COUNCIL ECONOMIC DEVELOPMENT COMMITTEE
MEETING MINUTES – March 24, 2022
CALL TO ORDER: The Regular meeting was called to order at 5:00 p.m.
ATTENDANCE (September 2021-July 2022):
Committee Member
Present
3/24/2022
All Meetings
Year to Date
Meetings Mandated
By Resolution
Present
Absent
Present
Absent
Council Member Salinas
Π
4 0
4 0
Council Member Wahab
Π
4 0
4 0
Council Member Andrews
Π
4 0
4 0
OTHERS IN ATTENDANCE:
Kelly McAdoo, City Manager; Jennifer Ott, Assistant City Manager; Paul Nguyen, Economic Development Manager; Phillip Nichols, Code Enforcement Manager; Michelle Torres, Senior Code Enforcement Inspector; Catherine Ralston, Economic Development Specialist; Suzanne Philis, Senior Secretary; Ian Flaherty, Code Enforcement Inspector I; Thomas Adams, Avenu Insights & Analytics; Kim Huggett, Hayward Chamber of Commerce; Paul Hodges, HARD Board of Directors; Merielle Sanz.
PUBLIC COMMENTS
There were none.
APPROVAL OF MINUTES OF REGULAR MEETING FEBRUARY 24, 2022 A motion to approve minutes from the February 24, 2022 Regular Meeting was made by Council Member Wahab and seconded by Council Member Andrews. The minutes were unanimously approved.
HAYWARD SALES TAX TRENDS UPDATE FROM AVENUE INSIGHTS & ANALYTICS (Oral report only)
Economic Development Manager Paul Nguyen first showed a slide that used GeoCode to track where local students frequented in the month of February 2022, and then introduced Thomas Adams, Client Services Manager with MuniServices/Avenu. Mr. Adams gave the presentation on sales tax trends noting Hayward was the industrial backbone for the entire Bay area.
Council Member Andrews asked how purchases at Target were being tracked since they now sell a lot of food. Mr. Adams explained that the State required that detailed sales tax information remain confidential but he noted Target wasn’t as impacted by the pandemic because a variety of goods including food were sold there. He noted that prepared food, like a Costco rotisserie chicken, was taxed, but other food items were not. During the pandemic, he said, restaurant sales tax went down, but market sales tax went up.
Council Member Andrews commented that a recreation business failed in Hayward and she asked how to tell what would work in Hayward. Mr. Adams explained that it was more art than science and while clothes and recreational would come back, they weren’t currently growing like they were 20 years ago. Mr. Adams said that regionally, food processing equipment was big, but noted wineries were included in that category. He recommended working with strengths rather than trying to force weaknesses. He also explained that an Apple store would be categorized under Furniture, which would boost sales in the category, but throw off real furniture numbers in that and neighboring cities.
Council Member Andrews asked if Southland Mall had been compared against Pacific Commons and Union Landing. Economic Development Manager Nguyen said no comparative analysis had been done, but he noted that before COVID, staff had met with a group of Chabot students to ask them where they went for fun and what they would like to see in Hayward. Raising Cane’s(proposed for the Kmart site) was named. From college students’ perspective, he said, it was all about food options.
Council Member Wahab said she was surprised students weren’t going to Oakland for food and fun. She commented that the popularity of Pacific Commons was probably due to students who live in Fremont but go to school in Hayward. She also noted the diversity of the stores and food options at Pacific Commons unlike Hayward. She suggested offering incentives to attract new options both at retail locations and food trucks.
Council Member Wahab said when collecting data to include students’ hometowns. She noted San Jose State required new students to live on campus the first year and that could skew results. She also suggested asking students why they go where they do.
Regarding the sales tax information presented by Mr. Adams, Council Member Wahab said Hayward residents were already overtaxed and noted she would oppose any ballot measure that increased taxes. She asked if Hayward was financially strong compared to other cities and Mr. Adams said he could provide comparisons. Council Member Wahab said that information was needed as well as a comparison of pre-pandemic numbers to have something on which to base new numbers. She was happy to see Hayward bounced back in 2021, she said, but the City still had a long way to go.
Council Member Salinas how the City could reconcile the success and failures the data showed against what students and residents wanted. Economic Development Manager Nguyen explained that retailers used leakage and purchasing data to determine where to locate. That information was rarely shared, he noted. Instead what Economic Development staff could do was promote the other things the City could offer. Whenever you swipe your phone, he said, you provide hundreds of data points, staff’s role was to tell the story that filled the data gaps.
Council Member Salinas pointed out the Pacific Commons was primarily big box stores and chain restaurants along with a few mom-and-pop retailers. Southland and Union Landing were similar, he said, because they both have a theater.
Council Member Salinas asked how Hayward could capture tourist dollars. If someone comes here for a meeting, he said, when they go back to their hotel we should have marketing materials available. He noted the pandemic recession was different, no one had a playbook, and all cities were going through this process of doing what they could.
Regarding tourists, Council Member Andrews noted they love public art. They don’t just want to go to a restaurant, she said, they want to take a photo.
PROGRAM AND ORDINANCE UPDATE: VACANT PROPERTY ORDINANCE MONITORING PROGRAM & PROPERTY OWNER ENGAGEMENT STRATEGY Assistant City Manager Ott introduced the item noting the need for a Vacant Property Ordinance came up at a Council retreat and while most efforts were paused during the pandemic, staff was now bringing it back up for additional feedback from Committee members. Code Enforcement Manager Phil Nichols presented a program update.
Council Member Salinas noted that Council asked for the ordinance because building owners were not doing anything about their empty, ugly buildings and the City had no tools to make them take action.
Council Member Andrews said the owner of the hardware store had come in to City Hall with questions about compliance with the ordinance and she asked what was the outcome. Code Enforcement Manager Nichols explained that the owner was brought in to formally address issues with the property, some concessions, and the Police Department spoke to him to talk about crime prevention. The owner agreed to replace the plywood covering windows with poly-carbonate which was more protective, looked better, and allowed PD to see inside the building, he said.
Council Member Andrews asked if any grants were available for window dressings. Economic Development Manager Nguyen said ED had façade improvement monies available, but typically not for owners of empty buildings. Council Member Andrews asked if staff would reconsider and Manager Nguyen said the City didn’t want to reward absentee building owners, but it was up to City Council to make that call. Council Member Andrews suggested staff think of other activation options that could be used in the interim that wouldn’t compete with existing businesses.
Council Member Andrews said she was really excited at about the food hall planned for 1025 A Street and was told yes, there would be seating available to eat there. She asked if there was any update for the Toys R Us site and was told no.
Council Member Wahab complimented Code Enforcement Manager Nichols on his presentation and noted she prioritized vacant buildings not based on how many there were, but on the seriousness of the condition of the buildings. Council Member Wahab said the City should have standards that required businesses to stay open. She commented that half of the businesses downtown were closed during the day and suggested issuing citations.
Council Member Wahab asked what the City could do to push vacant property owners. She mentioned that she knew of retailers interested in the hardware store, but the owner was asking a ridiculously high rent amount. What incentives does the City have, she asked, to push building owners along. Economic Development and Code Enforcement staff agreed it was an issue.
Council Member Wahab said the City needed to be stricter and any City investment should come with standards. With as much as the City assists businesses and property owners with funding, she said, we should expect businesses to deliver.
Council Member Wahab requested that staff follow up with owners when a business closes to find out what happened and if there was anything the City could have done to keep them. She also suggested that the review process be streamlined so businesses could open faster. If they want to open in a week, she said, they should be able to.
FUTURE MEETING TOPICS AS OF MARCH 24, 2022
Council Member Wahab requested that specific dates be listed for each item rather than just the year.
Council Member Andrews asked for a capacity analysis of Economic Development staff noting the number of new initiatives being proposed.
Council Member Salinas suggested exploring what could be done to bring people downtown this summer. Shops and restaurants were slowly opening, he said, but outdoor experiences were needed close to B Street.
COMMITTEE MEMBER ANNOUNCEMENTS AND REFERRALS
Economic Development Manager Nguyen presented slides of newly opened businesses including Tacos El Gordo, Posh Bagel, Metro Taqueria, and announced an upcoming ribbon cutting for Brick by Brick Toys on April 2 at 11am.
ADJOURNMENT: The meeting was adjourned at 6:30 p.m.
Hayward Council Economic Development Committee
Regular Meeting Minutes
March 24, 2022
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