CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 18 Section Name: CONSENT CALENDAR Account Number: 25-3112 File ID: 26-11486 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: July 20, 2026
SUBJECT:
Citywide Commercial Economic Assessment Services — Appropriation and Agreement RECOMMENDATION:
Adopt a Resolution to appropriate $114,868 from the Advance Planning Fund to the Citywide Economic Assessment project; adopt a resolution authorizing Retail Real Estate Resources, LLC to examine sales or transactions and use tax records for all sales and transactions and use taxes; approve an agreement with Retail Real Estate Resources, LLC to support preparation of a Citywide Commercial Economic Assessment and authorize the City Manager to execute the agreement in substantially the form presented.
BACKGROUND:
As part of the City Council Blue Sky Workshop on February 7, 2026 to set priorities for the upcoming fiscal year, Council identified a need to assess citywide economic conditions and business retention issues, with a focus on how to maintain a full range of commercial services to support the community and support businesses displaced by new development. To implement this priority, SMART Activity No. 56 was added to the City’s Fiscal Year 2026-27 Priority List and approved as part of the City’s FY 26-27 Business Plan this past June. This SMART Activity description is as follows: “Work with the City’s economic consultant to conduct a citywide economic assessment of the City's commercial retail and service areas and nodes, with a focus on how to maintain a full range of community serving businesses and services around the City, assess commercial displacement, and identify options for supporting small businesses when they are displaced due to redevelopment. Present findings at a study session in May 2027.” To support completion of this SMART Activity, a highly qualified retail consultant with applicable knowledge and experience in the field, and local knowledge of the specific issues present on the Peninsula and in San Mateo is necessary to support City staff. Currently, retail consultant Retail Real Estate Resources (RRER), which is led by Christine Firstenberg, a retail real estate professional with 30 years of experience, has been working with the City to provide retail feasibility assessment services by reviewing proposed mixed-use development applications when they include a ground floor commercial component. This work, which has been going on for the past year, supports a previously identified Council priority to ensure that new mixed-use development includes commercial spaces can be effectively occupied and viably used by retail commercial businesses once built to help avoid prolonged vacancies and empty storefronts. As part of this work, RRER has demonstrated a strong understanding of the local economic issues present in San Mateo and brings a unique combination of real-world experience in retail design, leasing strategies, and retail/commercial economic development programs that strongly align with the qualifications the City is seeking to support development of a Citywide Commercial Economic Assessment. Based on this professional and technical experience, local knowledge and prior work for the City, staff is recommending that RRER be used to support this project.
CITY OF SAN MATEO
The Work Plan to prepare the Citywide Commercial Economic Assessment includes seven tasks as follows:
1. Project Initiation and Baseline Data Collection
2. Existing Conditions and Market Assessment
3.Community Serving Business Analysis
4.Commercial Displacement and Redevelopment Pressure Assessment
5.Stakeholder and Business Engagement
6. Best Practices and Comparative Case Studies
7. Strategic Recommendations and Policy Suggestions
This task will include Business Retention Strategies, Commercial Preservation Tools, Redevelopment Mitigation Strategies, Economic Development Strategies and Hospitality Asset Retention and Conversion Considerations.
The more detailed Work Plan and Budget from RRER are included as Exhibit A and Exhibit B in Attachment 2. As outlined in the SMART Activity, a draft Citywide Commercial Economic Assessment with findings will be presented to the City Council at a study session by May 2027 for public and Council input and direction.
As part of the work to prepare the Citywide Economic Analysis, RRER will need access to certain types of sales tax and user tax data. Since sales tax data is confidential, the City must formally delegate this authority to a third party via a Resolution (Attachment 3) that it files with the California Department of Tax and Fee Administration (CDTFA). Once approved, the City will file the Resolution with CDTFA to formally delegate this authority to RRER and allow them to access San Mateo’s records as a third-party consultant that is providing economic analysis services to the City.
BUDGET IMPACT:
The budget appropriation of $114,868 (Attachment 1) is proposed to be funded by the Advance Planning Fund (Fund 225) and would not have an impact on the City's General Fund. At the end of FY 25-26, the Advance Planning Fund had an estimated fund balance of approximately $6.4 million. The budget appropriation would be for a professional services agreement with RRER for $99,868 and a 15 percent contingency in the amount of $15,000 to cover additional services that may be necessary during the course of the project.
ENVIRONMENTAL DETERMINATION:
Approval of the budget appropriation and professional services agreement with RRER 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).)
Approval of the Resolution to authorize examination of sales or transactions and use tax records is not a project subject to CEQA, because it consists of a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).) STRATEGIC PLAN ALIGNMENT:
This staff report supports the Economic Development initiative.
NOTICE PROVIDED:
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution for Appropriation
Att 2 – Professional Services Agreement with Retail Real Estate Resources Att 3 – Proposed Resolution for Tax Records Review Authorization
CITY OF SAN MATEO
STAFF CONTACT
Jennifer Rosas, Business Manager
[email protected]
(650) 522-7164