Discussion Agenda Item 4a
STAFF REPORT
Discussion Agenda Item
DATE: June 1, 2026
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Community-Generated Economic Development Initiative STAFF RECOMMENDATION:
1. Receive and discuss the community-generated economic development reports developed in support of the City’s General Plan Guiding Principles and Strategic Planning efforts;
2. Acknowledge and affirm the value of this community-led initiative; and
3. Provide conceptual support and endorsement for continued collaboration with the proposed community working group structure to help advance economic development priorities in partnership with the City.
BACKGROUND:
Over the past year, the City of Fortuna has undertaken significant planning efforts, including the update of its General Plan guiding principles and the development of a Strategic Plan to guide the City’s future.
In parallel with, and in direct response to, these efforts, members of the local business and broader community voluntarily organized to contribute input and identify economic development priorities for Fortuna. This work has resulted in three community-generated reports:
• Community Survey – February 2026
• Recommended Next Steps and Priority Areas Following Survey of Fortuna’s Business Community – April 2026
• A Bridge to the Future – May 2026
The initial February 2026 Community Survey report reflects input from 64 business owners and senior managers across nine industry sectors, including retail, industrial/manufacturing, healthcare, agriculture, hospitality, and others, and was also supported by outreach from the Chamber of Commerce and Downtown Merchants Association.
The effort is notable in that it was initiated and advanced organically by the community, reflecting a strong level of local engagement and investment in Fortuna’s long-term economic future.
DISCUSSION:
A Community-Led Economic Development Effort
The initial survey findings indicate broad agreement among participants that Fortuna is facing more than a typical economic cycle. Respondents questioned whether the community is Discussion Agenda Item 4a
experiencing a structural shift in its economy due to the loss of historic anchor industries, including timber and, more recently, the decline of the cannabis sector.
The three reports collectively represent a significant and constructive community-led initiative aimed at strengthening Fortuna’s economy. Participants consistently express pride in the community while also identifying the need for a more coordinated and proactive approach to economic development.
The reports emphasize that, while challenges exist, Fortuna possesses substantial assets, including its natural environment, location, and community character, that position it well for future growth if supported by a clear strategy and coordinated action.
Key Priorities Identified by the Community
Across these reports, there is strong alignment around a set of core economic development priorities:
• Establishing a Clear Economic Vision and Brand - Participants identified the need to define a cohesive vision for Fortuna’s future and better articulate its identity as a community. • Leveraging Natural and Cultural Assets - Fortuna’s redwoods, river, recreation opportunities, and small-town appeal are consistently identified as key assets that can be more effectively leveraged.
• Economic Diversification and Industry Attraction - The absence of a strong economic “anchor” industry is a recurring concern, with emphasis on attracting new industries and developing scalable economic drivers.
• Housing Availability and Affordability - Housing constraints are identified as a significant barrier to workforce attraction, retention, and business growth. • Downtown Revitalization - Stakeholders emphasized the need to enhance downtown vitality and reduce retail leakage to surrounding areas. • Business Support and Permitting Efficiency - The reports call for streamlined processes, clearer regulations, and increased City capacity to support business development. • Business Support – Services for existing businesses and new business start-ups. • Workforce Development and Partnerships - Aligning educational programs with business needs is identified as an opportunity to strengthen the local workforce pipeline.
These priorities are broadly consistent with and supportive of the City’s own ongoing planning efforts.
Proposed Implementation: Community-Working Group Model
The May 2026 report, Bridge to the Future, outlines a proposed framework to advance these priorities through a community-working group structure.
This model includes:
• A core leadership workgroup composed of local business and community leaders to provide strategic direction; and
• A series of topic-specific workgroups focused on key areas such as:
o Downtown revitalization
o Tourism development
o Business development and attraction
o Workforce development
Discussion Agenda Item 4a
o Housing
o Business support and City services
The proposed structure is designed to:
• Sustain community engagement
• Translate ideas into actionable strategies
• Support implementation alongside City-led efforts
The reports also reflect strong interest from community members in participating in and contributing time toward these efforts, indicating a readiness to move from planning to action.
Role of the City
The structured nature of the initial survey effort, combined with continued community participation through subsequent reports, indicates that this initiative is not only organic, but also grounded in data and reflective of a broad cross-section of Fortuna’s economic base. City collaboration can help ensure that this momentum translates into coordinated, feasible, and strategically aligned outcomes. While the working group concept is community-driven, its effectiveness will be significantly enhanced with clear partnership with City staff. Council acknowledgment and support would:
• Signal alignment between community efforts and City priorities • Encourage continued community participation
• Help ensure that workgroup efforts are coordinated with City staff and ongoing planning processes
• Provide a foundation for future collaboration on implementation efforts Endorsement at this stage does not require formal commitment of resources but provides important policy-level support and direction for collaboration.
FISCAL IMPACT:
This item is informational and does not have a direct fiscal impact at this time. Staff time to participate in this community-generated initiative is budgeted in the upcoming fiscal year budget.
Future actions resulting from Council direction, including support for specific initiatives or programs, may have fiscal implications that would be brought forward for Council consideration.
RECOMMENDED COUNCIL ACTION:
Receive and file the presentation and provide conceptual support and endorsement for continued collaboration with the proposed community working group structure to help advance economic development priorities in partnership with the City.
ATTACHMENTS:
• Community Survey – February 2026
• Recommended Next Steps and Priority Areas Following Survey of Fortuna’s Business Community – April 2026
• A Bridge to the Future – May 2026