CITY OF SAN MATEO
5 2
0 5
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: {{item.number}} Section Name: {{section.name}} Account Number: 10-1311 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: November 04, 2024
SUBJECT:
Economic Development Plan Framework — Review
RECOMMENDATION:
Review the proposed framework for the Economic Development Work Plan and provide feedback to staff.
BACKGROUND:
The City of San Mateo is facing a $10.5 million budget deficit, driven by factors at the state level as well as local issues, such as lower hotel occupancy taxes following business closures, like the Marriott hotel. The local economic landscape is shifting rapidly due to changes like the transition to remote work and higher operating expenses affecting businesses of all sizes. These factors pose challenges for the City’s fiscal health while also presenting opportunities for growth in certain areas. To address local drivers related to the City economic conditions, staff is proposing the development of a comprehensive Economic Development (ED) Work Plan to help diversify the tax base, attract, and retain businesses and support sustainable economic growth in San Mateo.
Upon review, if the Council approves the proposed framework, the resulting ED Work Plan will focus on supporting small businesses, building relationships with new and existing companies, and enhancing vibrancy in key areas like Downtown and neighborhood business districts across the city. The ED Work Plan will also prioritize regular check-ins with commercial brokers for real estate insights and staying abreast of local, regional, and national economic trends.
DISCUSSION
The proposed framework for the ED Work Plan would include focus areas to be used to guide the City’s efforts to achieve fiscal sustainability and economic vitality. The primary components of the framework are:
1. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis oConduct a comprehensive SWOT analysis to assess the City's current economic landscape and identify areas for improvement
2. Economic Development Goals
oAlign the ED Work Plan with General Plan goals related to economic development, with emphasis on diversifying the economic base and identifying new revenue opportunities oDevelop a strategic plan for sustainable economic growth, setting measurable objectives and deliverables to monitor progress
3. Revenue Generation and Tax Base Expansion
oIdentify new revenue opportunities, such as analyzing underutilized sites within the 10 General Plan focus areas for possible mixed use or hotel development
CITY OF SAN MATEO
5 2
0 5
oAssess City real estate to ensure appropriate levels of revenue is being received oAdvance new Downtown Plan
oEngage stakeholders and identify opportunities for increased sales tax generation
4. New and Existing Commercial Office Users
oSupporting Community Development efforts to improve planning application process and timeline oCoordinate interdepartmental resources to support small businesses, commercial, and office tenant improvements
5. Business Attraction and Retention
oImplement strategies to attract and retain businesses
oEstablish small business support programs, with a focus on minority owned businesses oExplore wayfinding signage for business districts and associated parking oRetain a retail consultant to support development of retail in mixed use projects oContinue business engagement program
6. Economic Development Tools and Resources
oUpdate the City’s economic development website to better showcase available resources, development opportunities, and business incentives
oEvaluate ways to advertise and promote of City initiatives oQuarterly City e-newsletters update for businesses
7. Workforce Housing and Transportation Initiatives
oCollaborate with the Housing Manager and community stakeholders to address workforce housing oWork with Transportation staff to explore solutions that support the needs of businesses and employees
8. Workforce Development
oComplete a landscape analysis of workforce development programs and resources in San Mateo oCollect further community input and input from youth to develop a workforce development program Expand and leverage workforce development efforts led by County’s Shared Prosperity Coordinating Council, County Human Services, and NovaWorks
9. Supporting Safe, Healthy and Vibrant Business Districts through Public Safety oPolice Department dedicates four full time police officers to the downtown area and maintains a police substation in the downtown corridor
oEstablish a “Business Watch” program downtown that encourages local businesses to work together to prevent and reduce crime
oContinue to administer an Organized Retail Theft Prevention Program oPolice officers’ regular attendance in all business districts including Hillsdale, Bridgepointe and Downtown districts
Staff seeks Council’s input on the general themes, strategic focus areas, and the high-level framework presented today.
The goal is to establish a clear direction to finalize the ED Plan by late summer 2025.
Should Council direct staff to proceed, next steps would be:
oLate 2024/Early 2025: Engagement with business stakeholders for feedback on Work Plan Focus Areas oSpring 2025: Present a draft Economic Development Work Plan to the City Council for feedback and further direction.
oSummer 2025: Finalize and adopt the Economic Development Work Plan. o2025-2027: Implement the two-year Economic Development Work Plan and track progress on goals and deliverables.
CITY OF SAN MATEO
5 2
0 5
Council Questions:
1. Does the City Council support the focus areas that will shape the Work Plan as described in this Council report?
2. Are there other areas of focus that the City Council would like to consider for inclusion in the Work Plan? BUDGET IMPACT:
There is no budget impact for the proposed ED Work Plan and framework. Staff time is required to administer the ED work plan. No appropriation is required at this time.
ENVIRONMENTAL DETERMINATION:
This item is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
None
STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009