Thursday, February 24, 2022
5:00 PM
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
Remote Meeting
Council Economic Development Committee
Agenda
February 24, 2022Council Economic Development
Committee
Agenda
COVID-19 Notice: Consistent with Assembly Bill 361, the Council Economic Development Committee meeting includes teleconference participation by all Committee members and the public.
Please note that we are now using the Zoom Webinar platform to conduct meetings and receive live public comment.
How to submit written Public Comment:
Send an email to [email protected] by 2:00 p.m. the day of the meeting. Please identify the Agenda Item Number in the subject line of your email. Emails will be compiled into one file, distributed to the Council Economic Development Committee and staff, and published on the City's Meeting & Agenda Center under Documents Received After Published Agenda. Written comments received after 2:00 p.m. that address an item on the agenda will still be included as part of the record.
How to provide live Public Comment during the meeting:
Please click the link below to join the webinar:
https://hayward.zoom.us/j/86828504071?pwd=NGlXK2pmSFRoWlJSTWxZZlNwdmllUT09 Passcode: CEDC0222*
or
Dial: +1 669 900 6833
Webinar ID: 868 2850 4071
Passcode: 728532505
A Guide to attend virtual meetings is provided at this link: https://bit.ly/3jmaUxa
CALL TO ORDER
ROLL CALL
PUBLIC COMMENTS:
(The Public Comment section provides an opportunity to
address the City Council Committee on items not listed on the agenda as well as items on the agenda. The Committee
welcomes your comments and requests that speakers present their remarks in a respectful manner, within established time limits, and focus on issues which directly affect the City or are within the jurisdiction of the City. As the Committee is prohibited by State law from discussing items not listed on the agenda, any comments on items not on the agenda will be taken under consideration without Committee discussion and may be referred to staff.)
February 24, 2022Council Economic Development
Committee
Agenda
APPROVAL OF MINUTES
Approval of Minutes from January 27, 2022 Regular MeetingMIN 22-0241.
Attachments: Attachment I Draft Minutes from the Jan. 27, 2022 Regular Meeting
REPORTS/ACTION ITEMS
A Report from Brookfield Properties Retail Group on the Economic Health, Current Trends, and Future of Southland Mall (Oral Report Only)
RPT 22-0212.
FUTURE AGENDA ITEMS
Future Meeting Topics as of February 24, 2022RPT 22-0203.
Attachments: Attachment I Future Meeting Topics as of Feb. 24, 2022
COMMITTEE MEMBER/STAFF ANNOUNCEMENTS AND REFERRALS
ADJOURNMENT
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: MIN 22-024
DATE: February 24, 2022
TO: Council Economic Development Committee
FROM: Assistant City Manager
SUBJECT
Approval of Minutes from January 27, 2022 Regular Meeting
RECOMMENDATION
That Committee members review and approve the Regular Meeting Minutes from January 27, 2022.
ATTACHMENTS
Attachment I Draft Minutes from the January 27, 2022 Regular Meeting CITY OF HAYWARD Printed on 2/18/2022Page 1 of 1
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COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
MEETING MINUTES – January 27, 2022
CALL TO ORDER: The Regular meeting was called to order at 5:01 p.m.
ATTENDANCE (September 2021-July 2022):
Committee Member
Present
1/27/2022
All Meetings
Year to Date
Meetings Mandated
By Resolution
Present Absent Present Absent
Council Member Salinas 2 0 2 0
Council Member Wahab 2 0 2 0
Council Member Andrews 2 0 2 0
OTHERS IN ATTENDANCE:
Kelly McAdoo, City Manager; Jennifer Ott, Assistant City Manager; Sara Buizer, Deputy Director of Development Services; Paul Nguyen, Economic Development Manager; Catherine Ralston, Economic Development Specialist; Suzanne Philis, Senior Secretary; Izzet Darendeli, Associate Professor of Management, CSU East Bay and Associate Director of Smith Center for Private Studies; Todd Falduti, Southland Mall Sr. General Manager, Asset Management; Paul Hodges, HARD Board of Directors
PUBLIC COMMENTS
There were none.
1. APPROVAL OF MINUTES OF REGULAR MEETING OCTOBER 28, 2021
A motion to approve minutes from the October 28 , 2021 Regular Meeting was made by Council Member Wahab and seconded by Council Member Andrews. The minutes we re unanimously approved.
2. OVERVIEW OF INCUBATORS AND COWORKING SPACE MODELS (Oral report only)
Economic Develo pment Manager Paul Nguye n introduced Professor Izzet Darendeli, Associate Professor of Management, CSU East Bay and Associate Director of Smith Center for Private Studies who gave the presentation.
Hayward Council Economic Development Committee
Regular Meeting Minutes
January 27, 2022
Council Member Andrews said she ha d worked in a co-working space and said she not iced there were usually food opt ions nearby. She asked what other surrounding amenities were favorable for co-working spaces.
Professor Darendeli said having food and other amenities near co-working spaces helped because it lowered costs associated with operating and maintaining the site. Having co-working spaces far away from everything was not good, he said.
Council Member Andrews noted that 41% of black woman -owned businesses closed d uring COVID and she asked what kind of incubator spaces could support that population. Professor Darendeli said incubators could encourage them toward more viable fields of entrepreneurship.
Council Member Andrews asked what kind of support the City would have to provide for an incubator. Professor Darendeli said it would h ave to be sustaining support; it couldn ’t be one touch.
He also noted the City would be able to identify the b est location, based on the information above about amen ities, to establish an incubator or co -working space. For the spac e to be successful, he said, the City would have to incorporate the space into its planning and activities to connect it to the community.
Council Member Andrews asked about Chabot College and if there had been any discussions with administrators about a partnership. Economic Development Mana ger N guyen said there were discussion late last year but representatives hadn’t expressed much interest.
Council Member Andrews asked if Hayward would be a desirable location for co-working or incubator space because people who prefer to work in an office, but don ’t want to deal with traffic, might take advantage of the location. Professor Darend eli said maybe for a co -working space , but most incubators don’t focus on issue s like traffic ; they want corporate support and to be part of the business community.
Council Member Wahab questioned if there had been a direct ask from the City regarding co-working or incubator space. Assistant City Manager Ott re sponded that an item regarding the subject had been on the Future Me eting Topics list for months so Manager Nguyen found an expert who could provide information and answer questions.
Council Member Wahab said she consistently heard about people struggling with the legal aspects of entrepreneurship and she asked what support system was available to them. Economic Development Manager Nguyen said while staff provid ed hand-holding for new small businesses through its Concierge Services, the Alameda County Small Business Development Center (ACSBDC) had free workshops for the te chnical a spects of starting a business includ ing legal advi ce. He noted that CSUEB had just contracted with the SBDC to provide classes there and at their campus in Concord .
Staff was already in contact with them and would partner for support moving forward.
Council Member Wahab also note d that Ha yward’s diverse pop ulation struggled with language barriers and said she wanted to see more support. She said she wanted the team to f ocus on minorities and women in particular and partner with C hamber of Commerce. Manager Nguyen said those actions were already underway.
Hayward Council Economic Development Committee
Regular Meeting Minutes
January 27, 2022
Council Member Salinas said it made the most sense to him to locate a co-working or incubator space in the down town or at other major ret ail corridors that had m ore amenities , unlike t he indust rial sector which had limit ed amenities . He said both options were easy concepts to get behind and support financially. The problem was finding a building owner who would be supportive by charging reasonable leases, he said , or by not expecting the business owners to pay for big impro vements to the building. How do we get past this, he asked.
Economic Development Manager Ngu yen acknowledged there were no easy answers and what was needed was a local champ ion. Because so many of the building owners were long -time an d often absent, he said the biggest opportunity would come from bigger land owners and development companies. They may be more willing to share extra space and have a greater desire to host that kind of use, he said.
Professor D arendeli gave an exampl e of one incubator th at was offered space for $250,000 for 5 years, but after EBay became interested in the s pace, the cost went up to $130 million . He agreed with Manager Nguyen that support would probably come from bigger sources than local b uilding owners.
Council Member Sal inas mentioned the vacant lot at the corner of B and Mai n and suggested staff reach out to the property owner to plant the idea of incubator space before development even began.
Another possible location downtown, he said , was the fo rmer Ace Hardware site at B and Watkins Streets.
Council Member Salinas asked how the City would generate revenue from a co -working space .
Professor Darendeli said in his experience, reven ue was generated by char ging rent for a table or desk open to anyone at the lowest amount, then moving up in cost for a private desk, office or larger space.
Economic Development Manager Nguyen said Professor Darendeli ’s information confirm ed that if the City created co-working or incubator space it would have to act as landlord and could only encourage future businesses to stay in Hayward when they w ere ready to establish a permanent location.
Council Member Wahab said she would be supportive of the City investing or partnering with someone to do this. She s aid she want ed ev eryone to have the opportunity to become an entrepreneur and wanted more than one pathway for that to happen. Ideally, she said, the City would not be in charge because it wasn’t its area of expertise. But what the City could do was to look for and preserve the right space for this kind of use , she said. Using the South Bay as an example to emulate she noted the way co-working and incubator space was creatively marketed to coders and women.
Council Member Andrew s commented that Ha yward needed more foo d options or at least a better way to get existing restaurant fare to more locations. She pointed out that shipping containers were part of the high-tech culture as were public market spaces. She also mentioned a need for activities and said there were many that could work in the industrial sector.
Council Mem ber Andrews said she hoped that Hayward would carve out areas to create these Hayward Council Economic Development Committee
Regular Meeting Minutes
January 27, 2022
opportunities. She also asked staff to consider under -utilized Hayward Unified School District properties or The Stack Center as other possible options.
3. HAYWARD UPWARD ECONOMIC RECOVERY PLAN UPD ATE: TOGETHER FOR HAYWARD E -
GIFT CARD PROGRAM
Economic Development Manager Nguyen introduced the item noting that e-gift card program was part of the Division’s COVID-19 Economic Recovery Plan that was modified based on feedback from Council. Economic Development Specialist Catherine Ralston gave the presentation starting with the announcement that as of that day, 80 businesses had signed up.
Council Member Andrews asked Southland General Manager Todd Falduti if he’d received any feedback from participating businesses. He said no, he had no results he could share. Council Member Andrews encouraged staff to work with Mr. Falduti to get some clothing stores signed up since the bonus gift cards gave folks more money to spend. Specialist Ralston said chain retailers could have to go through corporate offices to get permission to participate and staff had had more luck with independent retailers.
Council Member Andrews asked if staff could send graphics for point-of-sale reimbursement grant program so she could share the information on Instagram.
Council Member Salinas asked if stores like The Cobbler and Work World had been outreached and Specialist Ralston said yes.
Council Member Wahab congratulated staff for the success of the program. She mentioned she had only seen one round of promotions on social media and suggested more consistent repostings. She also suggested warning people when the program would end so they wouldn’t lose any remaining money on their gift cards. Specialist Ralston explained that the cards do not expire and that Yiftee would send a reminder if the card hadn’t been used for 12 months. After that, a small monthly fee would be charged to keep the card active, she said, but once the card was used again that would stop. Specialist Ralston added that bonus money gift card holders would receive a reminder at three months after which a small fee would be charged until the account was used. She clarified that they program wouldn’t end, instead the City would run out of bonus money.
Council Member Wahab said she once again wished that this promotion was coupled with a City- wide initiative that required businesses to hold consistent hours during the day. She said it looked sloppy when some businesses were open and others were not, especially in the downtown.
4. FUTURE MEETING TOPICS AS OF JANUARY 27, 2022
Economic Development Manager Nguyen started by acknowledging Southland Mall General Manager Falduti for partnering with the City on the gift card program. Southland Mall posted e-Gift card posters around the mall and allowed placement of tent cards in the food court. He also noted that Mr.
Falduti offered to host an in-person tour of the mall in lieu of the February CEDC meeting.
Council Member Salinas said he would like to see the update of the City ’s broadband fiber loop as soon as possible, preferably in March. Mana ger Nguyen said he would touch base with Public Works Hayward Council Economic Development Committee
Regular Meeting Minutes
January 27, 2022
to see if that would be possible.
Council Member Wahab said she would like to see the City set more standards for businesse s, especially those receiving City assistance, that would, for example, require them to maintain r egular business hou rs, prohi bited bars on windows, and kept doorways clear and clean. Ass istant City Manager Ott pointed out that one of the items on t he list was City policies that impact business. She explained that there was not a lot the City could regulate.
Assistant City Ott continued saying the City was fo cusing efforts on getting assi stance out to businesses as quickly as possible. The more restrictions you put on them, she said, the harder it was to help businesses. She said the g roup could continue the discussion, but staff didn’t want to make it harder to provide resources.
Council Member Wahab said she underst ood but asked about the vacant buildings with boarded up windows and doors and if those could be cleaned up. Assistant City Manager Ott said staff was aware of the vacancies and a lot of their efforts were focused on getting t he vacancies filled but even with incentives staff couldn’t force a business to come in.
Council Member Wahab mentioned the Art’s Crab Shack building noting they had their cannabi s dispensary permit but still the property sat vacant. She said she would li ke to understand what was holding up the project.
Council Member Andrews said she woul d also like to discuss the use of recovery money to install public artwork at va cant building sites; using a Restaurant Impossible approach to help some businesses; and experiential entertainment and retail spaces.
COMMITTEE MEMBER ANNOUNCEMENTS AND REFERRALS
There were none.
ADJOURNMENT: The meeting was adjourned at 6:30 p.m.
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 22-021
DATE: February 24, 2022
TO: Council Economic Development Committee
FROM: Assistant City Manager
SUBJECT
A Report from Brookfield Properties Retail Group on the Economic Health, Current Trends, and Future of Southland Mall (Oral Report Only)
RECOMMENDATION
That Council Economic Development Committee (CEDC) members receive the presentation from Southland Mall’s Senior General Manager Todd Falduti, who will provide an update on the mall’s economic health, insight into the mall’s experience with the pandemic disruptions, and will discuss the mall’s future.
SUMMARY
Centrally located for residents and conveniently positioned as a regional shopping destination, Southland Mall in Hayward offers shopping, entertainment, and food options. The mall is managed by Brookfield Properties Retail Group. The mall, which was built in the 1960s, is anchored by JCPenney and Macy’sand features a food court and Century Theaters. In 2019, Southland added Round One Entertainment, an international retail chain that features bowling, arcade games, and other family entertainment amenities.
Southland Mall experienced major vacancies as a result of the closures of Sears, Dick’sSporting Goods, and Elephant Bar Restaurant. (Note that while connected to Brookfield’small property, the underlying land and building that comprises the former Sears are owned by separate entities. Specifically, the land is owned by Hillsborough Associates and Parkvan Associates, et al and the building is owned by Transform Co, the parent company of Sears.)
At the February CEDC meeting, Mr. Todd Falduti, Senior General Manager of Asset Management at Brookfield, will provide an update on the mall’seconomic health, insight into the mall’sexperience with the pandemic disruptions, and discuss the mall’soutlook. Mr. Falduti has over 21 years of commercial real estate management experience, including oversight of super-regional retail centers and Class A office facilities. He started his career in operations with Westfield in San Diego, served as the Regional Operations Manager for Los Angeles, and later was promoted to the General Manager of Westfield San Francisco Centre. He was hired as the Senior General Manager for Southland and NewPark malls with Rouse in September 2017, and now focuses his attention solely on Southland Mall.
CITY OF HAYWARD Printed on 2/18/2022Page 1 of 2
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File #:RPT 22-021
CITY OF HAYWARD Printed on 2/18/2022Page 2 of 2
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 22-020
DATE: February 24, 2022
TO: Council Economic Development Committee
FROM: Assistant City Manager
SUBJECT
Future Meeting Topics as of February 24, 2022
RECOMMENDATION
That Committee members review and comment on the attached Future Meeting Topics.
ATTACHMENTS
Attachment I Future Meeting Topics as of February 24, 2022 CITY OF HAYWARD Printed on 2/18/2022Page 1 of 1
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Council Economic Development Committee
Future Meeting Topics as of Feb. 24, 2022
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 Sales Tax Trends: Update from City Tax Consultant March
2022
Code
Enforcement
/Economic
Development
Update on Vacant Property Monitoring Program
Activities and Property Owner Engagement
2022
Economic
Development/
Planning Staff
Review of Select Policies Impacting
Businesses
TBD
Public Works/
Information
Update on City Fiber/Broadband Initiatives
(Following update to CIC)
2022
Economic
Development
Impact of Cannabis Industry on
Economic Development*
2022
*Subject to change and data availability