DATE: March 21, 2023
TO: City Council
FROM: City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Agreement with the Renaissance Entrepreneurship Center and the Pop Up Guide in the Amount Not to Exceed $150,000 for the Management and Implementation of the Downtown Activation Pilot Program
RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to execute an agreement with the Renaissance Entrepreneurship Center and The Pop-Up Guide for program management services of the Downtown Activation Pilot Program, for a total not-to-exceed contract amount of $150,000.
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 should continue.
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 goods and services dwindle and, in some cases, extensive mandatory business closures due to State and County health orders. Over the past two and a 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, Stacks Record Shop, and Ska Dog Records, the overall foot traffic of consumers in the downtown has decreased significantly.
DISCUSSION
Downtown Activation Pilot Programs
To encourage customers to return to the Downtown area, staff recommends the creation of the following 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 anticipates midstream modifications will be required to best suit the needs of the district and improve effectiveness.
Implementation of the Programs
Staff seeks to engage a partner organization that will coordinate and schedule the artists and musicians, confirm that 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 November 2023, staff issued a Request for Proposals (RFP# 2317-111422) to seek out organizations both local to Hayward and those located within the greater Bay Area region who may be interested in staffing and operating the new pilot program aimed at activating the Downtown district. Staff also solicited responses from organizations that previously requested funding for art programs through the Community Services Division’s community agency funding process. Staff received responses from three (3) interested parties. Staff evaluated each of the proposals, conducted interviews with all three groups, and selected the Renaissance Entrepreneurship Center and The Pop Up Guide as program managers.
The partnership of the Renaissance Entrepreneurship Center and the Pop Up Guide brings a unique set of skills to the pilot programs. Their combined experience in working with artists, musicians and pop-up vendors through education and training sessions to help these small business owners become successful and at similar types of events around the bay area was a deciding factor for moving forward with this group as the program managers. Both the Renaissance Entrepreneurship Center and the Pop Up Guide group are very familiar with the Hayward community and look forward to bringing exciting offerings to the downtown while also engaging existing community groups and the merchant community. A copy of their Response to the RFP can be found as Attachment IV.
Staff is seeking approval to authorize the City Manager to enter into the professional services agreement with the Renaissance Entrepreneurship Center and their partner The Pop Up Guide for management of the three programs as described below. The agreement would be for a not to exceed amount of $150,000 and will expire no later than December 31, 2023.
Downtown Activation Pilot Program Description
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. Any musical performer with at least two hours of musical performance material is eligible for participation in Pathways for Performers. 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 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 would engage 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. Any artist that will actively create art, engage with audience members, or provide interactive art experiences are eligible for participation in Art in Action. Large scale paintings, active sculpture/carving, sidewalk chalk art, interactive participatory art experiences, etc are highly sought and encouraged.
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 in the patios in the downtown that are not utilized by existing restaurants. The vendors would be located across the sidewalk from the buildings for those 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. Vendors can sell goods such as clothing, jewelry and accessories, home décor items, pet items, and more. No food sales can 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, number of interested parties participating in the program, and 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.
COUNCIL ECONOMIC DEVELOPMENT COMMITTEE REVIEW OF PILOT PROGRAMS The Council Economic Development Committee (CEDC) reviewed the proposed Downtown Activation Pilot Programs at their meeting on February 23, 2023. All committee members were in support of the proposed programs as presented, the use of American Rescue Plan Act (ARPA) dollars to fund the pilot program, and a professional service agreement with a Program Manager for the implementation of the programs. The Committee directed staff to move forward to the City Council to seek authorization for execution of the Agreement with the proposed Program Managers.
A full description of the Downtown Activation Pilot Program, including proposed locations of performers and artists, and other details can be found in Attachment III, Scope of Work and Program Descriptions.
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 will be evaluated as to whether it should be continued. Staff has calculated an estimated cost of $150,000 for the three programs. This amount would cover a full schedule on Fridays from 4 pm – 8 pm and Saturdays from 2 pm – 8pm, which include up to 35 artists and musicians, and a management fee for a partner organization to run and manage the three programs.
Currently there is no cost to the General Fund for the implementation of the pilot programs. Staff is proposing the use of existing ARPA funds allocated to the Together for Hayward Open for Business program within the City’s COVID-19 Economic Recovery Plan to cover these program management costs. Economic Development staff labor hours for monitoring and reporting will be absorbed as part of their existing duties. However, if the program should continue beyond this pilot stage, staff will need to identify additional funding sources and long-term impact on staffing capacity.
ECONOMIC IMPACT
The goal of the Downtown Activation programs is to reinvigorate the Downtown district and bring back the cultural vibrancy that existed prior to the COVID shutdowns. The use of performers, artists, and additional retail, may attract more customers to the district, thus supporting the existing brick and mortar stores that operate in the area and possibly encourage new retail and restaurant operations to open in the currently vacant buildings.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority to Grow the Economy by Investing in Plans and Programs that Create Thriving Commercial Corridors. By receiving the professional services from the Renaissance Entrepreneurship Center and The Pop Up Guide, the new Downtown Activation Pilot Program can be implemented in the Downtown District with the intent to bring cultural activity, vibrancy and customers back to the area expeditiously.
NEXT STEPS
If Council approves this request, the City Manager will execute a Professional Services Agreement in the amount of $150,000 with the Renaissance Entrepreneurship Center and The Pop Up Guide through December 31, 2023. The Program Managers will present a schedule to the City within 14 days of execution of the agreement to move the Pilot Programs forward.
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