City Council Memorandum
TO: HONORABLE CITY COUNCILMEMBERS DATE: SEPTEMBER 15, 2026 FROM: COMMUNITY & ECONOMIC WARDS: ALL
DEVELOPMENT
SUBJECT: ADOPTION OF A FOREIGN DIRECT INVESTMENT STRATEGY FOR ECONOMIC GROWTH AND AUTHORIZATION FOR INTERNATIONAL TRAVEL FOR ELECTED OFFICIALS THROUGH JUNE 30, 2027 ISSUE:
Adoption of a Foreign Direct Investment strategy for economic growth and authorization for international travel for elected officials through June 30, 2027.
RECOMMENDATIONS:
That the City Council consider:
Approving the City’s Foreign Direct Investment Strategy as part of its broader economic development efforts; Authorizing international travel for elected officials through June 30, 2027, in support of business attraction and investment initiatives; and Receiving quarterly updates to the Economic Development Committee and annual updates to the City Council to ensure transparency and accountability.
BACKGROUND:
In an increasingly global economy, cities must proactively compete for investment, jobs, and innovation. As the 12th largest city in California, located in the world’s fourth-largest economy, Riverside is well-positioned to attract international businesses seeking entry and expansion into the U.S. market.
Over the past two years, the City has made measurable progress in advancing its economic development objectives through the attraction of several international companies, including Ohmio (2024), Voltu Motor (2024), Hyundai Rotem (2025), GreenPower (2025), Stored Power Technology (2025), and Chaevi (2025). These firms represent a diverse range of advanced manufacturing and clean technology sectors, contributing to the City’s broader economic diversification goals within the clean and green technology cluster.
At full buildout of their facilities, the combined investment associated with these new companies is estimated to exceed $142 million, with the potential to generate more than 700 quality jobs upon reaching full operational capacity. These estimates reflect direct capital investment and employment impacts and do not include indirect fiscal benefits, such as local sales tax generation, point-of-sale revenue, or other municipal revenue streams that may result from increased economic activity.
Foreign Direct Investment (FDI) is a proven economic development strategy that enables cities to attract high-quality employers, generate local jobs, and expand the tax base. Leading cities and economic development organizations across the country actively participate in international trade missions, investment summits, and targeted outreach to remain competitive on a global stage.
The City’s FDI efforts have included participation in the SelectUSA Investment Summit and the City’s first international trade mission to Japan and South Korea, which have resulted in meaningful business relationships and direct investment opportunities. Local relationships with key global partners such as UC Riverside, The County of Riverside Office of Economic Development, Team California, The Governor’s Office of Business and Economic Development, and the U.S. Commercial Service have also been strengthened through FDI efforts which not only benefit Riverside, but the broader regional economy as well.
DISCUSSION:
Strategic Importance
FDI is a core economic development strategy employed by high-performing cities and regions across the globe. Communities that strategically attract international capital are better positioned to weather economic cycles, foster innovation, and sustain long-term growth.
Leading cities in California and across the United States have made FDI a central pillar of their economic development strategies, recognizing its critical role in driving innovation, job creation, and global competitiveness. In California, “Big 13” cities such as Anaheim, Irvine, Long Beach, Los Angeles, Oakland, Sacramento, San Diego, and San José actively operate international business attraction programs, maintain global partnerships, and participate in trade missions to secure investment in high-growth sectors such as technology, life sciences, and clean energy. Locally, the County of San Bernardino, City of Ontario and the Southern California Wine Country Economic Development Coalition are highly proactive in pursuing foreign direct investment, actively engaging in international outreach and business attraction efforts; underscoring the importance for Riverside to remain competitive and equally engaged in the global marketplace.
Similarly, leading U.S. cities including New York City, Chicago, and Houston have institutionalized FDI efforts through dedicated offices, Economic Development Corporations, World Trade Centers, international representation, and robust investor support services. These cities consistently compete on a global stage to attract multinational companies, leveraging their infrastructure, talent pipelines, and industry clusters. Their success underscores a broader trend: cities that intentionally prioritize FDI are better positioned to capture emerging economic opportunities, strengthen key sectors, and sustain long-term growth in an increasingly interconnected global economy.
By actively engaging in global markets, Riverside reinforces its position as a viable and attractive destination for international companies seeking expansion in North America. This global engagement signals that the City is business-ready, future-focused, and committed to supporting high-quality employers and emerging industries.
FDI efforts directly advance the City’s economic priorities by enabling Riverside to:
Attract high-wage jobs that improve household incomes and increase local spending power; Retain talent in the City of Riverside by providing high paying jobs to avoid exporting our talent; Connect local small businesses to new supply chains, expand their customer base, and create pathways to global markets; Diversify the local economy, reducing reliance on any single industry and enhancing economic resilience; and Strengthen key industry sectors, including aerospace and defense, biotechnology, advanced manufacturing, clean and green technology, and tourism.
Beyond direct economic benefits, FDI plays a critical role in strengthening the City’s fiscal health. Increased business activity expands the tax base through property, sales, and business tax revenues. This, in turn, allows the City to reinvest in essential community priorities that enhance quality of life for residents, including:
Safe and well-maintained streets and infrastructure;
High-quality parks, trails, and public spaces; and
Arts, culture, and community amenities that contribute to the City of Arts and Innovation.
FDI is not only an economic development tool, but also a mechanism for delivering broader community benefits and sustaining Riverside’s long-term economic prosperity and exceptional quality of life.
Examples of Foreign Direct Investment Activities
Foreign Direct Investment activities encompass a wide range of strategic initiatives designed to attract, retain, and expand international business presence within the city. These activities include, but are not limited to:
Business attraction and recruitment: Proactively identifying and engaging international companies aligned with Riverside’s target industries.
International marketing and branding: Promoting Riverside as a competitive business destination through global trade shows, investment forums, and targeted outreach campaigns.
Trade missions and delegations: Participating in inbound and outbound delegations to build relationships with foreign investors, industry leaders, and government partners.
Site selection support: Assisting international firms with site identification, permitting navigation, workforce connections, and incentives.
Ongoing business partnerships, relationship management, and business retention: Supporting existing foreign-owned companies to ensure expansion, satisfaction, and long-term success in Riverside.
Leveraging resources: Collaborating with regional, state, and federal partners, as well as economic development organizations, to leverage resources and amplify outreach.
Soft-landing services: Providing tailored support for international firms entering the U.S. market, including cultural navigation, regulatory guidance, and local network connections.
These activities collectively position Riverside as a globally competitive City that is responsive to the needs of international investors.
Foreign Direct Investment Success Stories
Riverside has already demonstrated success in attracting international companies that bring innovation, investment, and high-quality jobs to the community. Companies such as Ohmio, Voltu Motor, and Chaevi highlight the City’s ability to compete for, and secure, global investment.
SelectUSA: Ohmio (New Zealand), a leader in autonomous shuttle technology, established operations in Riverside, reinforcing the City’s position in next-generation mobility and smart transportation solutions.
SelectUSA: Voltu Motor (Argentina), selected Riverside as the location of their global headquarters to advance their patented electric commercial vehicle technology, contributing to the region’s growing clean transportation ecosystem. As Voltu scales their business over the next four years, they anticipate manufacturing 1,400 vehicles and creating 400 quality local jobs at a variety of skill levels.
South Korea Trade Mission: Chaevi (South Korea), the leading manufacturer of electric vehicle charging infrastructure, chose Riverside as their U.S. headquarters, supporting the transition to clean energy and sustainable mobility. Chaevi represents a $50 million investment and quality jobs.
These companies not only bring capital investment but also create skilled jobs, introduce new technologies, and strengthen Riverside’s reputation as a hub for innovation. Their presence demonstrates the effectiveness of the City’s FDI strategy and serves as a powerful signal to other international firms considering expansion.
Overview of 2025 Efforts
In 2025, the City of Riverside advanced a comprehensive and globally engaged FDI strategy through a series of high-impact initiatives. The City participated in the SelectUSA International Investment Summit, the nation’s premier forum for connecting global investors with U.S. communities. This effort was followed by the City leading its first organized international trade mission to Japan and South Korea to strengthen relationships in key target markets. The City also expanded its global presence by participating in Ecomondo, a global green technology expo, reinforcing its commitment to sustainability and clean technology sectors.
FDI also brings inbound opportunities into our City and throughout the year, as the economic development team hosted seven inbound delegations, providing opportunities to showcase local assets, industry strengths, local resources for international companies, and investment-ready sites.
Overview of 2026 Efforts
Building on this momentum, Riverside applied for and successfully hosted a SelectUSA Spinoff event on April 29–30, 2026 which is the first time this nationally recognized event has been held in the city and region, bringing international investors directly to Riverside. This resulted in 131 total attendees, 17 countries registered, and 6 prospects. From May 3-6, 2026, the City also participated in the Select USA Investment Summit as delegates for the State of California which continued to expand Riverside’s international network and growing reputation as a competitive destination for foreign investment. This resulted in 16 meetings overall and the opportunity to connect with companies from 12 different countries seeking expansion opportunities. Over this brief period, over 70 hours were invested sharing Riverside’s value.
In parallel, the City is strengthening strategic relationships with foreign consulates following engagement with the Los Angeles Consular Corps, which has already resulted in a formal Memorandum of Understanding with Laden Seutu – Lahti Region Oy (Finland). This MOU has served as the launching point for several roundtables in Riverside and Los Angeles as the parties continue to explore business and investment opportunities in Riverside. The economic development team continues to meet monthly with Lahti leadership to continue building on this relationship and facilitating business expansion in Riverside.
In 2026, the City has already hosted 16 inbound delegations, including international companies from Japan, South Korea, China, and Finland, as well as the former Japanese Ambassador to the United States. Each of these interactions leads to business attraction opportunities that place Riverside in a global strategic position. Collectively, these efforts demonstrate Riverside’s growing reputation as a globally connected city and a competitive destination for international investment.
Target Markets for Growth
To maximize the impact of its FDI strategy, Riverside is focusing on target markets and industries that align with their existing strengths and competitive advantages. These target areas complement the City’s established clusters in aerospace and defense, biotechnology, advanced and additive manufacturing, and clean technology.
Key geographic target markets include:
Asia-Pacific (e.g., South Korea, Japan, Taiwan, Singapore, India, Australia, and New Zealand), with strengths in aerospace and defense, advanced manufacturing, clean technology, and mobility innovation, engineering, and digital technologies.
Europe (e.g., Germany, the United Kingdom, and the Nordic countries), known for leadership in engineering, sustainability, and advanced industrial technologies.
North America partners (Canada and Mexico), leveraging nearshoring trends and integrated supply chains.
Priority industry sectors include:
Aerospace and defense, building on regional assets and supply chain opportunities; Biotechnology and life sciences, supported by research institutions and healthcare infrastructure; Advanced and additive manufacturing, including precision engineering and Industry 4.0 technologies; Clean technology and renewable energy, including electric vehicles, energy storage, and charging infrastructure; and Logistics and supply chain innovation, capitalizing on Riverside’s strategic location within Southern California.
This targeted approach is aligned with the City of Riverside’s award-winning Economic Development Strategy and Implementation Plan Riverside Realized, the County of Riverside’s Comprehensive Economic Development Strategy (CEDS), and the State of California’s Economic Blueprint. By focusing resources on high-growth markets and industries, the City can more effectively attract investment that delivers long-term economic value.
Sister Cities as Economic Drivers
The City of Riverside’s Sister City relationships are longstanding partnerships that promote cultural exchange, mutual understanding, international goodwill, and economic opportunities. Riverside maintains nine Sister City affiliations across key global regions, including:
Sendai, Japan (established 1957)
Cuautla, Mexico (established 1968)
Ensenada, Mexico (established 1976)
Jiangmen, China (established 1996)
Gangnam, South Korea (established 1999)
Hyderabad, India (established 2000)
Obuasi, Ghana (established 2008)
Erlangen, Germany (established 2011)
Can Tho, Vietnam (established 2015)
While these relationships are deeply rooted in cultural and educational exchange, they also serve as valuable platforms for economic development. Sister Cities can act as gateways for international business engagement by:
Facilitating introductions to business leaders, investors, and government officials in partner cities; Supporting trade and investment missions that connect Riverside companies with global markets; Promoting student, academic, and workforce exchanges that strengthen talent pipelines; and Enhancing Riverside’s global visibility and reputation as an internationally connected city.
When strategically aligned with economic development goals, Sister City partnerships serve not only as cultural assets but also as practical tools for advancing trade, investment, and job creation in the City of Riverside.
Opportunities for Travel in Fiscal Year 2027 (July 2026-June 2027) To advance the City’s Foreign Direct Investment (FDI) strategy and build upon the momentum established through international business development efforts in 2025 and 2026, Economic Development staff has identified several strategic international travel opportunities for Fiscal Year 2027. These opportunities are intended to strengthen international partnerships, support business attraction and investment efforts, advance active leads, and position the City of Riverside as a competitive destination for international business investment.
Fall 2026 Opportunities:
Finland Trade Mission
Staff is exploring a potential trade mission to Finland in November 2026 to strengthen the City’s relationship with the Lahti Region. This opportunity builds upon the City’s Memorandum of Understanding with Laden Seutu – Lahti Region Oy for economic development collaboration, as well as several roundtables and business engagements conducted in Riverside and Los Angeles.
A November visit would provide an opportunity to continue cultivating relationships with Finnish companies interested in establishing or expanding operations in the United States, while demonstrating the City’s commitment to developing long-term international business partnerships. The timing would also allow City representatives to participate in SLUSH, one of Europe’s leading startup and venture capital conferences. Participation in SLUSH would provide additional opportunities to engage with startups, investors, technology companies, and other international business stakeholders whose activities align with the City’s economic development and FDI priorities.
Singapore Week of Innovation and Technology (SWITCH 2026) With approval from the City Manager, Economic Development staff applied for and was selected to participate in the California Delegation, led by the Governor’s Office of Business and Economic Development (GO-Biz), at the Singapore Week of Innovation and Technology (SWITCH 2026). Scheduled for October 2026, SWITCH is an international innovation and technology event supported by the National Research Foundation Singapore and is expected to convene more than 25,000 attendees, 400 startups and exhibitors, and more than 30 global pavilions.
Participation in the California Delegation provides the City with an opportunity to increase its international visibility, establish relationships with global investors and business leaders, and promote Riverside as a destination for business expansion, innovation, and investment. The delegation format also provides an opportunity to leverage the State of California’s international economic development presence while pursuing connections aligned with the City’s FDI strategy.
Spring 2027 Opportunities:
South Korea Trade Mission
Staff proposes a return to Japan and/or South Korea in Spring 2027 to build upon the success of prior international outreach efforts and leverage relationships established through the City’s existing business and Sister City partnerships. A follow-up mission to the 2025 efforts would provide an opportunity to maintain continuity with companies and organizations previously engaged by the City, advance active business discussions, and pursue new investment leads in priority industries, including advanced manufacturing, clean technology, and mobility innovation.
International business development requires sustained engagement and relationship-building over multiple years. Follow-up visits are therefore important to maintaining relationships, advancing prospective projects, and converting previously cultivated leads into tangible economic development outcomes. Given the complexity of coordinating international stakeholders, identifying appropriate industry targets, and securing high-level business and government meetings, successful trade missions generally require a deliberate six-to-nine-month planning process. Early planning for a Spring 2027 mission will allow staff to develop a focused itinerary and maximize the City's business attraction and investment opportunities. Additionally, a May visit to Sendai, Japan would provide an opportunity to strengthen Riverside’s longstanding Sister City relationship which will be celebrating the 70th anniversary in 2027, support the historic Sendai International Half Marathon, and deepen connections that can advance cultural, educational, tourism, and economic exchange between the two cities.
SelectUSA Roadshow Opportunities
The U.S. Commercial Service has invited the City of Riverside to attend upcoming SelectUSA Roadshows and Conferences which include:
Mexico: October 27-28, 2026
Netherlands, Belgium: November 16-17, 2026
Canada: November 17-19, 2026
France: November 18-20, 2026
Brazil: January 25-29, 2027
Austria, Slovakia: January 26-28, 2027
Turkey: February 1-5, 2027
Singapore, India: February 2-5, 2027
Spain, Portugal, March 3-12, 2027
Poland: March 9-11, 2027
Staff is currently evaluating the opportunities, cost, available budget and time constraints, and the potential return on investment of engaging in these events. Staff will work within the approved Economic Development Division budget and with the City Manager to obtain any travel approvals per City policy.
Recognizing the dynamic nature of international business development, staff also emphasizes the importance of maintaining flexibility in travel planning. Opportunities to engage with prospective investors, participate in high-impact events, or collaborate with strategic partners may arise throughout the fiscal year with limited notice. For this reason, staff is requesting advance travel authorization to ensure the City can respond quickly and effectively to time-sensitive opportunities that support investment attraction and economic growth.
To maximize efficiency and ensure responsible use of taxpayer funds, the City will actively pursue partnership opportunities with regional and state organizations, including the Los Angeles County Economic Development Corporation, San Diego Regional Economic Development Corporation, GO-Biz, the County of Riverside, the U.S. Commercial Service, and other aligned entities. Coordinating travel with these partners allows for cost-sharing, expanded delegations and networks, and a unified regional approach to international engagement, ultimately enhancing Riverside’s visibility while optimizing limited resources.
Return on Investment Approach
The City’s investment in FDI activities has already yielded significant returns. Most notably, engagement through international outreach efforts contributed to securing a $50 million investment from Chaevi along with quality jobs. By allocating a modest amount of public funding toward targeted economic development initiatives, the City is leveraging its resources to attract substantial private capital, stimulate job creation, and expand the local tax base.
This approach reflects a commitment to fiscal stewardship that ensures that every dollar spent is aligned with measurable outcomes and long-term community benefit. Rather than viewing these efforts as expenses, they should be understood as high-impact investments that multiply value far beyond their initial cost. In this case, a small, deliberate public investment has catalyzed a transformative return.
The total cost associated with the 2025 trade mission to South Korea was:
South Korea Trade Mission (Approx. $86,800):
Korean Professional Services Consultant Agreement: $53,800 Airfare, hotels, ground transportation, meals and per diem, and delegation meeting supplies for two elected officials and two staff: $26,000 Translation, media, and logistics: $7,000
Compared with the $50 million investment by Chaevi alone, this represents a significant return on investment of approximately 57,500%. This equates to approximately $576 in private investment for every $1 the City invested in the trade mission. This return is expected to increase as staff continues to follow up on leads, advance business discussions, and strengthen relationships established through the trade mission.
This level of return underscores the effectiveness of proactive international engagement. Beyond direct capital investment, FDI also produces long-term fiscal benefits through:
Increased property and sales tax revenues;
Job creation and workforce development;
Supply chain expansion and local business growth; and
Enhanced global visibility and competitiveness.
International Travel Policies
Elected officials and city staff have adhered to their respective international travel policies. For elected officials, approval is required by the City Council. For city staff, approval is required from the City Manager.
Transparency and Accountability
To ensure transparency and fiscal responsibility:
Quarterly updates on international travel and outcomes will be provided to the Economic Development Committee; Annual reports will be presented to the City Council; and All costs will continue to be reviewed and approved through the standard annual budget process within the Economic Development Division.
The City’s investment in FDI strategies represents a high-return, low-cost approach to economic growth. With a demonstrated return on investment and increasing global competition for business attraction, continued participation in international engagement is essential.
Authorizing international travel for elected officials through June 30, 2027, ensures the City can act strategically and responsively in securing opportunities that bring jobs, revenue, and long-term prosperity to Riverside residents and the local economy.
FISCAL IMPACT:
There is no additional fiscal impact beyond what is already included in the Economic Development Division’s annual budget. All international travel and FDI-related expenses will be managed within existing appropriations and are subject to standard budget oversight and City Manager authorization.
Prepared by: Miranda Evans, Community & Economic Development Director Approved by: Mayor Patricia Lock Dawson
Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Thomas R. Hatch, Interim City Manager
Approved as to form: James Johnson, City Attorney
Attachments:
Site Selection Brochure – English
Site Selection Brochure – Japanese
Site Selection Brochure – Korean
Site Selection Brochure – Spanish
Foreign Direct Investment Strategy ● Page 2