____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 3.a
Meeting Date: April 6, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Micah Hinkle, Director
Stacey Laumann, Senior Management Analyst II
City Manager Approval: ______________
TOPIC: ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE
SUBJECT: ACCEPTANCE OF THE ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE RECOMMENDATION:
Staff recommends that the City Council accept the report.
BACKGROUND: On May 15, 2023, the City Council adopted the San Rafael Economic Development Strategic Plan (EDSP), the first economic development strategic plan since the dissolution of the redevelopment agency in 2012, and the first EDSP to evaluate the entire City. The EDSP was the result of a yearlong process of outreach, information gathering, and analysis.
The EDSP provides a playbook for the City’s economic development efforts over three to five years. As this plan was developed on the heels of the COVID-19 pandemic, a heightened focus was placed on economic revitalization, and the City Council identified strategic efforts to strengthen the San Rafael economy and create greater resiliency for future economic downturns. The EDSP covers several key areas of opportunity, including the potential for increased tourism, improvements to the downtown area, growth in the industrial sector, and financing models to meet the costs of needed infrastructure and programs.
The EDSP builds upon the San Rafael General Plan 2040 Economic Vitality Policies: EV1.1 - Quality of Life; EV1.2 - Strategic Planning; EV1.3 - Relationship Building; EV1.4 - Business Retention and Support; EV1.5 - Business Attraction; EV1.6 - Monitoring; and EV1.7 - Marketing and Branding. Economic development is also identified and emphasized in Priority Area A: Economic Development and Neighborhood Vitality of San Rafael Three-Year Strategic Plan for fiscal years 2025–2028.
There are seven target areas of the EDSP, which outline focus areas for the City to achieve its economic goals:
1. Support Business / Development
2. Downtown Reimagination
3. Analyze Implementation of an Enhanced Infrastructure Financing District (EIFD)
4. Strengthen Local Partnerships
5. Attract High-Tech Industrial Uses
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
6. Outreach for Private and Business Development Opportunities
7. Workforce Development Programs
City staff presented a summary of EDSP progress to the San Rafael City Council Economic Development and Housing Subcommittee on February 17, 2026.
ANALYSIS:
The EDSP identifies thirty-one action items over a five-year planning horizon. The Economic Development Division’s work in 2025 was marked by notable progress in business support, cultural programming, and catalytic real estate development planning. The discussion below highlights significant achievements in 2025 and areas that warrant continued close attention to achieve San Rafael’s economic vitality goals. The status of all items is listed in Attachment 1. Task progress is characterized in three categories. ‘Implementing’ notes that an action item is currently in full operation, ‘developing’ references action items that are moving toward full operation, and ‘not started’ means that work has not begun on that action item.
Business Support and Retention
The San Rafael GO Program continued to serve as a critical resource for businesses seeking to locate or expand in San Rafael. In 2025, the program assisted approximately 25 businesses, including both new entrants and existing firms seeking expansion. This hands-on approach has been effective in supporting predevelopment activities for new development and responding to general market interest in San Rafael.
Rather than actively recruiting businesses, the City has focused on efficiently handling unsolicited inquiries and supporting investment already underway.
Cultural Initiatives
The City launched the Public Art Program 2025/2026 and continued support for the Downtown San Rafael Arts District, reinforcing downtown and Southeast San Rafael as vibrant destinations for residents and visitors.
Policy and Program Enhancements
Several programmatic improvements were implemented in 2025. The City Council adopted an ordinance establishing a mobile vending permit program that strengthens the City’s enforcement tools, provides mobile vendors with paths to legalization, and supports local entrepreneurship. Additionally, the City Council adopted temporary fee reductions for the Streetary Program and the Cannabis Program to support industry sustainability. Looking ahead, contracts are in place to initiate major planning initiatives in 2026, including the Southeast San Rafael Specific Plan and the Northgate Specific Plan. On February 23, 2026, the City transitioned to OpenGov. This modern online permitting system replaces the eTRAKiT platform for new permit applications, providing a more accessible, transparent, and user-friendly experience for residents, businesses, contractors, and developers. These activities reflect the City’s commitment to responsive policy-making and continuous improvement.
Catalytic Development Activity
The year saw unprecedented residential development activity, with 18 major projects in various stages of predevelopment. Notable examples include 703 Third Street (The Linc) and 930 Irwin Street (Modera), which together represent hundreds of new housing units and significant construction valuations. These projects are examples of the consistent renewed interest in San Rafael shown by multi-family housing developers, as seen on the City’s interactive Major Planning Projects web page. Residential growth will result in increased property tax revenues, as well as increased need for City services.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Revenue and Market Indicators
A sales tax analysis presented to the Economic Development Subcommittee in December 2025 identified automotive and building materials as San Rafael’s ongoing critical revenue-generating sectors. Retention and support for these sectors is critical, offsetting the smaller impact of retail activity on the City’s revenue.
Although Downtown San Rafael is the heartbeat of the City, it generates only five percent of sales tax revenue. Hotel tax revenues held steady from FY 2023/24 to FY 2024/25 at $3.58 million , reflecting consistency in room rates but slow growth in hotel stays following the COVID-19 pandemic. Growth opportunities for Tourism Occupancy Tax revenue (TOT) hinge in the short term on reinvestment in existing hotels and expanded marketing. Overall, these trends reflect relatively stable tax revenue and San Rafael’s reliance on consumer-driven revenue-generating sectors.
Areas to Watch
Efforts to reimagine downtown will continue in Fall 2026 with a planned outreach and evaluation program to establish a clearer vision for downtown. These initiatives aim to strengthen the cultural core of the City and will help align the expectations of the business and residential communities in shaping downtown’s future.
Approximately 1,000 new housing units downtown and 1,400 units at Northgate are in the development pipeline. New housing will bring new commercial activity and an inevitable change in activities and services for residents. Future work plans should prioritize strategic business, infrastructure, and event attraction to amplify the private investments in San Rafael.
Progress on industrial attraction and substantial job creation in the City’s industrial areas has been slow due to resource limitations, as well as limited market activity. The forthcoming Southeast San Rafael Specific Plan will be critical to advancing this goal and establishing clear opportunities for business, workforce development, and residential improvements.
COMMUNITY OUTREACH:
An annual progress update was presented to the City Council Economic Development and Housing Subcommittee on February 17, 2026, and comments were received from members of the public.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
OPTIONS:
1. Accept the report
2. Reject the report
3. Request that the staff return with additional information RECOMMENDED ACTION:
Staff recommends that the City Council accept the report.
ATTACHMENTS:
1. Economic Development Strategic Plan Action Item Status List March 2026 Action Item Timeframe Task Progress
Collaborators /
Resources Status/Activity Updates
1.1 'San Rafael GO' (BEAR) Program
Create Business Expansion, Attraction, and
Retention program. Modify existing econ dev
program to provide enhanced customer service to
support business development
Year 1 Implementing 2024
Brochure printed in English & Spanish.
Website updated; integrated GO brand, improved navigation.
Staff facilitating inquiries, supporting business inquiries. 'Contact Us' resource shows over 50 new inquiries.
GO webpage saw 716 unique users, and the new "Site Selection Tool" webpage (launched in May 2024) saw 88 unique users
2025
Continued to provide one-on-one guidance and/or troubleshooting for businesses who request support 2026
Website visibility and promotion of data and tools available to businesses (Site Selection Tool, etc.)
1.2 Technical Assistance Programs
Develop or sponsor technical assistance programs
to support emerging businesses/entrepreneurs living
or doing business in SR's Opportunity Zone
Year 1-2 Implementing Marin SBDC, Canal
Alliance, San
Rafael Chamber,
County of Marin
2024
Fiscal Sponsor of Marin Small Business Development Center (SBDC) which provides English and Spanish-language advising and seminars on marketing, web development, AI, and business development
Partnership with Canal Alliance which provides advising, seminars Partnership with San Rafael Chamber of Commerce which provides information resources, financing information, seminars
2025
Continued as a fiscal sponsor of Marin SBDC
Continued partnerships with Canal Alliance, San Rafael Chamber of Commerce
1.3 Business Development Data
Maintain enhanced business and development data
analytics to track economic and market trends
Ongoing Implementing Tools: GIS
Planning, CoStar,
ReSimplifi/ZoomPr
ospector, HdL,
Placer.Ai
2025
ZoomProspector and ReSimplifi - curation of all commercial property available for sale or lease in San Rafael
CoStar real estate data - robust analytics to track dozens of real estate related trends (vacancy, market rent, hotel occupancy, etc.)
GIS Development Map - collaboration with Digital Services to develop public, interactive map showing all upcoming major development projects in San Rafael
HdL - Finance consultant provided thorough review of City's current sales tax revenue posture, economic context, strengths, opportunities, weaknesses to the Economic Development Subcommittee in December 2025.
1: Support Businesses / Development
City of San Rafael Econoic Development Strategic Plan - Status Report 2026 Page 1 of 7 Attachment 1: Economic Development Strategic Plan Action Item Status List, March 2026 Economic Development Strategic Plan 2023-2028, Projected Implementation Timeframe Legend: Year 1: FY 2023/24 Year 4: FY 2026/27 Year 2: FY 2024/25 Year 5: FY 2027/28
Year 3: FY 2025/26
Action Item Timeframe Task Progress
Collaborators /
Resources Status/Activity Updates
1.4 Bilingual Staff
Increase bi-lingual staffing with cultural and
language capacity to support and enhance access to
business dev programs
Ongoing Implementing Marin SBDC, Canal
Alliance
2024
Bilingual front desk (permit technicians) City staff hired. 2025
Continued sponsorship of Marin Small Business Development Center (SBDC) to facilitate availability of bilingual resources.
1.5 Entrepreneurial Events
Sponsor competition style events and other
networking events to promote entrepreneurs
Year 1 Implementing San Rafael
Chamber of
Commerce
2024, 2025
City partnership with Chamber of Commerce, which hosts annual business showcase events, Economic Forecast and member networking events.
2.1 Business Programs
Consider programs like facade improvement and
outdoor dining, help existing properties utilize their
space. Prioritize program implementation to
Opportunity Zones and under-invested areas
Year 3-5 Implementing Dept. Public Works 2025
Initiated research and drafting of Storefront / Facade Improvement program.
Clarified and updated application process, forms, and fees for Sidewalk and Streetary dining programs.
Council approved 2-year encroachment lease fee discount for Sidewalk and Streetary permits as an economic development business incentive for current or future participants.
2.2 Explore conversion of the BID to a PBID
Explore conversion or expansion of the BID to PBID
for enhanced cleaning, security, marketing, and
physical improvements in Downtown
Year 1 Implementing San Rafael
Chamber / BID
2024
Engaged the services of New City America, Inc. (NCA) to evaluate interest in and investigate the possible formation of a property-based Community Benefit Improvement District (CBID) in the Downtown area. Property owners from the proposed district area were invited to informational meetings in September 2024, followed by a listening session with downtown businesses in December 2024.The feedback provided by property and business owners who attended these meetings included a desire for more information. NCA has provided answers to some of the most commonly asked questions as well as hypothetical CBID assessment formulas. 2025
General information and answers to Frequently Asked Questions (FAQ) is available on the City’s website for the convenience of downtown property and business owners
2.3 Evaluate publicly owned sites for reuse
Evaluate publicly-owned opportunity sites in
downtown area, surface parking lots and parking
garages - explore reuse strategies that add gathering
places, activities, etc.
Year 2-3 Developing Abode (Developer) 2024
RFP for affordable housing developers - City owned property at 519 4th Street. 2025
Developer "Abode" selected for project
Property cleared for reuse.
2: Downtown Reimagination
City of San Rafael Econoic Development Strategic Plan - Status Report 2026 Page 2 of 7 Action Item Timeframe Task Progress
Collaborators /
Resources Status/Activity Updates
2.4 Placemaking physical improvements
Invest in physical placemaking improvements to
activate downtown, pedestrian oriented ideas like
plazas, water features, walking paths, street
improvements
Year 3-5 Implementing Downtown San
Rafael Arts
District, Chamber,
Public Works
2024
Launched Downtown Sidewalk Activation Pilot Program. Working with Downtown San Rafael Arts District and property owners to fill vacant window fronts with visually stimulating content. 2025
Downtown Library temporary relocation window art installed, 1001 4th St art display Boyd Park remodel
2.5 Other physical enhancements
Invest in other enhancements such as gateway
signage and wayfinding, public art, thematic
sidewalk and street enhancements, public open
space
Year 3-5 Implementing DSRAD, Caltrans,
Public Works, City
Manager's Office
2025
Meetings facilitated with Caltrans Transportation Art Division and other community arts stakeholders to discuss policies/procedures for painting HWY101 overpass 2026
Public Art Program approved by Council
Collaboration with City Manager's Office and Public Works to develop landscape and gateway sign improvement plan to be completed this year for Second Street/Irwin Street
2.6 Marketing / social media
Grow social media engagement channels, social
media influencer/engagement channels, as well as
marketing and trade publications to promote
downtown businesses and events
Ongoing Implementing San Rafael GO,
BID, City
Manager's Office
2025
Downtown BID/Chamber social media and marketing of Downtown events (Elf Hunt, Farmer's Market, Trick or Treat, etc.)
2026
Communications team curating social media posts (Instagram) and Snapshot articles (newsletter) regarding relevant business news, initiatives, and services offered by the City and partners
3.1 Feasibility analysis / plan
Conduct feasibility analysis, develop plan for district formation
Year 1 Implementing Kosmont
Companies
2024
Kosmont and City produced feasibility analysis for implementing an Enhanced Infrastructure Funding District
3.2 Explore County Partnership
Work with Marin county to identify mutually
beneficial investments to encourage sharing of a
portion of county tax increment
Year 1-2 Developing County
Administrator
3.3 Pursue Grants
Pursue grants that align with goals of the district,
esp. those that give preference to EIFDs - infill
infrastructure, affordable housing, transformative
climate
Ongoing Not Started
3: Analyze Implementation of EIFD
City of San Rafael Econoic Development Strategic Plan - Status Report 2026 Page 3 of 7 Action Item Timeframe Task Progress
Collaborators /
Resources Status/Activity Updates
4.1 Explore tourism funding models
Explore the formation of a Countywide TID or
increasing the TOT or other tourism funding model to
support tourism marketing and revenue
Year 1-2 Implementing Marin CVB 2024
Marin Convention and Visitor's Bureau (Marin CVB) presentation to Subcommittee regarding recent initiatives, review of activities
2025
Tracking TOT (Hotel Tax) revenue, hotel occupancy percent, hotel average daily room rate, and hotel average revenue per actual room for lodging establishments within San Rafael 2026
Reviewed structure, funding mechanism, and County ordinance establishing the Marin Tourism Business Improvement District (funding of Marin CVB)
4.2 Explore / expand event and programming
Evaluate current list of events. expand special
events in Canal, Terra Linda, and Downtown. Block
parties, public markets, outdoor dining, outdoor
music, movies
Year 2-3 Implementing BID, SRPD,
Agricultural
Institute of Marin
(AIM)
2025
Special Events Permitting administration transferring to CED from Public Safety/Police Supported Agricultural Institute of Marin (AIM) in new, Friday-based Farmer's Market and collaboration with art walk
Sponsored Winter Wonderland event
Supported Dia de los Muertos event
2026
Downtown BID expanded programming (longer events such as Lunar New Year scavenger hunt), pursuit of collaboration opportunities and representation of City businesses (SMART Feb-BREW-ary event)
4.3 Marketing partnerships
Establish partnerships and leverage cross promotion
between City, county, business owners, etc. regional
marketing cost-efficient way to attract new industry
and increase tourism
Year 1 Implementing Arts organizations;
CVB
2026
Downtown BID connection with SMART regional events
4.4 Tourism partnerships
Pursue tourism marketing, San Rafael as gateway to
Mendocino, Napa, Sonoma.
Year 1 Developing 2024
Completed periodic marketing strategy review with Marin CVB. 4: Strengthen Local Partnerships
City of San Rafael Econoic Development Strategic Plan - Status Report 2026 Page 4 of 7 Action Item Timeframe Task Progress
Collaborators /
Resources Status/Activity Updates
4.5 Arts programming
Coordinate with arts organizations to integrate arts
programming with events and economic
development initiatives and build upon CAC
designation
Year 1 Implementing DSRAD, Local
Edition
2024
Drafting Downtown San Rafael Arts District (DSRAD) activation plan with arts collaborators.
Distributing grant funds to implement arts programming 2023-2025. Collaborating with Marin County Cultural Division on county emerging strategies to expand arts. 2025
DSRAD art grant RFPs collected, prepared for review and selection Public Art Program third-party manager organization (Local Edition) confirmed Art proposals requested, reviewed and selected by art selection jury, approved by Council 2026
Public Art Program artworks approved. Installation of selected art projects in summer 2026
4.6 Collaborate with service organizations
Collaborate with service organizations such as
Canal Alliance, to support programs that address
workforce dev, entrepreneurship, econ resiliency
Year 2-3 Developing Canal Alliance 2025
City assisted Canal Alliance acquisition of 1400 Lincoln
5.1 Revise zoning / processes for industrial use
Revise industrial zoning restrictions and entitlement
policies/processes to ensure that they facilitate new
industrial uses
Year 3-5 Not Started 2026
Exploration of this topic with upcoming South East San Rafael Specific Plan
5.2 Pursue new industrial sectors
Pursue new sectors that can expand the breadth and
variety of its industrial core and jobs base. Potential growth opportunities include biotechnology,
research and development, and e commerce
fulfillment
Year 1-2 Developing 2025
Focus directed to expanding, retaining strongest taxable sale sectors: Automotive dealership, Building and Construction Supplies
5.3 Evaluate tech industrial overlay zoning
Identify target areas for tech industrial development
e g Smith Ranch, Canal) and consider overlay zoning
to facilitate
development
Year 2-3 Not Started 2026
Exploration of this topic with upcoming South East San Rafael Specific Plan 5: Attract High-Tech Industrial Uses
City of San Rafael Econoic Development Strategic Plan - Status Report 2026 Page 5 of 7 Action Item Timeframe Task Progress
Collaborators /
Resources Status/Activity Updates
5.4 Conduct outreach businesses, industry groups
Conduct outreach to existing businesses, develop
relationships with industry groups to foster
collaboration, and identify / address business
feasibility issues (infrastructure, procedural, etc.).
Year 1-2 Implementing 2024
Supporting BioMarin expansion project. Participating on East San Rafael Working Group of the Chamber to spur outreach and industrial lands investment. 2026
Outreach with commercial real estate brokers
6.1 Identify / analyze sites for reuse
Identify and analyze key privately owned sites that
are well positioned for reuse or redevelopment
Year 1-2 Implementing 2025
519 4th St City property slated for residential development. "Abode" selected as developer by City Canal pedestrian bridge land acquisition.
6.2 Outreach / collaborate with property owners
Conduct outreach and collaborate with property
owners to explore development opportunities and
address challenges that can bring new uses to
privately owned sites.
Year 1-2 Implementing 2024, 2025, 2026
Supported business inquiries through concierge-style customer service San Rafael GO Program. Plan for future industry convenings, including commercial real estate, medical tech, and creative economy.
6.3 Pursue businesses / developers
Pursue businesses and developers, in coordination
with property
Year 2-3 Implementing 2026
Actively engaging commercial broker community to understand market challenges.
6.4 Cannabis businesses opportunities
Increase Cannabis business opportunities through
release of new cannabis licenses and creation of
cannabis specific business programs targeting
growth and capacity building of existing permittees.
Business opportunities should include exploration of
retail storefront cannabis licenses and other State
allowed business types in appropriate commercial
locations. (revenue gene rating /funding capacity)
Year 2-3 Developing 2024
Hosted Cannabis Business Summit in March 2024; reviewed market trends 2025
Drafted and Council approved resolution reducing tax rate for non-storefront delivery licensees for 2 years to provide relief to businesses during market contraction and increased state taxes 6: Outreach for Private / Business Development
City of San Rafael Econoic Development Strategic Plan - Status Report 2026 Page 6 of 7 Action Item Timeframe Task Progress
Collaborators /
Resources Status/Activity Updates
6.5 Update Mobile Vendor Ordinance
Mobile Vendor Ordinance Update: Update the City’s
Mobile Vender Ordinance to create a legal pathway
for mobile vending in appropriate commercial
locations. Utilize community partners with language
and cultural capacity for vendor outreach and
permitting technical support.
Year 2-3 Implementing 2025
Cohort formed in a "Together San Rafael Academy" that worked on a "human centered design" effort to encourage mobile vendors to come into compliance with mobile vending regulations.
Mobile Food Vending ordinance passed
7.1 Coordinate with orgs. for workforce
development
Coordinate with Workforce Alliance of the Northbay
Dominican University, local school community
college districts, the Chamber of Commerce, Canal
Alliance, and other area nonprofit organizations to
encourage collaboration with local/regional
educational and workforce development
organizations for training, mentorship, and job
placement programs
Year 3-5 Implementing County of Marin 2025
Catalyst Grant: High Road Clean Transportation Pathways (Sustainability Department) collaborative training program supporting skill development with electric vehicle maintenance led by the West Oakland Job Resource Center with partners including the City of San Rafael, the Teamsters Union/NCTAT, Good Green Work, the Machinist Institute, the Lime Foundation, and the Canal Alliance
7.2 Conduct outreach to local businesses/ orgs.
Conduct outreach to local businesses to assess
skills gaps and other issues with finding workers,
and conduct outreach to local aid organizations to
better understand barriers that impact workforce
readiness (such as language, childcare, transit, and
internet accessibility)
Year 3-5 Not Started
7: Workforce Development Programs
City of San Rafael Econoic Development Strategic Plan - Status Report 2026 Page 7 of 7