Make a Pretty Title Slide Here
Business Development and
Small Business Update
Community and Economic Development
Committee
April 24, 2023
Item (d)2
Blage Zelalich, Deputy Director, OEDCA
Victor Farlie, Assistant to the City Manager, OEDCA
Nathan Donato-Weinstein, Downtown Manager/Assistant to
the City Manager, OEDCA
-18%
Change in
job postings
for San Jose
metro,
April 2022-
March 2023
+4.3%
Consumer
spending,
Santa Clara
County
+5.3%
Bay Area
CPI, Feb.
2023
Business Ecosystem Vital Signs |
20%
Citywide
office
vacancy rate
11.7%
Citywide
R&D
vacancy rate
3.2%
Citywide
industrial
vacancy rate
5%*
Citywide
retail
vacancy rate
Real Estate Indicators
3.2%
Citywide
unemployment
Rate
435,000
Total jobs based
in San Jose
60,000
Active businesses
with a payroll
+16%
Increase in
sales tax
above preCOVID
levels (Q4)
WARN layoff
notices in past
12 months
3,000
Sources: Cushman & Wakefield/CoStar (CRE data) as of Q4 2022; tracktherecovery.org, Lightcast, Calif. EDD, work2future, CDTFA, City of San Jose Department of Finance Business Development Activity
~325
Corporate
retention/
attraction
meetings
per year $2.30:$1
Ratio of spend to
revenue, OED Business
Development Outreach
~4,000
Jobs retained/attracted
per year Participants in
Foreign Trade
Zone #18
10 $500M
-
Value of exports by
$1B
participating FTZ
companies
/
130
Businesses
assisted through
development
facilitation
officer
Business Development Activity
10,000+
Business clients assisted through
businessownerspace collaborative
30 Square feet of
commercial space
supported by
Storefronts grants
17 Providing small-business
training on diverse subjects
webinars
32 BizWalks in SJ
commercial
corridors/centers
12 Neighborhood
business districts
promoted
through Holiday
San Jose
campaign
•
89,919
$495,000
Amount disbursed to
SJ businesses via
rent relief grants
Business owners assisted by the
City's two Small Business Allies
2,620
Office, Industrial, R&D Leasing and Move-Ins
Retail Leasing and Move-Ins
OED’s Adolfo Ruelas leads a discussion with neighborhood business association representatives during a retreat.
Enhanced Business Association
Coordination
Commencing a new operating plan
for participating business
associations to better support their
members with access to resources.
Strategically Launching New
Business Associations
Supporting the development of new
neighborhood associations with
consultant services focused on
leadership development,
sustainable business planning and
service delivery.
| What We’re Hearing: Businesses Are What We’re Doing
Stronger Together, But San Jose Lacks
Business Association Muscle
Procuring additional technical
assistance for small business
Launching three new contracts
focused on providing free 1:1 training
on new business formation,
digital/social media marketing, access
to capital, financial planning
Supporting businesses through
access to grant programs
Continue to promote Storefronts, Rent
Relief, Accessibility, and other targeted
city and state grant programs
Enhancing the BusinessOwnerSpace referral network
Revamping the businessownerspace.com
technical-assistance network’s website
and operations to enhance access and
effectiveness
What We’re Hearing: Many Small Businesses
Not Yet Back to Pre-Pandemic Levels
Contractor Enterprise Foundation assists business owners with applications for the District 8 small business grants.
| What We’re Doing
| What We’re Hearing: Digital Chops
Are Key for Post-Pandemic Survival
Leveraging City channels for
quality small-business social
content
Interviews, profiles and ‘Shop
Local’ initiative provide shareable
content for business and highlights
the unique business ecosystem of
San Jose.
Specialized training on digital
marketing
Providing training through BOS
referrals, new City-funded contracts
and workshops/webinars. Provided
more than 30 businesses with
digital interns through a partnership
with Meta/work2future.
What We’re Doing
Social media content created by City staff includes interviews, profiles, and Shop Local guides highlighting unique neighborhoods.
What We’re Hearing: Manufacturing, R&D a
Bright Spot for Region’s Economy
Jaime Nevarez of Nevarez Machining in the Monterey Road corridor, leads a tour as part of Manufacturing Week 2022.
What We’re Doing
Supporting complex
development/construction
needs
Providing development facilitation
and due diligence for startups and
established corporations alike.
State & federal incentive
promotion and navigation
Introducing companies to programs
like FTZ, California Competes and
state tax exemptions to reduce cost
of doing business.
Targeted industry outreach
Participating in and supporting
Manufacturing Week, industry
training programs, and roundtable
series through Manufacture: San
Jose nonprofit; supporting CHIPS
Act applications.
|
What We’re Hearing: San Jose Struggles
With Perception, Reality of Business Climate
What We’re Doing
Demystifying process &
solutions
Providing guidance on what to expect and
how to streamline permits and processes;
quick-turnaround feedback on project
proposals; Small Business Ally program for
small business tenants; promotion of
resources and 311 app for clean & safe
needs during 2x monthly BizWalks.
Ramping up corporate outreach
Regular outreach meetings surface
business concerns and trouble-shooting
opportunities; attendance at industry
events and trade shows to put City’s
best face forward.
State & federal incentive
promotion and navigation
Introducing companies to programs like
FTZ, California Competes and state tax
exemptions to reduce cost of doing
Xuan Ha and Juan Borrelli celebrate the 10 business. th anniversary of the Business Ally Program
|
The City’s draft Housing Element was submitted
to the State of California in September 2022. In
the background is the Taft apartment project in
South First Area.
What We’re Hearing: Housing Continues
to Hamstring Business Expansion
What We’re Doing
Housing Catalyst Officer
Focused on housing policy and
facilitation.
Supporting Housing Investment
Launched Housing Site Explorer tool
to make it easier to find developable
sites for housing (in partnership with
Department of Housing)
Contributed to Housing Element
Assisted in development of site
inventory
Cost of Residential Development
Report
Updated report and led study session
on the cost to build new multifamily
housing. Fall 2023 update in
progress.
|
Special Projects
Flea Market Vendor Support +
Advisory Group
Establishing Council-directed advisory group
and support services specific for Flea Market
vendors in advance of potential closure.
Cannabis Equity Business Academy
Procured academy provider, established
application process and aim to launch academy
in May.
CHIPS Act Promotion
Proactive outreach to semiconductor industry
firms to support potential federal applications.
Five Wounds Study Support
Lending expertise to assist with prevention of
small business displacement in and around
future 28th St. BART station area.
OED Business Development Staff at the Flea Market
to share information and resources with vendors.
Stronger Commercial Corridors Support the formation of a community benefit improvement district in Alum Rock.
City Council in August 2023
Publish an operational plan
and launch additional business association and propertybased improvement district formation efforts in commercial corridors throughout the City.
Competitive RFP completed in late 2022
to procure consultant services. Now negotiating cont
racts to bring on consultants to assist in Calle
Willow, East Santa Clara Street Corridor,
the Alameda, Alum Rock Village and Winchester
Boulevard.
Continue to work with VTA to create a business support
program and Interruption Fund for the BART
Phase II project.
Work with VTA and consultants to define and fund
the program in 2023.
Develop a Monterey Corridor digital hub to promote the
key commercial/industrial area and centralize the
work of the Monterey Corridor Task Force.
Website to launch summer 2023.
Fill staff positions that will impact placemaking and business development in key areas of the city, including a Downtown Coordinator
and Eastside Manager.
Recruitments underway
Looking Ahead |
Building the Small Business Ecosystem Launch a Small Business Advisory Committee to provide insights and recommendations to
OEDCA on the needs and priorities of the Small
Business Community.
Meetings expected to begin in Q2 2023.
Monitoring the City’s Economic Health New economic dashboard that will provide more frequently updated data on the City’s
economic activity. This will help the City better
target populations and geographies for
enhanced outreach and service delivery.
Digital dashboard will debut in Q2 2023.
Direct Financial Assistance and
Access to Capital
Support the stabilization of small businesses who
are behind on their commercial rent through
rent relief grants.
The current application window closes on April
30 and 300 grant awards are anticipated
to be awarded in 2023.
Support the small business community in District
8 through the development of a Small Business
Grant program.
Grant applications open through May 30 with 35
awards to follow.
Looking Ahead |
OEDCA Business Development Team
Deputy Director
Blage Zelalich
Business District Management + Place Based Initiatives
Victor Farlie – Lead Nathan Donato-Weinstein – Downtown Manager Salvador Alvarez
Jon Castaneda
Nguyen Pham
Adolfo Ruelas
Jiawei Tang
Business + Development Facilitation Support Services
Jerad Ferguson – Housing Catalyst
Joe Hedges – International Programs
Joe Sordi – Development Facilitation
Economic Analysis and Communications
Bige Yilmaz - Economist
Carlos Velazquez – Public Information Manager
Make a Pretty Title Slide Here
Business Development and
Small Business Update
Community and Economic Development
Committee
April 24, 2023
Item (d)2
Blage Zelalich, Deputy Director, OEDCA
Victor Farlie, Assistant to the City Manager, OEDCA
Nathan Donato-Weinstein, Downtown Manager/Assistant to
the City Manager, OEDCA