CITY OF SAN MATEO –
ECONOMIC DEVELOPMENT WORK PLAN
(2026–2029)
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EXECUTIVE SUMMARY
In 2024, the City Council adopted a framework for a three-year Economic Development Work Plan to guide implementation, foster partnerships, and strengthen and diversify the City’s economic base. Building on this direction, the 2026–2029 Work Plan is designed to be flexible, data-driven, and responsive to changing market conditions.
Developed in alignment with the City’s 2025 Strategic Plan and General Plan 2040, the Work Plan is grounded in stakeholder engagement, analysis of San Mateo’s economic strengths, weaknesses, opportunities, and threats, and cross-departmental review. The Work Plan will help staff advance the City’s economic priorities by building on existing strengths, expanding opportunities, and addressing emerging challenges. To ensure accountability and transparency, it incorporates annual performance reviews with key indicators such as vacancy rates and sales tax trends, along with regular progress updates to the City Council.
By focusing on economic resilience, diversification, and strong partnerships, the Work Plan advances the City’s commitment to a welcoming, adaptable, and inclusive economy that benefits residents, businesses, and visitors alike. ~ 1 ~
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I. INTRODUCTION
San Mateo is an evolving city navigating changing economic conditions that present fiscal challenges, but also create opportunities for innovation, adaptation, and diversification of the tax base to ensure long-term resilience. With major development on the horizon and evolving regional economic trends, the City Council directed staff to prepare an Economic Development Work Plan. The Work Plan is designed to be adaptable and action-oriented, focusing on diversifying the tax base, strengthening economic vitality, retaining local businesses, and attracting new investment to ensure long-term economic stability.
The 2026–2029 Economic Development Work Plan builds on:
An analysis of San Mateo’s economic strengths, weaknesses, opportunities, and threats
General Plan 2040 Goals related to Economic Development Extensive stakeholder engagement with the San Mateo Area Chamber of Commerce, Downtown San Mateo Association, Commercial real estate brokers, developers, business owners, and residents
The City’s Strategic Plan
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II. SWOT SUMMARY
After the City Council approved the initial Economic Development framework in November 2024, staff conducted extensive outreach with neighborhood business groups, brokers, community members, developers, and City departments to gather and synthesize input, which informed a summary of San Mateo’s economic strengths and weaknesses.
Strengths Vitality - Walkable, vibrant Downtown with diverse restaurants and services
Connected - Three Caltrain stations – unique on the
Peninsula
Amenities-Filled - Central Park and major shopping hubs (Hillsdale, Downtown, Bridgepointe, 25th Avenue)
Innovative - Dynamic startup and corporate ecosystem (AI, gaming, finance, biotech incubator, tech incubators)
Inclusive Community - Strong civic engagement, cultural diversity, and high quality of life
Strategically located in the region with close proximity to San Mateo Bridge
Strong restaurant presence
Safe community
Parking– good parking access, with multiple public garages Downtown
Vibrant business nodes
Weaknesses Hospitality - reduced hotel inventory, including loss of Marriot
Loss of neighborhood grocers
Automotive – Only one new auto dealership in the City
Costs - High costs for real estate, insurance, and operations Regulation - Perception of complex permitting and over- regulation
Marketing - Limited marketing campaigns, ads, promotions and wayfinding for business districts
Sites - Limited vacant sites for development
Opportunities Development - Attract new mixed-use and retail projects due to the passing of Measure T
Attract and Retain- large employers, high-revenue and growth-stage companies
Talent - Strengthen workforce pipelines through
NOVAWorks, JobTrain, Job Seeker Center, and College of
San Mateo
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Culture - Capitalize and attract arts, culture, conferences, conventions, sporting events, entertainment, and community events programming
New Mixed-Use Developments (SB330 Projects)
Downtown Area Plan starting in 2026
Parking - Provide signage and other strategies to increase awareness of various parking areas
Update regulations and streamline process – through the zoning code amendment, Downtown Area Plan, and
General Plan, the City is working to modernize regulations and provide clearer timelines for applicants
Development review process streamlining
Threats Retail - Declining brick-and-mortar retail sales to online sales
Housing - Regional housing affordability crisis
Costs - Rising interest rates and business costs
Competition - Competing retail centers in neighboring
communities
Transit - Public transit access and last mile connections challenges
Uncertainty – unpredictable global and national economic conditions
A summary of the current economic landscape is provided in the appendices. ~ 4 ~
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III. STRATEGIC GOALS
These strategic goals provide a framework to guide decision-making, focus resources, and achieve measurable progress in economic development.
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 Opportunties
(Support job creation at all levels, 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
(Public safety partnerships, crime prevention programs, placemaking activities, and marketing)
7. Align with General Plan 2040 & Downtown Area Plan
(Intergrate with City's Planning priorities)
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IV. STRATEGIC GOALS & WORK PROGRAM
Guided by City Council direction and stakeholder input, the following detailed work program carries out the City’s seven strategic goals to foster a vibrant and resilient economy.
1. Expand and Diversify Tax Revenue Sources
Key actions will involve working with partners to:
Diversify commercial occupancies by hosting quarterly broker meetings to identify vacancies, subleases, and available properties Grow and attract growth-stage businesses that generate consistent revenue and high-quality jobs to strengthen the City’s economic base and align with the City’s 2025 Strategic Plan and General Plan 2040
Identify and pursue new revenue streams by exploring billboard policies, conducting economic assessments of City-owned properties, evaluating a business improvement district (BID) or property improvement district (PBID), and explore opportunities to increase general fund revenue
Leverage the existing incubator ecosystem by collaborating with San Mateo’s private incubators, venture capital firms to amplify resources for startups in AI, fintech, biosciences, software development, and direct investment Monitor regional market trends to inform future land use and redevelopment strategies
Strengthen economic intelligence by tracking and analyzing economic development data, trends, and market activity
2. Foster A Business-Friendly Environment
Key actions will involve working with partners to:
Increase social media engagement to amplify economic development messaging, strengthen community connections, and increase visibility Expand support for minority-owned and small businesses by partnering with the San Mateo Area Chamber of Commerce, Downtown San Mateo Association, ~ 7 ~
Small Business Development Center, Renaissance Entrepreneurship Center, and other organizations that support minority-owned and small businesses Facilitate business expansion and investment by coordinating meetings between City staff and businesses pursuing development, attraction, or growth plans, while expanding express permitting options and streamlining tenant improvement permits
Promote business diversity by marketing San Mateo as a welcoming environment for businesses of all sizes and sectors
Promote and leverage federal and state programs, grants, and tax incentives to support business growth and investment
Recognize nonprofits, community partners, and intergovernmental service agencies and support their growth and presence
Strengthen business retention and growth through proactive outreach to high- revenue and high-employment companies (e.g., Sony, Roblox, Zynga, Franklin Templeton) to understand their needs and provide support for expansion and retention
Update the City’s Economic Development webpage to better connect business resources
3. Support Workforce Development and Promote Training
Opportunities
Key actions will involve working with partners to:
• Expand workforce training opportunities by collaborating with NOVAWorks, JobTrain, the Main Library’s Job Seeker’s Center, Worker’s Resource Center, and College of San Mateo
• Coordinate programs to ensure students and displaced workers gain current, in- demand skills by advising workforce boards on businesses employment needs Leverage state and federal tax incentives to expand training and employment programs for businesses
Promote youth employment by connecting internships, apprenticeships, and career exploration programs with schools and employers
Support a diverse local economy by working with unions, trade organizations, and industry partners to expand access to high-quality jobs and career pathways ~ 8 ~
4. Increase Workforce and Affordable Housing Access
Key actions will involve working with partners to:
Increase workforce housing needs through coordination with the City’s Housing Division and partnering with the business community, developers, and affordable housing providers
Strengthen the local economy by improving last-mile connections, reducing congestion, and expanding mobility through partnerships with organizations such as Commute.org, while advancing and refining the City’s Transportation Demand Management (TDM) policies.
5. Enhance Entertainment and Cultural Offerings
Key actions will involve working with partners to:
Capitalize on major regional sporting events and conference opportunities –by strengthening partnerships with Event Center and SF Peninsula and explore bringing additional conferences, tournaments, expos, weekend sports tournaments, and festivals to the City to help with tourism Evaluate an Entertainment Zone to support nightlife and cultural activity Promote tourism and event-driven economic activity through special events and partnerships with the San Mateo County/Silicon Valley Convention and Visitors Bureau, the Chamber’s Fall Fest, DSMA programming, and September Nights on B to help increase vibrancy and attract new visitors to the City. Support “shop local” initiatives and special events in partnership with the DSMA and Chamber, parks and recreation, and other organization interested in using events to promote San Mateo
6. Maintain Safe, Vibrant Business Districts
Key actions will involve working with partners to:
Activate underutilized spaces with pop-ups, outdoor markets, and farmers markets to increase foot traffic and local spending
Collaborate with Police on the Business Watch program and their Real Time Information Center to provide a welcoming public safety presence in business districts
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Coordinate marketing campaigns with the San Mateo Area Chamber and DSMA to strengthen business district visibility
Develop wayfinding to enhance identity and improve visitor experience Enhance the design, upkeep, and activation of the pedestrian mall, including public events and activity spaces
7. Align with General Plan 2040 & Downtown Area Plan
Key actions will involve working with partners to:
Conduct outreach and engagement on the development of the Downtown Area Plan
Identify private properties for redevelopment potential for highest and best use
Maximize Benefits of Measure T by promoting mixed-use development to strengthen connections between housing, retail, public benefits, and services Streamline process for development applications for SB330 housing projects Enhance citywide retail and service vitality through coordinated attraction and retention strategies that support a diverse, resilient business mix that supports a strong and stable tax base.
Strengthen efforts to ensure the mix of neighborhood and regional business hubs aligned with the General Plan and attractive to local customers as well as those from throughout the region.
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V. EVALUATION AND IMPLEMENTATION
Annual Economic Work Plan Review – Adjust strategies based on economic trends, and council direction
Key Performance Indicators – Vacancy rates, sales tax revenue, unemployment rate, Broker inquiries
Reporting – Quarterly City Council newsletter updates
Review (Year 3): Reassess strategies and adjust based on economic trends. Partnership Alignment: Continue coordination with the Chamber, Downtown San Mateo Association, and workforce stakeholders