City of San José
Proposed Economic Strategy Work Plan
Fiscal Year 2025-2026 and Fiscal Year 2026-2027
Office of Economic Development and Cultural Affairs
January 17, 2025
Table of
Contents
2 1 About OEDCA
2 Economic Strategy Work Plan Purpose & Context
3 Economic Snapshot, January 2025
4 Strategic Goals
5 Objectives & Key Results
About OEDCA
3 The Office of Economic Development and Cultural Affairs (OEDCA) is located within the City of San José’s City Manager’s Office. In support of its vision and mission, OEDCA focuses on the five following areas:
1. Leading business attraction and retention efforts, focusing on strategic industry clusters;
2. Strengthening the small business ecosystem, encouraging entrepreneurship and support for innovation;
3. Developing a skilled workforce to prepare the City’s residents for high-wage, high-growth careers leading to economic self sufficiency;
4. Enhancing the economic and cultural vitality of Downtown; and
5. Championing a vibrant cultural environment through cultural funding (grants), special event production and permitting, public art, and convention and cultural facility stewardship.
For FY 24-25, OEDCA has 55 budgeted positions and an additional 7 positions with an end date of June 30, 2025.
Vision
Vitality and opportunity for our
people and businesses and
fostering a diverse and inclusive
focus on place and culture.
Mission
Catalyze equitable job growth,
investment, entrepreneurship,
cultural vibrancy, and talent
attraction and retention in
San José. Strengthen the
City’s fiscal health.
Proposed Economic Strategy Work Plan Purpose & Context
4 • Serves as a blueprint for OEDCA-led programs, initiatives and day-to-day operations. • Goals, Objectives and corresponding Key Results are also presented to guide resource allocation, determine services levels, and ultimately to assess impact.
Purpose:
Context:
• Five Economic Development Goals derived from the twelve goals approved by the San José City Council as part of the 2010 and subsequently the updated 2015 Economic Development Strategy. • Economic Development Goals represent those areas where OEDCA will lead on related Objectives and Key Results. Each Objective will include Key Results.
• Key Results are for FY 25-26 for each of the five Goals and related Objectives and assume FY 24-25 funding and staffing levels. • Key Results would either be reduced or in certain instances eliminated should funding levels be reduced. • OEDCA will continue to work with other City Departments to support their respective economic development-related goals (PBCE, DOT, Airport, Parks, Recreation and Neighborhood Services, Housing, and SJ Public Library). • Staff consulted with a wide variety of external and internal stakeholders to review the Goals and Objectives (developers, brokers, business representatives, and work2future partners)
Economic Snapshot
January 2025
5 • 969,491 residents—71% are people
of color and 42% born outside U.S..
• 60,000 businesses —97% are small
businesses with fewer than 35
employees.
• Largest employment sectors—Health Care,
Manufacturing, Government, Professional
Services, and Retail.
• Largest sales tax generators—Restaurants,
B2B Equipment, New Auto Sales, Department
Stores, Commercial Construction.
• Emerging sectors—AI, Sustainability
Technologies, Green Tech and Quantum
Computing.
• San José was top patent-generating city
and home to five top 20 Bay Area companies
awarded most patents in 2023.
Indicators
2019 2023 2024
Change
2019-23
Population 1,018,609 970,772 969,491 -47,837 (-4.7%)
San José Jobs 439,004 414,708 Not yet
available
-24,296 (-5.5%)
Unemployed /
Unemployment Rate
14,700
2.7%
20,000
3.7%
22,900
4.2%
5,300 (36.0%)
Office Vacancy (Q2) 12.1% 24.5% 23.5% 12.4 (102%)
R&D Vacancy (Q2) 12.4% 12.5% 14.5% 0.1 (0.8%)
Industrial Vacancy (Q2) 2.6% 2.5% 3.8% -0.1 (-3.8%)
Retail Vacancy (Q2) 5.5% 4.6% 5.3% -0.9 (-16.4%)
The table compares the period immediately before the pandemic to immediately afterwards. The pandemic itself was marked by extraordinary economic volatility beyond the scope of this analysis. Data sources are listed in Attachment B.
Economic Snapshot
6 The Challenges
Cost of Living 76% higher than
U.S. average, with housing costs
225% above national average.
Racial/ethnic disparities in
unemployment, income, and
education.
Scale and diversity
of resident/business needs vs.
finite City resources.
Innovation-driven industries are
marked by cycles of rapid
growth and disruption.
High office (23.5%) and rising
R&D (14.5%) vacancy rates
impact property values, tax
revenues and innovation.
Strategic Goals
7 Goal 1
Encourage companies and sectors that can drive the San
José economy and generate revenue for City services and infrastructure.
Goal 2
Nurture the success
of the San José small
business ecosystem.
Goal 3
Foster economic
self-sufficiency, resilience,
and economic mobility for
San José residents, with
a particular focus on
underserved communities.
Goal 4
Enhance the economic
vitality of downtown San
José.
Goal 5
Develop a distinctive set of
sports, arts, and
entertainment
offerings resulting in civic
pride and positive
economic Impact.
Objectives and Key Results
8 Goal 1
9 Objectives
1.1 Strengthen the City’s corporate
business ecosystem, with special
focus on top technology and
manufacturing companies.
1.2 Support retention and growth of
jobs and revenue with medium and
large businesses.
1.3 Optimize the City’s real estate assets
and transactions to maximize
revenue generation and advance
critical projects and infrastructure.
Encourage Companies and Sectors that Can Drive the San José Economy and Generate Revenue for City Services and Infrastructure
Objective 1.1
10 Key Results
Strengthen the City’s Corporate Business Ecosystem, with Special Focus on Top Technology and Manufacturing Companies
Interaction with Top Employers
• Generate and manage relationships with 15 companies with over 1,000 employees and over $1M in revenue to the City.
Corporate Relations
• Complete 200 discovery/1:1 meetings with medium to largesized businesses to build relationships with and increase awareness of and provision of City services, focusing heavily on semiconductor, manufacturing and artificial intelligence-related industries.
Networking Activities
• Participate in or organize 50 networking activities or local ecosystem convenings to make 150 new contacts and provide members of the local business community to network, share knowledge and grow the City’s economic ecosystem.
Objective 1.2
11 Key Results
Support Retention and Growth of Jobs and Revenue with Medium and Large Businesses Help Companies Achieve Their Goals
• Support 140 companies in achieving their goals by helping them navigate City processes, exposing them to the City’s Foreign Trade Zone program, and connecting them to City and external
resources.
Marketing Activities and Initiatives
• Celebrate 25 companies, corporate milestones, openings and/or expansions through earned media, digital content, and/or ribbon cutting events.
San José Site Selection
• Provide comprehensive support to 45 companies in their site selection, expansion, and due diligence processes that results in 8 companies successfully expanding, relocating, or remaining in the City.
Objective 1.3
12 Key Results
Optimize the City’s Real Estate Assets and Transactions to Maximize Revenue Generation and Advance Critical
Projects and Infrastructure
Steward the City’s Real Estate Assets to Maximize
Revenue Generation
• Generate $1,100,000 in facility lease revenue, $1,600,000 in telecommunication lease revenue, and $500,000 in surplus sale revenue annually managing the City's Real Estate assets to catalyze business activity, promote community benefit, and maximize revenue to the City.
Support Citywide Initiatives and Critical Infrastructure Delivery
• Complete 125 real estate-related projects that advance the City’s objectives in addressing homelessness, promoting economic development, providing reliable utility services, protecting against sea level rise and flood risk, improving community amenities, and developing critical transportation projects.
Goal 2
13 Objectives
2.1 Maximize the use of City resources
to strengthen the small business
ecosystem, including Neighborhood
Business Districts.
2.2 Support entrepreneurship and
promote innovation across the city.
Nurture the Success of the San José Small Business Ecosystem Objective 2.1
14 Key Results
Maximize the use of City Resources to Strengthen the Small Business Ecosystem, Including Neighborhood Business Districts
Neighborhood Investment
• Support 12 business neighborhoods, establish four new Business Improvement Districts, and secure up to $1 million of investment by local businesses to enhance activation, improve public safety and the built environment.
Business Grants and Permitting Assistance
• Allocate 100% of available funds to small businesses for storefront and vacant ground floor property improvements and provide welcoming and efficient permitting assistance to 2,500 business owners through the Small Business Ally program.
Small Business Advisory Committee
• Organize four meetings of the small business advisory committee as it designs an inclusive ecosystem for
entrepreneurs and implement a work plan consisting of
advocacy, program and policy initiative recommendations to City Council.
Objective 2.2
15 Key Results
Support Entrepreneurship and Promote
Innovation Across the City
Expanded Business Advice Network
• Increase access of pro bono business assistance from 13,000 to 15,000 entrepreneurs through the Business Owner Space
partnership, provide a pro bono legal advising service for 100 business owners, and launch of an online one-stop shop
showcasing business advice organizations and opportunities for expanded access to capital.
Networking and Resource Events
• Attract 500 businesses to attend in-person business networking and resource events at the City Hall Rotunda and Mexican Heritage Plaza.
Cannabis Equity
• Award $800,000 of state grants to 10 Cannabis Equity Academy business graduates in alignment with the city's regulations.
Goal 3
16 Objectives
3.1 Enhance career opportunities
for youth and adults with multiple
barriers and prepare them for
high-wage, high-growth
occupations.
3.2 Expand collaboration with employers
in high-wage, high-growth sectors
and connect them with qualified job
seekers.
Foster Economic Self-Sufficiency, Resilience, and Economic Mobility for San José Residents, with a Particular Focus on Underserved Communities
Objective 3.1
17 Key Results
Enhance Career Opportunities for Youth and Adults with Multiple Barriers and Prepare them for High-Wage, High-Growth Occupations
Focus on High-Wage, High-Growth Careers
• Support 1,400 youth and adult clients and place 80% of those employed into high-wage, high-growth occupations (IT, Manufacturing, Health Care, Construction Trades, Accounting). Over 60% of these clients will be unstably housed, 80% are BIPOC and 70% have multiple barriers.
Career Awareness and Skill Building for Young Adults
• Provide paid internship to 375 San José Works clients. Over 90% completion rate with 100% of internships in high-wage, high-growth occupations. Secure unsubsidized employment for 425 youth ages 16-29.
Over 80% of clients referred by PRNS and/or live in priority neighborhoods.
Innovation to Support Upward Mobility for Underserved
Communities
• Support the City’s Homeless Implementation Plan and serve 100 unstably housed individuals with 70% securing employment with the majority placed in high-wage, high-growth occupations. Complete pilot with the Sheriff’s Office of an in-custody program serving 20 youth.
Objective 3.2
18 Key Results
Expand Collaboration with Employers in High-Wage, High-Growth Sectors and Connect them with Qualified Job Seekers
Diversified Approach to Meeting the Needs of Employers
• Support 300 businesses with their workforce needs, emphasizing high-wage, high-growth opportunities, with the vast majority offering employment, training and/or paid work experience opportunities for WIOA and San José Works clients.
Employer-Driven Career Pathways Training
• Partner with AI and semiconductor-related companies, PG&E PowerPathway, and Working Partnerships’ Trades Orientation Program (TOP) to create a pipeline of job seekers for high-wage opportunities with these same or related employers.
Connecting High-Wage, High-Growth Employers to Underserved Communities
• Conduct 6 job fairs, including 4 in Low-Resource Census Tracts, featuring 200 employers, the vast majority of whom are in high-wage, high-growth industry sectors. Host job fairs to support the “Road to 2026” sports events.
Goal 4
19 Objectives
4.1 Maintain and grow Downtown’s
commercial and residential base.
4.2 Support an enhanced Downtown
experience for businesses, residents
and visitors.
Enhance the Economic Vitality of Downtown San José
Objective 4.1
20 Key Results
Maintain and Grow Downtown’s Commercial and Residential Base Office Retention
• Retain existing corporate office tenants by meeting with the top 25 occupiers to address concerns and encourage lease
renewals, leading to at least five renewal commitments.
Office and Retail Attraction
• Secure six new lease/sale commitments through continued promotion of the Downtown Office Incentive.
Market Positioning
• Host quarterly downtown broker breakfast or lunch meetings to facilitate ongoing information and lead sharing.
Objective 4.2
21 Key Results
Support an Enhanced Downtown Experience for Businesses, Residents, and Visitors Activation
• Invest in programs and initiatives that increase downtown foot traffic, such as San Pedro Saturdays, the MOMENT pop-up shops, a potential farmer's market and new events and
activations.
Improving Downtown Experience
• Implement improvements to the newly created San Pedro and Post Street Pedestrian Malls, such as enhanced aesthetic treatments to the roadway, bollards, and sidewalk
improvements.
Downtown’s Best Face Forward
• Engage with community stakeholders, departments and
agencies to maintain enhanced cleanliness and public safety through coordination and strategic partnerships, with a specific focus on “Road to 2026” activities.
Goal 5
22 Develop a Distinctive Set of Sports, Arts, and Entertainment Offerings, Resulting in Economic Vitality and Civic Pride
Objectives
5.1 Prepare for the 2026 Major Sports
Events: build civic pride, maximize
local economic impact, and position
the City for future large-scale events.
5.2 Strengthen and support San José’s
Creative and Experience Economy.
5.3 Catalyze a vibrant, creative place and
public life.
Objective 5.1
23 Key Results
Prepare for the 2026 Major Sports Events: build
civic pride, maximize local economic impact, and
position the City for future large-scale events
Interdepartmental Coordination and Policy Work • Support the 2026 Sports and Special Events Director and interdepartmental partners to implement the City's
"Road to 2026" work plan including completing policy
amendments.
Activate the Public Realm with Art and Events • Lead efforts for events and cultural activations occurring in public spaces.
Strategic Partnerships • Develop strategic partnerships to facilitate other entities to produce events and/or enhance public
space.
Objective 5.2
24 Key Results
Strengthen and Support San José’s Creative and Experience Economy Invest in the Creative and Experience Economy through
Equitable Cultural Grant Programs
• Award approximately 115 TOT funded arts and cultural grants to the San José creative sector and foster the percentage of BIPOC-led or serving grantees to be at least 35%.
Strengthen the Creative Sector
• Strengthen and invest in nonprofit art organizations
and creative entrepreneurs through technical assistance programs designed to build their capacity and resiliency that engages at least 700 participants. Programs include grants, trainings, and networking events.
Recognize Impact
• Celebrate the impact of San José arts leadership, artists, nonprofits and initiatives through the annual Cornerstone of the Arts Awards.
Objective 5.3
25 Key Results
Catalyze a Vibrant, Creative Place and Public Life
Coordinate and Facilitate Outdoor Special Events
• Permit at least 400 outdoor special event days and produce the CityDance summer series.
Produce Participatory Outdoor Special Events
• Produce outdoor special events like the CityDance summer series and Make Music Day, engaging at least 4,000 people and 25 citywide venues.
Commission High Impact Public Art
• Integrate high impact public art throughout the community, advancing over 50 active public art projects.
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