IKEA
2 • 242K SF building constructed around 2000 • Owned by IKEA Property Inc. 1731-1761 E Bayshore Rd – Gateway 101 Shopping Center
• ~100K SF of retail space constructed in 1999-2000
• Several owners, including Gateway 101 LLC • Occupied by anchor tenants including Cardenas Markets and PGA Tour Superstore
• 1761 building has long been vacant; most recently occupied by Office Depot 1771-1781 E Bayshore Rd – Gateway 101 Shopping Center
• ~200K SF of retail space constructed in 1999-2000
• Several owners, including Gateway 101 LLC • Occupied by anchor tenants including Nordstrom Rack and Home Depot; Mega Mart will be moving into space formerly occupied by Target 1765 E Bayshore Rd • 45K SF mixed-use building constructed in 2008 (residential condo, retail) • Individual condo owners; retail space owned by Cummings Park Associates & EPA Bayshore Properties LLC
• Will house the City’s upcoming entrepreneur center
Notable Existing Properties
3 4
456
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GATEWAY RETAIL CENTER
3 2
43 1
660 Donohoe St • Two lots combining for 0.39 acres, located next to Jones Mortuary • Smaller lot owned by EPA City Redevelopment; larger lot owned by the Charles A Jones Trust
1700 Bay Rd • 0.27-acre lot next to IKEA • Owned by the Lola Mae Clewis Trust 899 O’Connor St • 0.08-acre lot behind Nordstrom Rack • Owned by Gateway 101 LLC 1791 E Bayshore Rd • 0.40-acre lot at southern tip of the district near pedestrian pathway • Owned by Redevelopment Agency 1234
Vacant Parcels & Planned Projects
457
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RAVENSWOOD BUSINESS DISTRICT
3 District Overview
The Ravenswood Business District, located in the northern tip of the city along Bay Road, contains several vacant parcels on formerly industrial land, as well as some small-scale industrial facilities and single-family homes. As one half of the Ravenswood Business District / 4 Corners Specific Plan, this area has been envisioned as an “employment district with…new-generation industries.”
Opportunities • Recently adopted Ravenswood/4 Corners Specific Plan established a shared vision for the district
• Potential for mixed-use hub near waterfront, with existing draws like Cooley Landing, Bloomhouse/farmers market
• Large swaths of land are held by single owners, enabling transformative development guided by a coherent vision
Challenges • Significant environmental remediation and infrastructure improvements are required to accommodate future
development
• Current Low demand for office and life science uses require pivoting on previously conceived development plans 458
130| HR&A Advisors East Palo Alto Economic Development Strategic Plan
RAVENSWOOD BUSINESS DISTRICT
3 1
22 3
1 4
Note: There are some lands within this district that cannot be developed because they are protected, under utility easements, or are still undergoing environmental mitigation, limited to commercial and, therefore, no residential can be built on certain sites. 2555 Pulgas Ave – Bloomhouse
• 6,000-SF community center opened in 2019
1885 Bay Rd – Ravenswood Family Health Center
• 38K SF building opened in 2015
Parcel 63050050 • 29.65-acre parcel, a portion of which will be developed into Phase 1 of the EPA Waterfront Project
• Project will include three residential buildings with nearly 300 units 2519-2535 Pulgas Ave
•9-acre site owned by Emerson Collective - planning in progress 2020 Bay Rd • 17.2-acre site planned for 1.4M SF of office, retail, and open space 1990 Bay Rd • Planned site for 918K SF of office, life science, and retail space • Developed by Harvest Properties Notable Existing Properties
Vacant Parcels & Planned Projects 121342
459
131| HR&A Advisors East Palo Alto Economic Development Strategic Plan 4 CORNERS / BAY ROAD CORRIDOR
3 District Overview
The 4 Corners / Bay Road Corridor is situated around the intersection of University Avenue and Bay Road and contains a variety of uses, including multi- and single-family residential, retail, industrial, civic, and office. The Ravenswood Business District / 4 Corners Specific Plan envisions this area as the city’s downtown with “active neighborhood-serving uses…and a lively main street.” City Hall and the San Mateo County Library serve as anchors, while a vacant six-acre lot across the street—former home the Nairobi Village Shopping Center—awaits
redevelopment.
Opportunities • Recently adopted Ravenswood/4 Corners Specific Plan established a shared vision for the district
• Multifamily housing and key civic and community anchors, such as City Hall and the EPACENTER, could provide a user base for additional retail / amenities
• Planned and under construction projects at 1675 Bay Rd and 965 Weeks St could activate surrounding parcels
Challenges • As the aspirational new downtown, the District does not yet have a pedestrian friendly environment / district identity 460 132| HR&A Advisors East Palo Alto Economic Development Strategic Plan 4 CORNERS / BAY ROAD CORRIDOR
3 123
4 3
2 2415 University Ave – San Mateo County Government Center • Contains East Palo Alto’s City Hall and public library 1730 Bay Rd – Courtyard at Bay Road
• Four-story, 77-unit multifamily building
• Constructed in 2005
Montage Circle Complex • Newer looking single-family home complex • Mentioned briefly in the Ravenswood Specific Plan (Pulte Homes subdivision) and listed as vacant parcels in data from City
1950 Bay Rd - EPACENTER
• Two-story, 25K SF youth development center
• Opened in 2022
1 4
Notable Existing Properties
461
133| HR&A Advisors East Palo Alto Economic Development Strategic Plan 4 CORNERS / BAY ROAD CORRIDOR
3 1234
1 4
2 3
Vacant Parcels & Planned Projects
1675 Bay Rd • 6.0-acre parcel owned by Sand Hill Properties • City owns a small adjacent parcel at the southwest corner of the site • Planned for a mixed-use project with residential and retail uses 1620 Bay Rd • Three parcels combining for 0.85 acres • Potentially owned by Clarumb (to be confirmed) 1798 Bay Rd • 1.4-acre lot owned by the City of EPA • Currently provides a safe parking lot for unhoused residents living in RVs 965 Weeks St • 2.6-acre lot planned for Colibri Commons, a 136 -unit multifamily building
for low-income households (studios to four-bedrooms)
462
134| HR&A Advisors East Palo Alto Economic Development Strategic Plan
UNIVERSITY BAY CORRIDOR
3 District Overview
The University Bay Corridor contains a variety of uses, including multi- and single-family housing, retail, civic, and office. The district’s primary thoroughfare—University Avenue—is used as a cut-through route for traffic accessing the Dumbarton Bridge to the north and the 101 Freeway to the south.
Corporate offices for Amazon, located at the southern end of the district, opened in 2016. An adjacent vacant lot was tapped for additional office space but was halted during the pandemic.
Opportunities • Vacant Sobrato site presents opportunity to add meaningful scale to the district
• New retail - particularly dining options - could capture University Avenue commuters
• Anchors such as the Amazon office and YMCA could provide a user base for additional retail / amenities
Challenges • Paths to realize stalled developments uncertain • High traffic volume; not pedestrian friendly 463
135| HR&A Advisors East Palo Alto Economic Development Strategic Plan
UNIVERSITY BAY CORRIDOR
3 234
2 4
6 1
1 2361 University Ave
– Nugent Square Apartments
• 40K, 32-unit rent-restricted multifamily building
• Constructed in 2006
2358 University Ave – Serenity Senior
• 160K, 41-unit rent-restricted multifamily building
• Constructed in 2017
2242 University Ave – Drew Center Pharmacy
• Only pharmacy currently in the City of East Palo Alto 550 Bell St – EPA Family YMCA
• 32K SF community center • Constructed in 2007
2160 University Ave – AutoZone Auto Parts
• 7K SF auto parts store
2100 University Ave - Amazon
• 214K office building, housing over 1,000 corporate and tech employees for Amazon Web Services
• Constructed in 2016
65 3
5 Notable Existing Properties
464
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UNIVERSITY BAY CORRIDOR
3 132
3 12
2331 University Ave • Two parcels combining for 0.5 acres and planned for a four -story, 48K SF
mixed-use building with retail and 33 residential units • Entitled by Clarum Communities but project did not advance 2277 University Ave • 0.36-acre parcel owned by the EPA County Waterworks District • A single-story government building is currently on the site • City is in talks with San Mateo County about swapping the parcel for another in order to develop a park
2115 University Ave • 2.9-acre site planned for a 220K SF office building; project on pause • Owned by The Sobrato Organization Vacant Parcels & Planned Projects
465
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UNIVERSITY CIRCLE BUSINESS DISTRICT
3 District Overview
The University Circle Business District, located at the intersection of the 101 Freeway and University Avenue, is anchored by three office towers totaling 450,000 SF and a 200-room Four Seasons Hotel. This district lies on the former site of Whiskey Gulch, a collection of small businesses of which many were owned by local residents of color. A new office tower and renovations to the central plaza are planned, and there is a desire from both the City and property managers to activate the space even more.
Opportunities • Coherent district identity with some public -space activation
• Regional access via proximity to the 101 Freeway and
University Avenue
• New site improvements and tenant/community-serving uses and temporary activations could attract new tenants,
community members, and visitors to the district
Challenges • District is cut off from the rest of East Palo Alto by the 101 Freeway. Limited pedestrian access and connections for
surrounding residential community
• Regionally office vacancy remains high 466
138| HR&A Advisors East Palo Alto Economic Development Strategic Plan
UNIVERSITY CIRCLE BUSINESS DISTRICT
3 1
2 3
4 1
2 Notable Existing Properties
1900 University Ave • 143K SF office building constructed in 2001 • Owned by Columbia Property Trust Inc. 1950 University Ave • 165K SF office building constructed in 2002 • Owned by Columbia Property Trust Inc. 2000 University Ave • 148K SF office building constructed in 2002 • Owned by Columbia Property Trust Inc. 2050 University Ave – Four Seasons Hotel
• 190K SF hotel constructed in 2006 • Owned by Strategic Hotels & Resorts 1234
Vacant Parcels & Planned Projects
Parcels 63680090, 63680110, and 63680180 • Planned University Circle Phase II project, approved in 2022, would allow the construction of 180,000 square feet of new offices on campus. Project timeline TBD.
1900-2050 University Ave (Inner Circle)
• Planned renovation to the inner circle of the complex, including reconfiguration of an existing structure into a café, landscape improvements, and façade changes to buildings 1900, 1950, and 2000 University Ave 12 467
139| HR&A Advisors East Palo Alto Economic Development Strategic Plan
PULGAS EAST BAYSHORE CORRIDOR
3 District Overview
This business district, located at southern tip of the city, consists of a Public Storage facility, a few small shops, and an auto repair business. Section 16.4 of the General Plan 2035 envisions this area for “redevelopment and intensification of the existing neighborhood retail…including mixed-use
development with ground-floor retail and office or
residential on the upper floors.”
Opportunities • Surrounding residential community provides natural customer base for community serving uses and
neighborhood amenities
Challenges • While low
-density, self-storage use is typically hard to
displace / redevelop
• Highway adjacency creates a physical barrier and detracts from the street-level experience due to noise, exhaust, and the absence of active storefronts across the street • Located on the periphery and disconnected from the
city’s other business districts
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PULGAS EAST BAYSHORE CORRIDOR
3 123
1 2
3 Notable Existing Properties 4
4 1961 E Bayshore Rd – Public Storage
• Facilities spread out over three parcels combining for 3.5 acres • Owned by SEI PSP II Joint Ventures and American Storage Associates 1905 E Bayshore Rd – Gonzalez Tires
• Auto service shop located on a 0.25-acre lot
• Owned by the Henry Rainer Trust
1895 E Bayshore Rd • Parcel is designated as occupied by auto services, but maps show smaller retail uses on a 0.25-acre lot
• Owned by the Edward E. Campbell Trust
1933 Pulgas Ave – Garden Market
• 5,300-SF general store located on a 2.23-acre lot
• Owned by Citystar Properties
469
141| HR&A Advisors East Palo Alto Economic Development Strategic Plan
LAUREL / GLEN WAY / EAST BAYSHORE DISTRICT
3 District Overview
This business district, located along the western border of the city, consists of an Extra Space Storage facility, a mix of single- and multi-family homes, retail, a church, and a few vacant lots.
Given the variety of uses along this corridor, this district could be well-suited for some smaller, neighborhood-serving retail spaces.
Opportunities • Vacant parcels could provide opportunities to fill neighborhood-serving retail gaps
Challenges • Vacant parcels are small and shallow
- potentially challenging
to develop
• Highway adjacency creates a physical barrier and detracts from the street-level experience due to noise, exhaust, and the absence of active storefronts across the street
• Placemaking / activation would be needed to support a more coherent sense of place that establishes the district as a more active commercial corridor
470
142| HR&A Advisors East Palo Alto Economic Development Strategic Plan
LAUREL / GLEN WAY / EAST BAYSHORE DISTRICT
3 2
3 1
1 2
4 3
Notable Existing Properties
807 E Bayshore Rd • 0.55-acre lot w/ warehouse • Empty lot on site but not listed as vacant • Owned by Lucky Children LLC 999 E Bayshore Rd • 1.26-acre lot w/ Extra Space Storage • Owned by Storage Portfolio I LLC 1199 E Bayshore Rd • 0.26-acre lot w/ St. Samuel Church • Owned by St. Samuel Church of God 123
Vacant Parcels & Planned Projects
1001 E Bayshore Rd • 0.08-acre lot w/ single
-family home
• Owned by Yip Lambo
1205 E Bayshore Rd • 0.12-acre lot w/ fence and billboard • Owned by Yusuf Ibrahim 1385 E Bayshore Rd • 0.10-acre lot next to single
-family homes
• Owned by Keleta Tesfai
Parcel 063183090 • 0.09-acre lot w/ parking next to Emmanuel’s Pizza & Bakery • Owned by the Curtis D. Duplessis Trust 3214
471
143| HR&A Advisors East Palo Alto Economic Development Strategic Plan
NEIGHBORHOOD COMMERCIAL
The Neighborhood Retail Business Area comprises several non-contiguous hubs of small businesses and shopping areas across East Palo Alto.
3 Willow Rd / Newbridge Retail Hub
Small retail / commercial area
Manhattan & O’Connor
Shopping area
West Bayshore & Newell Road
Shopping area
East Bayshore & Euclid
Shopping area
Opportunities
• Surrounding residential
communities may support
targeted investment in F&B,
personal services, and
community amenities
Challenges
• While most parcels house
active businesses, shopping
areas generally lack district
identity
472
144| HR&A Advisors East Palo Alto Economic Development Strategic Plan NC –WILLOW RD / NEWBRIDGE RETAIL HUB
3 Hernandez’ Nursery • 910 Newbridge St • 0.15-acre parcel owned by Karwash Mohammed
1 Ana’s Party Store • 910 Newbridge St • 0.08-acre parcel owned by Karwash Mohammed
2 Elegancia Beauty Salon • 922 Newbridge St • 0.16-acre parcel owned by Kibrom Berhane 3 Notable Existing Properties & Vacant Parcels
907 Newbridge St • Office building (tenants include legal services firm and a janitorial company)
• 0.23-acre parcel owned by Karwash
Mohammed
4 1
2 3
4 473
145| HR&A Advisors East Palo Alto Economic Development Strategic Plan NC – MANHATTAN & O’CONNOR
3 Notable Existing Properties & Vacant Parcels
La Tiendita Market • 510 O’Connor St • 0.23-acre parcel owned by Redus Woodland LLC
1 LaunderLand EPA • 1997 Manhattan Ave • 0.12-acre parcel owned by the Grace M.
Chew Trust
2 1
2 474
146| HR&A Advisors East Palo Alto Economic Development Strategic Plan NC – WEST BAYSHORE & NEWELL ROAD
3 1750 W Bayshore Rd • 0.15-acre parcel w/ single-family home • Owned by the Toi Lung Young Trust 1 7-Eleven
• 77 Newell Rd • 0.12-acre parcel owned by the Toi Lung Young Trust
2 Parcel 063513730 • Vacant 0.26-acre parcel used for parking • Owned by the Toi Lung Young Trust 3 Notable Existing Properties & Vacant Parcels
Three Brothers Tacos • 95 Newell Rd • 0.39-acre parcel owned by Fred Young Jr. 4 1
2 3
Parcel 063515170 • Vacant 0.63-acre parcel currently used for a pop park
• Owned by Gordon Young
5 4
5 475
147| HR&A Advisors East Palo Alto Economic Development Strategic Plan NC – EAST BAYSHORE & EUCLID
3 Notable Existing Properties & Vacant Parcels
1489 E Bayshore Rd • Single-building with various retailers • 0.45-acre parcel owned by Sonsco LLC 1 1475 E Bayshore Rd • Gated parking lot; listed as auto repair • 0.23-acre parcel owned by LR Land LLC 2 2056 Glen Way • 5+ unit apartment building built in 1960 • 0.21-acre parcel owned by the Maude P.
Hutchins Trust
3 2070 Glen Way • Single-family home built in 1953 • 0.18-acre parcel owned by an LLC 4 2080 Glen Way • Duplex built in 1935 • 0.19-acre parcel owned by Nofal Ali Abdallah
5 1
2 3
4 5
476
148| HR&A Advisors East Palo Alto Economic Development Strategic Plan East Palo Alto
Economic Development Strategic Plan
December 2025
Appendix C: Site Opportunity Details
477
STRATEGIC SITE #1
EAST PALO ALTO WATERFRONT PROJECT
Overview
• 15 parcels (29 acres), led by Emerson Collective
• Phase I: 300 residential units, athletic fields, and 100K SF Civic Commons
• Next strategic focus: two ~2-acre vacant parcels (~87K SF each) Waterfront Mixed-Use Civic Hub: Hub of community life,
anchored by destinations like Bloomhouse, proposed civic commons and athletic fields, and leveraging waterfront access Development Concepts:
• Primary Uses
o Civic Commons (Under Planning) – establishes a civic
anchor with government services and public space.
o Food Hall / Kitchen Incubator – provides food options for nearby housing and workers while opening pathways
for local food entrepreneurs.
o Healthcare / Wellness Facility – addresses gaps in
community healthcare access while creating skilled jobs. • Secondary Uses
o Childcare / Early Learning Center – supports families and workforce participation.
o Higher Ed - Community college annex or Stanford
University Extension program
o Office & Small Business Center – coworking, incubation, and local business space.
Civic Commons
Proposed 100K SF civic
center, including City
Hall and offices, public
library, and City Council
chambers
EPA Athletic Fields
Proposed athletic field,
track, and other
recreational facilities
Vacant Lots
Two parcels, totaling ~4
acres; zoned for General
Industrial
EPA Waterfront Phase I
Proposed 300-unit residential complex
Note: While the entirety of the EPA Waterfront Project is highlighted as a cluster, the City should maintain its focus on facilitating the development of this site, which is not currently planned for any projects. Development here should align with the services provided by surrounding projects. 478
STRATEGIC SITE #2
2020 BAY RD + 1990 BAY RD (THE LANDING)
Overview
• 2020 Bay Rd (9 parcels; 17.2 acres): Owned by Three Cities Research Inc.; 1.3M SF of proposed office, civic, retail, and open space. • 1990 Bay Rd – The Landing (4 parcels; 17.8 acres): Developed by Harvest Properties, proposed 918,000 SF of office, lab, civic, and open space.
Bay Road Industry Hub: employment and innovation district, building on the area's existing industrial base and transportation access Development Concepts:
• Industrial / R&D – anchor employment base with facilities specifically for construction tech (modular/panelized builders), semiconductor packaging, clean energy R&D, and light industrial flex, to create middle-skill, middle-wage jobs.
• Office / Lab – co-located with the industrial uses to house engineering, design, and lab teams tied to production. Includes lab space for clean energy/bio-R&D and civic-oriented office for nonprofits and training partners
• Workforce Development Hub – Career & Innovation Center with workforce training, youth programs, and small business incubation, to ensure that local residents have clear pathways into jobs created on-site
2020 Bay Rd
Nine parcels, totaling
17.2 acres; zoned for
Waterfront Office and
Industrial Buffer
North Site
479
1990 Bay Rd
Four parcels, totaling
17.8 acres; zoned for
Waterfront Office and
General Industrial
South Site
Overview
• 2020 Bay Rd (9 parcels; 17.2 acres): Owned by Three Cities Research Inc.; 1.3M SF of proposed office, civic, retail, and open space. • 1990 Bay Rd – The Landing (4 parcels; 17.8 acres): Developed by Harvest Properties, proposed 918,000 SF of office, lab, civic, and open space.
Industry Hub: employment and innovation district, building on the area's existing industrial base and transportation access Development Concepts:
• Industrial / R&D – anchor employment base with facilities specifically for construction tech (modular/panelized builders), semiconductor packaging, clean energy R&D, and light industrial flex, to create middle-skill, middle-wage jobs.
• Office / Lab – co-located with the industrial uses to house engineering, design, and lab teams tied to production. Includes lab space for clean energy/bio-R&D and civic-oriented office for nonprofits and training partners
• Workforce Development Hub – Career & Innovation Center with workforce training, youth programs, and small business incubation, to ensure that local residents have clear pathways into jobs created on-site
STRATEGIC SITE #2
2020 BAY RD + 1990 BAY RD (THE LANDING)
480
Assemblage Overview
• 1103 Weeks St (4 parcels; 1.6 acres): Developed by Eden Housing (land donated by Harvest Properties); proposed
95-unit affordable housing project with civic space.
• 1201 Runnymede (3 parcels, 4.4 acres): One parcel
previously entitled for a 32-unit multifamily project;
another plan proposed 20 townhomes. Applicant has
since pursued lower density.
Mixed-Use Corridor: a series of active neighborhood sites that integrate housing, retail, and small businesses,
supporting more vibrant local activity
Development Concepts:
• Housing (entitled + proposed) – anchoring the site with affordable and market-rate units
• Small Business / Office Flex – coworking and
professional services space added above or alongside
retail
• Retail - targeted, smaller scale as residential / worker amenity and neighborhood activation
1103 Weeks St
Four parcels, totaling
1.6 acres; zoned for
General Industrial
1201 Runnymede
Three parcels, totaling
4.4 acres; zoned for
Industrial Buffer and
High Density Residential
STRATEGIC SITE #3
1103 WEEKS ST + 1201 RUNNYMEDE
481
Assemblage Overview • 1675 Bay Rd: 6.1 acres; developed by Sand Hill Properties; previously proposed as mixed-use with residential, retail, civic, and lab uses; has since been scaled back to primarily residential (200 multifamily units, 95 townhomes).
• 1620 Bay Rd: 0.85 acres; overgrown lot with a single- family home; no current development plans.
Mixed-Use Corridor: a series of active neighborhood sites that integrate housing, retail, and small businesses,
supporting more vibrant local activity
Development Concepts: • Housing (entitled + proposed)
– ~200 units; backbone of
the development, anchoring the site with new multifamily and townhomes
• Retail– ground-floor storefronts to activate Bay Road, building on the existing corner retail node
• Small Business / Office Flex– coworking and
professional services space integrated above or alongside retail
• Community Space / Food Hall– gathering place in the
heart of the city, providing F&B/cultural programming that reflects the diversity of the community
1675 Bay Rd
6.1 acres; zoned for
Mixed-Use High
1620 Bay Rd
Three parcels, totaling
0.85 acres; zoned for
Mixed-Use High
STRATEGIC SITE #4
1675 BAY RD + 1620 BAY RD
482
Assemblage Overview
• 1804 Bay Rd: 0.99 acres. Proposed mixed-use with 75
residential units and ground-floor retail.
• Clarum University Corner: 0.91 acres. Entitled by Clarum Communities, but project is inactive. Proposed 48,000-SF mixed-use with 33 residential units and ground-floor
retail.
Mixed-Use Corridor: a series of active neighborhood sites that integrate housing, retail, and small businesses,
supporting more vibrant local activity
Development Concepts:
• Housing (entitled + proposed) – ~100–120 total units
across the two parcels
• Retail – small/flexible ground-floor storefronts for food, neighborhood amenities and services (e.g., hair salons), and hospitality
• Small Business / Office Flex – coworking or professional services space, stacked above retail or integrated into residential
Clarum Uni. Corner
Three parcels, totaling
0.91 acres; zoned for
Corridor
1804 Bay Rd
0.99 acres; zoned for
Corridor
STRATEGIC SITE #5
1804 BAY RD + CLARUM UNIVERSITY CORNER
483
STRATEGIC SITE #6
RAVENSWOOD ELEMENTARY SCHOOL DISTRICT
+ 2115 UNIVERSITY AVE
Overview • Ravenswood Elementary School District: 4.15 acres; underutilized property with surplus school facilities and parking; proposed 430-unit affordable multifamily development with 2,800 SF of ground-floor retail. • 2115 University Ave: 2.9 acres; developed by The Sobrato Organization; previously proposed 230,000-SF office building (Phase II of the Amazon office across the street), though project is currently paused.
Gateway Commercial Hub: well-connected gateway to the city and region, offering destination shopping experience and community- serving retail, services, and local job opportunities
Development Concepts: • Primary Uses o Large Scale Community Serving Retail (e.g. Grocery Store) -
anchors University Avenue with food, services, and hospitality that draw both residents and workers
o Hospitality– hotel as part of a mixed-use development o Office / Lab - flexible employment space for offices, nonprofits, or lab/tech tenants. Reuses the scale of the former Amazon entitlement but broadens user types.
o Childcare / Education– Located within the housing development or adapted from existing school facilities
o Higher Ed - Community college annex or Stanford University Extension program
• Secondary Uses o Healthcare / Wellness Facility
– a clinic or wellness hub that
addresses community health needs and creates more local jobs o Community / Civic Space– small multipurpose space for cultural programming, youth activities, or workforce training o Housing – entitled, ~430 units)
2115 University Ave
2.9 acres; zoned for
Mixed-Use High
Ravenswood SD
4.15 acres; zoned for
Mixed-Use High
484