1 Council Economic
Development
Committee
January 27, 2022
Hayward Police Department Year-End Report
2 How to Provide Public Comments
The Council Economic Development Committee is accepting public comments prior to the meeting via email or during the meeting via the Zoom link or Zoom dial-in information listed on the published agenda.
If you are making your comments during the meeting please note:
• Click the “Raise Hand” button to request to speak when the Staff Liaison calls for public comments on an eligible agenda item. You will be permitted to speak during your turn and muted after the allotted time (3 minutes).
• When joining by phone, click *9 to raise a hand to speak. Press *6 to unmute. We kindly request speakers to mute or turn down the meeting video when it is their opportunity to speak as it may cause interference with the speaker system.
• Use headphones/mic for better sound quality and less background noise • Decorum: Please be mindful that virtual meetings are public and will be recorded. All meeting rules of procedure and decorum, including speaker time limits, will apply. The Staff Liaison, via the host, may remove individuals for persistent disruption or any conduct or statements that threaten the safety of any person(s) at the meeting.
Hayward Police Department Year-End Report
3 Approval of Minutes from October 28, 2021
Regular Meeting
Hayward Economic Committee Meeting January 2022Izzet Sidki Darendeli Ph.D.Associate Professor of Management, CSU East BayAssociate Director of Smith Center for Private Studies
Incubators…
What’s Business Incubator?A startup incubator is a collaborative program designed to help new startups succeed.
Jobs
Revenues
Return on InvestmentCreated 96 total full-time jobs and 43 part time jobs Revenue by Technology incubators was $19.4 million compared to $5.9 million for companies in mixed-use incubators Every $1 invested in incubating startups in a community leads to $30 in local tax revenue 84%
10% 50%Startup SuccessRate
Impact of Incubators
Startups stay in the community
Startup SuccessRate if Incubated
KaufmmanReport
Runningan Incubator in Hayward is theoretically viable….
72.9%: incubator quality 56.3%: regional capacity
https://www.nist.gov/
Public sector support also contributes to program success.
But…
(Zehner, Trzmielak, and Gwarda-Gruszczyńska, 2014
$790.0000 $666.0000 $499.0000
$189.0000
19 80 to 19 8919 90 to 19 9920 00 to 20 0920 10 +
Incubator Revenues over timeSeries1
+ There’s competition!Tech StarsStart FastLaunch
Village CapitalStart-up farmAlpha lab
Tech Ranch AustinFintech Innovation LabNVIDIA Inception programAI Startup IncubatorPlug and Play Tech CenterStudio G at Arrowhead CenETC BaltimoreHCDC Business CenterLos Angeles Cleantech Incubator1871 IncubatorStartup AggielandSEED SPOT Galvanize
Biggest Incubators in the USi/o VenturesAngelPadGreenStart RocketSpacePariSomaMatter
RunwayDigital GarageSandbox Suites
Tech LiminalSudo RoomFounders Space
Nex CubedFORMA BrandsPowerhouse
Edvenswa Tech
Gateway IncubatorThe Hood IncubatorOakland Startup Network KitchenerZoo LabsForage Kitchen
Bay Area Legal IncubatorThe Data IncubatorAnewAmerica
Restore OaklandProsperaThe Hidden Genius Project
Oakland BloomOakland Genomics CenterThe Batchery
Incubators in the Bay AreaIncubators in East Bay
Running an incubator in Hayward is viable…●Requires significant overhead & management effort $100k setup cost + $300k, $350k yearly space for 20-30 individuals/founders SBDC + SMITH CENTER FOR ENTREPRENEURSHIPCSU EAST BAY
What’s an Accelerator?•Startup accelerators are fixed-term, cohort-based programs, that include mentorship and educational components and culminate in a public pitch event or demo day. •As a specific type of accelerator, corporate accelerators are often subsidiaries or programs of larger corporations that act like seed accelerators.
1,986 Accelerators & Incubators in United States3,000 accelerators worldwide Trend is more towards accelerators compared to incubators… Incubators vs. Accelerators
Running an accelerator in Hayward is viable…●Needs to be industry/technology focused ( corporate sponsor/integration)●Requires significant overhead & management effort -$100k setup cost + $350k, $400k expenses yearly space for 20-30 individuals/foundersBIOTECH ACCELERATOR –PARTNERSHIP WITH BIOCOM + CSU EAST BAY APPLIED SCIENCES CENTER / ACCELERATOR Biggest Accelerators in the U.SY CombinatorTechStars Seattle AcceleratorAngelPad TechStars ChicagoGoogle Launchpad AcceleratorKiwiTechAmplify.LA Capital Factory500 StartupsDreamit Ventures
MetaPropMucker Capitalplug and play
TechstarsBoomStartupEntrepreneurs Roundtable Accelerator JumpStartMassChallengeAlphaLab
+ There’s competition!The Alchemist AcceleratorUpWest LabsFounder Institute Rock HealthNex CubedKiwiTech
IndieBioHighway1HAX
500 StartupsBerkeley SkyDeckOneValley
FORMA BrandsFounders SpaceWomen's Startup LabProspect Silicon ValleyMARL 5G AcceleratorTVLP Institute Silicon ValleyThrive by SVG VenturesArchimedes LabsThe Fabric Allotrope PartnersBay Area Business AcceleratorUptima Entrepreneur CooperativeILab at Kapor CenterSocial Impact Ventures/PropellerFounder InstituteBetter VenturesSpark OaklandeLab AcceleratorConnected Care AcceleratorSilicon Valley RoboticsOaksterdam UniversityPort Product LabThe HouseBerkeley Ventures Techstars
Incubators in the Bay AreaIncubators in East Bay
What’s a coworking space?Coworking spaces, or membership-based workspaces in which diverse groups of entrepreneurs and other nontraditional workers work together in a shared, communal space (Spreitzeret al., 2015:28).
Coworking industry is evolving into corporate sponsored co-working space model… DespiteCovid-19 paradigm shift, there will be need for an “office space”… There’s competition & Coworking space is getting crowded out
https://liquidspace.com/flexible-office-reports/q4_2017 TherentavgforEastBayiscompetitive however, the Bay Area coworking space seems to be saturated… ($100k setup cost + $300k-$400k yearly management + maintenance costs) Despite the increase in demand for coworking model, global desk prices decreased 2.14%, from$187 to $183 per month Final thoughts…
THERE’S POTENTIAL FOR SUPPORTING ENTREPRENURSHIP IN HAYWARD… Diversity Matters: Opportunity for Hayward!
2021 TRENDS IN ENTREPRENEURSHIP REPORT
Hayward Demographics can be an Asset!
HOWEVER….
RUNNING & INCUBATOR OR ACCELERATOR…Not feasible if City of Hayward will run it alone…Not feasible if CSU East Bay will run it alone…Not feasible if company X will run it alone…PUBLIC-PRIVATE INDUSTRY-UNIVERSITY PARTERNSHIP IS THE KEY FOR SUCCESS!!!•Minsetup + yearly cost:$500k, break-even in 3-5 years•Needstobefocused(technology,industry, theme)…•NeedVCsupport (VC firm based in East Bay?) RUNNING A COWORKING SPACE…Not feasible if City of Hayward will run it alone…Not feasible if CSU East Bay will run it alone…Not feasible if company X will run it alone…PUBLIC-PRIVATE INDUSTRY-UNIVERSITY PARTERNSHIP IS THE KEY FOR SUCCESS!!!•Minsetup + yearly cost:$500k, break-even in 3-5 years•Needs corporate sponsor(s)…•Competition&saturation? Thank you
Izzet Sidki Darendeli Ph.D.
References●https://www.topmba.com/blog/what-startup-incubator●https://www.nist.gov/system/files/documents/ineap/Incubating-Success-Report.pdf●https://devsquad.com/blog/your-guide-to-startup-incubators-in-the-united-states/●https://eqvista.com/top-100-startup-incubators/●https://wiz4.biz/24-top-bay-area-incubators/●https://tracxn.com/d/investor-lists/Accelerators-&-Incubators-in-Bay-Area●https://betaboom.com/blog/best-startup-accelerators/●https://www.starterstory.com/oakland-accelerators-incubators●https://medium.com/oaklandstartupnetwork/best-places-for-entrepreneurs-to-find-office-space-in-oakland-berkeley-16498df5d553●https://www.builtinsf.com/2020/02/04/silicon-valley-incubators-and-accelerators●https://www.crunchbase.com/hub/silicon-valley-accelerators●https://en.wikipedia.org/wiki/Startup_accelerator
TOGETHER FOR HAYWARD
GIFT CARD PROGRAM
PAUL NGUYEN
Economic Development Manager
CATHERINE RALSTON
Economic Development Specialist
AMERICAN
RESCUE PLAN
ACT 2021
$65 Billion in Direct Federal Relief to cities
City of Hayward to receive estimated $38 Million
$2 Million requested to go towards Economic Recovery
Efforts supporting local businesses and the workforce
RECOVERY
PLANNING
Business Needs
Assessment Survey
SURVEY RESULTS
Needs of the Businesses
•Driving Customers back to the Businesses
•Assistance with Marketing
GIFT HAYWARD
A SHOP LOCAL GIFT CARD PROGRAM
•Assists businesses with setting up platform to accept gift cards and credit cards - Point of Sale Grant System
•Rewards Patrons for supporting Hayward small businesses •Customers receive reward incentives to encourage gift card purchases •Similar programs offered in communities across the country and locally in Fremont, Livermore and Concord
Allocated Budget - $250,000
POINT OF SALE GRANT PROGRAM
• Businesses eligible to
receive up to $800
towards the purchase of
a new Point of Sale
(POS) system
• Allows customers to use
credit cards, including
the Together for
Hayward Gift Card
• 24 businesses approved
to receive grants to date
PARTICIPATING
BUSINESSES
OUTREACH EFFORTS TO SIGN -UP BUSINESSES
Bulk Email to all Retail, Food and Beverage, and Service uses that had email addresses registered with Business License.
Personalized emails to all past grant recipients, concierge cases and others that have interacted directly with Economic Development
Communication through The Stack newsletter and Chamber of Commerce newsletter Staff completed door-to-door visits in the downtown, Tennyson corridor, shopping centers in South Hayward, and Southland Mall.
Intensive effort to personally visit businesses outside of downtown, along with production of multi-lingual materials, demonstrates commitment to equity and inclusion
Business Type # of Participating Businesses
Beauty Salon 8
Services 6
Food and Beverage 40
Shopping 15
Entertainment 1
MARKETING OF NEW GIFT CARD PROGRAM
Flyers at all participating businesses
Table tent cards at restaurants and
Southland Mall food court
Drink coasters at food and beverage
locations
MARKETING OF NEW GIFT CARD PROGRAM
Facebook and Instagram videos and
advertisements
YouTube Video
Billboard advertisement on I-880
Press releases sent out
BONUS CARD PROMOTION
Encourage customers to buy
larger value of gift cards
• Bonus cards must be used within 90 days of purchase
• Limit 3 bonus cards per email used for purchases
SALES OF GIFT CARDS
REDEEMED GIFT CARDS
City of
Hayward
Retail
• Gift Cards have been redeemed at
39 different businesses
• Close to $13,000 in gift card value
has been spent.
JANUARY PROMOTION
California Restaurant Month
INCREASED BONUS CARD VALUES!
• Encourage customers to support one of the 40 restaurants during California Restaurant Month
• Between January 1 - 20, 2022 - 360 gift cards and bonus cards have been purchased/issued with a value of $21,650
FISCAL IMPACTS
•Total Proposed Budget - Gift Card Program - $250,000
•$166,000 remaining
NEXT STEPS
•Continue to promote the availability of the gift cards for purchase.
•Work with those businesses still interested in participating to get registered
•Provide grant dollars for those businesses that may need to purchase or upgrade their point-of-sale system
QUESTIONS?
OTHER RECOVERY PROGRAMS
Program Year 1 Year 2 Year 3
HAYWARD OPEN FOR BUSINESS - A MARKETING CAMPAIGN X
GIFT HAYWARD - A SHOP LOCAL GIFT CARD PROGRAM X
GET DIGITAL - AN E-COMMERCE ASSISTANCE PROGRAM X X
RESTAURANT RELAUNCH & OUTDOOR DINING X
HAYWARD RESTOREAND REOPEN - A FAÇADE IMPROVEMENT PROGRAM X X SMALL BUSINESS ASSISTANCE GRANTS 6 – 20 EMPLOYEES X X
HIRE HAYWARD - LOCAL HIRE SUBSIDY PROGRAM X X
TUITION ASSISTANCE X
EARN AND LEARN - ADVANCED MANUFACTURING JOB TRAINING AND
EMPLOYMENT PROGRAM
X
Hayward Police Department Year-End Report
24 Council Economic Development Committee
Future Meeting Topics as of January 27, 2022
*Subject to change
RESPONSIBLE
STAFF FUTURE MEETING AGENDA ITEMS
PRESENTATION
DATE*
Economic
Development Economic Impacts of COVID-19 & Trends Standing Item Economic
Development
Hayward Upward Economic Recovery Plan Updates:
1) Open for Business Marketing Campaign
2) Restaurant Relaunch & Outdoor Dining
Program
3) Restore & Reopen Façade Program
4) Get Digital Program 2022
Economic
Development Update from Southland Mall Management &
Tour February 24, 2022
Economic
Development
Sales Tax Trends: Update from City Tax Consultant 2022 Economic
Development/
Planning Staff
Review of Select Policies Impacting
Businesses TBD
Public Works/
Information
Technology
Update on City Fiber/Broadband Initiatives
(Following update to CIC) 2022
Economic
Development
Impact of Cannabis Industry on
Economic Development* 2022
Hayward Police Department Year-End Report
25 Committee Member/Staff Announcements
New Business Openings
El Vozqe
Plant store and lounge
22658 Main Street
New Business Openings
Habibi’s Birria #2
Second Location
26005 Eden Landing Road
COMING SOON
Arteaga’s Food Center
236 A Street
Brand grocery store with fresh meat counter,
bakery, produce and hot food counter.
COMING SOON!
La Victoria Taqueria
27901 Mission Blvd
Brand new restaurant
building.
Only location outside San
Jose!
COMING SOON
22648 Mission Blvd - Across from library
792 B Street- Across from City Hall
Hayward Police Department Year-End Report
31 Adjournment