Agenda Item No. 18
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: October 11, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Economic Development Activities Update
RECOMMENDATION
Receive an update on the City’s economic development activities.
BACKGROUND
Economic development has long been one of the City’s priorities and is one of the City’s FY 2022- 23 Major City Goals as shown in Attachment 1. Staff developed an Economic Development work program for this goal, as shown in Attachment 2, focusing on four categories: Business Retention and Attraction; Tourism Development; Commercial Cannabis Activities; and West Grand Avenue Improvements. The purpose of this item is to provide information on what the City has done to promote economic development and receive Council input and direction on future activities.
Business Retention and Attraction
Contract Services with the South County Chambers of Commerce (Chamber) On July 25, 2022, the Chamber presented an update to the Council on their economic development services, pursuant to their contract with the City, shown in Attachment 3. The Chamber highlighted their work in 2022, including the following highlights:
• Completing the “Buy Local” program which generated a total of $131,624 in funding for local businesses from February through April 2022 with nearly $2.80 in customer spending generated for every $1 in public funds invested
• Launching a new co-workspace, called The Launchpad, located on Front Street providing private offices and open workspaces and hosting an aerospace incubator program in cooperation with the Cal Poly Center for Innovation and Entrepreneurship • Hosting roundtable meetings with various industry groups, including cannabis and hospitality and restaurant groups
• Held multiple local business ribbon cuttings to introduce new businesses such as the Sherwin Williams Paint store, The Launch Pad and Pono Pacific Restaurant. • Coordinated childcare grants on behalf of the City, providing nearly $50,000 in grants to local at-home childcare providers and Grover Beach families to support childcare needs.
Staff is continuing to work with the Chamber on business retention and attraction services this year and will incorporate this into the Chamber’s next update to the Council in early 2023.
Staff Report: Economic Development Activities Update Page 2 October 11, 2022
Small Business Façade Improvement Grants
In 2021, the City was allocated $3.2 million in one-time ARPA funding over a two-year period. As part of the FY 2021-23 budget adoption on June 14, 2021, Council provided direction to staff to use a portion of this funding for economic development activities, including funding for joint City and Chamber efforts such as a second round of a the “Buy Local” program, providing childcare grants, development of the “Visit Grover Beach Tourism marketing platform and launching the coworkspace, discussed in the section above. Additionally, ARPA funds were used to provide Community Grants to local nonprofits serving the Grover Beach community and to provide Small Business Façade Improvement Grants.
The City offered a total of $75,000 for grants of up to $10,000 per business for small businesses in Grover Beach to complete façade improvement projects, including signage, outdoor seating and other façade improvements. Submitted applications are also pending approval for the remaining funding. The City has approved over $70,000 in grants, with several projects completed and some projects pending completion, as shown in the chart below:
Applicant Business Requested Improvement Amount
Requested
Status
Apogee Brewing Co. Improvements to Outdoor
Seating Area
$10,000 Project pending
completion
Grover Station Grill New Signage $9,000
(est.)
Project pending
completion
Nan’s Preowned
Books
New Storefront Window $10,000 Project completed
Perfetto Caffe Painting of Outdoor Seating
Patio
$3,033 Project completed
Pono Pacific Kitchen New Signage and Awnings $10,000 Project completed Red Bee Coffee Improvements to Outdoor
Seating Area
$8,500
(est.)
Project pending
completion
Surfside Deli Improvements to Outdoor
Seating Area
$10,000 Project completed
The Spoon Trade New Signage $10,000 Project completed
Staff will present pictures of completed improvements at the Council meeting and invite grant recipients to attend to provide comments about their improvements to the Council.
Astound Citywide Highspeed Fiberoptic Broadband Installation On March 28, 2022, the Council approved a lease agreement with Astound Business Solutions to provide a non-exclusive license to expand fiber optic broadband throughout Grover Beach, as shown in the diagram on Attachment 4. The installation of fiber optic cable will provide longdistance, high-performance data networking, and telecommunications. Compared to wired cables or copper cables found in telephone lines, fiber optic cables provide higher bandwidth and transmit data over longer distances. Fiber optic cables can provide high speed internet at speeds up to and beyond 1 gigabyte per second. Typically, these speeds are 100 times faster than a standard cable internet connection, and up to 200 times faster than a DSL connection. Astound estimates that installation north of West Grand Avenue will be completed in December 2022 with customers in those neighborhoods able to access the highspeed broadband in early 2023.
Installation south of West Grand Avenue are estimated to be completed in early 2023 with service Staff Report: Economic Development Activities Update Page 3 October 11, 2022
offered shortly thereafter. The first residence to be connected to the highspeed broadband will be the first to do so in the county and Grover Beach will be the first “gigabit city” on the Central Coast.
Tourism Development
As part of the partnership with the Chamber, the City promotes and funds the Visit Grover Beach tourism marketing initiative with social media and website platforms. In 2022, the Visit Grover Beach tourism site was nominated for a Visit California Poppy Award for Best Overall Destination Brand Identity (under $1 Million). Staff will continue to work with the Chamber to further develop and these platforms and expand tourism marketing services. Tourism continues to increase in Grover Beach given the city’s coastal location, food and beverage offerings, and proximity to numerous regional amenities. This increase in tourism is evident in the significant increase in the City’s Transient Occupancy Tax (TOT) revenue which reached an all-time high of $952,000 in FY 2021-22.
Commercial Cannabis Activities
The City has continued its successful implementation of supporting the commercial cannabis industry in a safe and responsible way. The City has permitted 29 businesses with 14 currently operating and generating jobs and tax revenue. The City has periodically hosted cannabis business roundtables in partnership with the Chamber, hearing concerns and issues facing the industry and continuing open communication between the City and the operating businesses. The City generated $1.6 million in cannabis tax revenue in FY 2021-22 which is the City’s third largest general revenue source. The Council adopted an ordinance in May to allow onsite consumption areas at existing retailers as a future opportunity to expand cannabis business activity for residents and visitors.
West Grand Avenue Improvements
Improving the safety and visual appeal of West Grand Avenue is also a key priority for the City.
In June 2022, the City Council approved contractor BKF Engineering to begin designing the West Grand Avenue Streetscape from 4th Street to 8th Street. The project includes implementing new landscaped medians, street trees, sidewalk repairs, accessible corner ramps, bike lanes, decorative concrete, storm drains, and pedestrian level lighting and more safety enhancements.
The West Grand Avenue Streetscape project will be partially funded by a $1.5 million Community Betterment Grant from San Luis Obispo Council of Governments that was recently awarded to the City. Staff will present a preliminary design for this project to the Council later this year.
Regional Economic Development
Additionally, City staff has worked with various local agencies on a regional approach to economic development, including local businesses, neighboring cities, the County, and REACH: a regional economic development organization serving San Luis Obispo County and northern Santa Barbara County. A representative for REACH will briefly share information on REACH’s mission and its current and pending economic development efforts in the Central Coast.
FISCAL IMPACT
There is no fiscal impact from this item.
Staff Report: Economic Development Activities Update Page 4 October 11, 2022
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive an update on the City’s economic development activities; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. FY 2022-23 Council Goals
2. FY 2022-23 Economic Development Work Program
3. Chamber Economic Development Services Semi-Annual Report
4. Astound Highspeed Fiber Installation Map
City of Grover Beach
FY 2022-23 City Council Goals
MAJOR CITY GOALS
ECONOMIC DEVELOPMENT. Develop and implement economic development initiatives that include COVID-related economic recovery strategies, business retention and attraction, effective and timely permit processing, and tourism promotion including marketing, attracting hotels along Grand Avenue, and ensuring compatible beach uses.
HOUSING AND HOMELESSNESS. Update City codes and standards to encourage housing construction to meet diverse needs; collaborate with developers and non-profits in efforts to increase overall housing stock with a priority on affordable housing availability; and partner with regional agencies and organizations to address homelessness and sheltering issues in the city and region.
PUBLIC SAFETY. Champion contemporary public safety services (police, fire, emergency medical services) by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.
STREET IMPROVEMENTS. Continue improvements to major arterials and local streets, incorporating where feasible related improvements, such as utility upgrades and “complete streets” - medians, sidewalks, bicycle lanes, bulb-outs, street trees and other related improvements.
OTHER IMPORTANT GOALS
BUILDING AND FACILITY IMPROVEMENTS. Provide for improvements and enhancements to City buildings, parks, and other facilities through a condition assessment, including disability access needs, followed by a funding and implementation plan to ensure that these public assets meet current and future needs; identify and plan for added facilities where our existing inventory falls short.
CITY BEAUTIFICATION AND PUBLIC ART. Enhance the appearance of the city by improving major entryways, ensuring high signage standards, preserving “legacy trees,” and partnering with the community to pursue new public art projects, such as murals.
COMMUNITY ENGAGEMENT. Continue a strong commitment to transparency and public participation in City government through programs, initiatives and events to encourage citizen engagement in key community decisions; and formalize our practices by adopting a public participation plan and policy.
WATER RESILIENCY. Partner with communities throughout the South County to achieve sustainable water resources through initiatives such as the Central Coast Blue recycled water project and other opportunities, as well as through water conservation efforts.
ADDRESS AS RESOURCES PERMIT
CODE COMPLIANCE. Continue to strengthen the code compliance program and related code sections to be more proactive in inspecting and addressing such issues as, short term rental violations, illegal advertising/business signage, overgrown landscaping and conflicting right-of-way encroachments; continue monitoring the cannabis industry.
ENVIRONMENTAL SUSTAINABILITY. Integrate environmentally sustainable principles, practices and projects into City operations and new development plans and standards; increase resource conservation and reduce carbon emissions through initiatives such as Central Coast Community Energy and other technology opportunities to address and off-set climate impacts.
PEDESTRIAN, BICYCLE AND TRAFFIC SAFETY. Continue efforts to make Grover Beach more pedestrian and bicycle friendly by adding and/or enhancing bicycle lanes, sidewalks, streetlights, street and crosswalk striping, and other traffic calming and safety measures.
RECREATION AND COMMUNITY PROGRAMS. Provide viable recreation, youth, childcare and special event programs designed to meet current and emerging needs, both directly and in partnership with other providers.
Attachment 1
MAJOR CITY GOAL FY 2022-23 WORK PROGRAM
ECONOMIC DEVELOPMENT
GOAL STATEMENT
Develop and implement economic development initiatives that include COVID-related economic recovery strategies, business retention and attraction, effective and timely permit processing, and tourism promotion including marketing, attracting hotels along Grand Avenue, and ensuring compatible beach uses.
STAFF LEAD: Matthew Bronson, City Manager; Kristin Eriksson, Deputy City Manager; Bruce Buckingham, Community Development Director
TASK DATE
Business Retention and Attraction
1. Work with Chamber to enable businesses to improve their marketing through digital marketing bootcamps in partnership with SLO Partners
2. Work with Chamber to conduct outreach with local businesses on key issues facing Grover Beach businesses including periodic meetings and surveys
3. Work with Chamber to enable businesses to improve their marketing through digital marketing bootcamps in partnership with SLO Partners
4. Continue to collaborate with regional partner agencies to identify economic development strategies to support regional economy
5. Work with Digital West and Chamber to promote citywide fiber broadband expansion as part of Digital West implementation
6. Work with Chamber to conduct outreach with local businesses on key issues facing Grover Beach businesses including periodic meetings and surveys Tourism Development
1. Begin oversight and construction management for hotel site at 950 El Camino Real
2. Process building permits for 1598 El Camino Real hotel project upon submittal by developer
3. Continue involvement in Grover Beach Lodge project in partnership with lead agency State Parks and issue City permits for initial offsite construction upon plan submittal and approval
4. Work with Chamber to enhance Visit Grover Beach tourism marketing efforts to promote Grover Beach as a desirable coastal destination for a variety of beach uses
Commercial Cannabis Activities
1. Process development and building applications for commercial cannabis businesses upon submittal
June 2023
July 2022
July 2022
July 2022
September 2022
December 2022
January 2023
January 2023
July 2022
July 2022
July 2022
Attachment 2
MAJOR CITY GOAL FY 2022-23 WORK PROGRAM
ECONOMIC DEVELOPMENT
2. Process onsite consumption area applications upon submittal by retailers pending adoption of ordinance allowing use
West Grand Avenue Improvements
1. Process development applications for West Grand Avenue housing and mixed-use projects upon submittal by property owners
2. Pursue streetscape and other infrastructure improvements to improve the appearance and functionality of the commercial corridor
3. Work with Chamber and businesses along West Grand Avenue on outreach and marketing to enhance economic vitality of the corridor.
July 2022
July 2022
July 2022
July 2022
KEY POLICY/OPERATIONAL ISSUES
• Continuation of economic development services contract with the South County Chambers of Commerce to improve business retention, recruitment, and marketing • Continued focus on commercial cannabis industry and hotel development projects given economic activity and development opportunities along with additional tax revenues. • Continue working with Digital West to maximize potential of citywide fiber broadband expansion for attraction of businesses and residents
• Continue City’s involvement in regional economic development strategies to ensure community economic vitality in the future
• Provide greater focus on West Grand Avenue improvements given the level of development interest in housing and mixed-use projects
FINANCIAL RESOURCES REQUIRED
FY 2022-23 Cost Summary
Economic development agreement with South County Chambers of Commerce $70,000 Total $70,000
FY 2022-23 Funding Sources
American Rescue Plan Act funding $70,000
Total $70,000
Attachment 3
Grover Beach Future Buildout
1 Attachment 4