Pacifica City Council
January 23, 2023

ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION

FINAL VERSION
JANUARY 2023

CITY OF PACIFICA

ECONOMIC OPPORTUNITIES STUDY
Kosmont Companies
El Segundo, CA
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 2

CITY OF PACIFICA

ECONOMIC OPPORTUNITIES STUDY
Kosmont Companies Staff Pacifica City Council Pacifica Staff & Advisory Ken K. Hira, President
Thomas Jirovsky, Senior Advisor
Robert Valenti, Vice President
Tygarjas Bigstyck, Councilmember / Mayor
Sue Vaterlaus, Councilmember / Mayor Pro Tempore
Sue Beckmeyer, Councilmember
Mary Bier, Councilmember
Christine Boles, Councilmember
Kevin Woodhouse, City Manager
Yulia Carter, Assistant City Manager
Christian Murdock, Planning Director
Lisa Petersen, Director of Public Works
Alyssa Barranti, Management Analyst
Brian Moura, Senior Advisor, RGS
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TABLE OF CONTENTS

1. Executive Summary Page 4 – 26

2. Economic / Land Use Trends 27 – 42

3. Business District Analysis 43 – 85
Pacific Manor / Fairmont 49 – 57
Sharp Park / Eureka Square 58 – 63
Rockaway Beach / Vallemar 64 – 71
Linda Mar / Sun Valley 72 – 80
Pedro Point 81 – 86

4. Opportunity Sites 87 – 105

5. Data Appendix 106 - 174
Demographic / Market / Location Analytics / Revenue Data 106 – 160 Community & Stakeholder Outreach 161 – 173
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1. EXECUTIVE SUMMARY
Pacifica Economic Opportunities Study
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PACIFICA

REGIONAL

CONTEXT
The City of Pacifica is a coastal
community located just south of San
Francisco / Daly City along the Pacific
Coast. The City is well positioned
along Coast Highway in close
proximity to downtown San
Francisco, Silicon Valley, and the
greater Bay Area.

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BACKGROUND
 Kosmont Companies (“Kosmont”) is pleased to present this Economic Opportunities Study (EOS) for the five main business districts in the City of Pacifica (“City” or “Pacifica”): Pacific Manor / Fairmont, Sharp Park / Eureka Square, Rockaway Beach / Vallemar, Linda Mar / Sun Valley, and Pedro Point. The EOS report is an important complement to the Vision 2025 & Beyond Plan to address economic sustainability for the City.
 Given shifting consumer preferences and land uses, and uncertain economic times and fiscal challenges, it is important that Pacifica identify opportunities within the City’s business districts to spur select new development that can increase General Fund revenues.
 The EOS identifies long term commercial opportunities supported by market forces and enhanced by steps the City and community can take. Environmental and other studies will be necessary important next steps to implementation of potential projects at the City-owned Beach Boulevard site, Palmetto Ave. and privately-owned Quarry property, as examples.

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APPROACH
Kosmont’s approach to preparing the Economic Opportunities Study included the following tasks:
 Review of City Budget and Planning documents, together with a daylong tour of the City and its business and residential districts
 Interviews with City staff, Council members, and community stakeholders  Assessment of regional economic trends
 Assessment of local demographic and market conditions  In person and virtual community outreach to gain insights as to needs and challenges and present preliminary findings
 Detailed assessment of five major commercial districts  Identification of key opportunity sites and recommended land uses ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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EXECUTIVE SUMMARY
 The City retained Kosmont to prepare the Economic Opportunities Study to supplement the 2025 & Beyond Plan and assist in the preparation of updated zoning and new land use policies for future Specific Plans.
 Today’s consumers are using online websites for purchasing a broad array of goods. Current economic forces require new approaches to land use that explore concepts for public amenities and private attractions that help cities capture trips and thus “sales”. Younger consumers, with increased use of media and digital communication, seek gathering places with restaurants, entertainment venues and experiential retail, rather than simply a collection of traditional store fronts. Another important group is the creative class of professionals. This dynamic workforce is attracted to communities with clustered centers, which provide a sense of vitality, diversity, convenience and a mix of work, entertainment, services, arts and culture.
 Kosmont is assisting the City in achieving its economic objective by providing a market analysis and recommendations for each district. The goal is to create a compelling experience for commercial uses and foster a sense of community to which people are drawn.

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EXECUTIVE SUMMARY
 Pacifica is a unique coastal city with a variety of attractions, as well as multiple business districts.  The City’s commercial base is heavily weighted with grocery-anchored community centers with a limited number of hotel rooms and restaurants and no regional retail anchors, due to City’s broad geographic spread.
 Commercial real estate rents and occupancy have been fairly stable over the past 10 years with little new development activity occurring in the City.
 Pacifica experiences a relatively high level of travel along Coast Highway with an estimated 10,700 cars (average daily traffic volume) passing the City southbound (~91% of those trips are from travelers who live outside Pacifica). Capturing a small percentage will significantly improve hotel and retail spending.  FogFest (4th weekend in September) is the premier tourist event drawing as many as 60,000 visitors with approximately 80% outside of Pacifica. The 2022 event saw an estimated 20% increase in visits over 2019 according to Placer.ai data.

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EXECUTIVE SUMMARY
FY2023 Budget
Property Taxes $ 15,181,300
Property Tax: VLF 5,922,400
Sales Tax
(Bradley Burns 1%) 3,111,200
Cannabis Tax 825,000
Transient Occupancy Tax 2,100,000
Utility Users Tax 1,905,600
Business License Tax 516,600
Other Taxes 1,687,800
Total 31,249,900
 Pacifica has historically faced budget deficits, service reductions and inability to fund key projects. The City wants to identify opportunities that can spur economic development and increase revenues.
 The majority (67%) of City tax revenue comes from property taxes with only ~10% coming from sales taxes and 7% from hotel transient occupancy taxes (TOT) (much lower than statewide and oceanfront community averages).
 While the newly approved Measure Y will add a half-cent local sales tax (estimated to generate ~$2.6 million annually) to help address the City’s structural deficit, the City should still develop strategies to generate additional tax revenues.

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EXECUTIVE SUMMARY
 While property taxes are the major revenue source, the tax revenue has grown at only a 4% compound annual growth rate (“CAGR”)
 Over the past decade Pacifica has seen sales tax growth of 7.2% - despite a 13% drop during the first year of pandemic.
 It is worth noting that Half Moon Bay and San Mateo County had sharper decline in sales during Covid  Growth in internet sales across the State – and resulting County Pool distributions - is responsible for dominant share of tax growth in Pacifica.
 Actual onsite sales in Pacifica business has seen little or no growth since 2012  City owns Beach Blvd. site that can be developed under unsubordinated ground lease, yielding inflation protected revenue sources, while retaining ownership.

See chart on following page and Appendix C for more detailed info ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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SALES TAX BY MAJOR INDUSTRY GROUP
EXCLUDES COUNTY POOL – INTERNET SALES
FY 2022 %
Restaurants And
Hotels
$ 533,753 32%
Food And Drugs 435,707 26%
Fuel And Service
Stations 319,643 19%
General Consumer
Goods 212,915 13%
Autos And
Transportation
71,429 4%
Building And
Construction 70,940 4%
Business And Industry 20,982 1%
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Restaurants And Hotels Food And Drugs Fuel And Service Stations General Consumer Goods Autos And Transportation Building And Construction Business And Industry
Source: Total Point of Sale by Major Industry Group, City of Pacifica, HdL ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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MARKET OVERVIEW
 The Pacifica regional retail market has seen limited new construction in the past 10 years, partially due to stable population. The City has captured ~33% of the regional supply in the local Peninsula Coastline submarket. Rents are relatively affordable, compared to most of the nearby submarkets in the San Francisco metro area.  The regional office market has grown less than one percent over the past decade, with Pacifica seeing ~26% of demand in the Peninsula Coastline submarket. Office inventory has contracted over the past few years due to demolition activity and no new projects under construction. Rents are substantially below metro averages, with little rent growth in recent years.  The multi-family residential market is generally strong in the area due to supply constraints, experiencing some volatility due to tech industry trends. Many renters left the urban areas of San Francisco during the pandemic, relocating to cheaper / suburban towns in the Bay Area; as San Francisco emerges from the pandemic, occupancy is above pre-pandemic levels.
 The hotel market has started to rebound in the region; the City has seen some new developments in recent years, and could be in a good position for future developments due to its scenic coastal location and close proximity to the Bay Area population centers.

Source: CoStar
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ILLUSTRATIVE FISCAL IMPACT OF NEW DEVELOPMENT
To evaluate Pacifica economic opportunities and understand their impact on City revenues, the table below provides an illustration of incremental tax revenues potentially generated from various types of development on a typical 1-acre parcel:
10,000 SF
Commercial
Services
10,000 SF
Retail
10,000 SF
Restaurant
50-unit
Multifamily
Housing
Mixed Use
40-units &
5,000 SF
60-room
Upscale Hotel
Property Taxes +
VLF in-lieu $10,000 $10,000 $15,000 $65,000 $55,000 $50,000 Direct Sales & Use
Taxes $25,000 $50,000 $75,000 $25,000
Indirect Sales & Use
Taxes $20,000 $15,000 $35,000
Hotel
TOT $300,000
Annual General
Fund Revenues $35,000 $60,000 $90,000 $85,000 $95,000 $385,000 ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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STAKEHOLDER / COMMUNITY COMMENTS
Kosmont conducted extensive stakeholder and community outreach with dozens of in persons interviews, a virtual town hall, a web-based survey and an in-person community meeting to present preliminary findings. • Linda Mar / Sun Valley commercial area is the busiest district, followed by Sharp Park / Eureka Square • Shopping for essentials (e.g., grocery / hardware) is the main reason residents shop in Pacifica • Less than 20% of City residents frequent Pacifica arts / entertainment and leisure facilities • Beautification of buildings, signage and more landscaping is desired • More outdoor activities/dining options are desired
Key themes as to types of new development residents want to see in Pacifica:
• 85% of residents want to see new dining options
• 70% want to see more gathering places
• 65% want to see more entertainment venues
• 60% want to see more arts/cultural events
• 50% want to see more housing options
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SURVEY RESULTS

NEW DEVELOPMENT,

IMPROVEMENTS, AND

AMENITIES
43%
30%
21%
22%
21%
27%
9%
8%
4%
5%
12%
42%
34%
44%
46%
41%
26%
32%
24%
33%
29%
22%
11%
29%
32%
25%
31%
25%
44%
52%
44%
49%
37%
4%
7%
3%
7%
7%
23%
15%
15%
19%
16%
30%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Restaurants and dining options
Leisure and entertainment uses / venues
Shopping and other retailers
Places where people can gather (small / large groups)
Arts / cultural / educational
Housing options
Fitness / health / wellness
Personal services
Office (e.g. medical/professional/other)
Professional services
Hotel / hospitality
What type of new additional businesses / developments would you like to see in the business districts?
Extremely Important Important Somewhat Important Not Important at all 51%
45%
51%
30%
28%
30%
23%
21%
35%
38%
30%
43%
42%
36%
32%
34%
13%
15%
16%
21%
27%
30%
36%
34%
1%
2%
3%
6%
4%
4%
9%
11%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Mobility / walkability / bike - ability / transit
Safety
Traffic flow
Public art plazas, and walkways
Signage / wayfinding / lighting
Streetscape / design /built environment
Technological infrastructure
Parking infrastructure
Which improvements/amenities should the City focus on in the business districts?
Extremely Important Important Somewhat Important Not Important at all Respondents tend to value adding
new restaurant / dining options,
leisure / entertainment venues, and
places where people can gather to
the business districts. Adding
housing was important to over 50%
of respondents.

See Appendix D for additional
survey results.

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PACIFICA HIGHLIGHTS AND ATTRACTIONS
 The City’s cliffs and Pacific Ocean coastline are a scenic setting for hiking, biking, surfing, fishing, and sightseeing.  Pacifica is home to a variety of historic and cultural attractions, including Sanchez Adobe, Sam’s Castle,
Pacifica Pier, and Sharp Park Golf Course.
 The City is also home to a variety of restaurants,
breweries, and wine bars, bringing local flavor and activity to its business districts.
 Potential for walkable communities with restaurants and other attractions within close proximity of each other, serves as an amenity for residents and visitors and
supports vibrant commercial districts.

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SWOT ANALYSIS – STRENGTHS
Pacifica has many strengths that the City and business community can promote to increase tourism and other commercial activity in the City:
• Sharp Park Specific Plan
• San Francisco and Half Moon Bay adjacency
• Coast / hiking access
• Sharp Park Golf Course
• Municipal Pier
• Fog Festival
• Sanchez Adobe Historic Museum
• Sam’s Castle
• Sanchez Arts Center
Linda Mar Beach
Sharp Park Golf course
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SWOT ANALYSIS – WEAKNESSES
There are several challenges the City can address:
• Coast Highway traffic jams at Sharp Park / Rockaway Beach limits residents from shopping on weekends
• Major infrastructure deficiencies – ranked the Bay Area’s worst roads, sites face infrastructure challenges that may add development costs • Poor commercial signage, lack of freeway signage to identify business districts
• Some residents are over-protective of “small town feel”, conflate “small town feel” with “no new development”
• Trade area population does not support larger retailers that residents desire ( i.e. Trader Joe’s)
• Poor transit service to San Francisco and San Mateo County • Permitting process has been problematic (primarily with contract staff) according to a few business owners
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SWOT ANALYSIS – OPPORTUNITIES
From stakeholder and community outreach, Kosmont has identified many opportunities:
• Capture share of 10,000 daily tourists traveling past / through City • More events on Palmetto Ave. (e.g., food trucks) to support businesses • Promote new hotels / upgrade Lighthouse Hotel facility • Utilize Business Matters newsletter to promote digital marketing education / social media training and financial assistance for small businesses • Install EV charging facilities in shopping districts to attract tourists for lunch or dinner • Social events for cannabis customers will bring visitors from large region • Sharp Park Golf Course could be promoted as it is historic and a beautiful resource • Quarry property is the key economic development opportunity to expand Rockaway destination
• Chamber could provide hotels with monthly Pacifica Anchor and Coastside magazines • RHNA requirement for ~1,900 housing units translates into millions of dollars in assessed value and spending
Quarry Site
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SWOT ANALYSIS – THREATS
There are many threats to attracting new development to Pacifica in the near term:
• Surplus Land Act (“SLA”) restricts City’s ability to sell or lease land for new commercial and market rate residential development (see discussion in Chapter 4)
• Half Moon Bay continues to capture vast majority of regional tourism
• Coastal Commission permitting uncertainty on land west of Hwy 1 • Sea level rise and Coastal erosion impacts new development in Rockaway and near Manor
• Wastewater treatment plant expansion may be needed to support significant new project development
• Macroeconomic environment (inflation, high construction costs, high interest rates) increases the risk of ground-up development Nick’s restaurant beach erosion
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COMMERCIAL DISTRICT OBSERVATIONS
Pacific Manor /
Fairmont
Gateway to City from the north; large concentration of retail and residential; two main shopping centers, largest sales tax generating district; challenges with signage, vacancy, landowner coordination Sharp Park /
Eureka Square
Specific Plan - Palmetto Ave. identified as desired location for “downtown” Pacifica, some vacant parcels in area; Upgraded façade at Eureka Square improves shopping center environment
Rockaway
Beach /
Vallemar
Main tourism center, district has largest concentration of hotel rooms and restaurants, but limited parking facilities; multiple landowners; could use an e-bicycle rental facility
Linda Mar /
Sun Valley
Gateway to City from the south; Linda Mar Center is professionally management / institutional ownership; District has largest concentration of retail and residential
Pedro Point Poor access with entrance located off Coast Highway; Vibrant retail center with Grocery Outlet rehab and new fitness center ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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DISTRICT OPPORTUNITY SITES *
* DETAILED SITE INFO IN CHAPTER 4
Pacific Manor /
Fairmont
No undeveloped sites
Shopping center refurbishment needed at Pacific Manor
Sharp Park /
Eureka Square
Beach Blvd. site well suited for hotel / commercial development Other vacant parcels on Palmetto Ave. suited for potential blended-use residential over retail development
Rockaway
Beach /
Vallemar
Quarry site is a strong development opportunity site for expansion of important tourism facilities. Sea Bowl parking has potential for higher density blended-use
Linda Mar /
Sun Valley
Linda Mar Center surplus parking can be potential residential / mixed-use development; Park Mall – vacant commercial parcels and library site; SamTrans Park and Ride could be relocated for higher use on site Pedro Point No suitable sites available for commercial development; Shopping center tenants are performing well
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RECOMMENDATIONS FOR CONSIDERATION

CITYWIDE STRATEGIES
Improve Economic Health of City Businesses
 Utilize Business Matters newsletter to promote digital marketing education / social media training and financial assistance for small businesses
 Install EV charging facilities in shopping districts to attract tourists for lunch or dinner  Chamber could provide hotels with monthly Pacifica Anchor and Coastside magazines  Staff to act as City ambassadors with local property/business owners – How do we get to a “Yes” on permitting issues?  Coordinate regional marketing with Half Moon Bay
 Promote events in various districts (i.e., Sam’s Castle, Sanchez Adobe, Sanchez Art Center ) Create “Downtown” District
 Transform Palmetto Ave. in Sharp Park into a downtown district  Promote more events on Palmetto Ave. (e.g., food trucks) to encourage tourists and resident visitors to stay longer  Social events for cannabis customers will bring visitors from large region  Sharp Park Golf Course could be promoted as it is historic and a beautiful resource  Consider July 4th fireworks off Pier – coordinate with local businesses to create daylong events along Palmetto Ave.  Beach Blvd. opportunity site could be activated with commercial or community uses  E-bicycle rental center would be good draw for visitors ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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DISTRICT RECOMMENDATIONS FOR CONSIDERATION
Pacific Manor / Fairmont Sharp Park / Eureka Square Rockaway Beach / Vallemar There were no significant development
sites found in the Pacific Manor or
Fairmont neighborhood, but Kosmont
recommends upgrading the signage and
appearance of the Safeway anchored
center.

There are several sites suitable for development
within the Palmetto Ave. corridor to create a
downtown district:
• Beach Blvd 3.5 acre former wastewater
treatment site
• Five Palmetto Ave. parcels – from 0.11 to

0.36 acres each
There are two opportunity sites Kosmont identified:
• The flat 20-acre portion of Quarry site is
recommended to be considered for high-end
hospitality development to expand amenities for
Rockaway as a major tourist location
• The parking lot of the Sea Bowl site may be
considered for medium to high density blendeduse housing/commercial Next Steps:
• City should work with the Manor
shopping center owners to encourage
rehabilitation and/or renovation of
center signage and store front façade
• Work with State to add Coast
Highway signage announcing Pacifica
Business district
Next Steps:
• Discuss benefits of the recently adopted
Specific Plan with property owners
• Recommend that the City work with City
and County of San Francisco to expand
activities and promotion of the historic and
beautiful Sharp Park Golf Course
• City needs go through the State HCD’s
Surplus Land Act to clear Beach Blvd. site
for development opportunities
Next Steps:
• Work with ownership to upgrade Lighthouse
Hotel facility
• Initiate Specific plan process with ownership /
encourage low density visitor serving uses along
with residential uses
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DISTRICT RECOMMENDATIONS FOR CONSIDERATION
Linda Mar / Sun Valley Pedro Point
There are four opportunity sites Kosmont identified:
• The surplus parking area behind Safeway is recommended to be considered for high density blended use residential / commercial or replacement site for Park & Ride lot
• The SamTrans park & ride lot is in high value location • The Community Center and parking lot at 540 Crespi are high value properties • Park Mall / Sanchez Library undeveloped parcels are lower priority sites Pedro Point is the smallest district by geographic area and commercial SF. The Pedro Point shopping center is
successful, and no redevelopment opportunities were
identified. Vacant land to the west has Coastal Commission and City restrictions impacting development potential.

Next Steps:
• Open discussions with SamTrans to create commercial development site on the Park & Ride lot across from Linda Mar Shopping Center
• Analyze commercial opportunities for Community Center site across from Linda Mar Beach. How much building area is available for commercial uses? • Discuss residential blended-use development options for surplus parking area behind Safeway with owner of Linda Mar shopping Center (Kimco) Next Steps:
• Kosmont has no specific recommendations relative to
Pedro Point
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2. ECONOMIC / LAND USE TRENDS
Pacifica Economic Opportunities Study
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ECONOMIC AND LAND USE TRENDS
➢ Retail
• Retail store closures, bankruptcies, and ecommerce has changed economics of retail centers. Many are being reimagined (e.g,
blended use)
• Retail is driven by trip-generators such as
entertainment, experience, and essentials
➢ Office
• Downtown S.F. office building vacancy rising as
remote work becomes new normal; Social
distancing leads to offices resizing/reconfiguring
• Corporations see possible shift to suburban
offices - Integrating office in blended use
environments;
➢ Industrial
• E-commerce growth has exploded
• Retail and industrial are merging, with space
being used for Buy Online Pick Up in Store
(BOPIS), fulfillment, last mile and warehousing
➢ Residential
• Homes are live, play, and work environments
• Strength in suburban markets; Home office is
the new amenity, Apartment developments are
being designed to facilitate work
• New residential sites in shopping centers
➢ Hospitality
• Hospitality sector hurt the most by Covid-19,
but leisure travel is rebounding
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Housing is Not a
Loss Leader, it’s a
Growth Driver
Retail is Not Just
Retail Anymore
Telework is
Reconfiguring Office
Industrial /
Distribution is
Critical for Your
Economy
Housing Creation as
Economic Development
Retail Reimagination as
Economic Development
Office Conversions as
Economic Development
Industrial & Fulfillment as
Economic Development
• New housing can generate
significant new tax revenues and
support local jobs
• Housing is not necessarily a net
negative fiscal impact, especially
at current property values
• U.S. retail over-built and needs
“right sizing;” Covid accelerated
trends; today its about essentials,
experience & e-commerce
• Blended/mixed use projects
integrate multiple uses (housing,
retail, open space, creative office,
hotel)
• Telework and work from home
options are reshaping the needs
for office space and business
districts
• Job redistribution tied to housing
• Vacancies can lead to fiscal
impact pressure
• Modern industrial is not “your
father’s industrial” – not
smokestacks
• Retail can’t thrive without
distribution
• Booming demand for
distribution, e-commerce, and
data centers, blending for
fulfillment/delivery, job creators
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WORK-FROM-HOME GROWTH
 Work-from-home is changing where people choose to live, and increases popularity of “15-minute communities” that offer amenities and quality of life.
 Census Bureau estimated that ~44% of workers are in jobs where working from home is currently feasible, with only a quarter of those in feasible telework jobs actually utilizing this capability.  Research shows the ability to telework likely varies by educational attainment and income-level; many of the telework occupations are Management / Business / Financial / Professional occupations. Opportunity for Pacifica new residential units.  Other research shows that work-from-home represent ~30% of days, significantly above pre-pandemic estimates of 5%.  Employers are expecting an average of 2.3 work-from-home days per week, suggesting that hybrid home/office model is likely to be well-utilized post-Covid.

Source: U.S. Census Bureau; St. Louis Federal Reserve; Survey of Working Arrangements
0%
10%
20%
30%
40%
50%
60%
70%
0 0.5
1 1.5
2 2.5
3 3.5
4 4.5
5 Percent Paid Full Days WFH
Employer Plans for Post-Covid WFH Days
Work-from-Home: Current Utilization and
Employer Plans for post-Covid
Employer Plans for Post-COVID WFH Days
Percentage of Days WFH
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E-COMMERCE GROWTH
 E-commerce sales in the U.S. have increased steadily, jumping by 30% to $800 billion annually by Q2 2020
due to increased utilization during the Covid-19
pandemic. This put additional pressure on local brickand-mortar retailers. Post pandemic retail mall shopping has recovered somewhat.
 According to UBS, e-commerce’s share of overall U.S.
retail sales will continue to increase over the next 5
years, resulting in a loss of brick-and-mortar sales,
primarily in clothing, office supply and sporting goods.  Consumer online shopping behavior has further
solidified during the Covid-19 pandemic, and is not
likely to revert to old patterns, thanks to free 1-day
delivery services, etc.

Source: U.S. Census Bureau; St. Louis Federal Reserve; UBS 0 2
4 6
8 10
12 14
16 0
100
200
300
400
500
600
700
800
900
1000
20002002200420062008201020122014201620182020
E-Commerce Share of Total Retail Sales
(Percent)
E-Commerce Retail Sales
(Billions of Dollars)
E-Commerce Retail Sales
E-Commerce Sales
E-Commerce: Share of Total Retail Sales
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RETAIL TRENDS
 Shopping centers across the U.S. are faced with dramatic decline in retail sales as the digital economy converts the lifestyles and social patterns of every generation. Today’s consumers use online websites for purchasing many hard and soft good commodities.
 Several hundred regional malls have closed in past 5-10 years. By 2025, experts expect only Class-A malls in high income communities are most likely to survive.
 The impacts from e-commerce will have major impacts on large shopping centers in the region, particularly power centers. Pacifica is in relatively good position as community retail centers with the strongest opportunity for future growth are those focused on essentials and experiences.  Shopping districts that are centered around experiences, entertainment, and essentials are best poised for economic resiliency and future success.
 The future for retail centers in Pacifica lies in fostering experiential, entertainment uses and restaurants.

Blended use projects that bring additional uses to retail sites (such as hospitality, last-mile logistics, and multifamily residential) can bring more customers to the stores and thus be a more sustainable and diversified development that serves the community.

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Retail It’s About Innovation
Convenience
It’s About
Experience
It’s About
Blended Use
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WHAT DRIVES AN ENGAGING RETAIL EXPERIENCE?
Thoughtful
Design
Programmed
Outdoor Space
Communal
Elements
Unique
Amenities
Unique Food
Offerings
Curated Retail
Tenants
• Feels like an
exciting
destination
• Celebrates local
character
• Fosters a
specific
vibe/feeling
• Feels fresh and
innovative
• Fun and
welcoming
environment to
gather and hang
• Fresh air
elevates dining
and shopping
experience
• Mood lighting
and aesthetics
lifts the
ambiance
• Shared
community
experiences
• Encourage
conversation
and connection
• Examples:
breweries,
distilleries,
coffee / tea
• Unexpected
entertainment
attracts and
retains
customers
• Memorable and
engaging
• Examples –
arcade games,
photo booths,
lawn games, art
installations
• Interesting and
culturally rich
food options
• Reflects local
flavor, authentic,
interesting
fusion
• Exciting to try,
drives additional
visits
• Tenants and
pop-ups create a
reason to come
• Digital brands
with brick-andmortar spaces
• Curated
products that
create a
desirable
shopping
experience
• Local / exclusive
products
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Stone Brewing Beer Garden Communal Outdoor Spaces
Rodeo39 Curated Retail & Food
Upscale Design Elements

ENGAGING RETAIL

EXAMPLES
Outdoor Amenities Steelcraft Curated Food
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EXPERIENTIAL ENTERTAINMENT RETAIL CONCEPTS
Experiential retail / entertainment concepts have been merging food, drinks, and entertainment into engaging experiences. This includes:
 Movie Theater concepts such as Alamo Drafthouse that deliver an improved theater experience with better seating / design and elevated food / beverage.  Bowling concepts such as Bowlmor and Lucky Strike, which provide a more upscale experience in a lounge setting
 Smaller format sports / activities concepts such as Puttshack, Spin Ping Pong, rock climbing gyms, ax throwing, escape rooms, laser tag, and trampoline parks.  Larger format sporting / activities, including Topgolf and SFC sports facilities  Personalized retail services, such as clothing and accessories stores that offer in-store services and customization
 Interactive exhibits, including art galleries, installations, and other cultural offerings  Gaming concepts such as arcade bars, pinball, virtual reality gaming, and e-sports ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 37
Village Center / Rodeo 39 is an example of an experiential retail / housing blended use project that serves as an entertaining destination and hub for the community. It also demonstrates how adding residential can generate demand for retail on the site and add value to a project.

The Village Center shopping plaza in Stanton was a blighted 24-acre shopping site that had significant vacancy issues. The site’s retail component was rightsized down to 10-acres of the site, with a “town square” environment anchored by the Rodeo 39 curated public market. A new multifamily housing project was built on the remainder of the site.

Food and entertainment – particularly curated local offerings – was the foundation of the public market, a new 41,000 SF retail and dining space. Rodeo 39 has been a great success, with the local community embracing the eclectic destination.

The project also added a variety of entertaining and experiential offerings that encourage people to spend more time – a wide variety of cultural dining, small stage for live music performances, retro arcade / games, boutique tattoo artists, pop-up shops, and a variety of indoor and outdoor seating and gathering areas.

CASE STUDY
VILLAGE CENTER / RODEO 39
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AERIAL PHOTO
VILLAGE CENTER / RODEO 39
Residential
Condos
Rodeo 39
Public Market Planet Fitness
Pad Restaurants
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SteelCraft projects are good examples of experiential outdoor food halls built out of repurposed metal shipping containers that can activate a small site with relatively low capital costs. The containers are prepared for tenant improvements by insulating the walls, cutting windows, preserving structural integrity, and adding ventilation. The following projects have become well-loved destinations for both locals and visitors.

SteelCraft Long Beach was created from 10 repurposed shipping containers into an outdoor eatery, reactivating the corner of Long Beach Blvd and Bixby Rd with bright red containers, string lights, landscaping, and community-style seating. Tenants include craft food / deserts, beer / wine, and more. The 15,000 SF development was developed by Howard CDM in 2016.

SteelCraft Bellflower is comprised of 14 shipping containers that house 9 businesses – local craft foods / desserts, coffee shop, microbrewery / tap room, wine vendor, and communal dining areas. The project was developed on a 15,000 SF undeveloped parcel, at an estimated cost of $4.5 million.

SteelCraft Garden Grove is comprised of 22 shipping containers that host a variety of businesses, including local craft food / desserts, coffee, craft brewery / taproom, wine vendor, vintage video arcade, incubator office space, and communal dining areas. The site also includes a stage for live entertainment, shared table seating, and intimate spaces set in organic garden / citrus trees. The project was developed on a 1.9 AC site at an estimated cost of $5 million.

CASE STUDY - STEELCRAFT FOOD COURTS
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CASE STUDY

UNIQUE HOTEL CONCEPTS IN NATURAL SETTING
There are several unique hospitality concepts Kosmont researched that may fit well in Pacifica:
• On 20+ acres of environmentally sensitive oceanfront lands in California, a “confidential” development has been proposed that is designed to provide low rise luxury bungalow accommodations together with fine dining and event space with public trails that connect to adjacent waterfront properties • On an Oregon waterfront site, a hospitality concept incorporated airstream trailers together with luxury bungalows and communal dining hall
• On a 2-acre infill parcel in Ojai, an Airstream trailer Village called Caravan Crossing was developed – transforming a blighted industrial property into an urban oasis with Airstream trailers that provide overnight accommodations
• On a +4-acre narrow site on Ventura waterfront-adjacent parcel, a similar concept was developed called Waypoint Ventura charging $175 per night for Airstream trailers in a communal setting ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 41

LUXURY HOSPITALITY & RETAIL ON OCEANFRONT BLUFF
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 42
SMALL INFILL PARCEL – AIRSTREAM HOSPITALITY
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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3. BUSINESS DISTRICT ANALYSIS
Pacifica Economic Opportunity Study
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PACIFICA

DISTRICTS

FIVE BUSINESS DISTRICT

AREAS WERE IDENTIFIED

FOR THE OPPORTUNITY

ANALYSIS
Boundaries based on
Pacifica Business District boundaries
Sources:

ESRI BAO Online, City of Pacifica
Pacific Manor / Fairmont
Sharp Park / Eureka Square
Rockaway Beach / Vallemar
Linda Mar /
Sun Valley
Pedro Point
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DISTRICT DEMOGRAPHIC SUMMARY
Pacific Manor /
Fairmont
Sharp Park /
Eureka Square
Rockaway Beach /
Vallemar
Linda Mar /
Sun Valley Pedro Point Citywide
Population 14,600 4,600 3,400 15,000 900 38,500
Households 4,990 1,910 1,270 5,570 350 14,060
Avg HH Size 2.9 2.4 2.6 2.7 2.6 2.7
Median Age 40.7 43.7 46.5 46.8 47.4 43.9
Education: Bach Degree + 51% 55% 55% 47% 76% 51%
Median Household Income $146,500 $137,300 $160,300 $141,100 $200,000 $146,600 Average Household Income $181,200 $177,400 $220,500 $169,800 $285,400 $182,100 Median Home Value $1,024,600 $1,169,900 $1,211,400 $1,035,200 $1,348,400 $1,076,100 Owner Occupied Housing Units 64% 50% 85% 79% 68% 70%
Median Year Housing Unit Built 1967 1967 1961 1964 1966 1965 Median Year Moved into Unit 2010 2012 2003 2003 2010 2007 Source: ESRI Business Analyst Online
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HIGHLIGHTS AND ATTRACTIONS
Pacifica is home to a variety of
historic and cultural attractions,
including:
• Sanchez Adobe, a living history
site occupied since prehistoric
indigenous times.
• Sam’s Castle, a castle built in 1908
with a storied history, filled with
works of art and antiques that is
available for special events.
• Pacifica Pier, attracting fisherman
and sightseers observing
humpback and gray whales.

ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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HIGHLIGHTS AND ATTRACTIONS
Sharp Park Golf Course is a public
golf course that features incredible
views of the Pacific Ocean and
Pacifica’s cliffs. It is owned by the
City and County of San Francisco.

The course was designed by Alister
Mackenzie – a famous golf architect
who has designed courses across the
globe, including the Augusta National
Golf Club in Georgia and Cypress
Point Club in Carmel.

Source: VisitPacifica.com
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A Grape in the Fog
Wine Bar, $$, 4.3
Nick's Restaurant
Seafood, $$, 3.7
Breakers
American, $$, 4
Oasis Vietnamese Cuisine
Vietnamese, $$, 3.9
Buona Italia Caffe
Italian, $$, 4.9
Pacifica Brewery
Brewery, $$, 3.9
Dinosaurs
Vietnamese, $$, 4.1
Pacifica Thai Cuisine
Thai, $$, 3.4
El Toro Loco
Mexican, $$, 3.9
Puerto 27 Peruvian Kitchen & Pisco Bar
Peruvian, $$$, 3.6
Gorilla Barbeque
Barbeque, $$, 3.9
Redeye Grill
Mediterranean, $$, 4.6
Grand HotPot
Hot Pot, $$, 4.1
Soul Rice
Chinese, $$, 4.7
High Tide
Creperie, Café, $$, 3.7
Table Wine
Wine, $$, 4.9
Humble Sea Brewing Company
Brewery, $$, 4
Taqueria La Perla
Mexican, $$, 4.1
Kenny's Café
Chinese, $$, 4.1
Taqueria Pacifica
Mexican, $$, 4.2
Kitten and Pinky
Vietnamese, $$, 4.6
Taqueria Pacifica
Mexican, $$, 4.2
La Playa
Mexican, $$, 3.2
The Green Enchilada
Mexican, $$, 3.8
Longboard Margarita Bar
Mexican, $$, 3.9
Top Pot
Hot Pot, $$$, 4.7
Lovey's Tea Shoppe
Tea Room, $$, 4.4
Uoyakutei Japanese Restaurant
Japanese, $$, 3.7
Moonraker Restaurant
Seafood, $$$, 3.8
Viva Italiano
Italian, $$, 3.1

PACIFICA

RESTAURANTS
Pacifica is home to a variety of
restaurants, breweries, and wine bars
– bringing local flavor and activity to
its business districts.

Many of the best walkable cities have
many restaurants within close
proximity of each other, which can
serve as an amenity for residents and
visitors and supports vibrant
commercial districts.

Source: Yelp (ratings out of 5.0), Coastside Magazine
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PACIFIC MANOR / FAIRMONT
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PACIFIC MANOR / FAIRMONT OVERVIEW
 Pacific Manor / Fairmont area have two shopping centers:
 Fairmont Shopping Center, a 52k+ SF Safeway anchor center near Hickey Blvd & Skyline Blvd in the northeast portion of the City  Pacific Manor is also anchored by Safeway and a variety of small retailers and restaurants at northern entrance to City
 Residential neighborhoods include single-family as well as clusters of multifamily properties.
 District is home to ~5,000 households and 14,600 people. Area is slightly younger relative to the City median age, and has household incomes close to the City average.
 10-year retail sales tax data from HdL shows this area is the largest sales tax generator of the five districts (~$540k in 2022), but sales have barely increased over 2014 levels, the worst performance of any district.
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$0.4
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$0.6
$0.7
$0.8
Millions
Pacific Manor/Fairmont:

Sales Tax History
Sales Tax Revenue
Source: City of Pacifica, HdL, ESRI Business Analyst Online, CoStar ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 51

AERIAL PHOTOGRAPHS OF SHOPPING CENTERS
Fairmont Shopping Center
Safeway, Rite Aid, Shops & Restaurants
Pacific Manor Shopping Centers
Safeway, Walgreens, Shops & Restaurants
Safeway
Rite Aid
Dollar Tree
24 Hour Fitness
Pacific Manor
Hardware
Safeway
Walgreens
Manor Dr
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-60%
-40%
-20%
0%
20%
40%
60%
J-20 A-20 J-20 O-20 J-21 A-21 J-21 O-21 J-22 A-22 J-22
Visitor Traffic: Comparison to
Pre-Covid Baseline
City of Pacifica
Fairmont Shopping Center

FAIRMONT SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
• Fairmont Shopping Center
experienced ~30,000 weekly
visitors, generally in-line with the
pre-Covid baseline and Pacifica’s
overall post-Covid visit recovery.
• Many visitors are from Pacifica,
Daly City, and San Francisco; 64%
of visitors live within 3 miles of
the center.
• Visits to the center peak between
4 - 5 pm.
• Visits are generally stable across
the week, with slightly higher
levels Friday – Saturday.

Source: Placer.ai
Current Visitor Data
Annual Visits 1.6 mil
Median Weekly Visits 29,800
Visit Frequency 6.3 visits / year
Median Visit Length 29 min.

Avg. HH Income $119k
*Visits between 8/21 – 7/22
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FAIRMONT SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
Fairmont Shopping Center
True Trade Area
Source: Placer.ai, 12/21 – 11/22
Shopping Center Annual Visits by Visitor Home Location
City Number Percentage
Pacifica 440,000 28%
Daly City 470,000 30%
San Francisco 230,000 15%
South San Francisco 110,000 7%
San Bruno 90,000 6%
San Mateo 10,000 1%
San Jose 10,000 1%
Half Moon Bay Area 10,000 1%
1 - 3 Miles 980,000 63%
3 – 10 Miles 380,000 24%
10+ Miles 190,000 12%
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PACIFIC MANOR SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
• Pacific Manor Shopping Center
experienced ~16,800 weekly
visitors over the past year –
approx. 40% above the pre-Covid
baseline.
• Most common visitor home
locations are San Francisco,
Pacifica, and Daly City; 43% of
visitors live with 3 miles of the
center.
• Visits to the center peak between
6 - 8 pm, with a secondary peak
between 1 - 3pm.
• Visits are strongest Friday –
Sunday, with ~51% of weekly visits
occurring on those days.

Source: Placer.ai
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-20%
0%
20%
40%
60%
80%
J-20 A-20 J-20 O-20 J-21 A-21 J-21 O-21 J-22 A-22 J-22
Visitor Traffic: Comparison to
Pre-Covid Baseline
City of Pacifica
Pacific Manor Shopping Center
Current Visitor Data
Annual Visits 865,900
Median Weekly Visits 16,800
Visit Frequency 3.4 visits /
year
Median Visit Length 36 min.

Avg. HH Income $120k
*Visits between 8/21 – 7/22
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PACIFIC MANOR SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
Pacific Manor Shopping Center
True Trade Area
Shopping Center Annual Visits by Visitor Home Location
City Number Percentage
Pacifica 320,000 37%
Daly City 100,000 11%
San Francisco 180,000 20%
South San Francisco 50,000 5%
San Bruno 20,000 2%
Half Moon Bay Area 20,000 1%
San Jose 10,000 1%
San Mateo 10,000 2%
1 - 3 Miles 370,000 42%
3 – 10 Miles 300,000 34%
10+ Miles 210,000 24%
Source: Placer.ai, 12/21 – 11/22
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PACIFIC MANOR / FAIRMONT FINDINGS
Pacific Manor Center Area
 Gateway to City from the north
 Challenges with signage, vacancy, coordination of multiple landowners  Large concentration of retail and residential development  No undeveloped sites – will require redevelopment of existing properties  Substantial refurbishment of Pacific Manor Shopping Center needed Fairmont Center Area
 Strong grocery-anchored center surrounded by residential neighborhoods, draws visitors from Pacifica as well as other nearby cities
 No undeveloped sites – healthy neighborhood shopping center ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PACIFIC MANOR / FAIRMONT RECOMMENDATIONS
There were no significant undeveloped sites found in the Pacific Manor or Fairmont neighborhood.  Kosmont recommends upgrading the signage and appearance of the Safeway anchored Manor Shopping Center Safeway.
 Create Coast Highway and offramp visible signage announcing Pacifica Business District Timing
Meetings with Manor owners and State officials would be a near term priority Next Steps:
 City should work with the Manor shopping center owners to encourage rehabilitation and/or renovation of center signage and store front façade
 Work with State to add Coast Highway signage before first exit from the north ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 58

SHARP PARK / EUREKA SQUARE
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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SHARP PARK / EUREKA SQUARE OVERVIEW
 Sharp Park / Eureka Square district:
 Eureka Square, a 93k+ SF neighborhood center anchored by Oceana Market east of Hwy 1
 Small strip centers and other freestanding retailers along Palmetto Ave and Francisco Blvd
 High concentration of multifamily properties
 District is home to ~1,900 households and 4,600 people. Area has a median age close to the Citywide benchmark, and has household incomes that are slightly below the City average. Area has the highest percentage of renter occupied housing units (50%) of the five districts.  10-year retail sales tax data from HdL shows this district generated ~$250k in sales tax in 2022, with significant growth over the past 10 years (9.8% CAGR), particularly since 2020.
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Millions
Sharp Park/Eureka Square:

Sales Tax History
Sales Tax Revenue
Source: City of Pacifica, HdL, ESRI Business Analyst Online, CoStar ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 60

AERIAL PHOTOGRAPHS
Palmetto Ave
Retail Shops, Small Offices & Restaurants
Beach Blvd Hotel Site
Oceana Market
Eureka Square Shopping Center
Oceana Market, Shops & Restaurants
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-40%
-20%
0%
20%
40%
60%
J-20 A-20 J-20 O-20 J-21 A-21 J-21 O-21 J-22 A-22 J-22
Visitor Traffic: Comparison to
Pre-Covid Baseline
City of Pacifica
Eureka Shopping Center

EUREKA SQUARE SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
• Eureka Square Shopping Center
experienced ~9,300 weekly visitors
over the past year – approx. 7%
above the pre-Covid baseline, and
generally overperforming Pacifica’s
overall post-Covid visit recovery.
• Most common visitor home
locations are Pacifica, San Francisco,
Daly City; 45% of visitors live
within 3 miles of the center.
• Visits to the center peak between 3
- 4 pm, with ~80% of visits
between 11am - 8pm.
• Visits are generally stable across
the week, with slightly higher levels
on Saturday.

Source: Placer.ai
Current Visitor Data
Annual Visits 485,700
Median Weekly Visits 9,300
Visit Frequency 4.0 visits /
year
Median Visit Length 35 min.

Avg. HH Income $129k
*Visits between 8/21 – 7/22
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EUREKA SQUARE SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
Eureka Square Shopping Center
True Trade Area
Shopping Center Annual Visits by Visitor Home Location
City Number Percentage
Pacifica 220,000 42%
Daly City 50,000 10%
San Francisco 70,000 13%
South San Francisco 20,000 5%
San Bruno 20,000 4%
San Mateo 10,000 2%
San Jose 10,000 1%
Half Moon Bay Area 30,000 6%
1 - 3 Miles 220,000 42%
3 – 10 Miles 170,000 33%
10+ Miles 130,000 25%
Source: Placer.ai, 12/21 – 11/22
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SHARP PARK / EUREKA SQUARE FINDINGS
 Sharp Park area is home to City Hall, Pacifica Pier, Main library and is adjacent to the Countyowned historic Sharp Park Golf Course  Sharp Park is suited as future “downtown” for the City using new Specific Plan guidelines  The City-owned Beach Blvd. site is a strong development opportunity site for expansion of tourism facilities and to activate Palmetto Avenue
 Eureka Square, located on east side of Coast Highway, has recently undergone major renovation
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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SHARP PARK / EUREKA SQUARE RECOMMENDATIONS
There are several sites suitable for development within the Palmetto Ave. corridor to create a downtown district:
• Beach Blvd 3.5 acre former wastewater treatment site well suited for hotel/commercial or community development • Five Palmetto Ave. parcels – from 0.11 to 0.36 acres each suited for residential/commercial development Timing
Based on current economic conditions, development will likely be several years away Meeting with property owners and starting Surplus Land Act process is near term priority Next Steps:
• Educate property owners on the benefits of the recently adopted Specific Plan • City work with City & County of San Francisco to expand activities/promotion of historic Sharp Park Golf Course • Publicly-owned land needs go through the State HCD’s Surplus Land Act before private development can occur (i.e., Beach Blvd. site)
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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ROCKAWAY BEACH / VALLEMAR
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ROCKAWAY BEACH / VALLEMAR OVERVIEW
 Rockaway Beach / Vallemar district is home to multiple hotels and a variety of small restaurants / shops / local offices near Rockaway Beach Ave and Cabrillo Hwy with multiple property owners.  Residential neighborhoods are primarily single-family, with some small multifamily properties.
 District is home to ~1,300 households and 3,400 people. Area is relatively older and has higher household incomes compared to the City averages, and has the highest percentage of owneroccupied housing units.  10-year retail sales tax data from HdL shows this district generated ~$230k in sales tax in 2022, with little growth over the past 10 years (0.9% CAGR).
 The district is home to 236 hotel rooms, ~75% of the City’s hotel inventory; Citywide TOT generates ~$2.1m for General Fund $0.0
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2013201420152016201720182019202020212022
Millions
Rockaway Beach/Vallemar:

Sales Tax History
Sales Tax Revenue
Source: City of Pacifica, HdL, ESRI Business Analyst Online, CoStar ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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AERIAL PHOTOGRAPH
Quarry Site
Rockaway
Beach
Fairfield Inn & Suites
Pacifica Lighthouse Hotel
Sea Breeze Motel
Inn at Rockaway
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ROCKAWAY BEACH PLAZA
VISITOR ANALYTICS – PLACER.AI
• Rockaway Beach Plaza had ~14,200
weekly visitors over the past year – 3%
above the pre-Covid baseline, slightly
over Pacifica’s overall post-Covid visit
recovery.
• Most common visitor home locations are
San Francisco, Pacifica and Daly City;
22% of visitors living with 3 miles of the
center.
• Visits peak between 6 - 8 pm, and are
generally spread throughout the day.
• Visits are highest Saturday/Sunday, with
~43% of weekly visits occurring those
days.

Source: Placer.ai
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20%
40%
60%
80%
J-20 A-20 J-20 O-20 J-21 A-21 J-21 O-21 J-22 A-22 J-22
Visitor Traffic: Comparison to
Pre-Covid Baseline
City of Pacifica
Rockaway Beach Plaza
Current Visitor Data
Annual Visits 740,200
Median Weekly Visits 14,200
Visit Frequency 2.3 visits /
year
Median Visit Length 68 min.

Avg. HH Income $124k
*Visits between 8/21 – 7/22
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ROCKAWAY BEACH PLAZA
VISITOR ANALYTICS – PLACER.AI
Rockaway Beach Plaza
True Trade Area
Shopping Center Annual Visits by Visitor Home Location
City Number Percentage
Pacifica 160,000 23%
Daly City 40,000 5%
San Francisco 70,000 10%
South San Francisco 30,000 4%
San Bruno 20,000 3%
San Mateo 20,000 2%
San Jose 20,000 3%
Half Moon Bay Area 20,000 3%
1 - 3 Miles 160,000 22%
3 – 10 Miles 170,000 24%
10+ Miles 380,000 54%
Source: Placer.ai, 12/21 – 11/22
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ROCKAWAY BEACH / VALLEMAR FINDINGS
 Rockaway Beach is the main tourism center for the City  District has largest concentration of hotel rooms and restaurants  With multiple property ownership redevelopment is challenging  There are limited parking facilities for such a large concentration of commercial  Wednesday Farmer’s Market utilizes much of the parking areas  Quarry site is a strong development opportunity site for expansion of tourism facilities ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 71

ROCKAWAY BEACH / VALLEMAR RECOMMENDATIONS
There are two opportunity sites Kosmont identified:
 The flat southeastern 20-acre portion of Quarry site is well suited for residential and for high end hospitality development to expand amenities for Rockaway as a major tourist location  Approximately 2-3 acres of the parking lot of the Sea Bowl site may be considered for medium to high density blended-use housing/commercial while retaining bowling and restaurant uses Timing
Based on current economic conditions, new development will be several years away Meeting with property owners could be near term priority Next Steps:
 City could work with ownership to upgrade Lighthouse Hotel facility  Initiate Specific plan process with ownership / encourage low density visitor serving uses  Meet with Sea Bowl ownership to discuss long term plans ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 72

LINDA MAR / SUN VALLEY
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LINDA MAR / SUN VALLEY OVERVIEW
 Linda Mar / Sun Valley has three primary shopping areas:
 Linda Mar Shopping Center, an 89k+ SF community center anchored by Safeway near Linda Mar Blvd and Cabrillo Hwy  Park Mall Center, a 48k+ SF neighborhood center
 Pacifica Athletic Center, a 22k+ SF neighborhood center  Residential is primarily single-family, with some clusters of small multifamily units.
 District is home to ~5,570 households (the largest of the five districts). Area is older than City median, with lower
household incomes than Citywide average.
 10-year retail sales tax data from HdL shows this district generated ~$465k in sales tax in 2022 (the second-highest district), with annual growth of ~3.8% since 2013.
$0.0
$0.1
$0.2
$0.3
$0.4
$0.5
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Linda Mar/Sun Valley: Sales Tax
History
Sales Tax Revenue
Source: City of Pacifica, HdL, ESRI Business Analyst Online, CoStar ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 74

LINDA MAR CENTER & SAMTRANS PARK AND RIDE

AERIAL PHOTOGRAPH
Taco Bell Pacifica Beach
Safeway
Rite Aid
Ross Dress for Less
SamTrans Park and Ride
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PARK MALL CENTER

AERIAL PHOTOGRAPH
Park Mall Center
Sun Valley
Fine Foods
Library
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COMMUNITY CENTER

AERIAL PHOTOGRAPH
Community
Center
Skate
Park
Parking
Field
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-60%
-40%
-20%
0%
20%
40%
60%
J-20 A-20 J-20 O-20 J-21 A-21 J-21 O-21 J-22 A-22 J-22
Visitor Traffic: Comparison to
Pre-COVID Baseline
City of Pacifica
Linda Mar Shopping Center

LINDA MAR SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
• Linda Mar Shopping Center had
~40,500 weekly visitors over the past
year – 5% above the pre-Covid
baseline, slightly over Pacifica’s postCovid visit recovery. • Most common visitor home locations
are San Francisco, Pacifica, and Daly
City; 44% of visitors living with 3 miles
of the center.
• Visits to the center peak between 3 -
5 pm, with ~80% of trips between
11am – 8pm.
• Visits are stable across the week, with
slightly higher levels Saturday –
Sunday.

Source: Placer.ai
Current Visitor Data
Annual Visits 2.1 mil
Median Weekly Visits 40,500
Visit Frequency

6.5 visits /
year
Median Visit Length 31 min.

Avg. HH Income $130k
*Visits between 8/21 – 7/22
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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LINDA MAR SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
Linda Mar Shopping Center
True Trade Area
Shopping Center Annual Visits by Visitor Home Location
City Number Percentage
Pacifica 1,090,000 48%
Half Moon Bay Area 350,000 16%
San Francisco 190,000 8%
Daly City 110,000 5%
South San Francisco 50,000 2%
San Bruno 30,000 1%
San Jose 30,000 1%
San Mateo 20,000 1%
1 - 3 Miles 990,000 44%
3 – 10 Miles 670,000 30%
10+ Miles 600,000 27%
Source: Placer.ai, 12/21 – 11/22
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LINDA MAR / SUN VALLEY FINDINGS
 Linda Mar Center is the gateway to City from the South  Linda Mar Center has professional management, institutional ownership which is beneficial to new development
 The District has City’s largest concentration of retail and residential  Linda Mar Center unused parking area in SE corner of center is potential residential or mixed-use development site (See Section 4 for detailed discussion of opportunity sites)  Park Mall has small commercial land parcel plus vacant land behind library  SamTrans Park and Ride lot is proximate to beach and could be developed for higher use  The Pacifica Community Center is oceanfront site - valuable opportunity for public/private partnership for commercial use and upgraded community facilities – Surplus Lands Act requirements will likely apply
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 80

LINDA MAR / SUN VALLEY RECOMMENDATIONS
There are four opportunity sites Kosmont identified:
 The SamTrans Park & Ride lot is high value location suited for commercial development  The surplus parking area behind Safeway is recommended to be considered for high density blended use residential / commercial or replacement site for Park & Ride lot across from Linda Mar Center  The Community Center and parking lot are high value properties that City could leverage  Park Mall / Sanchez Library parcels are lower priority sites Timing
Based on current economic conditions, new development will be several years away Analysis of Community Center site and meeting with property owners could be near term priority Next Steps:
 Discussions with SamTrans to consider Public/Private Partnership (“P3”) development on the Park & Ride lot  Analyze obstacles and redevelopment opportunities for Community Center site across from Linda Mar Beach. How large building needed for community services? Other locations that can accommodate some of them?  Discuss blended-use development options for surplus parking area behind Safeway with Kimco ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 81

PEDRO POINT
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PEDRO POINT OVERVIEW
 Pedro Point district is the smallest district in the City, characterized by the Pedro Point Shopping Center, a 32k+ SF center anchored by Grocery Outlet with fitness, popular retailers and restaurants.
 Residential neighborhood is hillside single-family.
 District is home to ~350 households and 900 people. Area has the oldest median age of the five districts, highest level of bachelor degrees, and highest household income levels.
 10-year retail sales tax data from HdL shows this district generated ~$135k in sales tax in 2022 (the lowest district), with annual growth of ~10.4% since 2013 (the highest district). $0.0 $0.1
$0.2
$0.3
$0.4
$0.5
2013201420152016201720182019202020212022
Millions
Pedro Point: Sales Tax
History
Sales Tax Revenue
Source: City of Pacifica, HdL, ESRI Business Analyst Online, CoStar ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 83

AERIAL PHOTOGRAPH
Pacifica Beach
Linda Mar
Shopping Center
Grocery Outlet
Ace Hardware
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-60%
-40%
-20%
0%
20%
40%
60%
J-20 A-20 J-20 O-20 J-21 A-21 J-21 O-21 J-22 A-22 J-22
Visitor Traffic: Comparison to
Pre-Covid Baseline
City of Pacifica
Pedro Point Shopping Center

PEDRO POINT SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
• Pedro Point Shopping Center had
~16,400 weekly visitors over the
past year – approx. 25% above the
pre-Covid baseline, and over
Pacifica’s post-Covid recovery.
• Many visitor home locations in San
Francisco and Daly City
• Visits to the center peak between
1 - 2 pm
• Visits are generally stable thru the
week, slightly higher on Saturday –
Sunday.

Source: Placer.ai
Current Visitor Data
Annual Visits 871,000
Median Weekly Visits 16,400
Visit Frequency 3.8 visits /
year
Median Visit Length 44 min.

Avg. HH Income $141k
*Visits between 8/21 – 7/22
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PEDRO POINT SHOPPING CENTER
VISITOR ANALYTICS – PLACER.AI
Pedro Point Shopping Center
True Trade Area
Shopping Center Annual Visits by Visitor Home Location
City Number Percentage
Pacifica 350,000 40%
San Francisco 110,000 13%
Half Moon Bay Area 100,000 11%
Daly City 30,000 3%
South San Francisco 20,000 2%
San Mateo 10,000 1%
San Jose 10,000 1%
San Mateo 10,000 1%
1 - 3 Miles 290,000 33%
3 – 10 Miles 250,000 28%
10+ Miles 330,000 38%
Source: Placer.ai, 12/21 – 11/22
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PEDRO POINT FINDINGS
 Poor access with entrance located off Coast Highway
 Vibrant retail center with new fitness facility and Grocery Outlet rehab  Vacant 5-acre parcel behind shopping center possible residential development site, but subject to complicated permitting processes with Coastal Commission and City jurisdictions ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 87

4. OPPORTUNITY SITES
Pacifica Economic Opportunity Study
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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POTENTIAL OPPORTUNITY
SITES
Based on Kosmont’s research, district analysis and input gathered during the stakeholder / community outreach
process, Kosmont identified several opportunity sites for potential commercial or blended use development. For City owned sites, long term ground leases are strategic options that can provide additional annual revenue.

1. Beach Blvd site

2. Palmetto Ave sites

3. Quarry site

4. Sea Bowl parking field site

5. Linda Mar Center parking field / site

6. Park Mall and library surplus land site

7. SamTrans Park and Ride site

8. Community Center site
See detailed site information on following pages
1 2
3 4
5 6
7 8
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SURPLUS LAND ACT CONSIDERATIONS
(FOR PUBLIC AGENCY OWNED PROPERTIES)
 Some of the potential opportunity sites such as the Beach Blvd Hotel site, the SamTrans Park and Ride site, and the Community Center site must comply with State mandates prior to selling / leasing.
 The Surplus Land Act (SLA) was passed in response to the housing shortage in California. Public agency owned property cannot be sold or leased until it complies with the SLA, with certain exceptions.
 SLA requires an up to 150-day (NOA for 60 days + good faith negotiations for 90 days) RFP process to either select or reject an affordable housing project/proposal. City does not have to sell the property for less than fair market value. If rejected, property can be sold to broader market.  After completing the process, any development will be subject to a covenant requiring any residential development with 10 or more units to provide at least 15% of units available to low-income households.
 If local agency does not comply with SLA, HCD will impose fine of 30% of final sale price for first violation, 50% of final sale price for second violation.  City should engage real estate and legal counsel to navigate SLA process and conduct appropriate property due diligence.

SLA Required Disposition Process

1. Declaration of the property as either “surplus” or “exempt surplus.”

2. If declared “surplus,” disseminate a Notice of Availability (NOA) offering the property to other government agencies and affordable housing developers for a period of 60 days.

3. If the City receives letters of interest from government agencies and/or affordable housing developers, then it must negotiate in good faith with those interested parties for a period of 90 days.

4. After the 90-day good faith negotiation period, the City must notify the State Department of Housing and Community Development (HCD) and provide information that documents compliance with the process and request a letter of compliance.

5. HCD has 30 days to respond to City with questions/request for more information and, at the conclusion of the 30-day period, must provide a letter stating that the City has complied with the process or not.

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BEACH BLVD HOTEL OPPORTUNITY SITE
Address 2212 Beach Blvd
APN(s) 016-204-020
016-294-620
Current AV -
Acreage 3.5 AC
Ownership City of Pacifica
Surrounding Use(s) Low-density multifamily, commercial
Opportunity
Key oceanfront site can be anchor for
new “downtown” district. Hotel and
retail would be ideal on long term
ground lease.

Palmetto Ave
Montecito Ave
Beach Blvd
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RECOMMENDATIONS / ECONOMIC BENEFITS
As an oceanfront community approximately 10
miles south of San Francisco, there is strong
demand for high value hotels with proper
marketing and attraction to leisure travelers.

However, Pacifica has limited upscale hospitality
facilities, especially compared to Half Moon Bay.

The City has envisioned this site as a
future hotel/commercial/mixed/blended use
site. An RFP was issued in late 2019 but
was withdrawn after the COVID pandemic hit.

Background
The City owns a 3.5 acre former
wastewater treatment ocean front site on
Beach Blvd. in the heart of the Sharp Park
district near the Pacifica Pier. According to
the Sharp Park Specific Plan the height limit
is 55 feet, which makes it well suited for
hotel or residential use over ground floor
commercial.

Next Steps

1. Determine if hotel and complimentary uses are still desired by City.

2. Given recently adopted Surplus Land Act (“SLA”) requirements, before private development can occur, City may consider alternative public uses (possible relocation of Community Center).

3. If private development is desired, then SLA process must be initiated to promote the site to potential affordable housing developers throughout the State per Housing & Community Development.

4. If affordable housing developers are not interested or unable to reach agreement with City, then reissue RFQ/P for private development.

5. Can consider leasing the site to provide long term revenue source.

Economic Benefits
A moderate sized select service hotel development on half of the site could yield approximately +$500,000 in annual tax revenues to City, while a residential development of 50-60 units on remaining half could add approximately +$30 million in assessed value and bring $1 million in new resident spending. This could yield +$150,000 in annual tax revenue to City.

ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PALMETTO AVE SITES
1 2 3 4 5
Address 2022 Palmetto
Ave
2100 Palmetto
Ave
2107 Palmetto
Ave
2205
Palmetto Ave
APN(s) 016-032-310 016-181-410 016-182-370
016-182-390 016-192-320 016-211-210
AV (2021) $75,033 $557,124 $420,469 $404,302 $509,626
Acreage 0.36 0.18 0.13 0.31 0.11
Ownership Thomas E
Bishop
Ahmad
Alshamari
Dymond Coast
LLC Ahmad Alshamari Kevin Hale
Surrounding
Use(s) Main Street commercial / retail, low-density multifamily residential Opportunity Sharp Park Specific Plan guidelines for blend of commercial and residential uses would liven foot traffic and benefit Palmetto Ave. businesses. 1 2
3 4
5 Salada Ave
San Jose Ave
Santa Rosa Ave
Montecito Ave
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RECOMMENDATIONS / ECONOMIC BENEFITS
The recently adopted Sharp Park Specific
Plan is designed to provide a downtown
district for Pacifica and complete
neighborhood for future residents.

There are several vacant Palmetto Ave.
parcels from 0.11 to 0.36 acres each
totaling approximately 1 acre that are
privately owned and can be developed with
moderate density mixed / blended-use
according to Specific Plan.

Palmetto Ave. is the backbone of the
neighborhood with mix of uses to attract
visitors and allow them to linger. Strong
housing demand makes this is an excellent
opportunity.

Background
Palmetto Ave. is the main street in the Sharp Park neighborhood. Historically this has been a heavily residential area. In addition to the new Specific Plan, the City has recently completed ½ mile of bicycle and pedestrian improvements to increase mobility.

Next Steps

1. Discuss the benefits of the recently adopted Specific Plan with property owners

2. Consider developing public parking lots to accommodate more visitors Economic Benefits
Blended use development of 30-40 units is possible on these parcels and could add approximately +$30 million in assessed value and bring $1 million in new resident spending yielding up to $100,000 in City tax revenues; in addition, new residents would bring important daytime activity to the street.

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QUARRY OPPORTUNITY SITE
Address
APN(s)
018-150-110
018-150-120
018-150-150
Current AV $5,379,000
Acreage 39.1 AC (as outlined)
Ownership Preserve @ Pacifica LLC
Surrounding Use(s) Open space, hotel, commercial,
residential
Opportunity
Key site to expand Rockaway visitor
facilities. Could be a boutique hotel
and event center on southern portion
of site together with residential.

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RECOMMENDATIONS / ECONOMIC BENEFITS
The most significant opportunity site for
the City is located in Rockaway /
Vallemar area. Rockaway is the City’s
hospitality center, but it lacks many
amenities including high quality facilities
and parking.

Southern portion of the flat or Eastern
parcel (approximately 20 acres) of the
Quarry site is well suited for residential
and for high end hospitality development
to expand amenities for Rockaway as a
major tourist location (see case study of
unique hospitality concepts in Section 2
– Land Use Trends). The hillside areas
comprising half of the site would be
preserved for open space.

Background
A former rock quarry, the 39-acre flat portion of site is strategically located between the Rockaway hotels, Pacific Ocean and Coast Highway. Development proposals have had extensive history of community opposition, especially housing development. 1983 Ordinance 391-c.s. was approved and rezoned the site to C3 commercial, with a provision that requires a citywide public vote to approve new housing.

Next Steps
Initiate Specific Plan process with ownership and encourage low density highvalue visitor serving uses in conjunction with housing development.

Economic Benefits
Luxury hospitality development of 75-100 “bungalows” on Quarry site could add approximately $50 million in AV and yield $500,000 to $1 million in TOT and sales tax, plus over $50,000 in property taxes to the General Fund. Residential development could add another $50 million in AV and $2 million in increased retail sales potential to local businesses.

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SEA BOWL PARKING LOT OPPORTUNITY SITE
Address 4625 Coast Hwy
APN(s) 022-150-440
Current AV $1,351,000
Acreage 8.81 AC
Ownership Sea Bowl Pacifica Inc
Surrounding Use(s) Pacifica Brewery, open space,
commercial, residential
Opportunity
With highway visibility additional retail
and multi-family housing can be
accommodated on underutilized
portion of site
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RECOMMENDATIONS / ECONOMIC BENEFITS
Two popular entertainment venues in
the City, the 32-lane Sea Bowl and
lounge and the 3,700 SF Pacifica Brewing
Company are located on an 8.8-acre site.

Background
The existing buildings occupy
approximately 40,000 square feet for a
floor area ratio (“FAR”) of 0.1. With
such low density, 1/3rd of the parking lot
could be reconfigured for medium to
high density blended use providing up to
100 multifamily units and 5,000 SF of
additional commercial, or alternatively
add 15,000 to 20,000 SF of additional
restaurant / entertainment.

Next Steps
City and property owners could examine potential rezoning of the site.

Economic Benefits
A blended use development of 80-100 units would add approximately +$50 million in assessed value and bring $2 million in retail sales from new resident spending. This could yield +$200,000 in annual tax revenue to City, in addition to retaining these important retail / entertainment venues.

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LINDA MAR UNDERUTILIZED PARKING OPPORTUNITY SITE
Address 1380 Linda Mar Blvd
APN(s)
023-041-190
023-041-200
023-041-270 (partial)
Current AV NA
Acreage 1.9 AC
Ownership Linda Mar SC LP
Surrounding Use(s) Retail / commercial, residential
Opportunity
If overflow parking is not required for
shopping center, could accommodate
~60 units of housing plus 5,000 -
10,000 SF retail
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RECOMMENDATIONS / ECONOMIC BENEFITS
A priority opportunity site within Linda
Mar / Sun Valley is the surplus ~2-acre
parking area behind the Linda Mar
Center Safeway.

Kosmont recommends it be considered
for high density blended use residential /
commercial uses.

Background
This site provides overflow parking for the shopping center, per City code. It was identified in the most recent Housing Element as a site for new residential development.

Next Steps

1. Discuss blended-use development options for surplus parking area behind Safeway with owner of shopping center (Kimco).

2. City / Kimco to analyze potential for parking variance at Linda Mar Center.

Economic Benefits
A blended use development of 60-80 units would add approximately +$40 million in assessed value and bring $1-2 million in new resident spending. This could yield +$150,000 in annual tax revenue to City.

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PARK MALL OPPORTUNITY SITES
1 2 3
Address 1055 Terra Nova Blvd 725 Oddstad Blvd Sanchez Library / Park APN(s) 023-593-070 023-593-160 023-593-140
AV (2021) $459,334 $796,566 -
Acreage 0.41 AC 2.14 AC 2.77 AC
Ownership Charles Douglas
O’Connor Cabot Layne Sheley City of Pacifica
Surrounding Use(s) Retail, low-density residential
Opportunity
Parcel 1 potential retail pad bldg. Parcel 2 potential commercial / mixed use development; Parcel 3 potential residential/blended use on undeveloped library park land.
1 2
3 ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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RECOMMENDATIONS / ECONOMIC BENEFITS
Park Mall is a 48,000 square foot
community center in the eastern section
of Linda Mar. It is anchored by Sun
Valley Fine Foods.

Kosmont recommends that area be
considered for medium density blended
use residential / commercial uses.

Background
There are some vacant parcels surrounding the center, including the Sanchez Park that are owned by the City. The Sanchez Library facility is to be retained as part of City’s library master plan.

Next Steps

1. Analyze need for City owned surplus land.

2. Meet with private property owners at Park Mall to discuss development opportunities (both retail and multi-family).

Economic Benefits
Blended use development of 50-60 units could add approximately +$30 million in assessed value and bring $1 million in new resident spending. This could yield +$100,000 in annual tax revenue to City.

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SAMTRANS PARK & RIDE OPPORTUNITY SITE
Address Cabrillo Hwy & Linda Mar Blvd,
behind gas station
APN(s) -
Current AV -
Acreage ~2 AC
Ownership SamTrans
Surrounding Use(s) Gas station, residential, retail center Opportunity
Retail pad is viable or possible
Airstream Trailer Hotel that requires
minimal investment. SamTrans will
need to relocate Park and Ride
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RECOMMENDATIONS / ECONOMIC BENEFITS
The SamTrans Park & Ride lot is an
approximately 2-acre site in a high value
location across from Linda Mar Center
and Coast Highway.

Potential uses could be a “Steelcraft”
container type food court, retail pads
or “Airstream type” hospitality trailer
park.

Background
This site is owned by SamTrans, the regional transportation provider for use as Park & Ride lot for commuters to San Francisco area. The site does not appear to be heavily utilized. Given its excellent location, SamTrans may consider a public/private development opportunity.

Next Steps

1. Open discussions with SamTrans to consider doing commercial development under long term ground lease

2. Determine potential new parking sites for commuters (perhaps east side of Linda Mar Center)
Economic Benefits
Commercial development could bring approximately $100,000 to $250,000 per year in retail sales and/or TOT to the City General Fund.

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COMMUNITY CENTER OPPORTUNITY SITE
Address 540 Crespi Drive
APN(s) 022-162-420
Building Size 18,955 SF
Acreage 5.0 AC
Ownership City of Pac Fin Authority Lessee
Surrounding Use(s) Oceanfont, Commercial, residential
Opportunity
Potential public/private partnership
for commercial leases within the
community center facilities,
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RECOMMENDATIONS / ECONOMIC BENEFITS
The Community Center and parking lot
at 540 Crespi Drive are valuable ocean
frontage properties estimated at 5 acres
in size. Ideally suited for retail uses as
well as community programs currently in
operation.

Background
This facility is a former AT&T operator
switching station, acquired by the City in
1986 and renovated as a community
center in 1988. The public parking lot
serves center, as well as Linda Mar Beach
visitors. The facility is currently housing
City Hall while the main facility is under
construction in Sharp Park.

Next Steps

1. Assess how much of the building area is needed for community services.

2. Can some limited commercial uses be accommodated in the building or parking lot

3. If redevelopment is considered, City must proceed through HCD’s SLA process to promote site to affordable housing developers.

4. Can consider leasing portions of the site.

Economic Benefits
Blended use development of 80-100 units plus retail pad could add approximately +$50 million in assessed value and bring $2 million in new visitor and resident spending, which could yield +$100,000 in annual tax revenues.

Commercial development could bring up to $100,000 per year in retail sales and/or TOT to the City General Fund.

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5. APPENDIX – DEMOGRAPHIC, ECONOMIC AND MARKET DATA
Pacifica Economic Opportunity Study
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A. DEMOGRAPHIC ANALYSIS
Pacifica Economic Opportunity Study
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DEMOGRAPHIC SUMMARY
 Pacifica has a population of ~38,000, with essentially no population growth over the past 20 years  Average Household Size is 2.7 persons, and the Median Age is 43.9 years; residents are well educated, with ~51% achieving at least a bachelors degree  City Average Household Income is $182,000, approx. ~3% less than San Mateo County and 41% higher than statewide levels
 Pacifica sees a Net Outflow of ~15,740 jobs, with workers going to surrounding job centers such as San Francisco, South San Francisco, San Mateo, and Daly City  Jobs in the City are primarily in the Accommodation / Food Services, Educational Services, Healthcare / Social Assistance, and Retail Trade sectors
 Residents of the City are primarily employed in the Healthcare / Social Assistance, Professional / Scientific / Technical Services, Educational Services, and Accommodation / Food Services, sectors ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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POPULATION & INCOME

CITY, COUNTY, AND STATE
2022 Pacifica
City
San Mateo
County
California
State
Population 38,458 769,689 39,770,476
Households 14,064 270,845 13,570,050
Average HH Size 2.7 2.8 2.9
Median Age 43.9 41 36.7
% Bachelor's Degree or Higher 50.6% 55.5% 37.8%
Per Capita Income $66,642 $71,302 $44,265
Median HH Income $146,648 $150,965 $88,930
Average HH Income $182,144 $202,452 $129,367
Median Home Value $1,076,093 $1,387,819 $629,224
Source: ESRI Business Analyst Online, 2022
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-10%
-5%
0%
5%
10%
15%
20%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Population Growth, 2000 - 2021
Pacifica San Mateo California
POPULATION GROWTH, 2000 – 2022

PACIFICA, SAN MATEO COUNTY, CALIFORNIA
Source: California Department of Finance, 2022
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POPULATION BY AGE

PACIFICA HAS A STRONG BABY BOOMER POPULATION
Generation Population
(2022)
0 - 14 Years Old 6,000
15 – 24 Years Old 4,000
25 – 34 Years Old 4,800
35 - 44 Years Old 5,000
45 - 54 Years Old 5,200
55 – 64 Years Old 6,000
65 – 74 Years Old 4,700
75+ Years Old 2,800
Source: ESRI Business Analyst Online, 2022
0 - 14 Years
Old, 16%
15 – 24 Years
Old, 11%
25 – 34 Years
Old, 12%
35 - 44 Years
Old, 13%
45 - 54 Years
Old, 14%
55 – 64 Years
Old, 16%
65 – 74 Years
Old, 12%
75+ Years
Old, 7%
Source: ESRI Business Analyst Online, 2022
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POPULATION BY EDUCATIONAL ATTAINMENT

PACIFICA HAS A WELL EDUCATED POPULATION
Source: ESRI Business Analyst Online, 2022
20% 20%
10%
31%
19%
23%
14%
7%
32%
23%
35%
19%
9%
24%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
HS Grad, GED, or Less Some College, No Degree Associate Degree Bachelor's Degree Graduate / Professional Degree
2022 Population by Educational Attainment
Pacifica
City
San Mateo
County
California
State
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POPULATION BY INCOME

PACIFICA HAS A HIGHER PERCENTAGE OF HIGH EARNERS
6%
8%
18%
20% 19%
30%
7% 9%
17% 17%
14%
37%
13%
15%
27%
19%
11%
16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
<$25,000 $25,000 - $50,000 $50,000 - $100,000 $100,000 - $150,000 $150,000 - $200,000 >$200,000 2021 Households by Income Level
Pacifica
City
San Mateo
County
California
State
Source: ESRI Business Analyst Online, 2022
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HOUSING & HOUSEHOLD SIZE
CITY HAS A GREATER SHARE OF 2-PERSON HHS & OWNER-OCCUPIED HOUSING UNITS 0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5 6 7+
Households by Household Size
2010 Census Data
Pacifica
City
San Mateo
County
California
State
0%
10%
20%
30%
40%
50%
60%
70%
80%
% Renter Occupied Housing Units % Owner Occupied Housing Units Owner & Renter Owned Housing Units
2022 Estimate
Pacifica
City
San Mateo
County
California
State
Source: ESRI Business Analyst Online, 2022
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PACIFICA

DISTRICTS
Black boundary line shows southern Pacifica City limit.

Red district boundary lines are based on Census Tracts / Block Groups approximate Business District boundaries
Sources: ESRI BAO Online, City of Pacifica
Pacific Manor /
Fairmont
Sharp Park /
Eureka Square
Rockaway Beach
/ Vallemar
Linda Mar /
Sun Valley Pedro Point
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DISTRICT DEMOGRAPHIC SUMMARY
Pacific Manor /
Fairmont
Sharp Park /
Eureka Square
Rockaway Beach /
Vallemar
Linda Mar /
Sun Valley Pedro Point Citywide
Population 14,600 4,600 3,400 15,000 900 38,500
Households 4,990 1,910 1,270 5,570 350 14,060
Avg HH Size 2.9 2.4 2.6 2.7 2.6 2.7
Median Age 40.7 43.7 46.5 46.8 47.4 43.9
Education: Bach Degree + 51% 55% 55% 47% 76% 51%
HHs Below Poverty Level 6% 7% 2% 2% 0% 4%
Median Household Income $146,500 $137,300 $160,300 $141,100 $200,000 $146,600 Average Household Income $181,200 $177,400 $220,500 $169,800 $285,400 $182,100 Median Home Value $1,024,600 $1,169,900 $1,211,400 $1,035,200 $1,348,400 $1,076,100 Owner Occupied Housing Units 64% 50% 85% 79% 68% 70%
Median Year Housing Unit Built 1967 1967 1961 1964 1966 1965 Median Year Moved into Unit 2010 2012 2003 2003 2010 2007 Source: ESRI Business Analyst Online, 2022
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Census Tract Neighborhood
Approximation:

Pacific Manor/Fairmont: 6027, 6028,6029
Sharp Park / Eureka Square: 6030
Rockaway Beach / Vallemar: 6031
Linda Mar / Sun Valley: 6033, 6034, 6032 (partial)
Pedro Point: 6032 (partial)

PACIFICA

CENSUS TRACTS
Sources:

ESRI BAO Online
6027
6028
6029
6030
6031
6032
6033
6034
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CENSUS TRACT DATA
2020 CENSUS – POPULATION & HOUSEHOLD OVERVIEW
Approx.

Neighborhood Site 2020 Total
Population
2020 Total
Households
2020 Average
Household Size
2020 Total
Housing Units
2020 Population Density
(Pop per Square Mile)
Pacifica (City) 38,640 14,180 2.72 14,652 3,070.9
Manor / Edgemar 6027 6,080 1,949 3.11 1,990 8,728.1
Manor / Edgemar 6028 4,639 1,495 3.10 1,535 10,028.1
Manor / Edgemar 6029 3,958 1,596 2.46 1,682 7,531.9
Sharp Park 6030 4,597 1,935 2.36 2,047 3,362.8
Rockaway 6031 3,306 1,252 2.63 1,289 1,176.8
Pedro Point /
Linda Mar 6032 3,966 1,434 2.75 1,492 2,270.7
Linda Mar 6033 6,568 2,434 2.69 2,495 2,128.0
Linda Mar 6034 5,561 2,102 2.65 2,140 1,244.2
Source: ESRI Business Analyst Online, 2022
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CENSUS TRACT DATA
2020 CENSUS – POPULATION BY AGE
Approx.

Neighborhood Site
Population:
<20 Years
Population:
20-44 Years
Population:
45-64 Years
Population
65+ Years
Population:
<20 Years
Population:
20-44 Years
Population:
45-64 Years
Population
65+ Years
Pacifica
(City) 8,104 12,236 11,179 7,144 21% 32% 29% 18%
Manor / Edgemar 6027 1,349 2,487 1,678 705 22% 40% 27% 11% Manor / Edgemar 6028 1,077 1,557 1,382 892 22% 32% 28% 18% Manor / Edgemar 6029 761 1,418 1,170 555 19% 36% 30% 14% Sharp Park 6030 721 1,805 1,103 698 17% 42% 25% 16%
Rockaway 6031 643 912 1,132 570 20% 28% 35% 18%
Pedro Point /
Linda Mar 6032 882 772 1,326 617 25% 21% 37% 17%
Linda Mar 6033 841 2,007 1,886 1,404 14% 33% 31% 23%
Linda Mar 6034 1,594 1,292 1,502 1,703 26% 21% 25% 28%
Source: ESRI Business Analyst Online, 2022
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CENSUS TRACT DATA
2016-2020 ACS – INCOME OVERVIEW
Approx. Neighborhood Site 2020 Median
Household Income
2020 Average
Household Income
2020 Households
Below the Poverty Level
(%)
Pacifica (City) $130,466 $147,900 4.15%
Manor / Edgemar 6027 $138,086 $147,238 5.63%
Manor / Edgemar 6028 $139,049 $148,639 5.38%
Manor / Edgemar 6029 $120,500 $131,027 8.29%
Sharp Park 6030 $123,208 $135,744 6.76%
Rockaway 6031 $154,156 $175,774 1.55%
Pedro Point / Linda Mar 6032 $127,806 $157,254 1.37%
Linda Mar 6033 $136,056 $160,585 1.25%
Linda Mar 6034 $111,450 $136,234 2.84%
Source: ESRI Business Analyst Online, 2022
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CENSUS TRACT DATA
2016-2020 ACS – HOUSING UNIT OVERVIEW
Approx.

Neighborhood
2020 Total
Housing Units
2020 Median Year
Structure Built
(Total Housing
Units)
2020 Housing:
1 Detached Unit in
Structure (%)
2020 Owner
Households
2020 Renter
Households
2020 Total Vacant
HUs
Pacifica (City) 14,246 1965 73.60% 67% 30% 3%
Manor / Edgemar 6027 1,943 1968 67.22% 63% 36% 1%
Manor / Edgemar 6028 1,523 1967 78.92% 75% 25% 0%
Manor / Edgemar 6029 1,664 1963 58.59% 49% 45% 6%
Sharp Park 6030 1,962 1967 46.79% 46% 50% 4%
Rockaway 6031 1,145 1961 86.55% 79% 16% 4%
Pedro Point / Linda
Mar 6032 1,396 1958 87.18% 72% 22% 6%
Linda Mar 6033 2,428 1960 84.43% 79% 20% 1%
Linda Mar 6034 2,199 1969 83.67% 75% 23% 2%
Source: ESRI Business Analyst Online, 2022
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CENSUS TRACT DATA
2016-2020 ACS – HOUSING TENURE OVERVIEW
Median Year
Householder
Moved in
Households by Year Householder Moved In:
1989/Earlier 1990 - 1999 2000 - 2009 2010 - 2014 2015 or Later Pacifica
(City) 2007 2,979
(23%)
1,935
(15%)
2,780
(22%)
1,484
(12%)
3,583
(28%)
Manor /
Edgemar 6027 2010 308 199 426 121 677
Manor /
Edgemar 6028 2010 351 137 267 286 409
Manor /
Edgemar 6029 2011 198 227 333 83 593
Sharp Park 6030 2012 304 188 301 178 612
Rockaway 6031 2003 245 201 314 104 161
Pedro Point
/ Linda Mar 6032 2004 388 141 343 141 261
Linda Mar 6033 2003 538 529 411 359 365
Linda Mar 6034 2003 647 313 385 212 519
Source: ESRI Business Analyst Online, 2022
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PER ACRE POPULATION AND COMMERCIAL

DEVELOPMENT COMPARISON BY DISTRICT
Pacifica Daly City South San
Francisco San Bruno Millbrae Half Moon Bay
Population Per Acre 5 22 11 13 11 3
Retail SF Per Acre 130 930 440 780 590 470
Shopping Center SF Per Acre 70 540 110 480 120 90
Office SF Per Acre 20 310 1,270 540 190 80
Industrial / Flex SF Per Acre 20 300 3,930 220 60 90
Commercial SF Per Acre 170 1,530 5,640 1,540 830 640
Hotel Rooms Per Acre 0.04 0.06 0.57 0.19 0.58 0.18
Source: ESRI Business Analyst Online, CoStar, 2022
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PACIFICA MAJOR EMPLOYERS
Major Employers in Pacifica
Major Employer Type Employees
Pacifica School District Education 383
City of Pacifica Government 244
Safeway (3) Retail 262
Jefferson High School District Education 108
Oceana Market Retail 55
Ace Hardware Retail 14
Recology of the Coast Waste Management 37
Rite Aid (2) Retail 34
Ross Dress for Less Retail 31
North Coast County Water District Government 18
Source: City of Pacifica ACFR (FY2021)
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WORKER INFLOW / OUTFLOW

CITY SEES SUBSTANTIAL NET OUTFLOW OF WORKERS COMMUTING TO OTHER COMMUNITIES Workers employed in the City
but living outside
Workers living & employed in
the City
Workers living in the City but
employed outside
Worker Inflow/Outflow (2019)
Workers Living & Working 1,627
Workers Coming (Inflow) 3,520
Workers Going (Outflow) 19,260
Net Inflow/Outflow - 15,740
Employment Ratio* 0.25
Source: U.S. Census Bureau Center for Economic
Studies (2019, accessed 2022)
Notes: *Employment Ratio = People employed
within City (living and working in City + those who
come into the City for work) / Employed population of
City (living and working in City + workers who live in
the City, but work outside of the City)
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Outflow:

Where Pacifica Residents Commute To
City Count Percentage
San Francisco 7,480 35.8%
Pacifica 1,627 7.8%
South San Francisco 1,498 7.2%
San Mateo 777 3.7%
Daly City 675 3.2%
Burlingame 573 2.7%
San Jose 513 2.5%
Redwood City 503 2.4%
Oakland 476 2.3%
Palo Alto 372 1.8%
Other Locations 6,393 31%
Inflow:

Where Pacifica Workers Come From
City Count Percentage
Pacifica 1,627 31.6%
San Francisco 781 15.2%
Daly City 440 8.5%
South San Francisco 233 4.5%
San Bruno 169 3.3%
San Mateo 152 3.0%
San Jose 118 2.3%
Oakland 86 1.7%
Hayward 53 1.0%
Half Moon Bay 46 0.9%
Other Locations 1,442 28%
WORKER

DESTINATIONS &

ORIGINS

CITY OF PACIFICA
 Workers who live in Pacifica primarily
work in San Francisco, Pacifica, South
San Francisco, San Mateo, and Daly
City.
 Employees who work in Pacifica
primarily live in Pacifica, San Francisco,
Daly City, South San Francisco, and
San Bruno.

Source: U.S. Census Bureau Center for Economic Studies, OnTheMap, 2019; accessed 2022 ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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Workers Employed Within City
Sector Percentage
Accommodation and Food Services 17.3%
Educational Services 16.1%
Health Care and Social Assistance 14.3%
Retail Trade 12.4%
Construction 10.2%
Administration & Support, Waste Management
and Remediation 5.0%
Public Administration 4.5%
Other Services (excluding Public Administration) 4.4%
Professional, Scientific, and Technical Services 4.0%
Arts, Entertainment, and Recreation 3.1%
Manufacturing 2.9%
Finance and Insurance 1.8%
Real Estate and Rental and Leasing 1.6%
Utilities 0.7%
Transportation and Warehousing 0.6%
Wholesale Trade 0.6%
Information 0.6%
Agriculture, Forestry, Fishing and Hunting 0.1%
Management of Companies and Enterprises 0.0%
City Resident Employed Population
(Age 16+)
Sector Percentage
Health Care and Social Assistance 13.1%
Professional, Scientific, and Technical Services 11.4%
Educational Services 10.2%
Accommodation and Food Services 9.6%
Retail Trade 8.5%
Construction 5.4%
Transportation and Warehousing 5.4%
Manufacturing 5.3%
Administration & Support, Waste Management
and Remediation 5.2%
Public Administration 4.6%
Information 4.4%
Other Services (excluding Public Administration) 3.5%
Finance and Insurance 3.4%
Wholesale Trade 2.9%
Arts, Entertainment, and Recreation 2.2%
Management of Companies and Enterprises 1.7%
Real Estate and Rental and Leasing 1.6%
Utilities 1.1%
Agriculture, Forestry, Fishing and Hunting 0.6%
WORKER

OCCUPATIONS

CITY OF PACIFICA
 Workers who live in Pacifica primarily
work in the Healthcare, Professional /
Scientific / Technical Services,
Educational Services, and
Accommodation / Food Service
Industries.
 Employees who work in Pacifica
primarily work in the Accommodation
/ Food Service, Educational services,
Healthcare, and Retail Trade
industries.

Source: U.S. Census Bureau Center for Economic Studies, OnTheMap, 2019; accessed 2022 “Industries in which City residents work” “Jobs in the City” ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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B. GENERAL FUND REVENUE ANALYSIS
Pacifica Economic Opportunity Study
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REVENUE ANALYSIS SUMMARY
 Pacifica receives ~71% of its General Fund revenue from taxes, of 2/3rds are property taxes and VLF, ~20% of its tax revenue from sales / cannabis taxes and balance from hotel and franchise taxes  Sales Tax revenues have grown ~87% since 2012, or approx. 7% per year;  Highest collections come from Restaurants / Hotels and Food / Drug, reflecting that modern retail resiliency is driven by essentials and experiences.
 Highest percentage growth since 2012 in Building / Construction and Restaurants / Hotels. Growth in Building / Construction likely due to big jump in 2020 - 2022 related to pandemic-era renovation and construction (growth levels likely not sustainable moving forward).
 Tax growth in past 5 years has been heavily weighted by County Pool allocations from growth in internet sales  Property Tax revenues have grown ~45% since 2012, or approx. 4.2% per year; Assessed Value growth driven by high real estate values and mark-to-market reassessments for long-held properties.

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CITY TAX REVENUE OVERVIEW
FY2023
Budget
Property Taxes $ 15,181,300
Property Tax: VLF 5,922,400
Sales Tax 3,111,200
Cannabis Tax 825,000
Transient
Occupancy Tax 2,100,000
Utility Users Tax 1,905,600
Business License
Tax 516,600
Other Taxes 1,687,800
Total 31,249,900
Pacifica has faced budget deficits,
service reductions and inability to
fund specific projects in recent
years. The City needs to identify
opportunities that can spur
economic development and
increase revenues.

The majority of City tax revenue
comes from property taxes, with
only ~10% coming from sales taxes
and 7% from hotel TOT taxes
(much lower than state averages).

Property
Taxes
48%
Property
Tax: VLF
19%
Sales Tax
10%
Cannabis
Tax
3%
TOT
7%
Utility
Users Tax
6%
Business
License Tax
2%
Other
Taxes
5%
City of Pacifica:

FY2023 Budget - Tax Revenue
Source: City of Pacifica
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GENERAL FUND REVENUE
Taxes
71%
Licenses &
Permits
3%
InterGovernmental
12%
Current
Service Chgs.
8%
Other
5%
General Fund Revenue Sources
2021 2021 % CAGR
(2012-2021)
Property taxes $15,087,028 48% 4.2%
Sales Taxes 2,848,681 9% 7.2%
Franchise Tax 1,706,107 5% 0.7%
Other Taxes 9,026,832 29% 13.0%
Motor vehicle in lieu -
unrestricted 2,643,981 8% -1.5%
Investment earnings 9,364 0% -32.8%
Miscellaneous 204,939 1% -8.8%
Transfers -250,000 -1%
Total Governmental
Activities $31,276,932 4.7%
Source: City of Pacifica
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HISTORIC TAX REVENUES BY SOURCE
*CAGR is Compound Annual Growth Rate
Source: Pacifica 2021 ACFR
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CAGR * Property Taxes $10,434,510 $10,701,810 $11,275,518 $12,200,335 $12,445,509 $12,679,059 $13,780,294 $14,731,311 $13,030,713 $15,087,028 4.2% Sales Taxes 1,519,978 1,588,277 1,686,593 1,754,568 1,983,930 2,374,505 2,350,478 2,611,801 2,570,334 2,848,681 7.2% Franchise Tax 1,595,929 1,617,727 1,668,382 1,697,972 1,736,620 1,748,266 1,722,343 1,661,717 1,647,467 1,706,107 0.7% Other Taxes 3,005,388 3,152,723 3,329,647 3,529,485 3,710,615 3,749,159 4,904,111 5,340,307 8,572,837 9,026,832 13.0% Motor vehicle in
lieu - unrestricted 3,039,393 2,923,573 3,164,873 3,320,316 3,543,953 3,731,337 3,973,622 4,199,391 4,253,924 2,643,981 -1.5% Investment
earnings 334,475 164,114 184,700 29,979 -44,457 743,630 151,887 254,481 341,064 9,364 -32.8% Miscellaneous 469,780 357,630 537,867 259,197 1,481,757 846,648 505,076 2,384,463 571,114 204,939 -8.8% Transfers 200,000 410,000 15,715 -150 939,559 818,500 98,343 272,500 80,000 -250,000 Total
Governmental
Activities
$ 2 0 , 5 9 9 , 4 5 3 $ 2 0 , 9 1 5 , 8 5 4 $ 2 1 , 8 6 3 , 2 9 5 $ 2 2 , 7 9 1 , 7 0 2 $ 2 5 , 7 9 7 , 4 8 6 $ 2 6 , 6 9 1 , 1 0 4 $ 2 7 , 4 8 6 , 1 5 4 $ 3 1 , 4 5 5 , 9 7 1 $ 3 1 , 0 6 7 , 4 5 3 $ 3 1 , 2 7 6 , 9 3 2 4.7% ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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RETAIL SALES TRENDS
-20%
-10%
0%
10%
20%
30%
2016 2017 2018 2019 2020 2021
Sales Growth
from 2016 Baseline
Pacifica Half Moon Bay
San Mateo County
Pacifica has seen steady sales growth since
2016 of approx. 3.8% annually on average.

While the Covid-19 pandemic led to a
~13% drop in sales tax revenues in 2020,
Pacifica has recovered. Also worth noting
that the City was not as heavily impacted
as Half Moon Bay or San Mateo County.

Source: California Department of Finance
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TAXABLE SALES BY CATEGORY

LARGEST CATEGORIES ARE EATING / DRINKING & FOOD STORES
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Taxable Sales By Category
Eating & Drinking Places Food Stores Service Stations Building Materials Auto Dealers & Supplies Other Retail Stores All Other Outlets 2020* %
Eating & Drinking Places $45,853,000 19%
Food Stores $30,462,000 12%
Service Stations $29,641,000 12%
Building Materials $5,955,000 2%
Auto Dealers & Supplies $4,728,000 2%
Other Retail Stores $52,880,000 22%
All Other Outlets $75,620,000 31%
TOTAL $245,139,000
Source: City of Pacifica ACFR FY2020-21
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SALES TAX REVENUE BY BUSINESS DISTRICT

STRONG GROWTH AT SHARP PARK AND PEDRO POINT
Pacific
Manor
32%
Sharp
Park
Rockawy 15%
14%
Linda Mar
28%
Pedro
Point
8%
Other
3%
FY2022 Sales Tax Revenue by District
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Sales Tax Growth Since 2013
Source: City of Pacifica, HdL
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TRANSIENT OCCUPANCY TAX TRENDS
 Pacifica collects a 12% transient occupancy
tax (TOT) on hotel room and short-term
rental stays.
 TOT revenues fell slightly during the Covid19 pandemic, but are expected to reach $2.1 million in FY 2022-23.
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2018-19
Actuals
2019-20
Actuals
2020-21
Actuals
2021-22
Amended
Budget
2022-23
Adopted
Budget
Transient Occupancy Tax
Source: City of Pacifica
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PRINCIPAL PROPERTY TAXPAYERS
Property Taxpayer Land Use Taxable Assessed Value Percentage of Total City Taxable Assessed Value
FPA WC Lands End LLC Multifamily Residential $90,842,000 1.30% AIMCO Pacifica Park Apartments Multifamily Residential $57,039,000 0.82% GRI Fairmont LLC Shopping Center $39,250,000 0.56%
Linda Mar Shopping Center, LLP Shopping Center $38,446,000 0.55% Pacifica Villages LP Multifamily Residential $32,229,000 0.46% CRP/PSE Seaside Pacifica Owner Mobile Home Park $26,506,000 0.38% 2400 Skyline Blvd LLC Multifamily Residential $18,185,000 0.26% Bay Apartment Communities, Inc. Multifamily Residential $16,307,000 0.23% Upsky Lighthouse Hotel LLC Hotel $15,322,000 0.22%
LBN Properties LP Multifamily Residential $15,092,000 0.22% Source: City of Pacifica ACFR FY2020-21
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ILLUSTRATIVE FISCAL IMPACT OF NEW DEVELOPMENT
To evaluate Pacifica economic opportunities, here is an illustration of incremental tax revenues potentially generated from various types of development on a typical 1-acre parcel:
10,000 SF
Commercial
Services
10,000 SF
Retail
10,000 SF
Restaurant
50-unit
Multifamily
Housing
Mixed Use
40-units &
5,000 SF
60-room
Upscale Hotel
Property Taxes
+ VLF in-lieu $10,000 $10,000 $15,000 $65,000 $55,000 $50,000 Direct Sales &
Use Taxes $25,000 $50,000 $75,000 $25,000
Indirect Sales &
Use Taxes $20,000 $15,000 $35,000
Hotel
TOT $300,000
Annual
General Fund
Revenues
$35,000 $60,000 $90,000 $85,000 $95,000 $385,000
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 139
C. MARKET ANALYSIS
Pacifica Economic Opportunity Study
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 140

COMMERCIAL REAL ESTATE OVERVIEW

CITY OF PACIFICA
Retail Office Industrial Multifamily
Major Shopping Centers include:
• Linda Mar Shopping Center,
a 168k+ SF community
center featuring Safeway,
Ross Dress for Less, Rite
Aid
• Fairmont Shopping Center, a
120k+ SF neighborhood
center featuring Safeway,
Rite Aid
• Eureka Square, a 93k+ SF
neighborhood center
featuring smaller retail
shops / restaurants
• Several other neighborhood
and strip retail centers
Limited office development; Major
office properties include:
• 930 Oddstad Rd, ~20k SF office
occupied by Laguna Salada
School District
• 2307 Palmetto Ave, ~12k SF
office condo occupied by small
professional tenants
• 1305 Palmetto Ave, 12k SF office
occupied by small professional /
retail tenants
Limited industrial development;
major industrial properties include:
• Pacifica Commerce Center,
~49k SF light warehouse /
industrial park space, occupied
by small industrial and retail
tenants
• 1080 Palmetto Ave, ~26k SF
manufacturing space, occupied
by food manufacturing / bakery
• 325 Reina Del Mar Ave, ~13k SF
service industrial space
occupied by Blue Sky Taxi
Larger apartment complexes
include:
• 100 Esplanade Ave, Oceanaire
Apartment Homes, 260 units
built in 1974
• 265 Gateway Drive, eaves
Pacifica, 220 units built 1971
• 300 Palmetto Ave, Seacliff
Apartments, 132 units built in
1972
Source: CoStar (Accessed June/July 2022)
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COAST HIGHWAY TRAFFIC VOLUMES
 Traffic count estimates for a section of CA-1 just south of Pedro Point shows an average daily traffic volume (ADV) of ~21,000 cars total (~51% southbound traffic).
 The highest days for travel along the route are Friday (24.1k ADV) and Saturday (23.6k ADV), and the lowest are Wednesdays (19k ADV)
 Travel tends to peak during the day between 12pm - 6pm, reaching ~2,000 cars / hour on Saturdays and Sundays between 12pm and 2pm.
 Northbound traffic patterns are similar with more volume on weekday mornings
 Pacifica sees a relatively high level of travel along Coast Highway, with an estimated 10,700 trips passing the City southbound (~91% of those trips are from travelers who live outside Pacifica).

Southbound Traffic Volume:

CA-1 South of Pedro Point
Mon Tues Wed Thurs Fri Sat Sun
12am - 2am 47 41 41 44 52 73 67
2am - 4am 32 30 30 34 37 39 33
4am - 6am 83 80 77 81 83 59 42
6am - 8am 276 292 273 283 287 210 152
8am -10am 515 496 475 505 546 562 463
10am - 12pm 742 658 641 696 810 970 918
12pm - 2pm 848 758 745 803 968 1091 1078
2pm - 4pm 879 819 783 853 1025 1013 982
4pm - 6pm 835 829 788 844 995 843 773
6pm - 8pm 520 527 512 569 709 577 505
8pm - 10pm 259 266 269 308 404 339 277
10pm - 12am 113 110 114 140 212 184 122
TOTAL 10,298 9,812 9,496 10,320 12,256 11,920 10,824
Source: Placer.ai
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TRAFFIC VISITOR DATA
 According to Placer.ai mobile analytics data, visitors who travel through this point on CA-1 just south of
Pedro Point are overwhelming from home locations
outside of Pacifica: ~9% of travelers are from Pacifica, ~32% from Half Moon Bay area, ~12% from San
Francisco, ~4% from Daly City, ~2% from South San
Francisco, and the remainder from a wide variety of
other cities in the Bay Area and beyond.
 Prior to / after traveling through the point on CA-1, some of the most common locations are restaurants /
hotels in Half Moon Bay and nearby beach / hiking
locations.

Top 20 Prior / Post Locations

1. Sam’s Chowder House, Half Moon Bay 11. Oceano Hotel, Half Moon Bay

2. Pacifica State Beach, Pacifica 12. The Ritz-Carlton, Half Moon Bay

3. Montara Mountain, Montara 13. Ross Dress For Less, Pacifica

4. Safeway (Linda Mar), Pacifica 14. Grocery Outlet Bargain Market, Pacifica

5. Half Moon Bay Harbor, Half Moon Bay 15. Poplar Beach, Half Moon Bay

6. Barbara’s Fish Trap, Half Moon Bay 16. Ketch Joanne, Half Moon Bay

7. James V. Fitzgerald Marine Reserve,
Moss Beach

17. Mezza Luna Restaurant, Half Moon
Bay

8. Half Moon Bay Brewing Company, Half
Moon Bay 18. Pillar Point Harbor, Half Moon Bay

9. San Francisco International Airport,
San Francisco 19. Moss Beach Distillery, Moss Beach

10. Montara State Beach, Montara 20. Half Moon Bay Golf Links, Half Moon Bay
Source: Placer.ai
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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FOG FEST PLACER.AI DATA
Placer.ai data was used to analyze Fog Fest visitors:
 Approx. 36,100 visits from 31,500 visitors came to the Palmetto area on Fog Fest weekend in 2022, six times
the normal level of weekend visits and ~20% higher
than prior years.
 These visitors have average household incomes of
$122,000, similar to income levels of typical weekend
visitors.
 Median dwell time was ~80 minutes, approximately
50% longer than a typical weekend visit.
 Most visits were from visitors with home locations in Pacifica and other Bay Area cities, with ~7% of visitor home locations greater than 50 miles away.

Visit Estimates Saturday Sunday Total
Typical Weekend (2022) 3,400 2,900 6,300
Fog Fest 2022 20,000 16,100 36,100
Fog Fest 2019 16,900 12,200 29,100
Fog Fest 2018 15,700 13,800 29,500
Fog Fest 2017 18,800 13,200 32,000
Fog Fest 2022: Visits by City of Home Origin
City % City %
Pacifica 19% San Pablo 2%
San Francisco 16% San Mateo 2%
Daly City 8% Redwood City 2%
S. San Francisco 5% Oakland 2%
San Bruno 4% Sacramento 1%
Source: Placer.ai San Jose 3% Fremont 1%
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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SHARP PARK GOLF COURSE PLACER.AI DATA
Placer.ai data was used to analyze visitors to the Sharp Park Golf Course who spent at least one hour at the
location:
 Approx. 66,100 visits from 26,100 visitors came to the Sharp Park Golf Course over the past year.
 Visits peak in May / June; peak day is Tuesday, followed by Friday – Sunday; peak time is noon, with 48% of visits
occurring between 10am and 3pm.
 Visitors have average household incomes of $138,000.
 Most visits were from visitors with home locations in San Francisco, Pacifica, and other nearby cities, with ~10% of visitor home locations greater than 50 miles away.

Sharp Park Golf Course: Visits by City of Home Origin
City % City %
San Francisco 32% South San Francisco 2%
Pacifica 24% Burlingame 2%
San Mateo 6% San Jose 2%
Daly City 3% Half Moon Bay 2%
Belmont 3% Rocklin 1%
Source: Placer.ai; data filtered for visitors who stay for greater than one hour ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
KOSMONT COMPANIES | 145
HOTEL PLACER.AI DATA
 Placer.ai data was used to analyze overnight visitors to the hotels in Pacifica over the past year. According to this data, the Rockaway Beach Plaza area saw 122,400 overnight visits over the past year; these visits were split fairly evenly between the Fairfield Inn, Pacifica Lighthouse Wyndham, and Inn at Rockaway. The Pacifica Beach Hotel saw ~43,000
visits.
 Visits peak in July; peak day is Friday, with ~57% of visits occurring Friday - Sunday.
 Approx. 65% of visits are from visitors >30 miles away, and 79% of visits are from California visitors.
 Fairfield Inn draws a higher percentage of visits from longer distances: ~52% of visits from visitors >250 miles away, compared to 27% for Rockaway Beach Plaza overall.
 Visitors to the Rockaway hotel area have average household incomes of $112,000.

Source: Placer.ai; data filtered for visitors who stay for greater than 2.5 hours between 1am and 6am to assess overnight visits Rockaway Beach Plaza: Overnight Visits by Home City
City % City %
California Cities
Pacifica 9% Millbrae 3%
San Francisco 5% Hayward 2%
Daly City 4% S. San Francisco 2%
San Jose 3% Stockton 2%
Sacramento 3% El Centro 2%
Visitors from Other States
Nevada (Reno, Las Vegas,
Carson City) 3% Colorado (Littleton, Denver, Co. Springs) 1% Texas (Houston, Austin,
DFW) 2% Oregon (Portland, Eugene) 1%
Washington (Seattle,
Vancouver, Bellevue) 2% New York (NYC, New Paltz 1%
Arizona (Phoenix,
Scottsdale) 1% Georgia (Atlanta suburbs) 1%
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PACIFICA

MAJOR SHOPPING

CENTERS WITHIN
5-MILE RADIUS
Sources:

ESRI Business Analyst Online
CoStar (Accessed June/July 2022)
5-Mile Radius
Regional Mall
Power / Outlet Centers
Community Centers
Neighborhood Centers
~12.96 million SF Shopping Center Inventory
in San Mateo County
~769,700 2022 San Mateo County
Population
~16.8 SF per
capita
Shopping Center SF per
capita in San Mateo
County
~15.2 SF per
capita City of Pacifica
Shops at Tanforan
JCPenney, Target, PETCO

1.12 million SF
Serramonte Center
Macy’s, Target, Dick’s Sporting Goods

1.15 million SF
Linda Mar Shopping Center
Safeway, Ross Dress For Less, Rite Aid
168k SF
Pedro Point Shopping Center
Grocery Outlet

32.5k SF
Eureka Square
Oceana Market, Plato’s Closet

93.6k SF
Fairmont Shopping Center
Safeway, Rite Aid
120k SF
280 Metro Center
Home Depot, Best Buy, Marshalls
342k SF
Westlake Shopping Center
Home Depot, Safeway, Burlington, Target
693k SF
San Bruno Towne Center
Lowe’s, Lucky, Marshalls
342k SF
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
Shopping Center Visitor Performance:

Comparison to Pre-Covid Baseline
Fairmont Shopping Center Pacific Manor Shopping Center
Eureka Shopping Center Linda Mar Shopping Center
Pedro Point Shopping Center

PACIFICA

SHOPPING

CENTER VISITOR

PERFORMANCE
Sources:

Placer.ai (Accessed June/July 2022)
Median
Weekly
Visits
July % Chng.

Pre-Covid
Baseline
Fairmont
Shopping Center 29,800 + 1%
Eureka
Shopping Center 9,200 + 43%
Pacific Manor
Shopping Center 16,800 + 68%
Linda Mar
Shopping Center 40,500 + 12%
Pedro Point
Shopping Center 16,400 + 23%
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PACIFICA

RESIDENTS

RETAIL SUPPLY &
DEMAND
Sources:

Placer.ai (Accessed July/August 2022)
As expected for a small
community, Pacifica has significant
retail leakage in many categories:

Demand Supply Surplus/Leakage
Auto & Fuel $ 263,900,000 $ 30,800,000 ($233,100,000) -88% Home Furnishings,
Hardware, Garden 76,100,000 13,200,000 ($62,900,000) -83% Food and Drugs 166,700,000 89,900,000 ($76,800,000) -46% E-Commerce 169,600,000 5,800,000 ($163,800,000) -97%
Consumer Goods 184,700,000 99,600,000 ($85,100,000) -46% Restaurants 68,500,000 65,400,000 ($3,100,000) -5%
Other 25,700,000 10,200,000 ($15,500,000) -60%
Total $ 955,100,000 $ 314,900,000 ($640,200,000) -67%
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PACIFICA

RESIDENTS

TOP VISITED
PLACES –
PLACER.AI
Sources:

Placer.ai (Accessed December 2022)
Shopping Centers
Location City %
Serramonte Center Daly City 74%
Linda Mar Shopping Center Pacifica 61%
Serra Shopping Center Colma 50%
Pacific Manor Shopping Center Pacifica 48%
280 Metro Center Colma 47%
Fairmont Shopping Center Pacifica 47%
The Shops at Tanforan San Bruno 44%
Pedro Point Shopping Center Pacifica 43%
Westlake Shopping Center Daly City 42%
Rockaway Beach Plaza Pacifica 42%
Grocery Stores
Location City %
Safeway (Linda Mar SC) Pacifica 44%
Safeway (Manor Plaza) Pacifica 33%
Safeway (Hickey Blvd) Pacifica 33%
Grocery Outlet Bargain
Market Pacifica 29%
Oceana Market Pacifica 21%
Safeway South San Francisco 17%
Trader Joe's South San Francisco 14%
Sun Valley Fine Food Pacifica 13%
99 Ranch Market Daly City 12%
Seafood City South San Francisco 12%
Home Improvement / Home Furnishings
Location City %
The Home Depot Colma 26%
Lowe's San Bruno 14%
Linda Mar Ace Home Center Pacifica 11%
Bed Bath & Beyond Daly City 9%
The Home Depot Daly City 9%
Cost Plus World Market Daly City 8%
Pacific Manor Hardware Pacifica 7%
The Home Depot Colma 7%
IKEA East Palo Alto 7%
Living Spaces Millbrae 4%
Super Stores
Location City %
Target (Serramonte Center) Daly City 45%
Costco Wholesale (El Camino) So. San Francisco 39%
Target Colma 33%
Costco Wholesale (Airport Blvd) So. San Francisco 23%
Target San Bruno 15%
Costco Wholesale (Dubuque Ave) So. San Francisco 9%
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PACIFICA

RESIDENTS

TOP VISITED
PLACES –
PLACER.AI
Sources:

Placer.ai (Accessed December 2022)
Shops (Select Categories)
Location City %
Dollar Tree Pacifica 22%
Michaels Colma 19%
Pet Food Express Pacifica 17%
PetSmart Daly City 15%
Nor Cal Surf Shop Pacifica 11%
Party City Daly City 9%
Florey's Book Co. Pacifica 6%
Dollar Tree S San Francisco 5%
Manor Music Pacifica 5%
Tons of Bubbles Pacifica 4%
Pharmacy
Location City %
Rite Aid Pacifica 30%
Walgreens Pacifica 28%
Rite Aid Pacifica 11%
CVS Daly City 7%
CVS San Bruno 3%
Walgreens So. San Francisco 2%
Walgreens Daly City 2%
Walgreens Millbrae 2%
Rite Aid Half Moon Bay 2%
CVS Burlingame 2%
Bars & Pubs
Location City %
The Longboard Margarita Bar Pacifica 12%
Pacifica Brewery Pacifica 9%
Half Moon Bay Brewing Company Half Moon Bay 6%
Winters Tavern Pacifica 6%
Humble Sea Brewing Co. Pacifica 6%
Moose Lodge Pacifica 6%
Grape In The Fog A Pacifica 5%
Old Princeton Landing Half Moon Bay 3%
Pedro Point Brewing Pacifica 2%
Fiddlers Green, Millbrae Millbrae 2%
Restaurants
Location City %
Original Joe's Westlake Daly City 15%
La Playa Pacifica 12%
Sizzler Colma 9%
Grand HotPot Pacifica 9%
Chevys Fresh Mex So. San Francisco 9%
Taqueria la Mordida Pacifica 9%
Moonraker Restaurant Pacifica 9%
Beach Monkey Organic Café Pacifica 8%
Taqueria El Gran Amigo Pacifica 8%
Black Bear Diner Colma 8%
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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PACIFICA

RESIDENTS

TOP VISITED
PLACES –
PLACER.AI
Sources:

Placer.ai (Accessed December 2022)
Hotels / Casinos (Local)
Location City %
Sea Breeze Motel Pacifica 18%
Pacifica Lighthouse, Trademark
Collection by Wyndham Pacifica 11%
Pacifica Beach Hotel Pacifica 11%
Lucky Chances Casino Colma 5%
Fairfield Inn Pacifica 4%
Artichoke Joe's Casino San Bruno 4%
Graton Resort and Casino Rohnert Park 3%
Inn at Rockaway Pacifica 2%
Hyatt Regency Burlingame 2%
The Ritz-Carlton Half Moon Bay 2%
Attractions (Local)
Location City %
Sea Bowl Pacifica 15%
Chase Center San Francisco 9%
Sharp Park Golf Course Pacifica 9%
Pacifica Fog Fest Pacifica 8%
Santa Cruz Beach Boardwalk Santa Cruz 8%
Classic Bowling Center Daly City 7%
California's Great America Santa Clara 7%
Pacifica Community Center Pacifica 6%
Maker Faire San Mateo 5%
Jean Brink Pool Pacifica 5%
Theaters & Music Venues
Location City %
Century 20 Daly City Daly City 20%
Century 10 Theatre San Bruno 9%
Century at Tanforan and XD San Bruno 8%
Century Theatres San Bruno 7%
Century Theatres Daly City 6%
Terra Nova Theater Pacifica 5%
Century Theatres San Mateo 3%
Warfield Theatre San Francisco 3%
Orpheum Theatre San Francisco 2%
Pacifica Spindrift Players Pacifica 2%
Fitness
Location City %
Pacifica Athletic Center Pacifica 10%
Crunch Fitness Daly City 8%
24 Hour Fitness Pacifica 7%
Anytime Fitness Pacifica 7%
Orangetheory Fitness Pacifica 7%
Ocean Yoga Pacifica 3%
iLoveKickboxing Pacifica 3%
24 Hour Fitness Daly City 2%
Training For Warriors Pacifica 2%
Terra Nova Fitness Pacifica 2%
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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RETAIL MARKET HISTORY

CITY OF PACIFICA
Year Inventory SF Vacant SF Total Vacant Percent
% Total
Net Absorption
SF Total
Market
Rent
2022 YTD 1,009,317 28,526 2.8% (6,638) $28.91
2021 1,009,317 21,888 2.2% 8,065 $29.78
2020 1,009,317 29,953 3.0% (12,027) $30.12
2019 1,006,213 14,822 1.5% 1,465 $30.13
2018 1,002,013 12,087 1.2% 11,865 $29.15
2017 1,001,401 23,340 2.3% (8,564) $28.33
2016 1,001,401 14,776 1.5% 33,631 $26.98
2015 1,001,401 48,407 4.8% (38,034) $25.93
2014 1,010,901 19,873 2.0% 27,432 $24.57
2013 1,007,801 44,205 4.4% (656) $23.27
2012 1,007,801 43,549 4.3% 798 $22.40
Source: CoStar (Accessed October 2022)
City retail inventory has remained virtually unchanged over the past 10 years at 1 million SF, with vacancy at 2.8% and annual market rents at $29 psf. 0%
2%
4%
6%
2022 YTD
20082009201020112012201320142015201620172018201920202021 Vacancy Rate
$0
$10
$20
$30
$40
2022 YTD
20082009201020112012201320142015201620172018201920202021 Market Rent
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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RETAIL MARKET HISTORY

PENINSULA COASTLINE SUBMARKET
Year Inventory SF Vacant SF Total Vacant Percent
% Total
Net Absorption
SF Total
NNN Rent
Overall
2022 YTD 3,093,524 44,584 1.4% (3,633) $39.43
2021 3,092,724 40,951 1.3% 3,828 $34.93
2020 3,092,724 44,779 1.4% (11,757) $36.31
2019 3,089,620 29,918 1.0% 708 $28.98
2018 3,085,420 26,426 0.9% 32,850 $61.80
2017 3,075,696 49,552 1.6% (15,592) $48.69
2016 3,075,696 33,960 1.1% 40,372 $26.69
2015 3,075,696 74,332 2.4% (38,421) $24.61
2014 3,085,196 45,411 1.5% 24,470 $25.05
2013 3,082,096 66,781 2.2% 578 $20.57
2012 3,083,777 69,040 2.2% (6,210) $20.51
2011 3,097,281 76,334 2.5% (13,438) $21.51
2010 3,097,281 62,896 2.0% (6,815) $24.85
2009 3,104,371 63,171 2.0% 829 $29.45
2008 3,079,290 38,919 1.3% 27,190 $22.70
Source: CoStar (Accessed June/July 2022)
Note: Costar defines Triple Net (NNN) as “a lease where the tenant is responsible for all expenses associated with their proportional share of occupancy of the building, except long-lived structural components and management charges.” 0%
2%
4%
6%
2022 YTD
20082009201020112012201320142015201620172018201920202021 Vacancy Rate
$0
$20
$40
$60
2022 YTD
20082009201020112012201320142015201620172018201920202021 NNN Rent
ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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Year Inventory SF Vacant SF Total Vacant Percent
% Total
Net Absorption
SF Total
Base Rent
Overall
2022 YTD 173,790 4,363 2.5% (949) $42.41
2021 173,790 3,414 2.0% (2,214) $42.89
2020 173,790 1,200 0.7% - $43.84
2019 173,790 1,200 0.7% 2,282 $51.80
2018 173,790 3,482 2.0% (782) $49.39
2017 173,790 2,700 1.6% 1,085 $49.52
2016 173,790 3,785 2.2% 165 $48.09
2015 173,790 3,950 2.3% 2,414 $46.28
2014 173,790 6,364 3.7% 2,703 $40.55
2013 173,790 9,067 5.2% 19,983 $34.45
2012 173,790 29,050 16.7% (4,950) $31.82
Source: CoStar (Accessed October 2022)
0%
5%
10%
15%
20%
25%
2022 YTD
20082009201020112012201320142015201620172018201920202021 Vacancy Rate

OFFICE MARKET HISTORY

CITY OF PACIFICA
City office inventory has remained unchanged over the past 10 years at ~174k SF, with current vacancy at ~2.5% and annual market rents at ~$42 psf. $0
$20
$40
$60
2022 YTD
20082009201020112012201320142015201620172018201920202021 Market Rent
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OFFICE MARKET HISTORY

PENINSULA COASTLINE SUBMARKET
Year Inventory SF Vacant SF Total Vacant Percent
% Total
Net Absorption
SF Total
Base Rent
Overall
2022 YTD 665,218 34,335 5.2% (2,268) $32.20
2021 665,218 32,067 4.8% (4,374) $31.01
2020 665,218 27,693 4.2% (5,047) $25.90
2019 665,218 22,646 3.4% 17,087 $26.30
2018 667,594 42,109 6.3% (9,271) $26.31
2017 662,352 27,596 4.2% 15,151 $27.25
2016 663,773 44,168 6.7% 8,176 $28.12
2015 663,773 52,344 7.9% 390 $26.18
2014 665,773 54,734 8.2% (10,475) $24.57
2013 662,150 40,636 6.1% 7,050 $21.63
2012 662,150 47,686 7.2% 3,506 $25.74
2011 662,150 51,192 7.7% (7,206) $29.97
2010 662,150 43,986 6.6% 8,103 $24.47
2009 660,312 50,251 7.6% (4,020) $26.28
2008 660,312 46,231 7.0% (76) 26.33
Source: CoStar (Accessed June/July 2022)
Note: Costar defines Full Service / Gross Rent as “a rental rate that includes normal building standard services which are provided and paid by the landlord.”
0%
5%
10%
15%
20%
25%
2022 YTD
20082009201020112012201320142015201620172018201920202021 Vacancy Rate
$0
$10
$20
$30
$40
2022 YTD
20082009201020112012201320142015201620172018201920202021 Base Rent
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MULTIFAMILY MARKET HISTORY

CITY OF PACIFICA
Year Inventory
Units Vacant Units Vacancy Percent
Net
Absorption
(Units)
Asking Rent
(Unit/Mo.)
Asking Rent
(SF/Mo.)
2022 YTD 1,775 67 3.8% (2) $2,777 $3.69
2021 1,775 65 3.7% 42 $2,627 $3.49
2020 1,775 106 6.0% (57) $2,480 $3.29
2019 1,775 49 2.8% 22 $2,702 $3.59
2018 1,775 71 4.0% 27 $2,648 $3.52
2017 1,775 98 5.5% (26) $2,500 $3.32
2016 1,795 92 5.1% (23) $2,557 $3.40
2015 1,827 100 5.5% (30) $2,500 $3.32
2014 1,827 70 3.8% (2) $2,274 $3.02
2013 1,827 69 3.8% 13 $2,173 $2.89
2012 1,827 82 4.5% 32 $2,035 $2.70
Source: CoStar (Accessed October 2022)
Note: Costar defines Asking Rent as “average monthly amount the lessor is asking for in order to lease their building/space/land.” Analytic filters exclude senior / student / military / corporation / vacation housing / co-ops /manufactured housing; limits search to buildings with 5+ units; and Market / Market Affordable rent types. 0%
5%
10%
15%
2022 YTD
20082009201020112012201320142015201620172018201920202021 Vacancy Rate
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2022
YTD
2008 2010 2012 2014 2016 2018 2020
Asking Rent
City multifamily inventory has declined by ~52 units over the past 10 years, with current vacancy at ~3.8% and monthly asking rents steadily increasing to $2,777 per unit.

ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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FOR-SALE HOUSING MARKET HISTORY CONTEXT
Source: CRMLS (Accessed June/July 2022)
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Jan-08
Nov-08
Sep-09
Jul-10
May-11
Mar-12
Jan-13
Nov-13
Sep-14
Jul-15
May-16
Mar-17
Jan-18
Nov-18
Sep-19
Jul-20
May-21
Mar-22
Median Home Sale Price
Rolling 12-Month Average
Pacifica San Mateo County
0 10
20 30
40 50
60 Jan-08
Sep-08
May-09
Jan-10
Sep-10
May-11
Jan-12
Sep-12
May-13
Jan-14
Sep-14
May-15
Jan-16
Sep-16
May-17
Jan-18
Sep-18
May-19
Jan-20
Sep-20
May-21
Jan-22
Inventory - Months Supply
12-Month Rolling Average
Pacifica San Mateo County
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HOSPITALITY SUMMARY
 Pacifica is within easy reach of San Francisco, and has the potential to accommodate hundreds of nightly
visitors at a much lower cost than SF hotels.
 Pacifica has a limited inventory of hotel rooms within the City limits, totaling ~313 rooms (with one
proposed property of 108 rooms).
 The San Francisco / San Mateo / Marin County
hospitality market is home to 55,600 rooms, with 12-
mo occupancy at 55% and 12-month ADR at $215.
 The San Francisco Area* hospitality submarket
(excludes City of San Francisco, airport area, and cities of San Mateo / Redwood City) has ~4,300 rooms, with
12-mo occupancy at 67% and 12-mo ADR at $220.

Hotel Rooms Class Year Built /
Renovated
Fairfield Inn & Suites San Francisco
Pacifica 88 Upper Midscale 2022
Pacifica Beach Hotel 52 Upper Upscale 2000
Americas Best Value Inn 25 Economy 1990
Sea Breeze Motel 20 Midscale 1953
Pacifica Lighthouse Hotel Trademark 97 Upper Midscale 2006 Pacifica Motor Inn 31 Upper Midscale 2018

PROPOSED
Hampton Inn & Suites Pacifica 108 Upper Midscale 2024*
Source: CoStar, June / July 2022
Source: CoStar, accessed June/July 2022
Note: CoStar’s San Francisco Area Hospitality Submarket includes Marin County, coastal San Mateo County, Daly City, Brisbane, parts of San Francisco south of I-280, and parts of Woodside / Redwood City / Portola Valley ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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HOSPITALITY

SUMMARY

SAN FRANCISCO / SAN

MATEO MARKET &

SAN FRANCISCO AREA

SUBMARKET (MARIN

COUNTY, DALY CITY,

PACIFICA, HALF MOON
BAY)
Sources:

CoStar (Accessed July/August 2022)
$0
$50
$100
$150
$200
$250
$300
2007200820092010201120122013201420152016201720182019202020212022 12-Month ADR
Market Submarket
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2007200820092010201120122013201420152016201720182019202020212022 12-Month Occupancy
Market Submarket
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PACIFICA AREA – HOTEL PROPERTY SUMMARY
Property Name Property Address City Hotel Class Rooms Opened Bldg Class
Operation
Type
Mtg
Space Restaurant
Pacifica Beach Hotel 525 Crespi Dr Pacifica Upper Upscale 52 2003 B Franchise 300 No Fairfield Inn & Suites San Francisco Pacifica 500 Old County Rd Pacifica Upper Midscale 88 1999 C Independent 6,750 Yes Pacifica Lighthouse Hotel Trademark Collection by
Wyndham 101-195 Rockaway Beach Ave Pacifica Upper Midscale 97 1981 B Franchise No Pacifica Motor Inn 200 Rockaway Beach Ave Pacifica Upper Midscale 31 1986 C Independent 2,000 No Sea Breeze Motel 100-104 Rockaway Beach Ave Pacifica Midscale 20 1961 C Franchise 5,000 Yes Americas Best Value Inn San Francisco Pacifica 2160 Francisco Blvd Pacifica Economy 25 C Independent No Ocean View Inn 8425 Cabrillo Hwy Montara Luxury 9 C Yes Seal Cove Inn 221 Cypress Ave Moss Beach Luxury 10 C Independent No Harbor View Inn 51 Avenue Alhambra El Granada Upper Upscale 17 1985 C Independent No Oceano Inn 380 Capistrano Rd Princeton Upper Midscale 11 1986 C Independent No Beach House Half Moon Bay 4100 Cabrillo Hwy N Half Moon Bay Luxury 54 1996 B Independent Yes Oceano Hotel & Spa 240 Capistrano Rd Half Moon Bay Luxury 95 2008 B Franchise 1,750 No Mill Rose Inn 615 Mill St Half Moon Bay Luxury 6 1982 C Independent No Cypress Inn On Miramar Beach 407 Mirada Rd Half Moon Bay Luxury 18 2002 C Independent 1,800 No Ritz-Carlton Half Moon Bay 1 Miramontes Point Rd Half Moon Bay Luxury 261 2001 A Independent No Half Moon Bay Lodge 2400 S Cabrillo Hwy Half Moon Bay Upper Upscale 80 1976 C Franchise 120 Yes Nantucket Whale Inn 779 Main St Half Moon Bay Upper Upscale 7 2015 C Independent 3,600 No Landis Shores Oceanfront Inn 207-211 Mirada Rd Half Moon Bay Upper Upscale 8 C Independent 8,000 Yes Half Moon Bay Inn 401 Main St Half Moon Bay Upper Upscale 15 1932 C Independent Yes Zaballa House 324-328 Main St Half Moon Bay Upper Midscale 20 1985 C Independent No The Miramar Inn & Suites 3020 Cabrillo Hwy N Half Moon Bay Upper Midscale 27 1991 C Independent 160 No Coastside Inn 230 Cabrillo Hwy S Half Moon Bay Upper Midscale 52 1991 B No BW Signature Collection Camerons Inn 1400-1410 Cabrillo Hwy S Half Moon Bay Upper Midscale 46 2018 C Independent No San Benito House 356 Main St Half Moon Bay Upper Midscale 12 C Chain Mgmt 13,000 Yes Quality Inn Half Moon Bay 2930 Cabrillo Hwy N Half Moon Bay Midscale 54 1999 C Independent Yes Source: CoStar
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D. STAKEHOLDER OUTREACH / SURVEY
Pacifica Economic Opportunity Study
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OUTREACH AND SURVEY OVERVIEW
Virtual
Community
Workshop
Online Survey
Stakeholder
Outreach
Meetings
Community
Meeting
17+ participants in
virtual community
outreach meeting
in August 2022
167 respondents to
online survey in
August –
September 2022
12+ virtual / inperson meetings
with targeted
stakeholders
12+ participants at
community meeting
in November 2022
Kosmont worked with the City to conduct a variety of outreach efforts to solicit feedback from community members:

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SURVEY RESULTS

OVERVIEW
 The online survey conducted between August and September 2022 provided vital feedback that will help plan for Pacifica’s future. 167 surveys were submitted, with ~96% of responses coming from Pacifica residents. 53% of respondents have lived in Pacifica for over 20 years, and 63% of respondents were at least 55 years old.
 Results show that respondents are open to a wide variety of new businesses / developments in the City’s business districts, and highly value restaurant / dining options, leisure / entertainment venues, and places to gather. Respondents also highly value improvements to mobility / walkability / bike-ability / transit, safety improvements, and traffic flow.  Many responses emphasized the importance of better utilizing Pacifica’s unique character and coastal amenities to create vibrant, walkable, engaging commercial areas that can better serve Pacifica’s residents and attract visitors.

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SURVEY RESULTS

CURRENT

CONDITIONS
17%
16%
6%
36%
19%
24%
31%
18%
21%
25%
50%
46%
60%
32%
38%
9%
8%
16%
11%
17%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Pacific Manor / Fairmont
Sharp Park / Eureka Square
Rockaway Beach / Vallemar
Linda Mar / Sun Valley
Pedro Point
How Often Do You Visit The Following Business Districts? Very Often Often Sometimes Never
52%
37%
19%
13%
8%
7%
5%
4%
30%
29%
27%
18%
18%
12%
11%
7%
16%
20%
50%
52%
48%
48%
45%
56%
2%
15%
4%
17%
26%
34%
39%
33%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Essentials (grocery, home improvement, etc.)
Fitness / recreation / surfing / hiking
Dining / restaurants
Shopping
Personal Services – hair salon, dry cleaner, carwash
Leisure / entertainment
Professional Services – healthcare, business services, banking Arts / education / cultural
Do You Visit Pacifica Business Districts for the following purposes? Very Frequently Frequently Sometimes Never
Survey responses show that the Linda
Mar / Sun Valley and Sharp Park / Eureka
Square business districts were the most
frequently visited areas, while the
Rockaway Beach / Vallemar business
district was the least frequently visited.

Survey respondents were most likely to
frequently visit the Pacifica business
districts to shop for essentials, for fitness
/ recreation / surfing / hiking, and for
dining / restaurants. Respondents were
least likely to frequently visit the City’s
business districts for arts / education /
cultural, leisure / entertainment, personal
services, and professional services.

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SURVEY RESULTS

NEW DEVELOPMENT,

IMPROVEMENTS, AND

AMENITIES
43%
30%
21%
22%
21%
27%
9%
8%
4%
5%
12%
42%
34%
44%
46%
41%
26%
32%
24%
33%
29%
22%
11%
29%
32%
25%
31%
25%
44%
52%
44%
49%
37%
4%
7%
3%
7%
7%
23%
15%
15%
19%
16%
30%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Restaurants and dining options
Leisure and entertainment uses / venues
Shopping and other retailers
Places where people can gather (small / large groups)
Arts / cultural / educational
Housing options
Fitness / health / wellness
Personal services
Office (e.g. medical/professional/other)
Professional services
Hotel / hospitality
What type of new additional businesses / developments would you like to see in the business districts?
Extremely Important Important Somewhat Important Not Important at all 51%
45%
51%
30%
28%
30%
23%
21%
35%
38%
30%
43%
42%
36%
32%
34%
13%
15%
16%
21%
27%
30%
36%
34%
1%
2%
3%
6%
4%
4%
9%
11%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Mobility / walkability / bike - ability / transit
Safety
Traffic flow
Public art plazas, and walkways
Signage / wayfinding / lighting
Streetscape / design /built environment
Technological infrastructure
Parking infrastructure
Which improvements/amenities should the City focus on in the business districts?
Extremely Important Important Somewhat Important Not Important at all Respondents tend to value adding new
restaurant / dining options, leisure /
entertainment venues, and places where
people can gather to the business
districts. Adding housing was important
to over 50% of respondents.

Respondents also highly value improving
mobility / walkability / bike-ability /
transit, safety improvements, and traffic
flow.

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SURVEY RESULTS
Survey results varied by the type of
respondent, offering insights into younger
residents, recent residents, and business
owners / commercial property owners.

Younger Residents
More likely to rank as “Very Important” or “Important”… Less likely to rank as “Very Important” or “Important”… •Restaurants and dining options
•Leisure and Entertainment uses /venues
•Fitness / health / wellness
•Mobility / walkability / bike-ability / transit
•Public art, plazas, and walkways
•Parking Infrastructure
•Traffic Flow
Recent Residents
More likely to rank as “Very Important” or “Important”… Less likely to rank as “Very Important” or “Important”… •Restaurants and dining options
•Fitness / health / wellness
•Places where people can gather
•Streetscape / design / built environment
•Public art, plazas, and walkways
•Mobility / Walkability / bike-ability / transit
•Technological infrastructure
•Housing options
•Office
•Professional services
•Traffic Flow
•Parking Infrastructure
•Safety
Business Owners / Commercial Property Owners / Investors / Developers More likely to rank as “Very Important” or “Important”… Less likely to rank as “Very Important” or “Important”… •All new development types
•Streetscape / design / built environment
•Public art, plazas, and walkways
•Signage / wayfinding / lighting
•Technological infrastructure
•Mobility / Walkability / bike-ability / transit
•Traffic flow
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KEY THEMES FROM SURVEY RESPONSES
Which retail stores do you visit that
are not available in the City of
Pacifica?
What other business districts
do you like to visit in other
cities, and what makes them
desirable?
What are the most important priorities &
opportunities the City should focus on to
improve / revitalize Pacifica business districts?
Big Box: Target, Costco, Home Depot
Essentials: Trader Joe’s, Whole Foods,
Sprouts, Lunardi’s, Mollie Stones
Restaurants, high-end dining, pet stores,
coffee shops, bars, personal services,
medical services, entertainment
Burlingame, San Mateo, Half Moon
Bay, Millbrae, Serramonte,
Redwood City, San Francisco, Palo
Alto, San Carlos
Key words: variety, downtown,
walkable, bike connectivity,
outdoor dining, interesting,
pleasant, ambiance, hang-out vibe,
personality
Adding a variety of unique restaurants / shops /
hotels; events, activities, entertainment
More public spaces, walkability & bike-ability
Managing traffic and parking
Build off natural beauty, beaches
Need attractive area - improve cleanliness, signage,
facades
Streamline permitting process
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QUOTES FROM SURVEY RESPONSES
Congruent design with the beach cottage theme to tie
Rockaway in with the rest of Pacifica. Trees! Trees!
We should focus on smart growth and
improving quality of life
Small, Coastal Town Feel
Beautification of buildings and streetscapes,
adding trees and places to sit, play and have
community activities outdoors
Activities - music/entertainment for public outdoor
Focus on Pacifica's natural beauty and potential for
engagement in outdoor activities
WALKABLE, WALKABLE, WALKABLE - easy access for
visitors to stroll, eat, enjoy the natural views and scenery Play up the uniqueness of each area of Pacifica
Outdoor dining has been a good addition - More of That! Revitalize signs and paint
Improve the safety and beautification of the pier
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STAKEHOLDER OUTREACH
City Staff Business Owners / Managers Community Groups
Kevin Woodhouse
Yulia Carter
Christian Murdock
Lisa Petersen
Olga Munoz – 7.3.1 Designs Gallery
Matt Kosoy – Rosalind Bakery
Pam Winston – Successories
Holly Smalley – Lytt Cannabis
Beth Lemke – Grape in a Fog
Chrystelle Azcona - Kimco
Steven Wright – Rotary Club
Amber Porter – Rotary, Tri County Bank
Daisy Fong – EDC Volunteer
James Crowe – Chamber, Fog Festival
Archie Judan – Chamber of Commerce
Judy Heldberg – Historical Society
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COMMENTS FROM COMMUNITY / STAKEHOLDERS
Kosmont participated in meetings with City staff, Councilmembers, business leaders, as well as a virtual meeting with local residents to get their input on opportunities and challenges facing the City and its neighborhoods:
 City has historic “no growth” sentiment and Coastal Commission is used as mechanism to appeal projects  Residents want many City services but don’t acknowledge need for development to help fund them  Budget constraints have reduced City staff in building and planning department; use of contract planners/inspectors has been problematic as contractors are often too stringent/by the book  City has charged low development impact fees
 Developers have been unsuccessful in getting approvals at Quarry site  Residents are frustrated with lack of success from prior economic studies  Lack of adequate commercial signage at many shopping centers (i.e., Eureka, Manor and Rockaway)  Too many cannabis stores; residents want Trader Joe’s, but trade area population is too small ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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COMMUNITY / STAKEHOLDER COMMENTS (CONT’D)
 Poor marketing by City and Chamber and consider joint effort with Half Moon Bay [also consider better slogan such as “Pacific-aah”, “everything starts here”] [businesses/art venues could benefit from social media]  Fog Festival is major success story [consider more events to bring people together such as Dog Surfing, Sam’s Castle events, golf tournament, July 4th fireworks at the pier]  Eliminate “can’t do attitude” and replace with “how to get to yes”  Hotel use on Quarry site may be more acceptable than residential  City infrastructure is poor and no funding is available  Beach Blvd. hotel site is key catalyst for creating downtown feel for Palmetto Ave.  New library / community center important
 Create business incubator / “Shark Tank” event to encourage entrepreneurship ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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COMMUNITY OUTREACH VIRTUAL MEETING #1
Kosmont conducted a virtual community outreach meeting on August 29th. The following key themes were expressed:
 Amenities: Beaches / ocean views / hiking / culture / proximity to SF are a big asset, but need improvement to take advantage of it  New Uses: City could use more restaurants / bars / entertainment; shopping centers / commercial areas need to be refreshed  Downtown: Need an area that acts as a “downtown”, shopping / dining oriented toward residents and visitors, mixed use / walkable areas, more people in the City during the week (without disrupting community)  Drawing visitors / regional tourists: Need to better capture the dollars of people who are coming to Pacifica – need more restaurants, bars, shops, events, entertainment; leveraging coastal areas for big revenue drivers (hotel, restaurants, bars)  Transportation: More transit options needed; traffic, congestion, and circulation challenges  Infrastructure: Some concerns about infrastructure supporting existing / new uses  Business Challenges: Some existing businesses face City permitting challenges; most activity on weekends, hard to sustain a business
 Events: Fog Fest is a big attraction, more events can serve residents as well as draw visitors ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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COMMUNITY OUTREACH MEETING #2
Kosmont conducted a community outreach meeting on November 15th. The following key themes were expressed:
 Beautification: Need better signage, lighting, tree planting, façade beautification, other activations  Improving Main Street Quality: Palmetto area could use more engaging retail / restaurants in the area – unique walkable mix of local businesses, also needs a “bigger draw”; many Palmetto businesses close early, could use zoning to encourage businesses to stay open later
 Coastal Opportunities: Coastal areas have good opportunity for boutique hotel, hotel revitalization, restaurants, open space, and related projects
 Need for Balance: Balance new development targeting visitors and residents, but strive to keep “small town feel”  Wayfinding / Signage: Need to help businesses with better signage, lack of freeway signage to identify business districts  Events: Events should be used to increase activity, such as food trucks, markets; Chamber seems to have limited capacity to organize
 Environmental / Infrastructure Concerns: Some expressed concern about sea level rise and other environmental challenges, as well as the cost of infrastructure / impact of construction feasibility  Transportation: Electric charging stations could be a good amenity for shopping areas; poor transit to SF and beyond ECONOMIC OPPORTUNITIES STUDY – FINAL VERSION
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DISCLAIMER
The analyses, projections, assumptions, rates of return, and any examples presented herein are for illustrative purposes and are not a guarantee of actual and/or future results. Project analyses are projections only. Actual results may differ from those expressed in this analysis, as results are difficult to predict as a function of market conditions, natural disasters, pandemics, significant economic impacts, legislation and administrative actions.