CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
2/23/2026
1 SUBJECT:
Overview of Pacifica’s Economic Development Workplan and Activities.
RECOMMENDED ACTION:
Accept the update on Pacifica’s Economic Development activities and workplan and provide additional direction to inform the upcoming strategic planning and budget development process.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 501-6004
[email protected] <mailto:[email protected]>
Gretchen Heckman, Economic and Housing Development Manager (650) 501-6007
[email protected] <mailto:[email protected]>
Alyssa Corsetti, Management Analyst II
(650) 501-6027
[email protected] <mailto:[email protected]>
FORWARD:
This report provides City Council with an update on Economic Development activities and a near-term workplan framework, consistent with Council direction to prioritize economic and housing development as key components of long-term fiscal sustainability. These priorities were included in the FY 2025-26 Adopted Budget and reinforced during the November 2025 study sessions.
As part of the FY 25-26 budget, the City created an Economic and Housing Development Manager position that includes responsibility for housing-related development, in addition to Economic Development. This role is intended to improve coordination across departments and advance projects that will generate new property tax revenues, development impact fees, transient occupancy tax (TOT), and increased local economic activity.
As presented during the fiscal sustainability study sessions, Pacifica’s fiscal challenges are structural and multi-layered. Addressing these challenges requires coordinated strategies that are comprehensive, strategic, and sustained over time.
Within that framework, Economic Development, together with Housing Development, were Pacifica City Council 2
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identified as a critical long-term strategies to strengthen the City’s revenue base, support commercial vitality, and align land use decisions with fiscal outcomes.
Economic development in Pacifica should be viewed as a structural tool to expand the City’s fiscal capacity, support the existing and future business community, diversify local economy to support residents and visitors, and support Council-adopted strategic priorities. This report:
• Clarifies the City’s role in economic and housing development • Identifies current priorities consistent with the City’s Strategic Plan, and given limited staffing and financial resources
• Outlines workplan framework and strategic implementation approach Policy and Planning Foundation
Over the past several years, City Council has adopted a comprehensive set of long-range plans that collectively guide Pacifica’s future and influence the policy-level approach to land use, economic vitality, housing, climate resiliency, coastal stewardship, and fiscal sustainability.
Together, these documents establish a consistent policy foundation for focused investment in commercial districts, strategic housing production, visitor-serving uses, climate-resilient infrastructure, and a diversified revenue base.
Adopted Planning and Policy Documents
Policy Document Strategic Intent and Fiscal Alignment Approval / Completion
Date
Pacifica General Plan 2040 Citywide framework guiding land use, economic sustainability, housing, mobility, sustainable growth
and community character
July 11, 2022
Sharp Park Specific Plan Downtown revitalization strategy, supporting mixeduse development, placemaking, commercial and visitor-serving activities
Aug 31, 2022
Pacifica Economic
Opportunity Study
Identifies long-term commercial opportunities in
Pacifica to increase General Fund revenue base.
Mar 27, 2023
Vision 2025 & Beyond Long-term vision integrating fiscal sustainability, infrastructure, services, and economic
development priorities to increase the community’s
quality of life
2020-2023
City of Pacifica Strategic Plan
(2023-2030)
Comprehensive Council-adopted framework that
identifies the Mission, Vision and Values statement
for the organization, followed by goals emphasizing
organizational and fiscal stability, including
economic development, housing, infrastructure,
climate adaptation and mitigation, and
communication
Apr 14, 2025
Pacifica City Council 3
February 23, 2026
Pacifica Housing Element
(2023-2031)
Housing strategy addressing State-mandated
housing policy, including RHNA obligations, and
linking housing production with economic vitality
Mar 24, 2025
2040 Local Coastal Land Use
Plan (LCLUP)
Comprehensive Coastal Zone land use framework,
aligning coastal access, visitor-serving uses,
environmental stewardship, and reinvestment
strategies to support long-term economic vitality
and resilience
May 8, 2025
Climate Action & Resilience
Plan (CARP)
Climate mitigation and adaptation strategy
supporting long-term resilience and economic
sustainability
July 14, 2025
Collectively, these documents align land use, housing production, climate resiliency, and fiscal sustainability are interrelated objectives to ensure Pacifica’s high quality of life.
Fiscal Sustainability Context
During the November 10 and November 24, 2025 Study Sessions, City Council reviewed Pacifica’s long-term financial outlook, including structural operating deficit, organizational staffing capacity constraints, and more than $370 million in unfunded capital and infrastructure needs. The discussion emphasized that the City’s fiscal challenges are layered and structural and not cyclical and therefore require coordinated strategic solutions.
Specifically, staff highlighted the following structural issues:
• General Fund revenues are not keeping pace with the cost of maintaining current service levels
• Staffing levels and compensation remain below peer cities, impacting recruitment, retention, and service capacity
• Deferred capital and infrastructure needs continue to compound over time, particularly given coastal conditions and construction cost escalation While revenue measures, fee adjustments, and land-use policy compliance efforts may provide near-term relief, they do not address or fundamentally change the structural nature of Pacifica’s fiscal condition. Sustainable fiscal health requires expanding and strengthening Pacifica’s economic base over time.
For this reason, staff presented the Integrated Fiscal Sustainability Framework, a five-element approach recognizing that 1) revenue stabilization, 2) organizational investment, 3) economic development, 4) housing production, and 5) strategic partnerships must function together to produce consistent fiscal outcomes.
Within this framework, the Economic Development and Housing Development components were further defined through the following strategic priorities:
• Advance high-impact Economic Opportunity Sites with measurable ongoing revenue Pacifica City Council 4
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potential
• Revitalize commercial corridors through targeted reinvestment, placemaking, branding, and business attraction aligned with district character • Support small business health by improving permitting transparency, interdepartmental coordination, and access to technical resources
• Expand housing production to generate both one-time and recurring revenues while increasing the customer base that sustains local businesses • Strengthen mixed-use and infill development patterns that reinforce walkability, economic activity, and district vitality
• Retain residents and support the local workforce, reducing economic leakage to neighboring jurisdictions
• Leverage partnerships and financing tools to offset infrastructure and service costs associated with new development
Given the City’s fiscal realities, the Economic Development program must evolve and operate as a coordinated, policy-driven, and outcome-oriented function aligned with adopted plans and fiscal objectives. These strategies reflect a comprehensive approach to Economic Development that integrates land use policy, housing production, commercial revitalization, business support, and financing tools into a cohesive fiscal strategy.
The Workplan Framework outlined below reflects that shift toward a more strategic, resultdriven, measurable, and prioritized Economic Development approach.
DISCUSSION:
Economic Development: Definition, Importance, and the City’s Role Economic development includes activities that support existing businesses, attract targeted new investment, create jobs, and generate sustainable long-term revenue for the City. In Pacifica, economic development is not just about job creation or business attraction. It is about reinforcing the City’s economic foundation in a manner that supports service delivery, infrastructure maintenance, housing production, and long-term financial stability.
While private investment ultimately drives economic activity, the City plays an important role through policy direction, land-use planning and zoning, institutional knowledge and community relationships, and customer service policies.
Pacifica’s adopted planning documents, mentioned above, establish a policy foundation for targeted reinvestments. Through the Economic Opportunity Study, the City has identified highimpact redevelopment sites capable of generating long-term fiscal benefit, including the Cityowned site at 2212 Beach Boulevard, which is currently being solicited for development.
However, economic development in Pacifica extends beyond advancing major opportunity sites.
It is a comprehensive strategy that includes revitalizing commercial corridors, supporting small businesses, improving the permitting process, and strengthening coordination across City departments. It also involves serving as a consistent point of contact for businesses and Pacifica City Council 5
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developers to help navigate City processes efficiently and transparently.
Pacifica’s approach to economic development must be both Citywide and district-specific. Each commercial district, Sharp Park, Rockaway, Linda Mar, Pedro Point, and Manor, including Fairmont, has distinct characteristics and opportunities. Together, these business districts form an interconnected local and visitor-serving economy that supports residents, businesses, and contributes to a vibrant and fiscally stable community with high quality of life.
Given limited staff and financial resources, the City’s economic development efforts must be focused and strategic, and will be further evaluated and prioritized as part of the upcoming Strategic Planning and budget development process. Therefore, the economic development activities outlined below are aligned with already established policy direction and selected based on their ability to produce measurable short- and long-term fiscal and community benefit.
Economic Development Workplan Framework
As discussed during the Fiscal Sustainability Study Sessions, Pacifica’s fiscal condition requires thoughtful, multi-leveled solutions. Economic and Housing Development are two core components of the City’s five-element Fiscal Sustainability Framework and must operate as structured, outcome-oriented strategies rather than isolated initiatives.
Consistent with the principles outlined in Attachment 1 - Update on Economic Development Work Plan (originally presented as Attachment G to the November 10, 2025 Council Agenda Summary Report), the City’s Economic Development program has been organized into four core goals.
Together, these four goals form a comprehensive strategy to expand Pacifica’s economic base, strengthen commercial vitality, support housing production, and advance long-term fiscal sustainability.
This Economic Development Work Plan, included in Attachment 1, is designed to be comprehensive and to include a wide range of initiatives that will, collectively, position the city to receive high quality jobs, investment, and tax revenue. However, due to the City's limited staff and financial resources, it will be important to focus efforts strategically in the short term.
Accordingly, during FY 2025-26 and 2026-27, staff plans to focus on a prioritized number of tasks and projects based on:
a) projects that are realistic to complete within a 12-month timeframe, thus showing visible economic progress and improvement; and
b) projects that, while they are long-term in nature, offer the opportunity for the City to spur new investment and developer interest in Pacifica.
In alignment with Pacifica’s 2023-2030 Strategic Plan Goal 5 Broaden public communications and collaboration, many of these activities have been carried out in partnership with the Council’s Economic Development Committee, existing small business associations such as Seaside Merchants Association, as well as broader business community, residents, and the Pacifica’s real estate development community. Priorities identified for FY 2026-27 focus areas Pacifica City Council 6
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will be implemented consistent with additional direction provided through the upcoming strategic planning and budget development process.
Goal 1 - Catalyst Projects & Opportunity Sites
This goal focuses on high-impact redevelopment opportunities capable of generating significant new investment activity, tax revenues, and long-term fiscal benefit. Given Pacifica’s structural fiscal challenges, targeted real estate and mixed-use projects must serve as economic anchors that strengthen the City’s revenue base and community identity.
The projects listed below are sourced from the 2023 Economic Opportunities Study and related adopted planning documents.
FY 2025-26 Priorities
➢ 2212 Beach Boulevard. This site represents one of the City’s most significant near-term opportunities to generate new property tax increment, Transient Occupancy Tax (if hotel use is included), sales tax, and long-term visitor spending. o Evaluate RFQ/P responses and select a developer for the exclusive negotiations agreement
➢ Pacifica Manor Shopping Center. Pacifica Manor is an underperforming commercial center with strong locational potential for reinvestment or adaptive reuse to improve sales tax performance, reduce vacancy, and increase assessed valuation. o Re-engage property owners and merchants
➢ Downtown / Sharp Park & Rockaway. This remains a priority because it represents Pacifica’s most visible commercial core and visitor-serving districts. Targeted, lower-cost placemaking and economic revitalization initiatives in Sharp Park can generate immediate returns by strengthening existing businesses, increasing visitor spending, improving sales tax revenue, and commercial performance and positioning the district for longer-term private reinvestment.
• Wayfinding signage pilot initiated by the Economic Development Committee • Installation of new trash cans
• Compiling vacant property sites data and engaging with property owners regarding repurposed uses (placemaking)
• Initiate conversations with City of San Francisco regarding Sharp Park Golf Course ➢ Other Commercial Centers are prioritized to strategically position Pacifica in regional retail and investment markets. Proactive broker engagement and professional market materials increase the likelihood of attracting revenue-generating tenants, strengthening sales tax performance and enhancing assessed valuation across commercial districts. o Develop Pacifica marketing data materials for retailers and brokers (ICSC and related outreach)
FY 2026-27 Focus Areas (Subject to Strategic Planning & Budget Direction) Pacifica City Council 7
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➢ 2212 Beach Boulevard:
o Negotiate transaction terms and development agreements; initiate environmental review
➢ Pacifica Manor Shopping Center:
o Continue engagement with property owners; explore investor interest aligned with Housing Element and General Plan
➢ Downtown / Sharp Park:
o Continue beautification and activation of economic vibrancy efforts o Engage investors/developers consistent with Housing Element designations o Continue discussions regarding Sharp Park Golf Course economic opportunities ➢ Other Commercial Areas:
o Strengthen broker relationships
o Track vacancies and building conditions
o Conduct a feasibility study of potential financing tools: Property and Business Improvement Districts (PBID), Enhanced Infrastructure Financing Districts (EIFD), and Community Facilities Districts (CFD) to support infrastructure improvements and catalyze private investment in priority areas.
Goal 2 - Business Attraction
Business Attraction focuses on bringing new businesses, tenants, and investment to Pacifica through coordinated marketing, tourism strategies, outreach to brokers and developers, and support for events that drive foot traffic and economic activity.
A strong attraction strategy expands Pacifica’s economic base, increases sales tax and TOT performance, strengthens visitor-serving uses, and enhances commercial vibrancy.
FY 2025-26 Priorities
➢ Develop high-quality marketing materials featuring Pacifica businesses to support broker outreach and investor recruitment
➢ Analyze tax data / performance by business district to see trends and inform targeted attraction and business retention strategies
➢ Analyze sales leakage from Pacifica to neighboring jurisdictions to identify categories where spending occurs outside the City, and use this data for strategic business attraction
➢ Explore internship partnerships and technology solutions to enhance social media presence and expand digital engagement capacity for visibility, community events and promotions, and visitor awareness
➢ Complete revamp of the Visit Pacifica website to increase marketing analytics capabilities and enhance ROI. Collaborate with the SF Peninsula partner to better position Pacifica within the Pacifica Tourism Marketing District (PTMD) to maximize visitor-serving impact
Pacifica City Council 8
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➢ Build relationships with media outlets and pitch tourism/small business stories to increase media exposure to elevate Pacifica’s image as a coastal destination and business-friendly community
➢ Explore seasonal events (e.g., expanded MerMay or July 4th concept) to explore scalable event concepts that increase foot traffic and support small business revenue ➢ Continue supporting the planning and execution of Pride event to reinforce Pacifica’s identity as a welcoming coastal destination
FY 2026-27 Focus Areas
➢ Continue coordinated marketing and media outreach efforts to sustain visibility in regional tourism and retail markets
➢ Strengthen relationships with retailers and brokers to maintain active engagement to ensure Pacifica remains competitive in site selection discussions and filling commercial vacancies
➢ Coordinate tourism events regionally and cross-jurisdictionally (e.g., Half Moon Bay collaboration) to expand visitor draw and shared marketing impact ➢ Support signature community events, including Fogfest, Tree Lighting, and seasonal programming to reinforce the community identity and impact on small businesses Goal 3 - Business Retention
Existing businesses are foundational to Pacifica’s fiscal stability, employment base, and community character. Business Retention efforts focus on proactive communication, technical assistance, and coordinated problem-solving and district-level improvements to support local entrepreneurs, reduce vacancies, and prevent economic leakage to neighboring jurisdictions.
FY 2025-26 Priorities
➢ Finalize and kick off implementation of Business Visitation Program policy to understand trends, identify business challenges early, connect business owners to resources, and build City-business relationships
➢ Continue engagement with business stakeholders and key commercial districts (Rockaway, Seaside Merchants Association, Linda Mar, etc.) to address operational concerns, identify opportunities for reinvestment and improved vitality ➢ Promote County and Renaissance-led business education sessions to improve longterm viability and competitiveness ➢ Finalize bike rack installation plan to improve accessibility and connectivity to commercial areas, supporting increased customer traffic FY 2026-27 Focus Areas
➢ Fully implement Business Visitation Program to transition from policy adoption to measurable performance tracking and outcomes reporting
➢ Explore formation of a Property-Based Business Improvement District (PBID) to evaluate whether this self-assessment district tool could provide sustainable funding for commercial improvements and marketing in Rockaway and Sharp Park Pacifica City Council 9
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➢ Continue technical assistance partnerships (Small Business Development Center, Renaissance Center, Workforce Development Board) to enhance business resilience and workforce capacity
➢ Expand connectivity and pedestrian improvements supporting commercial areas to increase foot traffic, ensure safety and support long-term commercial performance Goal 4 - Planning, Analysis & Policy Development
Long-term fiscal sustainability requires an efficient, and supportive development environment.
This goal focuses on strengthening the City’s permitting processes, cross-department coordination, financing tools, and long-range policy alignment to make it easier and more predictable to invest and do business in Pacifica. A streamlined and transparent development processes reduce common obstacles and project delays, increases investor confidence, and ultimately accelerates revenue-generating activity.
FY 2025-26 Priorities
➢ Establish clearer public-facing permitting resources (e.g., “Before You Sign a Lease,” “Guide to Permitting”) to improve transparency and reduce common barriers ➢ Explore self-serve counter and improved development transparency tools to improve customer experience and reduce processing delays
➢ Initiate cross-departmental coordination and developer liaison support to integrate the economic development considerations in planning discussions ➢ Participate in regional platforms to advertise unfunded capital projects to attract external funding and private investments
FY 2026-27 Focus Areas
➢ Continue coordination with Planning/Community Development on Housing Element priority sites to align entitlement processing and infrastructure planning to facilitate planned housing development
➢ Evaluate financing mechanisms such as Enhanced Infrastructure Financing Districts (EIFDs), Community Facilities Districts (CFDs), and related financing tools to assess the City’s capacity to establish financing districts that align land use policy with infrastructure funding strategies and long-term fiscal sustainability goals (coordinates with Goal 1 above)
➢ Pursue grant opportunities for infrastructure and commercial corridor improvements to reduce General Fund exposure while advancing capital investments.
Additional detail regarding each Economic Development Workplan Goal is provided in Attachment 1 - Update on Economic Development Work Plan, originally presented as Attachment G to the November 10, 2025 Council Agenda Summary Report.
As stated above, Pacifica’s fiscal challenges are structural and, therefore, require deliberate, coordinated, and sustained action. The Economic Development Workplan Framework presented in this report reflects a structured, prioritized and outcome-driven strategy to expand the City’s economic base, support housing production, and advance commercial vitality in alignment with Pacifica City Council 10 February 23, 2026
Council-adopted goals.
Staff will continue refining and advancing these priorities through the upcoming Strategic Planning and budget process and will return to Council with measurable progress updates, and any actions requiring policy direction or funding consideration.
Recognizing the City’s limited staffing and financial capacity, this workplan intentionally emphasizes a focused set of high-impact priorities, designed to generate meaningful return.
Additional efforts will advance as organizational capacity and resources allow. This approach ensures that economic development in Pacifica remains strategic, fiscally responsible, and aligned with Council Strategic goals and priorities.
FISCAL IMPACT:
There is no immediate fiscal impact associated with this report. Any future actions with budgetary or financial implications will be brought to Council as part of the annual budget process or in separate actions for consideration and approval.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Attachment 1 (PDF)