CITY OF SAN MATEO
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1 CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 6 Section Name: OLD BUSINESS Account Number: 10-1311 File ID: 25-10725 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: December 15, 2025
SUBJECT:
Economic Development Work Plan 2026-2029 — Adoption
RECOMMENDATION:
Adopt Economic Development Work Plan 2026–2029.
BACKGROUND:
On November 4, 2024, the City Council approved a framework for a three-year Economic Development Work Plan, to guide implementation, foster partnerships and strengthen and diversify the City’s economic base. The Work Plan affirms the City’s commitment to building a more welcoming, adaptable, inclusive, and resilient business and visitor community. A thriving local economy is essential to community vibrancy and long-term fiscal stability. Following Council direction to proceed with developing this Work Plan, the City adopted its 2025 Strategic Plan, which identifies Economic Development as one of the ten key Initiatives to focus on over the next five years.
The proposed 2026-2029 Economic Development Workplan (Attachment 1) builds on the Council approved framework and is designed to be flexible, data-driven, and responsive to changing market conditions.
The proposed Economic Development Work Plan is informed by:
Analysis of San Mateo’s economic strengths, weaknesses, opportunities, and threats (SWOT); Alignment with General Plan 2040 goals related to economic development; Engagement with stakeholders including the San Mateo Area Chamber of Commerce, Downtown San Mateo Association (DSMA), developers, business owners, and residents; A collaborative cross-departmental staff review; and
The City’s Strategic Plan.
PURPOSE
The Economic Development Work Plan provides a clear framework to guide staff in advancing San Mateo’s economic priorities by building on the City’s strengths, expanding opportunities, and addressing emerging challenges. Through partnerships with the Downtown San Mateo Association, Chamber of Commerce, SAMCEDA, The SF Peninsula, workforce organizations, and neighborhood-serving business districts, the Plan supports long-term economic sustainability and community vibrancy.
FINDINGS
Following Council’s approval of the initial economic development framework, staff conducted extensive outreach with neighborhood businesses, the Chamber of Commerce, Downtown San Mateo Association, commercial brokers, community representatives, and internal cross-departmental staff to identify San Mateo’s key strengths, weaknesses, opportunities
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1 and threats (SWOT). The following is a summary of the key findings:
Strength - Vibrant Downtown and Active Business Districts – The City has a walkable urban core and a diverse mix of businesses and community amenities that attract residents and visitors. Strength - Strategic Central Location and Strong Transit Access – The City’s mid-peninsula location, three Caltrain stations, SamTrans connections, and highways 101/280/92 access support business activity and workforce mobility.
Strength - Diverse and Dynamic Business Base – The City’s innovative and inclusive business environment supports entrepreneurship and small business growth and is reinforced by a culturally diverse and safe community.
Weakness - High Costs and Limited Space Constrain Growth – The City’s high operating and real estate costs, loss of neighborhood-serving grocers, and limited sites for development create barriers to business expansion. Weakness - Perception of Complex Permitting and Regulations – Feedback from businesses and development stakeholders indicates that the City’s permitting processes can be perceived as complex, highlighting the need for continued streamlining and improved transparency.
Weakness - Declining Hotel Inventory Limits Economic Potential – The reduction in hotel properties limits the City’s ability to capture visitor spending, business travel demand, and tourism-related economic activity. Opportunities - Development and Market Momentum – Recent land use policy changes, including the passage of Measure T and SB 330 and the launch of the Downtown Specific Plan in 2026, create opportunities for the City to support mixed-use development, business attraction and retention, and new investment. Threats - External Economic Pressures and Regional Competition – Regional housing affordability challenges, shifting retail trends, broader economic uncertainty, and increased competition from neighboring cities may impact the City’s ability to retain businesses, sustain workforce, and support long-term economic vitality.
STRATEGIC GOALS AND WORK PROGRAM
Staff utilized Council direction, the results of the SWOT analysis, and stakeholder input to develop the following strategic goals and work program. Full descriptions are provided in the 2026–2029 Economic Development Work Plan (Attachment 1).
1. Expand and diversify tax revenue sources: Attraction, expansion, and retention of businesses across sectors
2. Foster a business-friendly environment: Reduce barriers, streamline permitting, and improve customer service
3. Support Workforce Development and Employment Training Opportunities: Support job creation at all levels and strengthen pathways for economic mobility
4. Increase workforce and affordable housing access: partner on housing and transportation efforts
5. Enhance entertainment and cultural offerings: Strengthen commercial districts and diversify amenities
6. Maintain safe vibrant business districts: Strengthen public safety partnerships, crime prevention programs, placemaking activities, and marketing
7. Align with General Plan 2040 and Downtown Specific Plan: Integrate with City planning priorities
PARTNERSHIP ALIGNMENT
The Economic Development Work Plan also prioritizes collaboration with key community partners to maximize impact and leverage resources, including the San Mateo Area Chamber of Commerce, Downtown San Mateo Association (DSMA), San Mateo County Economic Development Association (SAMCEDA), The San Francisco Peninsula Tourism Group, NOVAworks, JobTrain, Job Seeker Center, and the College of San Mateo.
EVALUATION AND IMPLEMENTATION
The Economic Development Work Plan will be evaluated annually to ensure accountability and responsiveness to changing economic conditions. Progress will be measured through key indicators such as vacancy rates, sales tax revenue, unemployment trends, and broker inquiries. Implementation will be coordinated across City departments and with external partners such as the Chamber of Commerce and the Downtown San Mateo Association (DSMA). Economic Development staff will provide quarterly updates through the City Council’s weekly reports, an annual progress report, and a Year 3 review.
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1 The proposed Economic Development Work Plan provides a clear path for implementation and continuous improvement.
Staff recommends approval of the proposed Economic Development Work Plan.
BUDGET IMPACT:
There is no budget impact for the proposed Economic Development Work Plan and framework. No appropriation is required at this time.
ENVIRONMENTAL DETERMINATION:
This item is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Draft of Economic Development Work Plan (2026-2029) Att 2 – Appendix A: Overview of Current Economic Landscape Att 3 – Appendix B: Current and Planned Economic Development Initiatives
STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009