City Manager's Office of Economic Development and
Cultural Affairs
Proposed Economic Strategy Work Plan for
Fiscal Year 2025-2026 and Fiscal Year 2026-2027
Nanci Klein, Director
City Manager’s Office of Economic Development and Cultural Affairs City Council
March 18, 2025
Item 8.1
Office of
Economic
Development
Existing Core
Services and
Programs
Core Service Program
Arts and Cultural Development Arts and Cultural Development Administration Convention and Visitors Bureau
Cultural Grants
Cultural Facilities Operations and Maintenance
Outdoor Events
Public Art/Placemaking
Business Development and Economic
Strategy
Business District Management
Business Outreach and Assistance
Downtown Management
Development Attraction and Facilitation
Economic Policy Analysis/Communications
Real Estate Services City Lease Administration
City Property Acquisition and Sales
Regional Workforce Development Workforce Development Services Workforce Innovation and Opportunity Act Board
Support and Administration
Strategic Support Budget
Finance/Contracts/Grants/Procurement
Human Resources/Employee Relations
Public Records Act
2 Strategic Goals
2010 - 2015
1. Encourage Companies and Sectors that Can Drive the San Jose/Silicon Valley Economy and Generate Revenue for City Services and Infrastructure.
2. Develop Retail to Full Potential, Maximizing Revenue Impact and Neighborhood Vitality.
3. Preserve and Strengthen Manufacturing-Related Activity and Jobs.
4. Nurture the Success of Local Small Businesses.
5. Increase San Jose’s Influence in Regional, State and National Forums in Order to Advance City Goals and Secure Resources.
6. Improve the Speed, Consistency, and Predictability of the Development Review Process and Reduce the Costs of Operating a Business in San Jose.
7. Prepare Residents to Participate in the Economy Through Training, Education, and Career Support.
8. Advance the Diridon Station Area as Key Transportation Center for Northern California.
9. Keep Developing a Competitive World Class Airport and Attract New Air Services.
10. Continue to Position Downtown as Silicon Valley City Center.
11. Create More Walkable, Vibrant, Mixed-Use Environments to Spur interaction and Attract Talent.
12. Develop a Distinctive Set of Sports, Arts, and Entertainment Offerings Aligned With San Jose’s Diverse Growing Population.
3 Economic Snapshot
February 2025
4 • 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 and
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 439,004 414,708 374,884 -24,296 (-5.5%)
Unemployed /
Unemployment Rate
14,700
2.7%
20,000
3.7%
23,300
4.3%
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 C.
Objectives and Key Results Framework
5 Objectives
Key Results
Strategies/Tactics
OEDCA’s Proposed Objectives + Core Services and Programs Four
Objectives
Core Services (5) and
Programs (16)
6 Objectives
7 Objective 1
Grow jobs and revenue and promote innovation from large and medium-sized businesses in key sectors such as manufacturing and artificial intelligence.
*The objectives are for FY 2025-2026 and FY 2026-2027. The metrics are only for FY2025-2026 and are based on current staffing and funding levels.
Objective 2
Foster small business resilience and create thriving business districts.
Objective 3
Accelerate a thriving Downtown.
Objective 4
Activate San José as the South Bay's hub for sports, arts, and entertainment.
Objectives and Key Results
8 Objective 1
Key Results
Add (attraction or expansion)
a total of 3,000 jobs.
Increase the City’s sales,
property and utility tax
revenue by $2M.
Increase business retention
visits by 25%.
Generate/facilitate the
permitting of two data
centers.
Grow jobs and revenue and promote innovation from large and medium-sized businesses in key sectors such as manufacturing and artificial intelligence. 9 Objective 2
10 Key Results
Establish two new business
assessment districts.
Generate combined revenue of
$550K from assessment districts.
Reduce the time to resolve small
business-related issues
(permitting, licensing, etc.).
Award 100% of city-wide
storefronts grants, with at least
30% facilitating a reduction in
vacant ground floor retail spaces.
Foster small business resilience and create thriving business districts.
Objective 3
11 Key Results
Generate 10 commercial lease
renewal commitments.
Facilitate 10 new business
attractions.
Achieve 10% year-over-year
increase in downtown foot
traffic.
Receive a 10% increase in
positive sentiment in the Focus
Area Community Survey.
Accelerate a thriving Downtown.
Objective 4
12 Key Results
Secure San Jose Sharks in San José for
25 years.
Secure San Jose Giants in San José for
25 years.
Complete the policy work related
to: Supergraphics, Special Events Zone
and Entertainment Zones, including pilot
implementation.
Produce or facilitate at least eight
outdoor special events specific to 2026
activities and deliver six public artworks.
Facilitate at least 400 city-wide event
days that cumulatively drive over two
million attendees.
Develop a sports and entertainment
district within walking distance of the
SAP Center for City Council approval by
June 2027.
Activate San José as the South Bay's hub for sports, arts, and entertainment.
City Manager's Office of Economic Development and
Cultural Affairs
Proposed Economic Strategy Work Plan for
Fiscal Year 2025-2026 and Fiscal Year 2026-2027
Nanci Klein, Director
City Manager’s Office of Economic Development and Cultural Affairs City Council
March 18, 2025
Item 8.1