DATE: February 23, 2023
TO: Council Economic Development Committee
FROM: Chief Economic Development Officer
SUBJECT: Hayward Upward Economic Recovery Plan Update: Downtown Activation Pilot Programs
RECOMMENDATION
That the Council Economic Development Committee receives updates on the progress of the Hayward Upward Economic Recovery Plan Open for Business: Downtown Activation Pilot Programs.
SUMMARY
As part of the City of Hayward COVID-19 economic recovery plan that was reviewed by the Council Economic Development Committee in June 2021, the Together for Hayward Open for Business program was included as one of nine programs utilizing ARPA funding to assist the business community to bring customers back to the stores. These Downtown Activation programs are one component of the Open for Business program and are designed to activate the Downtown district to attract customers back to the area. These programs are designed to be a pilot program that will last for approximately 6 months' time. At the end of the program, an evaluation will be done to determine if a longer more permanent option is to continue with an identified funding source.
BACKGROUND
Downtown Hayward was experiencing a positive resurgence when the pandemic hit in March 2020. Many businesses across the downtown saw supply chains interrupted, demand for the goods and services dwindle and, in some cases, extensive mandatory business closures due to State and County health orders. Over the past two and half years, Downtown Hayward has seen several business closures including such notable ones as Buffalo Bills, Brews and Brats, Charlotte’s, High Scores, and others. While some new businesses have also opened, including Kansai Sushi, Stack Cutz II, iKot iCream, Stacks Record Shop, and Ska Dog Records, the overall foot traffic of consumers in the downtown appears to have decreased.
DISCUSSION
Sounds of the Season Program
The City, in partnership with community organizations, brought the “Together for Hayward Sounds of the Season” to Downtown Hayward at the end of 2022. Each Saturday of December, volunteer musical groups performed on public right of way at Cinema Plaza, at 1069 B Street, or the plaza near 944 B Street. The volunteer groups featured singing and instrumental music to celebrate our spirit of inclusion and the winter-time traditions of our diverse communities. This musical addition in 2022 was one part of the many efforts the City of Hayward launched as part of the Together for Hayward Program to support our small, independent business owners to recover from COVID-19 economic disruptions. It was also a test program to get a feel from the business community about creating a longer-term program that would bring performers and artists to the downtown district. The program was well received by the business community.
Downtown Activation Pilot Programs
To further encourage customers to return to the Downtown area, staff recommends the creation of the following three programs. These three pilot programs aim at creating vibrancy and energy through the introduction of music, art, and the entrepreneurial spirit. All of the proposed programs take place within the public right-of-way, to allow implementation in an expedited manner. Due to the pilot status of these programs, staff expects some modifications of the programs going forward to best suit the needs of the district and improve effectiveness.
Pathways for Performers
Pathways for Performers is a pilot street performance initiative designed to activate public spaces in Downtown Hayward with live music. The program would engage 15 – 30 performers per weekend that would play live non-amplified music at four designated locations. Each performer would receive a modest stipend for two hours of performance at the pre-determined time and location. Performers are allowed to receive tips/donations from the public while performing but they must act in accordance with all regulations governing street performance as well as rules established by the Pathways for Performers program managers. They may also sell copies of their own recordings during their allotted time period.
Any musical performer with at least two hours of musical performance material is eligible for participation in Pathways for Performers. At this time, this program is open to music-centric performances only such as singers and instrument players. While the focus is to support and showcase local performers, performers from outside of the local region may be showcased if they are in line with the community’s goals of inclusion and diversity. Performers from outside of Hayward may also bring new potential customers to the downtown area as they come to support and listen to the performers.
Art in Action
Art in Action is a pilot initiative designed to activate public spaces in Downtown Hayward with artists actively in the process of creating art pieces. The program envisions 15 – 30 artists per weekend that would set up a station to actively create art at a location. Each artist would receive a modest stipend for two-four hours of time at the pre-determined time and location. Artists are allowed to receive tips/donations from the public while creating their work, but they must act in accordance with all regulations governing street performance as well as rules established by the Pathways for Performers program managers. Artists may also have other original pieces available for sale. Sale pieces must fit within the designated performance space.
Any artist that will actively create art, engage with audience members, or provide interactive art experiences are eligible for participation in Art in Action. At this time, this program is open to artists that draw, paint, sculpt, or create other original pieces using various mediums. Large-scale paintings, active sculpture/carving, sidewalk chalk art, interactive participatory art experiences, etc. are highly sought after and encouraged. Staff will encourage the selected program manager to incorporate artists that produce “Instagramable” pieces to help address Council’s request for public art.
Patio Pop-ups
Patio Pop-ups is a pilot program aimed to help create additional retail density in the downtown. The idea would be to allow pop-up vendors to set up their booths on the patios in the downtown that are not utilized by existing restaurants. The vendors would be located across the sidewalk from the buildings with operating tenants. If the building is currently vacant, a pop-up vendor would be placed adjacent to the building. In either case, pedestrian access must be maintained.
The program would engage a rotating group of 10 –12 pop-up vendors on a weekly basis. The vendors would operate on Friday and Saturday to correspond with the other two activation programs for downtown. Vendors would not be charged to use the spaces. Vendors can sell goods such as clothing, jewelry and accessories, home décor items, pet items, and more. No food sales would occur at the booths.
Days and Times of Performances and Pop-ups
During the initial pilot period, performers, artists, and vendors will be scheduled Fridays and Saturdays. Additional days may be added based on feedback from businesses, the number of interested parties participating in the program, and the overall success of the program. Performance times will be initially scheduled between 2:00 PM and 8:00 PM with a focus on the dinner rush of 5:00 PM – 8:00 PM. These times may be adjusted to provide the most benefit to the downtown district and the community at large.
Locations of designated performance spaces
Registered performers and artists will be assigned one of the designated art creation/performance spaces that they can use for their block of time. The space is located on the public sidewalk. It is a 10’ x 10’ space. All equipment, goods for sale, and tip collection items must remain within the designated areas to not block access for pedestrians. A list of the spaces and photos of the locations can be found in Attachment II.
Locations of Patio Pop-up designated spaces
Registered Pop-ups will be assigned designated spaces that they can use for their business. The space is located within the public right-of-way. It is a 10’ x 10’ space. All equipment, goods for sale, and associated items must remain within the designated areas so as to not block access for pedestrians. The locations for these vendors will be evaluated each month to ensure updates occur as new businesses move into existing vacant tenant spaces.
Marketing
A key component in ensuring the success of these new programs in bringing customers back to downtown is to have an extensive marketing campaign. With the launch of these programs, Economic Development staff in coordination with Community and Media Relations staff will launch a marketing campaign that will include social media, billboard ads on I-880, print articles in local papers, and The Stack newsletter. As part of the social media campaign, we can focus the efforts not just on the local Hayward area, but on the larger Bay Area region as well. Staff anticipated a budget of approximately $10,000 to be allocated for a robust marketing campaign.
NEXT STEPS
Staff is looking to engage a partner organization that will coordinate and schedule the artists and musicians, confirm their performance and attendance occurred, and pay the program stipend to them. In addition, utilizing an outside organization to manage the program will allow for a master encroachment permit to be issued and only one insurance certificate to be held rather than each artist and vendor providing their individual insurance policies, which can be costly.
In December 2022, Economic Development staff issued a Request for Proposals to seek out organizations both local to Hayward and those located within the greater Bay Area region, including those that have requested funding for art programs through the Community Services Division, that may be interested in assisting with the management with these pilot programs. Staff reviewed the proposals and has begun initial negotiations with the Renaissance Entrepreneurship Center and their partner The Pop Up Guide for management of the three programs. A final agreement will come before the City Council for approval.
FISCAL IMPACT
Staff is proposing a 6-month period to launch these three pilot programs. At the end of the 6-month period the program can be evaluated as to whether it should be continued and identify additional funding sources. Staff has calculated an estimated cost of $150,000 for the 3 programs. This amount would cover a full schedule Fridays from 4 pm – 8 pm and Saturdays from 2 pm – 8pm, which would be up to 35 artists and musicians, a $10,000 marketing budget and a management fee for a partner organization to run and manage the three programs.
Staff is proposing that the allocated dollars under ARPA-funded Economic Development COVID recovery programs be used to cover these costs. As part of the nine adopted programs, the Open for Business Program has allocated funds to cover the proposed costs. Currently, there is no cost to the General Fund for the implementation of the pilot programs.
Prepared by: Catherine Ralston, Economic Development Specialist Recommended by: Paul Nguyen, Chief Economic Development Officer Regina Youngblood, Assistant City Manager
Approved by:
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Kelly McAdoo, City Manager