Agenda Item C.1
DISCUSSION/ACTION ITEM
Meeting Date: March 18, 2025
TO: Mayor and Councilmembers
SUBMITTED BY: Luz “Nina” Buelna, Public Works Director
PREPARED BY: Derek Rapp, Contract Traffic Engineer
SUBJECT: Hollister Avenue Old Town Interim Striping Project Update RECOMMENDATION:
Receive an update on the Hollister Avenue Old Town Interim Striping Project performance.
BACKGROUND:
The City Council approved the project and preliminary design for the Hollister Avenue Old Town Interim Striping Project (Project) in January 2021. Th e P roject was developed based on the Hollister Avenue Complete Streets Corridor Plan, which resulted from an 18-month public outreach process that included surveys, workshops, stakeholder meetings, and walking and biking tours. This outreach effort helped shape street design concepts aimed at improving multi -modal access and parking efficiency, ultimately guiding the development of the Project. The Project’s goals included reducing travel lanes from two lanes to one lane in each direction, increasing on-street parking with angled 90- minute spaces, and installing Class II bike lanes on Hollister Avenue between Fairview Avenue and Kinman Avenue.
The goals of the interim striping Project were to:
Increase parking spaces and availability
Reduce traffic speeds
Reduce collisions
Improve conditions for bikes and pedestrians
Maintain traffic flow
Public Works staff proposed implementing changes to Hollister Avenue in Old Town with the Project using materials that could be modified more easily and at lower cost . Traffic conditions were studied, and the community evaluated the effectiveness of meeting the Project goals . The resulting street configura tion could then be used to pursue grant funding for a future streetscape project.
1 Meeting Date: March 18, 2025
The City Council approved the plans and specifications for the Project and authorized staff to call for bids in April 2023. No bids were received during the Project's first advertisement, so the Project was rebid in July 2023. The two bid amounts were more than 118% and 144% above the engineer's estimate, respectively. The City Council rejected all bids and directed staff to negotiate a construction change order to construct the Project as part of the construction of Project Connect located in the same area. Public Works staff negotiated a change order with a reduced construction cost of approximately $2 million. The Project was implemented on July 12, 2024. A few modifications, including three additional parking spaces and left turn accommodations for school buses at the Goleta Community Center were completed in October 2024.
In preparation for implementation of this Project, Public Works staff collected traffic volume and speed data on Hollister Avenue and the adjacent roadway network in October 2022 to serve as a baseline for pre-Project traffic conditions and as a means of comparison to post -Project traffic condition s. Public Works staff has monitored traffic conditions throughout Old Town and Project Connect construction areas. Signal timing adjustments have been made all along the Hollister Avenue corridor between Fairview Avenue and Ward Drive. Operational modifications have also been made at the Hollister Avenue and State Route (SR) 217 Southbound Ramps to improve traffic flow due to construction interruptions.
Outreach
The Project included community stakeholder involvement and public outreach. Nine (9) community meetings were held between 2018 and 2024. When the Project was incorporated as a change order to Project Connect, outreach efforts were managed by the Project Connect outreach team. The outreach included in-person visits to over 100 Old Town businesses, p ostcard mailers to over 2,000 parcels, articles in the Monarch Press, media releases, personalized outreach to the Santa Barbara Metropolitan Transit District, Goleta Unified School District, Goleta Community Center, Santa Barbara South Coast Chamber of Commerce, Greater Santa Barbara Hispanic Chamber of Commerce, and property managers of impacted multi -family residential properties. The dedicated Project webpage was regularly updated with construction details. Additionally, a dedicated Project phone number and email were used to field project inquiries.
Between May and November 2024, the City received 121 public inquiries regarding the Project. The majority, 75, expressed concerns primarily about the back-in angled parking and traffic impacts. Ten inquiries were compliments, appreciating the safety improvements, while the rest were general questions. Interest peaked in July, with an average of 19 weekly inquiries, but declined afterward, with only seven inquiries recorded between November 2024 and February 2025.
DISCUSSION:
At the time of preparation of this report, the Project had been in place for approximately 200 days. In addition, construction of Project Connect has con tinued in the Project’s 2 Meeting Date: March 18, 2025
vicinity. As Project Connect construction move s forward , traffic pattern changes have occurred and are planned for future phases. The relatively short time frame and ongoing construction traffic impacts the ability to draw meaningful conclusions regarding the performance of the striping change , regarding traffic safety. However, the data shows positive trends toward the Project achieving its stated goals. Public Works had pre-Project data collection in 2022. Staff collaborated with their traffic consultants to gather post - project traffic volume and speed data on Hollister Avenue during November, December 2024, and January 2025.
Traffic Volumes
The Hollister Avenue Complete Streets Corridor Plan determined that approximately two- thirds of Old Town Hollister Avenue traffic trips were associated wi th residences or businesses in Old Town. The remaining third of traffic traveled through Old Town to other areas.
Through analysis of travel patterns, Public Works staff hypothesized that the lane reductions on Hollister Avenue could cause nearly half of these through trips to choose other routes, reducing the overall daily traffic volume by up to 15%.
The data shown in Table 1 demonstrates that daily traffic volumes have been reduced by approximately 10%, or less than 2,000 daily trips from pre-Project conditions. No analysis has been carried out to determine whether this overall reduction in volume is due to a reduction in through traffic, but this could be a component of future data collection. It is also difficult to determine whether this traffic reduction is due to the lane reductions in Old Town, the traffic staging for the Hollister Avenue Bridge Replacement Project, and SR 217 roundabouts, or other reasons not known at this time.
Table 1 – Hollister Avenue Old Town Daily Traffic Volumes Pre and Post Project
Daily Traffic
Volume
Pre-Project 18,442
Post-Project 16,548
% Change -10%
Data was also collected on parallel routes to Hollister Avenue to determine whether the Project would divert significant traffic volumes. Table 2 shows the comparisons between the pre- and post-Project volume. Volumes on these parallel routes increased after the restriping, but the data shows these volumes are leveling off or decreasing, with a trend towards pre -Project levels. While some of these parallel ro utes have experienced significant volume increases on a percentage basis, all volumes are at or below 1,500 vehicles per day, which is considered the upper limit for a residential street. The acceptable range for residential street traffic volumes. Additionally, some of the increases 3 Meeting Date: March 18, 2025
in Armitos Avenue traffic volumes may be attributed to the 2024 opening of Armitos Park and Community Gardens.
Table 2 – Old Town Neighborhood Daily Traffic Volumes
Pre and Post Project
Armitos
Avenue
Gato
Avenue
Gaviota
Street
Mandarin
Drive
Pre-Project 729 819 571 1,308
Post-Project (Avg.) 920 753 818 1,524
% Change 26% -8% 43% 17%
On-Street Parking
The Project increased the overall on -street parking count by replacing parallel parking along the north side of Hollister Avenue with back -in angled parking . In addition to increasing the parking supply, 90 -minute time restrictions were enacted in Old Town to increase parking turnover in the commercial area. Table 3 shows a 19-space increase in on-street parking and the change in overall parking occupancy in Old Town . Parking occupancy data collected in January 2025 show s that parking occupancy continues to peak during midday (11:30 a.m. to 1:00 p.m.). The data also shows a reduction in overall peak parking occupancy compared to the 2012 Walker Parking Study data from 66% to 52%. A graphical comparison of parking occupancy data by block is shown in Attachment
1. There has been a general increase in peak parking occupancy along the south side of Hollister Avenue, especially between Orange Avenue and Magnolia Avenue, which was fully parked during the peak hour.
On the north side of Hollister Avenue, occupancy has increased between Orange Avenue and Magnolia Avenue, even though parking supply has increased by over 50%. Along the remainder of the north side, parking occupancy has dropped. The drop in occupancy between Magnolia Avenue and Nectarine Avenue can be attributed to the additional parking spaces provided. However, occupancy decreases between Nectarine Avenue and Kinman Avenue outpaces the additional parking supply. More data should be collected to determine whether this constitutes a trend and the contributing factors.
Between 2012 and 2025, the City also introduced three new public parking lots on Orange Avenue, Hollister Avenue at Pine Avenue (Community West Bank), and Carson Str eet, adding 70 additional parking spaces. Wayfinding signs have been strategically installed along Hollister Avenue, Pine Avenue, Orange Avenue, and Carson Street to guide the public to these parking areas.
4 Meeting Date: March 18, 2025
Table 3 – Old Town Hollister Ave. Parking Spaces and Peak Occupancy Pre and Post Project
No.
Spaces
Peak
Occupancy
Pre-Project
(2012) 69 66%
Post-Project
(January 2025) 88 52%
% Change 28% -11%
In summary, there were 69 parking spaces pre -Project, and post -Project there are 88 parking spaces. Applying California’s Daylighting Law (AB 413) to the original configuration there would have been a loss of six (6) spaces, bringing the pre-Project total down to 63 spaces. The project yields a net gain of 25 spaces (88 -63) compared to reverting to the original parallel parking configuration.
Traffic Speeds
Table 4 shows that the prevailing speed on Hollister Avenue has been reduced to under 30 mph. The number of drivers traveling more than 10 mph over the posted speed limit has been cut in half, to 2% of the travelling public.
Table 4 – Old Town Hollister Avenue Prevailing and Extreme Speeds Pre and Post Project
85th percentile
mph % >35 mph
Pre-Project 31.4 4%
Post-Project 28 2%
%Change -11% -50%
Collisions
Analyzing collision data over a 200-day period presents limitations, as meaningful safety assessments typically require a minimum of three years of data. Short -term data snapshots may not accurately reflect long -term trends. However, the available data, summarized in Table 5, indicates a reduction in total reported collisions, injury collisions, and bicycle-involved collisions compared to the 200 -day period prior to the Project. A relatively recent pedestrian fatality at Hollister Avenue and Magnolia Avenue remains under investigation, and Public Works staff will review the final report to identify potential traffic safety improvements in Old Town.
5 Meeting Date: March 18, 2025
Table 5 – Old Town Hollister Avenue Reported Collision Summary Pre and Post Project
Total Fatal Injury Ped Bike
Pre-Project 12 0 6 0 2
Post-Project 7 1 2 1 0
% Change -42%
67% -100%
Alternative Travel Modes
In addition to fewer reported injury collisions and collisions involving bicyclists, pedestrian and bike activity during commute hours has increased. Counts at the Hollister Avenue and Pine/Nectarine Avenue intersection show significant increases (over 40%) in bicycle activity (Table 6A) during the morning commute and in pedestrian activit y (Table 6B) during the afternoon peak hour.
Table 6A – Hollister Avenue and Pine/Nectarine Avenue
Peak Hour Bike Volumes
Pre and Post Project
AM PM
Pre-Project 25 65
Post-Project 36 70
Change 44% 8%
Table 6B – Hollister Avenue and Pine/Nectarine Avenue
Peak Hour Pedestrian Volumes
Pre and Post Project
AM PM
Pre-Project 80 103
Post-Project 89 172
Change 11% 67%
Vehicle Delay / Level of Service (LOS)
Analysis of Old Town intersections in 2022 found that most intersections operated at level of service (LOS) B, or up to 20 seconds of average motorist delay, during the peak hour.
Orange Avenue and Rutherford Avenue operated at LOS C, or up to 35 seconds o f average delay, during the peak hour. Public Works staff projected that the overall level of service along the corridor would degrade with the reduction in lanes, but with anticipated reductions in through traffic on Hollister Avenue, left turn restrictio ns and signal timing adjustments, a LOS C could be maintained throughout the corridor. Using recent traffic volume data, calculations at Hollister Avenue and Pine/Nectarine Avenue show that Old 6 Meeting Date: March 18, 2025
Town's intersection with the highest volumes operates at LOS C. (23 seconds of average delay).
There have been and will continue to be instances when the Hollister Avenue corridor performs below this level of service. Queues in the eastbound direction extending from SR 217 into Old Town do occur, but they are generated by lane reductions and traffic control required as a part of the roundabout construction at the SR 217 ramp intersections with Hollister Avenue and not the Project in Old Town. Public Works staff continues to work with the contractor on modifications to construction staging and traffic control to minimize these impacts.
Additional Project Improvements
By constructing the Project as a change order to Project Connect, the City was able to secure savings of approximately $2 million. The project also utilized rubberized asphalt, an environmentally friendly material made from recycled tires, which not only contributed to sustainability and resulted in a smoother ride and a significant noise reduction. Pre- paving noise levels were measured at 83 de cibels, while post-paving levels dropped to 58 decibels. In addition, the Project enhanced visibility of roadway markings, crosswalks, and signage. New Intelligent Transportation Systems were installed at traffic signals, enabling real-time monitoring of traffic conditions and allowing staff to adjust signal timing remotely.
It is important to note that Staff has been and remains receptive to making modifications requested by businesses, residents, the City Council, and the public that align with the Project’s goals. I n certain cases , PW staff have implemented recommended modifications. Examples include adjusting parking restrictions , changing or removing driving maneuvers, and adjusting signal timing.
Economic and Financial Trend Analysis of Old Town Businesses
One of the intended outcomes of the restriping in Old Town was to enhance the area’s accessibility by increasing on-street parking availability and improving turnover of on - street parking. Additionally, enhanced and perceived safety were expected to contribute to a more welcoming environment. However, s ome business owners have raised concerns that construction-related congestion and changes to the parking configurations may have influenced visitor activity in the area.
This analysis evaluates economic and financial trends in the Old Town “Triangle” area by examining local sales tax data and considering broader economic factors that influence consumer spending patterns . Sales tax data represents revenue from businesses that sell taxable goods and services, such as retail, restaurants, and select service providers.
It serves as a key indicator of consumer spending trends and business health. However, many essential services (e.g., healthcare, professional services, most financial transactions) are generally not subject to sales tax, meaning this data does not capture the full economic activity of Old Town, and therefore is not reflected in this analysis.
7 Meeting Date: March 18, 2025
Additionally, fluctuations in sales tax revenues can be influenced by a range of external economic factors, rather than solely due to local public infrastructure changes, including:
Macroeconomic Conditions – Such as inflation, interest rates, and consumer confidence, can impact spending patterns, particularly for discretionary purchases. Industry-Specific Trends – Fluctuations in gas prices, auto financing costs, remote work adoption, and tourism activity can directly impact business performance. Shifts in Consumer Behavior – Increased e-commerce adoptions, food delivery services (e.g., DoorDash, Uber Eats,) and price sensitivity are changing where and how people shop and dine.
One-Time or Seasonal Impact – Missed tax payments, business openings/closures, extreme weather events, and construction staging can cause temporary sales fluctuations.
Local Workforce Dynamics – The rise of remote and hybrid work among major Old Town employers could also reduce daytime foot traffic, gas station visits, and purchases at nearby businesses.
Because of these multiple overlapping influences, this sales tax analysis does not conclude the specific impacts of local infrastructure Projects. Instead, it provides a broader view of overall economic trends affecting Old Town . Additionally, to maintain compliance with confidentiality laws, this analysis is reported by major industry group or a grouping of businesses rather than individual businesses.
Old Town Goleta is the city's historic, cultural, and economic center , situated along Hollister Avenue betw een Fairview Avenue and State Route 217. It is a focal point for local businesses, residential communities, and redevelopment efforts. Originally a center for agriculture and light industry, the area has evolved into a mixed -use district with a strong emphasis on small businesses, hospitality, and service industries. On average, Old Town generates 23% of total citywide sales tax revenue, with the autos and transportation sector typically accounting for half of the sales tax generated in Old Town.
To assess performance, Figure 1 below summarizes the percentage (%) change in sales tax performance for Quarter 3 (Q3) July to September from 2023 to 2024. This analysis compares data across Old Town, Citywide, Citywide Core, Countywide, and Statewide.
Notably, Ci tywide Core excludes Old Town data, offering a comparison between Old Town and the rest of the city. The orange columns represent the adjusted sales tax data that has been corrected to account for late payments and other adjustments to their appropriate quarter, ensuring a more accurate reflection of actual sales tax performance.
8 Meeting Date: March 18, 2025
Summary of Key Observations for Q3 2024 (July – September):
Across the board during the months of July to September, sales tax was lower in 2024 compared to the same quarter one year ago in 2023, indicating that consumers continue to be cautious in spending on non -essential products and Projects.
Old Town experienced an 8.5% decline in sales tax performance when adjusted for economic data . This decrease was influenced by both lower fuel prices – reflecting a statewide and regional trend during Q3 2024, and a temporary closure of one gas station in Old Town . Without this temporary closure , the estimated decline would have been closer to 5.3%.
Over 5 5% of Old Town’s sales tax revenue comes from the top two sales tax generators, new motor vehicle dealer and fuel and service stations, both of which in Old Town saw a decline between 2023 and 2024. However, several o ther industries in Old Town, such as restaurants and hotels, food and drugs, and building and construction , saw an increase ranging from 3 % to 7% in sales tax revenue when adjusted for economic data. Additionally, performance varied among individual businesses, as not all businesses within each major industry groups experienced a decline, some experienced growth. For example, some fast casual restaurants saw a decline while others saw an increase, which points to consumer behavior and preferences towards specific businesses or services. Another significant factor in Old Town's sales tax performance came from the autos and transportation sector, which includes auto dealerships, auto supply stores, and auto repair shops. Auto dealerships in Old Town saw a 10% decline, aligning with a statewide tren d. This marks the seventh consecutive quarter of decline, likely -8.64%
-3.59%
-1.98% -2.30% -2.50%
-8.50%
-2.78%
-1.00%
-2.35%
-3.29%
-10.00%
-9.00%
-8.00%
-7.00%
-6.00%
-5.00%
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
Old Town Citywide Citywide
Core
Countywide Statewide
Figure 1. Q3 % Change 2023 vs 2024
July - September
Q3 % Change
Q3 % Change
(Adjusted)
9 Meeting Date: March 18, 2025
due to high interest rates, stricter credit requirements, and rising auto insurance costs. However, when adjusting for economic data, sales at most auto supply stores increased, while some auto repair shops experienced a decline in taxable sales. It is important to note that labor for auto repairs is not subject to sales tax, meaning these figures may not fully reflect overall auto repair shop economic activity.
In conclusion, this sales tax analysis highlights that a combination of factors influenced performance. The data indicates that multiple economic factors also impacted Old Town’s sales tax performance, as experienced regionally, and statewide.
See Attachment 3 for additional sales tax economic information, including a detailed Q3 data table, preliminary Q4 data, historical trends over the past eight (8) years, and a n expanded breakdown of sales tax performance by major industry for Old Town and Citywide.
Next Steps
Analysis of the data collected over the short time period since the Project was completed shows promising trends with respect to traffic speed, collisions, and bike and pedestrian activity. However, it is too early to draw definitive conclusions even witho ut external factors, such as the construction of the City’s largest infrastructure Project in its history.
Public Works staff recommends continuing yearly data collection and analysis through the completion of Project Connect. This period of time (annual) is recommended to establish trends more confidently and evaluate the Project effectiveness. Public Works is available to meet with any community member or group to discuss potential changes and address concerns while remaining true to the original Project goals.
FISCAL IMPACTS:
There is no fiscal impact associated with this item.
ENVIRONMENTAL REVIEW:
No additional environmental review is required.
ALTERNATIVES:
No alternatives at this time.
LEGAL REVIEW BY: Isaac Rosen, Acting City Attorney
APPROVED BY: Robert Nisbet, City Manager
10 Meeting Date: March 18, 2025
ATTACHMENTS:
1. Peak Parking Occupancy Comparison
2. Staff Presentation
3. Additional Economic Information
11 ATTACHMENT 1
Old Town Hollister Avenue
Peak Parking Occupancy Comparison
12 Attachment 1 – Peak Parking Occupancy: 2012 Walker Study vs. January 2025
WALKER STUDY - 2012
JANUARY 2025
13 ATTACHMENT 2
Staff Presentation
14 Hollister Avenue
Old Town Interim
Striping Update
March 18, 2025
City Council Meeting
15 March 18, 2025 City Council Meeting
2 Outline
• Background
• I
mprovements
• Public Outreach
• Project Approach
• Project Goals
• Evaluation of Results
• Key Economic Observations
• Next Steps
16 Project Background
2018 - C omplete Street Corridor Project
18- months public outreach
Public surveys and meetings/workshops
Walking and Biking Tour
Developed street concepts
January 2021 - H ollister Avenue Old Town Interim
Striping Project Initiated
Project Completed July 2024
March 18, 2025 City Council Meeting 3
17 Project Improvements
Change Order to Project Connect
Approximately $2 million in cost savings
Rubberized asphalt - s mooth ride and noise reduction
Pre- paving: 83 decibels
Post- paving: 58 decibels
Improved visibility
New Intelligent Transportation Systems
March 18, 2025 City Council Meeting 4
18 Public Outreach
100+ in-p erson visits to Old Town businesses
2,252 postcard notifications were mailed
Monarch Press a rticles
Media Releases
Personalized outreach to SBMTD, GUSD, Go leta Community Center, Santa Barbara South Coast Chamber of Commerce, Greater Santa Barbara Hispanic Chamber of Commerce
Project Connect webpage updates
Dedicated project phone number and email
March 18, 2025 City Council Meeting 5
19 Public Outreach (cont.)
March 18, 2025 City Council Meeting 6
Public Outreach Information Line
121 inquiries between May and November
2024.
• Approximately 75 complaints, 10 compliments,
others were general inquiries.
• July was the peak inquiry month, averaging 19
inquiries per week.
• Only 7 inquiries were received between
November 2024 – February 2025.
20 Project Area
March 18, 2025 City Council Meeting 7
21 March 18, 2025 City Council Meeting
8 Project Approach
Lower-co st materials – no concrete improvements
Study – collect traffic, parking and collision data
Analyze – compare pre and post project conditions
Refine – make changes based on data and feedback
Evaluate – determine benefits
Pursue funding for permanent streetscape
22 March 18, 2025 City Council Meeting
9 Project Goals
Increase Parking Spaces and Availability
R
educe Traffic Speeds
Reduce Collisions
Improve Bike and Pedestrian Conditions
Maintain Traffic Flow
23 March 18, 2025 City Council Meeting
10 Daily Traffic Volume Comparison
Hollister Avenue
16,864
16,192
16,587
12,000
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
Nov-24 Dec-24 Jan-25
18,442 (2022)
-10%
24 March 18, 2025 City Council Meeting
11 Daily Traffic Volume Comparison
Old Town Neighborhood Streets
0 200
400
600
800
1000
1200
1400
1600
Armitos Gato Gaviota Mandarin
729 819
571
1308
920
753 818
1524
Pre-Project Post-Project (Avg.)
25 On-Street Parking Comparison
Parking Spaces
March 18, 2025 City Council Meeting 12
26 On-Street Parking Comparison
Parking Occupancy
Changes since 2012
90 min parking
3 Public Lots: +70 spaces
+19 spaces on Hollister
New businesses
Wayfinding signage
March 18, 2025 City Council Meeting 13
27 Wayfinding signs
March 18, 2025 City Council Meeting 14
28 March 18, 2025 City Council Meeting
15 Traffic Speeds
Hollister Avenue
0 1000
2000
3000
4000
5000
6000
7000
2022
Speed Profile
2024-25
Speed Profile
85th %ile = 28 mph
85th %ile = 31.4 mph
29 March 18, 2025 City Council Meeting
March 18, 2025 City Council Meeting 16
Speeds 10 mph > Speed Limit
Hollister Avenue
0 100
200
300
400
500
600
700
35-39 40-44 45-49 50-54
651
115
22 5
# Vehicles
MPH
2022
35-39 40-44 45-49 50-54
255
55 15 3
MPH
2024/25
30 March 18, 2025 City Council Meeting
March 18, 2025 City Council Meeting 17
Collision Comparison (200 Days)
0 2
4 6
8 10
12 Fatal Injury Ped Bike Total
0 6
0 2
12 1
2 1
0 7
Pre-Project Post-Project
31 March 18, 2025 City Council Meeting
March 18, 2025 City Council Meeting 18
Bicycle Volume Comparison
0 10
20 30
40 50
60 70
AM PM
25 65
36 70
Pre-Project Post-Project
32 March 18, 2025 City Council Meeting
March 18, 2025 City Council Meeting 19
Pedestrian Volume Comparison
0 20
40 60
80 100
120
140
160
180
AM PM
80 103
89 172
Pre-Project Post-Project
33 March 18, 2025 City Council Meeting
March 18, 2025 City Council Meeting 20
Hollister Avenue / Pine-Nectarine LOS
2022
2024/25
34 March 18, 2025 City Council Meeting
March 18, 2025 City Council Meeting 21
Project Goal Compliance
Increase Parking Spaces and Availability
Reduce Traffic Speeds
Reduce Collisions
Improve Bike and Pedestrian Conditions
Maintain Traffic Flow
35 March 18, 2025 City Council Meeting
22 Key Economic Observations
Autos and
Transportation
51%
Building and Construction
11%
Business and
Industry
9%
Food and Drugs
4%
Fuel and Service Stations
8%
General Consumer Goods
6%
Restaurants and Hotels
11%
OLD TOWN – REVENUE GENERATORS BY MAJOR INDUSTRY
GROUPS • Old Town revenue
g
enerators account
for 23% of citywide
sale tax revenue
• Autos and
Transportation
account for ~50% of
Old Town sales tax
revenue
36 March 18, 2025 City Council Meeting
23 Key Economic Observations
Q3 % Change Old Town (Adjusted):
Auto & Transportation
Building & Construction
Business & Industry
Food & Drugs
Fuel and Services Stations
General Consumer Goods
Restaurants & Hotels
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
Old Town Citywide Citywide
Core
Countywide Statewide
-8.64%
-3.59%
-1.98%
-2.30% -2.50%
-8.50%
-2.78%
-1.00%
-2.35%
-3.29%
Q3 % Change 2023 vs 2024
July - September
Q3 % Change Q3 % Change (Adjusted)
37 Next Steps
Monitor traffic conditions.
Meet/work with concerned citizens.
Consider ad ditional modifications to address concerns in alignment with project goals.
Report back to City Council as requested.
March 18, 2025 City Council Meeting 24
38 Questions/Comments
March 18, 2025 City Council Meeting 25
39 ATTACHMENT 3
Additional Economic Information
40 Autos and
Transportation
13%
Building and
Construction
16%
Business and
Industry
15%
Food and Drugs
6%
Fuel and
Service Stations
8%
General Consumer Goods
25%
Restaurants and
Hotels
17%
CITYWIDE - REVENUE GENERATORS BY MAJOR INDUSTRY GROUPS
Autos and
Transportation
51%
Building and Construction
11%
Business and Industry
9%
Food and Drugs
4%
Fuel and Service Stations
8%
General Consumer Goods
6%
Restaurants and Hotels
11%
OLD TOWN - REVENUE GENERATORS BY MAJOR INDUSTRY GROUPS
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Historical Trend of Total Sales Tax Performance 2017-2024 (Unadjusted) Old Town Triangle Citywide Linear (Old Town Triangle) Linear (Citywide) 41 Note: Sales tax performance data is considered preliminary and subject to change based on future audits. The following table summarizes the Q3 change in sales tax performance for 2023 to 2024 (not adjusted) and includes data for countywide and statewide, along with key observations and external economic factors that also have an impact on this type of industry group. This data does not contain information on the countywide pool, which reflects primarily online sales.
Q3 Change 2023 to 2024 (Not Adjusted)
July - September
Industry
Group Old Town City Wide Citywide Core Countywide Statewide Types of Businesses Key Observations External Factors Autos and
Transportation $ (15,043.85) -5% $ (5,988.00) -2% $ 9,055.85 39% $ 34,544.00 1% $ (12,434,881.00) -3% Auto Dealers, Repair
Shops, Automotive
Supply Stores
Old Town down, Citywide down. Auto
Dealerships are down, which accounts for majority
of this Industry Group. New autos were down
statewide, higher pricing and financing costs.
There are no auto dealers in Citywide Core which
accounts for the increase. When looking at
adjusted for economic data, autos and
transportation for the supply stores were up and
the repair shops were trending down.
Interest rates affecting
vehicle financing costs;
national trends show
auto sales declining.
Building and
Construction $ 3,217.65 5% $ (10,502.00) -3% $ (13,719.65) -4% $ 9,978.00 0% $ (8,411,955.00) -4% Contractors, lumber
and building materials,
plumbing, painting and
electrical supplies
Old Town up, Citywide down. The increase in
Old town can be attributed to onetime payments
related to contractor building materials, overall
+$3k
Rising material costs
and permitting changes
impacting construction
trends.
Business and
Industry $ (16,482.77) -23% $ (68,975.00) -15% $ (52,492.23) -13% $ (79,184.00) -3% $ 52,508,918.00 13% Textiles/furnishings,
manufacturers,
industrial, office
equipment, medical
equipment, electrical
equipment
Old Town down, Citywide down. The decrease
in Old Town in largely attributed to missing
payments in Q3-2024 and a large one-time
payment received only in Q3-2023 around $12k
National B2B spending
slowdown; shift to
online procurement.
Food and
Drugs $ (6,579.14) -22% $ (24,858.00) -15% $ (18,278.86) -13% $ (167,337.00) -11% $ (11,604,617.00) -11% Liquor stores, grocery
stores, drug stores,
Cannabis,
Old Town down, Citywide down. The decrease
due to missed payment in Q2 that was applied to
Q3. When analyzed for adjusted for economic
data, food and drugs were both up in Old Town at
7% and Citywide at 3%
Essential goods
generally resilient;
potential pricing shifts.
Fuel and
Service
Stations
$ (21,222.55) -32% $ (34,210.00) -14% $ (12,987.46) -7% $ (140,704.00) -6% $ (36,265,142.00) -17% Gas stations and
convenience stores (7
Elevens)
Old Town down, Citywide down. Gas station
performances were down in Old town and
Citywide, primarily, due to a gas station being
temporarily closed. Gas prices also influence
performance.
Oil price fluctuations led
to reduced per-gallon
tax revenue.
Electric vehicles.
General
Consumer
Goods
$ (1,987.99) -6% $ 15,127.00 2% $ 17,114.99 3% $ (330,575.00) -8% $ (36,492,886.00) -10% Discount Dept Stores
(such as Costco and
Target), Electronic
stores, family apparel,
home furnishings,
retail stores, pet stores
Old Town down, Citywide slightly up. Old Town
primarily consists of specialty stores, furniture,
sporting goods, and jewelry stores that were all
down.
Increased e-commerce
adoption; inflation
affecting discretionary
spending, and shift to
bargain spending online
or large discounted
department stores
Restaurants
and Hotels $ 2,977.00 5% $ 35,533.00 9% $ 32,556.00 9% $ 148,494.00 3% $ 685,210.00 0% Hotels, liquor, quick
service restaurants
fast foods, casual
dining, fast-casual
dining, amusements,
theaters,
Old Town up and Citywide Up. For Old Town,
casual dining restaurant were up mostly likely due
to preference, consumer behavior, and having
more options to choose from with new businesses
opening up locally and regionally.
Tourism trends
affecting dining
revenue; price
sensitivity in mid-tier
establishments.
Total $ (55,121.64) -9% $ (93,873.00) -4% $ (38,751.36) -2% $ (524,784.00) -2% $ (52,015,353.00) -3%
42 Note: Sales tax performance data is considered preliminary and subject to change based on future audits. The following table summarizes the preliminary Q4 change in sales tax performance for 2023 to 2024 (not adjusted). The data does not include countywide and statewide as it was not available at the time of preparing this report. This data does not contain information on the countywide pool, which reflects primarily online sales.
Q4 Change 2023 to 2024 (NOT ADJUSTED)
October - December
Industry
Group Old Town City Wide Types of Businesses Key Observations External Factors Autos and
Transportation $ (7,729.00) -3% $ 8,078.00 2.4% Auto Dealers, Repair Shops, Automotive Supply Stores
Old Town down, Citywide up. Decrease driven by Automotive Supply Stores down, but mainly due to missing payments totaling around $11k. New Motor Vehicle Dealers were down overall around $8k, some dealers were down, while others up. Auto repair shops were up $9k.
Interest rates affecting
vehicle financing costs;
national trends show auto
sales declining.
Building and
Construction $ (26,819.00) -28% $ (28,745.00) -6.9% Contractors, lumber and
building materials, plumbing,
painting and electrical supplies
Old Town down, Citywide down. The decrease in Old Town can be attributed to a large onetime payment related to contractor building materials in Q4-2023 that resulted in a $36k difference.
Rising material costs and
permitting changes
impacting construction
trends.
Business and
Industry $ (19,791.00) -31% $ (81,830.00) -14.3% Textiles/furnishings,
manufacturers, industrial, office
equipment, medical equipment,
electrical equipment
Old Town down, Citywide down. The decrease in Old Town in largely attributed to several large one-time payments received only in Q3-2023.
Electrical Equipment: Decrease of $10k largely due to a one-time payment in 4Q -2023 of $11k. All other businesses in this category were up. If you remove that outlier, this category was up $1.5k
Garden/Agricultural Supplies: Majority of businesses were down. One-time large payment in 4Q-2023, which resulted in a $3k difference.
Light Industrial/Printers: Majority of businesses were down. Several large one-time payments in Q4-2023 and miss payments in Q4-2024 resulting in a difference of about $4.5k
Medical Biotech: Overall down $1.2k, but there was a large one-time payment received only in Q4-2023 resulting in a difference of about $1k.
National B2B spending
slowdown; shift to online
procurement.
Food and
Drugs $ 10,756.00 44% $ 81,563.00 65.7% Liquor stores, grocery stores, drug stores, Cannabis,
Old Town up, Citywide up. Increase is largely driven by Cannabis (+$8.48k or
93.63%) and Grocery Stores up $1,671 or 44.36%
Essential goods generally
resilient; potential pricing
shifts.
Fuel and
Service
Stations
$ (14,375.00) -23% $ (19,173.00) -8.1% Gas stations and convenience stores (such as 7 Elevens)
Old Town down, Citywide up. Gas station performance was down in Old Town largely driven by:
Service Stations: Down $11,902 or -23.80%
Petroleum Prod/Equipment: Down -$2,473 or -20.85% due to a gas station being temporarily closed. Gas prices also influence performance.
Oil price fluctuations led to
reduced per-gallon tax
revenue.
Electric vehicles.
General
Consumer
Goods
$ (4,920.00) -13% $ 75,032.00 10.0% Discount Dept Stores (Costco
and Target), Electronic stores,
family apparel, home
furnishings, retail stores, pet
stores
Old Town down, Citywide up. Old Town primarily consists of specialty stores, furniture, sporting goods, second hand, and jewelry stores. Majority of businesses down. Several missing payments in second hand stores, florist, and personal services. In Specialty Stores there was a large one-time payment made in 4Q-2023 and nothing in 4Q-2024, resulting in a decrease of $800 Increased e-commerce
adoption; inflation affecting
discretionary spending, and
shift to bargain spending
online or large discounted
department stores
Restaurants
and Hotels $ 3,438.00 6% $ 20,939.00 5.4% Hotels liquor, quick service
restaurants fast foods, casual
dining, fast-casual dining,
amusements, theaters,
Old Town up and Citywide Up. For Old Town, casual dining, fast casual, and quick-service restaurants were up overall. Mostly likely due to preference, consumer behavior, and having more options to choose from with new businesses opening up locally and regionally.
Tourism trends affecting
dining revenue; price
sensitivity in mid-tier
establishments.
Total $ (59,440.00) -9.2% $ 55,864.00 2.0%
43