Staff Report — Simi Valley City Council, March 4, 2024

CITY OF SIMI VALLEY

MEMORANDUM
M
arch 04, 2024
TO
: City Council
F
ROM: Office of the City Manager
SUBJECT: REVIEW AND ADOPTIO N OF A 2 024 E CONOMIC DEVELOPMENT

STRATEGIC PLAN

STAFF RECOMMENDATION
It is recommended the City Counc il review and adopt the pr oposed 2024 Economic Development Strategic Plan (Attachment A, page 4).

BACKGROUND AND OVERVIEW
As demand and construction of industrial inventory began to expand in the City in 2022, staff recognized the need to have a clear strategy in finding the right mix of office and retail inventory as the economy moved forward with remote work schedules and e -commerce gave consumers a digital marketplace to buy goods and services in the comfort of their own home with the onset of the pandemic. To that end, the City entered into a contract with a consultant, the Natelson Dale Group (TNDG), to develop a comprehensive economic development strategic plan as the City’s local economy began to recover from the impacts of the COVID-19 pandemic.

The purpose of the comprehensive Plan is to address issues that can have a direct impact on the economic vitality of Simi Valley. TDNG has extensive experience in the economic development fi eld and a large knowledge base of Ventura County.

Regionally, TNDG has performed economic analysis in Camarillo, Ventura, Oxnard, Thousand Oaks, Santa Paula, Port Hueneme, and County of Ventura. TDNG was also involved in the Simi Valley Town Center, having performed an independent retail and hotel market impact analysis in the early planning stages of the Center.

Given their collective knowledge of the City and Ventura County region, TDNG was best suited to examine Simi Valley’s unique market position in l ight of other communities’ economic development efforts.

Over the past year, staff has been working with TDNG to develop a comprehensive plan that provides strategies that address the City’s limited land capacity and identifies opportunities for redevelopment of infill projects as staff continue s to f
oster economic vitality measures for the future . This evening, s taff, along with Roger Dale, from TDNG, is presenting the 2024 Economic Development Strategic Plan to the City Council for review and adoption.

AGENDA ITEM NO.

9A
2 FINDINGS AND ALTERNATIVES

TDNG’s Economic Development Strategic Plan ( “Plan”) provides a comprehensive blueprint to guide the City’s economic development policies and programs over the next five years. The Plan is based on comprehensive research that consists of a compilation of key economic and demographic datasets. Additionally, an extensive stakeholder engagement process consisting of regional economic development partnerships, education/workforce development organizations, and the real estate development community (selected commercial/industrial brokers and developers, and a mix of public and private sector employers ) (Attachment A, page 7) was conducted over a series of three “Summit” meetings, which allowed TNDG to obtain input from key stakeholders in regards to the Plan’s background research. Central to the plan are a set of strategic recommendations to help the City maintain its financial health, achieve future economic and social vitality, and maintain a high quality of life through job growth and a balanced economy.

The Economic Development Strategic Plan takes a comprehensive look at the various aspects of Simi Valley. Specifically, the Plan is broken into the following sections:

• Introduction
• Executive Summary
• Highlights of Background/Technical Studies
• Real Estate Demand Projections
• Strength-Weakness-Opportunity-Threat (SWOT) Summary
• EDSP Strategy Framework

The purpose of the proposed Plan is to take a n all -inclusive look at the Simi Valley community, to better understand the composition of the community as well as the community’s strengths and weaknesses, specifically as it relates to business and issues relative to business growth. The 2024 Plan proposes several goals for moving economic development in the community forward.

The goals provided identify several action items that collectively will strengthen the economic vitality of Simi Valley. The 2024 Plan recognizes that Simi Valley is largely built out and has limited land capacity for new development but identifies the need for proactive economic development programming as a necessity t o promote opportunities for redevelopment and infill projects.

The 2024 Plan is a living document that will have an initial life of five years. Staff will provide an annual progress report to the City Council regarding goals achieved for each year. At the conclusion of the five- year life, staff will propose new g oals based on the progress achieved and the economic development needs of the Simi Valley community at that time.

3 The following alternatives are available to the City Council:

1. Review and adopt the Economic Development Strategic Plan;

2. Modify and adopt the Economic Development Strategic Plan;

3. Do not adopt the proposed Economic Development Strategic Plan; or

4. Provide further direction to staff.

Staff recommends Alternative No. 1.

SUGGESTED CITY COUNCIL MOTION

I move to review and approve the 2024 Economic Development Strategic Plan.

SUMMARY

As the local economy recovered from the impacts of the COVID -19 pandemi c and construction of industrial inventory increased throughout the City, staff recognized the need to have a clear strategy in finding the right mix of office and retail inventory as the economy moved forward with remote work schedules and e-commerce gave consumers a digital marketplace to buy goods and services in the comfort of their own home. To that end, the City entered into a contract with a consultant, the Natelson Dale Group (TNDG), to develop a comprehensive economic development strategic plan. The purpose of the proposed Plan is to take a n all -inclusive look at the Simi Valley community, to better understand the composition of the community as well as the community’s strengths and weaknesses, specifically as it relates to business and issues relative to business growth.

Staff is recommending that the City Council adopt the Plan, which provides several strategies for moving economic development in the community forward.

____________________________________
Linda Swan
Assistant City Manager

INDEX Page

Attachment A – The 2024 Economic Development Strategic Plan…4

PAGE | I
CITY OF SIMI VALLEY, CA | EDSP

SIMI VALLEY ECONOMIC

DEVELOPMENT STRATEGIC
PLAN
CI

TY OF SIMI VALLEY, CA
JANUARY 31, 2024
THE NATELSON DALE GROUP, INC.

ATTACHMENT A
4 PAGE | i
CITY OF SIMI VALLEY, CA | EDSP

CONTENTS

1. INTRODUCTION ............................................................................................................................ 1 Document Organization .................................................................................................................... 2 Realistic economic development in a built-out city .......................................................................... 2 Stakeholders participating in EDSP process ...................................................................................... 4

2. EXECUTIVE SUMMARY .................................................................................................................. 6 Action Plan Scope and framework .................................................................................................... 6 EDSP Overview .................................................................................................................................. 6 Assignment of Lead, Support and Coordination roles ...................................................................... 8 Business Retention/Expansion/Attraction Targets ........................................................................... 9

3. HIGHLIGHTS OF BACKGROUND/TECHNICAL STUDIES .................................................................... 10 Summary of Key Datasets ............................................................................................................... 10 Income ............................................................................................................................................. 10 Labor Force Participation and Commutes ...................................................................................... 10 Housing ............................................................................................................................................ 10 Household projections .................................................................................................................... 11 In-Area Labor Force Efficiency ........................................................................................................ 12 Distribution of Jobs by Monthly Earnings ....................................................................................... 13 Taxable Retail Sales ......................................................................................................................... 13 Cluster Targeting ............................................................................................................................. 16

4. REAL ESTATE DEMAND PROJECTIONS .......................................................................................... 21 Retail/Restaurant ............................................................................................................................ 21 Office and Industrial ........................................................................................................................ 24 Hotel ................................................................................................................................................ 27 Real estate demand projections data notes ................................................................................... 27

5. SWOT SUMMARY ........................................................................................................................ 29

6. EDSP STRATEGY FRAMEWORK .................................................................................................... 30 EDSP Overview ................................................................................................................................ 30 Central Theme and Strategic Context ............................................................................................. 30 Overview of Strategic Responses to Central Theme ....................................................................... 31 Catalyst Projects .............................................................................................................................. 32 Realistic economic development in a built-out city ........................................................................ 33 5 PAGE | ii
CITY OF SIMI VALLEY, CA | EDSP
EDSP Elements ................................................................................................................................ 34 Full EDSP Element Descriptions ...................................................................................................... 35 Umbrella Programs: aligning attributes with economic potential ................................................. 35 Industry Targeting: Business Development/Job Creation .............................................................. 37 Land Use / Placemaking Programs: Physical Changes to Accommodate Quality Growth ............. 41 Overarching Implementation Themes ............................................................................................ 45 Summary matrices .......................................................................................................................... 45

6 CITY OF SIMI VALLEY, CA | EDSP
PAGE | 1

1. INTRODUCTION
This document provides a strategic framework to guide the City of Simi Valley’s economic development policies and programs over the next 5 years. The Simi Valley Economic Development Strategic Plan (EDSP) is based on comprehensive research and stakeholder engagement processes, and reflects consensus views on the most promising opportunities and the most pressing challenges facing Simi Valley’s economy. While the EDSP places primary emphasis on actions and initiatives to be pursued by the City, recommended strategies recognize that a wide array of public-and private-sector entities have roles in influencing Simi Valley’s economic progress. In this regard, some of the recommended actions will be carried out through partnerships with other organizations, with the City having a coordination role. Even for those action items in which the City’s role is essentially coordination, this function can take many forms and is often critical to solving problems that may not otherwise have a clear constituency or single responsible entity assigned to their resolution.

The recommended policies and program activities in the EDSP are based on an extensive planning process that included the following components:
• Background research analyzing Simi Valley’s existing and projected demographic profile, providing an understanding of underlying trends that may affect economic growth potentials.

Where appropriate, demographic and economic data are evaluated at multiple levels of geography (city, county, and state) to allow for comparison of local conditions to reference-area benchmarks. In addition, the study geographies were customized to reflect Simi Valley’s “strategic” market relative to the adjacent San Fernando Valley market. • A comprehensive strength-weakness-opportunity-threat (SWOT) analysis to help guide the subsequent strategy formulation tasks. The SWOT analysis was based in part on direct input from key local stakeholders.
• Direct input from a cross section of the City’s economic development stakeholders via individual interviews and a series or workshop-type meetings.
• A review of the various public-and private-sector entities involved in different aspects of economic development (or related activities) in Simi Valley and the region, along with a summary of their existing program offerings.
• An industry “cluster” analysis to identify the industry groups (clusters) that are the most important “engines” of the existing local economy, as well as the industry groups that are likely to offer the most attractive growth potentials in the future. • A series of real estate market analyses to identify potential future demand for retail, office, industrial, and hotel development in the City. The analysis models take into consideration the existing and future demographic makeup of the City’s resident population, as well as potential consumer demand from regional residents and visitors.
7 CITY OF SIMI VALLEY, CA | EDSP
PAGE | 2
• Two online community workshops during which residents, businesses and other stakeholders were invited to provide comments on a Public Review Draft of the plan.

For both the industry cluster analysis and the real estate demand projections, conclusions were screened through the lens of potential ongoing influences of the Covid pandemic to identify ways in which immediate and longer-term market opportunities may be altered due to these conditions.

Where relevant, key findings of the background and technical studies are referenced in the EDSP. The full studies are provided as separate reports.

The findings and strategic implications from the tasks outlined above form the basis for the comprehensive Economic Development Strategic Plan (EDSP) for Simi Valley.

DOCUMENT ORGANIZATION
The EDSP strategy framework that is the focus of this report is preceded by summaries of key findings of the background and technical studies prepared as part of the strategic planning process. The background and technical study summaries include the following topics:
• Compilation of key economic and demographic datasets, based on a separate report prepared by The Natelson Dale Group, Inc. (TNDG).1
• Target clusters/industries, extracted from TNDG’s full industry cluster study.2 • Real estate demand projections, extracted from the TNDG report that evaluates future development potentials (through 2040) for retail, office, industrial and hotel land uses in Simi Valley.
3 The summary provides an overview of current and recent historic real estate market conditions, and a synopsis of the consultant’s land use demand projections. • The SWOT analysis for the EDSP process, based on input from key stakeholders as well as analysis and synthesis of the EDSP background research.

REALISTIC ECONOMIC DEVELOPMENT IN A BUILT-OUT CITY
The EDSP recognizes that Simi Valley is largely built out and, at this stage of its evolution as a city, has limited land capacity for new development. As such, the industry growth potentials and real estate demand projections indicated in the technical studies need to be interpreted with a degree of caution.

While there is theoretically demand to support new development, actual development is likely to be more modest based on land constraints and other market trends that are described in the EDSP. In this regard, the EDSP anticipates that the City’s future economic development efforts will focus on “quality

1 TNDG. Summary of Key Datasets for Economic Development Strategy, June 7, 2022. 2 TNDG. Draft Industry Cluster (Target Industry) Study for Economic Development Strategy , June 8, 2022. 3 TNDG. Simi Valley Real Estate Market Analysis for Economic Development Strategy, May 18, 2023. 8 CITY OF SIMI VALLEY, CA | EDSP
PAGE | 3
over quantity.” This focus can include facilitating revitalization and/or reuse of older commercial properties; marketing to support high-value tenant recruitment for vacant commercial and industrial space; and encouraging intensification of industrial uses with tenant-types that have higher densities of high-paying jobs.

The limited supply of developable land by no means suggests that economic development is a less important City function than it was in years past. In fact, it is arguably a higher priority now. In the absence of proactive economic development programming, the potential for economic stagnation is a real concern (since there are fewer greenfield-based opportunities to create jobs, inject new private investment in the community, and increase the City’s fiscal revenues). As such, it becomes vitally important to maximize the economic impact of Simi Valley’s remaining land resources and to aggressively promote opportunities for redevelopment and infill projects. 4 The EDSP action plan
(detailed in Chapter 6) reflects this recommended strategic approach.

4 The EDSP focus on revitalization rather than greenfield development is directly supported by the City’s current “Envision Simi Valley” planning initiative which seeks to identify infill and redevelopment opportunities as part of a future mixed- use focus along the Los Angeles Avenue and Tapo Street corridors. 9 CITY OF SIMI VALLEY, CA | EDSP
PAGE | 4

STAKEHOLDERS PARTICIPATING IN EDSP PROCESS
The City of Simi Valley gratefully acknowledges the participation of the following individuals in the preparation of the EDSP:

Business promotion and economic development
Kathi Van Etten
Simi Valley Chamber of Commerce John Tolson
Layma Askarzoi
Mark Sylvester 805 Connect
Bill Bartels Ventura County Film Commission
Bruce Stenslie Economic Development Collaborative-Ventura County (EDC-VC) Gloria Martinez Ventura County Economic Vitality
City-connected economic or other major asset
Nikki Davy Rancho Simi Recreation & Park District
Zach Miller
Kelly Behle Simi Valley Library
Ben Gonzales Simi Valley Transit
Ron Fuchiwaki Simi Valley Public Works
Joe Deakin Simi Valley Water
Stratis Perros Simi Valley Environmental Services
Sean Gibson Simi Valley Environmental Services
Courtney Paul
Simi Valley Neighborhood Councils (Ex. Board Chairs for 1-4) Alan Barkwill Julia Feig
Joe Piechoswski
Kristin Tignac Simi Valley Youth Council
Orlando Gonzales Gruen & Associates - Specific Plan Update Bill Lee Lan Econ Group
Key Private Sector Stakeholders
Melissa Giller Ronald Reagan Presidential Library
Brian Gordon Allied Studios & 76 Ranch (Brian Gordon)
Bob Goetsch Decker-Goetsch Properties
Joe Jusko Lee & Associates
Mike Tingus
Bennett Robinson CBRE
Patrick DuRoss Newmark
Education
Dr. Hani Youssef
Simi Valley Unified School District Ron Todo
Jake Finch
Alan Penner Simi Institute for Careers & Education
Carmen Beck
Dr. Julius Sokenu Moorpark College
Patti Blair Ventura County Community College District (VCCCD) Dr. Lori Varlotta California Lutheran University (CLU)
10 CITY OF SIMI VALLEY, CA | EDSP
PAGE | 5
Civic organization
Michelle Dumas Ventura County Arts Council
Vanessa Rauschenberger Ventura County Civic Alliance
David Maron
Lauren Graf Ventura County Community Foundation
Vanessa Bechtel Ventura County Community Foundation
Regional infrastructure or management function
Denise Bickerstaff Cabrillo Economic Development Corporation (affordable housing) Jey Lacey Southern CA Edison
Maria Ventura Southern CA Gas
Martin Erickson Ventura County Transportation Commission (VCTC) Amanda Fagan Ventura County Transportation Commission (VCTC) Workforce or entrepreneurial development
Pilar Doolittle Startup Simi
Gary Livingston 805 Startups
Alon Goren
Mike Panesis CLU Steven Dorfman Center for Innovation and Entrepreneurship Dr. Greg Cauchon Biotech Network (Ventura Bio Center)
Kristin Bell HUB101
Larry Willett S.C.O.R.E. Ventura County
Charles Benedict S.C.O.R.E. Ventura County
Holly Correa Ventura County Innovates (VCCCD)
Marni Brook Women's Economic Ventures
Ma Odezza Robite Workforce Development Board of Ventura County (WDB)* Rebecca Evans Workforce Development Board of Ventura County (WDB)*

11 PAGE | 6
CITY OF SIMI VALLEY, CA | EDSP

2. EXECUTIVE SUMMARY

ACTION PLAN SCOPE AND FRAMEWORK
Economic development strategic plans are comprehensive by nature, and this is also true for Simi Valley’s EDSP. While the EDSP centers around core economic development functions such as attracting and retaining targeted industries and investment, the Plan recognizes that the strength of the local business/development environment will ultimately depend on strategic attention given to a range of “foundational” conditions such as:
• Effective communication of Simi Valley’s assets and other development advantages to outsiders • Land, zoning and infrastructure capacity (within the context of a mostly built-out environment in which future development opportunities are likely to focus on revitalization and/or reuse of previously developed properties)
• Leveraging development capacity with placemaking initiatives that foster unique development settings
• Entrepreneurial development resources
• Education/workforce development systems
• The City’s fiscal strength

EDSP OVERVIEW
The strategy framework for the EDSP is summarized in the chart below. The flowchart shows the relationships among key components of the structure within which the EDSP was formulated: A central, focusing theme prompted certain strategic responses, which incorporated consideration of key assets in the community; and this initial framework then led to the generation of strategic plan elements and associated catalyst projects, which in turn related to a set of overarching implementation themes. 12 PAGE | 7
CITY OF SIMI VALLEY, CA | EDSP

Recommended EDSP elements are summarized below under the three main categories shown.

Umbrella Programs: aligning attributes with economic potential; clarifying any misperceptions

1. Implement phased economic development marketing program (focusing on maximizing the economic value of Simi Valley’s limited remaining growth capacity)

2. Leverage the City’s in-house resources through strategic partnerships and interdepartmental collaboration
Industry Targeting: Business Development/Job Creation

3. Focus City’s business retention/expansion (BRE) and attraction efforts toward industry clusters (focusing future growth promotion on “quality over quantity”)

4. Coordinate with regional institutional and other partners to expand/enhance entrepreneurial development resources

5. Coordinate with regional institutional and other partners to expand/enhance workforce development resources
Land Use / Placemaking Programs: Physical Changes to Accommodate Quality Growth

6. Create a geographically broad “reposition retail” initiative to facilitate revitalization and/or repurposing of underperforming retail properties (potentially creating capacity for other land uses without the need for “greenfield” development)

7. Implement strategic initiative to attract investment in new (speculative) business park/“tech flex” buildings (at a size/scale appropriate for a community with limited developable land) A. Central theme
Key assets
B. Overview of
strategic responses to
central theme
C. Strategic plan
elements
Overarching
implementation
themes
D. Catalyst projects
13 PAGE | 8
CITY OF SIMI VALLEY, CA | EDSP

8. Review city’s zoning, general and specific plans, etc. with the intent to optimize development/redevelopment potential in undeveloped as well as distressed areas

ASSIGNMENT OF LEAD, SUPPORT AND COORDINATION ROLES
Some components of the EDSP will be carried out through collaboration with non-City partners, with lead, support and coordination roles assigned as follows:

Strategy Category
Recommended Assignment of Lead, Support and Coordination Roles City Economic
Development
Staff
Environmental
Services
Department
Other City
Departments Partners
Contractors/
Consultants
(Potential)

1. Economic Development
Marketing Lead Support Support Support Support

2. Strategic Partnerships
and Interdepartmental
Collaboration
Lead Support Support Support Support

3. Business Retention/
Expansion (BRE) and
Attraction
Lead Support Support Support Support

4. Entrepreneurial
Development Coordinate Support Support Lead Support

5. Workforce
Development Coordinate Support Support Lead Support

6. “Reposition Retail”
Initiative
Initiate, then
Coordinate Support Support Support Support

7. Attract Investment in
New Business
Park/“Tech Flex”
Buildings
Initiate, then
Coordinate Support Support Support Support

8. Development Potential
in Undeveloped as Well
as Distressed Areas
Initiate, then
Coordinate Lead Support Support Support

14 PAGE | 9
CITY OF SIMI VALLEY, CA | EDSP

BUSINESS RETENTION/EXPANSION/ATTRACTION TARGETS
The following table shows clusters in both the Local-serving and Traded (export oriented) categories that were identified in initial analytical processes as being potentially suitable for Simi Valley, and which are still subject to additional screening (especially given that some would be better suited for the City’s anticipated focus on “quality over quantity” in promoting future utilization of commercial and industrial land).

Categories
Local-serving clusters
Health Services
Real Estate, Construction and Development
“Traded” clusters – already present in Simi Valley
Downstream Chemical Products
Information Technology & Analytical Instruments (could include focus on artificial intelligence and/or robotics, etc.)
Lighting and Electrical Equipment
Medical Devices
Metalworking Technology
Possible Emerging Simi Valley clusters (traded)
Food Processing and Manufacturing
Furniture
Recreational and Small Electric Goods
“Traded” clusters – Prominent in surrounding regions (but not well represented in Simi Valley)
Aerospace Vehicles and Defense
Biopharmaceuticals (e.g., connect to well established biotech cluster in Thousand Oaks) Business Services
Distribution and Electronic Commerce
Environmental Services
Marketing, Design, and Publishing
Music and Sound Recording
Performing Arts
Video Production (i.e., filmmaking, sound stages, etc.)

15 PAGE | 10
CITY OF SIMI VALLEY, CA | EDSP

3. HIGHLIGHTS OF BACKGROUND/TECHNICAL STUDIES

SUMMARY OF KEY DATASETS
This data overview document is an evaluation of demographic and economic data at multiple levels of geography (city, county/region, and state), which allows for comparison of Simi Valley conditions to neighboring communities and reference-area benchmarks. The data address the following topic categories:

1. Demographic composition of the resident population.

2. Functional aspects of the city: trends in growth, sales, home values in similar measures.

Income
Median household income in Simi Valley ($99,245) exceeds the state ($78,672) and Ventura County ($89,295) medians by significant margins. Similarly, Simi Valley’s average (as distinct from the median) household income level ($123,726) is also above the State ($111,622) and Ventura County ($117,576) averages.

Labor Force Participation and Commutes
Within the core working age population (20 to 64 years), 81% of Simi Valley’s residents are in the labor force, a higher share than both Ventura County (79.5%) and the State (77.3%). Simi Valley’s labor force participation rates by educational attainment exceed those of Ventura County for all attainment levels, except Ventura County has a slightly higher participation rate for High School Graduates (including Equivalency). The City’s labor force participation rates by educational attainment exceed those of California for all attainment levels.

A higher percentage of Simi Valley commuters (21.9%) travel more than 45 minutes (compared to the countywide average of 15.2%). Simi Valley’s percentage of long commuters is very similar to the statewide average (21.7%).

Housing
Simi Valley has a higher share of owner-occupied housing units, 71.5% of the total, compared to Ventura County (63.3%) and the State (55.3%). A greater share of Simi Valley’s housing stock was produced in the 1960-1980 time period (46.3%) than in the County (42.6%) and State (30.7%). 16 PAGE | 11
CITY OF SIMI VALLEY, CA | EDSP
Household projections5
The following map demonstrates that household growth in Simi Valley is projected to increase modestly (compounded annual growth rate of 0.3%) but at a slightly higher pace compared to most surrounding Ventura County cities, for the period from 2019 through 2050. Projected employment growth up to 2035 (not illustrated) is at the low end of the range compared to most of the other Ventura County cities. (For Simi Valley and all of the other Ventura County cities with the exception of Oxnard, SCAG shows a decrease in employment between 2035 and 2050.)
AVERAGE ANNUAL CHANGE IN NUMBER OF HOUSEHOLDS BY CITY 2019-2050 (PROJECTED BY SCAG)

Source: SCAG, “Connect SoCal Demographics and Growth Forecast Technical Report – 9-3- 2020; TNDG.

5 The household projections used here are from the preliminary/ unofficial Connect SoCal 2024 growth projections for total households and total employment in 2019, 2035, and 2050, dated April 20, 2023, and as reviewed by local jurisdictions during 2022, according to SCAG.

17 PAGE | 12
CITY OF SIMI VALLEY, CA | EDSP
In-Area Labor Force Efficiency
The measure of in-area labor force efficiency – the percent of the City’s labor force that both lives and works in the selected area – for Simi Valley and the other cities in Ventura County is shown on the following map. Simi Valley’s share of its labor force that lives and works in the City is very similar to the average labor force efficiency measure for cities in Ventura County (about 18%).

IN-AREA LABOR FORCE EFFICIENCY: % LIVING AND EMPLOYED IN THE CITY,

VENTURA COUNTY CITIES

Source: Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics (LEHD) program. Accessed at https://onthemap.ces.census.gov; TNDG.

3.4%

10.0%

11.4%

11.5%

17.4%

17.7%

18.0%

27.2%

28.5%

31.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Port Hueneme
Fillmore
Moorpark
Santa Paula
Ojai

CITY AVERAGE
Camarillo
Simi Valley
Thousand Oaks
Oxnard
Ventura
18 PAGE | 13
CITY OF SIMI VALLEY, CA | EDSP
Distribution of Jobs by Monthly Earnings
Census Bureau LEHD data show that Simi Valley has a lower concentration of jobs in the highest tier than Ventura County and the State, and a higher share in the lowest income tier, compared to Ventura County and the State.

DISTRIBUTION OF JOBS BY MONTHLY EARNINGS, BY AREA (GROSS), 2019

Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics (LEHD) program. Accessed at https://onthemap.ces.census.gov; TNDG.

Taxable Retail Sales
Retail taxable sales data for the City of Simi Valley between 2017 and 2021 (the most recent year for which data are available) and Thousand Oaks, Moorpark, and Camarillo show that City-wide taxable retail sales increased annually through 2019, decreased between 2019 and 2020 in keeping with pandemic trends, and made a strong recovery in 2021 – as did the other jurisdictions shown. Adjusting for inflation,6 the increase in taxable sales for the 2017-2021 period is a little over 3%.

6 Bureau of Labor Statistics West urban region.
18%
35%
47%
15%
34%
51%
15%
31%
55%
0%
10%
20%
30%
40%
50%
60%
$1,250 per month or less $1,251 to $3,333 per month More than $3,333 per month Simi Valley Ventura County CA
19 PAGE | 14
CITY OF SIMI VALLEY, CA | EDSP

Data for taxable retail sales per capita for Simi Valley, Ventura County, California and selected other cities in Ventura County, included for comparison purposes in the following chart, show that, with the exception of Moorpark, Simi Valley lags these other jurisdictions in this particular measure – a finding also borne out by the demonstration of relatively high levels of Simi Valley’s retail leakage, reported in TNDG’s Real Estate Market Analysis Report. In comparison to California and Ventura County, Simi Valley has trailed the two benchmark regions in this measure by over 10% in the early years of the time interval, with the gap increasing to almost 18% in the most recent years. Thousand Oaks, and to a lesser extent Camarillo, are the clear retail sales leaders within Ventura County, also surpassing the Countywide figures on a per capita basis.

Simi Valley’s dearth of regional shopping, along with sales leakage to other communities in other retail categories, are the primary factors of the low levels of sales on a per capita basis.

20 PAGE | 15
CITY OF SIMI VALLEY, CA | EDSP
TAXABLE RETAIL SALES/CAPITA (POPULATION IN HOUSEHOLDS) 2017-2021

SIMI VALLEY, VENTURA COUNTY, CALIFORNIA, AND SELECTED VENTURA COUNTY CITIES

Source: CDFTA; CA DOF Table 1: E-5 City/County Population and Housing Estimates, 2017-2021; TNDG.

$15,391
$12,576
$12,928
$12,650
$12,102
$15,262
$12,809
$12,840
$12,534
$12,190
$19,414
$15,400
$17,327
$17,318
$17,398
$9,178
$7,468
$8,166
$8,095
$7,762
$16,078
$12,537
$15,687
$15,966
$15,685
$12,854
$10,532
$11,333
$11,223
$11,040
$0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 2021
2020
2019
2018
2017
CA Ventura County Thousand Oaks Moorpark Camarillo Simi Valley 21 PAGE | 16
CITY OF SIMI VALLEY, CA | EDSP

CLUSTER TARGETING
Identifying industry clusters appropriate for targeted economic development efforts in Simi Valley is an integral part of the EDSP process. Analytical procedures to pinpoint suitable clusters focus on industry growth/retraction trends in Simi Valley, comparing the local economy’s recent and longer-term performance to regional and national benchmarks. Given Simi Valley’s finite capacity for new industrial development, the EDSP recognizes that future industry attraction efforts will likely be modest in scale and focused on maximizing opportunities for growing high-value industries/jobs either in new or existing buildings (i.e., as tenant turnovers occur). As such, it is not expected that the City will attract every “candidate” identified in the EDSP. Instead, the list of potentially viable targets should be interpreted as a “menu” of business types that would be compatible with an overall focus on upgrading the economic impact of Simi Valley’s industrial areas. “Clusters” are groups of interrelated industry sectors whose growth potentials within a region tend to be closely aligned. The tendency of individual industries to co-locate in clusters reflects the fact that they are likely to be linked, economically (theoretically) as well as through business dealings, in supply-chain relationships, for example. Clustered industries can also share commonalities in terms of workforce requirements and infrastructure needs. The concept of industry clusters is an effective framework for economic development programming since it reflects a holistic understanding of the regional economic conditions driving the growth or retraction of individual sectors.

Clusters are divided into two distinct categories: 1) Local Clusters, and 2) Traded Clusters.

1. Local clusters typically form the core of a region’s economy; they primarily provide goods and services for the local (resident) population. They tend to account for the majority of jobs in a region.

2. Traded clusters are “export-oriented” – they include industries that are engaged in producing goods and services for end-use customers outside the region, and are especially important from an economic development perspective because they tend to have higher wages and higher “multiplier impacts” compared to local clusters, injecting new dollars into the local economy and thereby serving as “drivers” for broader economic growth.

The following two tables list all traded and local, respectively, clusters that had 100 or more jobs in Simi Valley in 2021, and provide the following information about each listed cluster:
• Total number of jobs in Simi Valley in 2021 (the latest full year for which data are available). • Location quotient (compared to U.S. benchmark) in 2021. The location quotient (LQ) measures how concentrated/important an industry cluster is in a region compared to national benchmarks.

An LQ value greater than 1.0 indicates that a cluster is more concentrated in the region than it is nationally. This is generally regarded as an indication that the region has a comparative advantage relative to a particular cluster, although (especially for local clusters) an LQ below 1.0 can indicate a potential growth opportunity.
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• Average annual wage for jobs in Simi Valley.
• Change in the number of jobs for the most recent 10-year period, 2011-2021.

SUMMARY CHARACTERISTICS AND TRENDS, SIMI VALLEY’S LARGEST TRADED CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 100 JOBS IN 2021) Traded Cluster Jobs LQ County
LQ*
Avg. Ann.

Wage
10-Yr Job
Change
Business Services 1,617 0.6 0.9 121,109 57
Information Technology and Analytical
Instruments 1,125 2.9 1.6 114,091 (610)
Distribution and Electronic Commerce 939 0.5 0.8 135,497 (95) Agricultural Inputs and Services 886 1.7 6.2 51,527 (26) Downstream Chemical Products 714 9.3 4.1 68,583 363 Metalworking Technology 599 4.9 2.4 102,285 164
Production Technology and Heavy
Machinery 442 1.8 0.8 82,175 (91)
Lighting and Electrical Equipment 425 4.9 1.5 91,356 8 Financial Services 399 0.7 1.3 154,318 76
Marketing, Design, and Publishing 302 0.6 0.9 76,875 16 Plastics 201 1.1 0.4 69,273 (6)
Hospitality and Tourism 195 0.3 0.7 40,524 (72)
Printing Services 182 1.7 1.0 60,684 (167)
Performing Arts 180 1.2 1.4 58,896 18
Education and Knowledge Creation 175 0.1 0.6 58,482 (17) Medical Devices 160 1.9 1.3 82,677 (33)
Electric Power Generation and
Transmission 155 3.3 0.9 272,688 (66)
Furniture 151 1.4 0.5 60,768 20
Downstream Metal Products 134 1.1 1.2 86,178 38
Insurance Services 123 0.3 0.6 123,982 (204)
Video Production and Distribution 110 1.3 1.1 72,283 17 GROUP TOTAL / AVG 9,214 0.84 1.15 $99,884 (609)
CITY TOTAL 44,349 N/A N/A $69,795 2,639
Note: LQ = Location Quotient; 10-year job change is from 2011 to 2021. *County LQ provided for comparison purposes.

Source: U.S. Cluster Mapping Project; TNDG.

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SUMMARY CHARACTERISTICS AND TRENDS, SIMI VALLEY’S LARGEST LOCAL CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 1,000 JOBS IN 2021) Local Cluster Jobs LQ County
LQ*
Avg. Ann.

Wage
10-Yr Job
Change
Local Real Estate, Construction, and
Development 5,442 1.5 1.0 65,796 1,325
Local Health Services 5,131 1.0 0.8 83,156 618
Local Community and Civic Organizations 3,810 2.4 1.2 27,201 1,546 Local Hospitality Establishments 3,648 1.2 1.1 29,632 (217) Local Education and Training 2,806 1.2 1.0 84,677 77 Local Commercial Services 2,528 1.0 1.0 59,915 220 Local Government 1,525 1.0 0.9 127,364 (67)
Local Personal Services (Non-Medical) 1,417 1.3 1.1 41,498 226 Local Food and Beverage Processing and
Distribution 1,317 1.1 1.2 43,155 210
Local Motor Vehicle Products and Services 1,266 1.0 0.9 61,875 (52) Local Retailing of Clothing and General
Merchandise 1,195 1.0 1.0 35,615 (315)
GROUP TOTAL / AVG 30,083 1.21 1.00 $60,372 3,569
CITY TOTAL 44,349 N/A N/A $69,795 2,639
Note: LQ = Location Quotient; 10-year job change is from 2010 to 2021. *County LQ provided for comparison purposes.

Source: U.S. Cluster Mapping Project; Emsi; TNDG.

The following table shows clusters in both the Local and Traded categories that were identified in initial analytical processes, along with a summary of key observations related to the suitability of these clusters for Simi Valley, along with initial screening recommendations. The traded clusters are further organized according whether they are: 1) already present in Simi Valley, 2) possible emerging clusters in the City, or 3) prominent in the surrounding region but not yet strongly represented in Simi Valley.

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CLUSTERS POTENTIALLY VIABLE AS TARGETS FOR SIMI VALLEY
Categories Selected Key Observations To-Date Initial
Screening
Local-serving clusters
Health Services
Changing demographics will lead to changing healthcare
needs, facilities, etc. Dynamic industry in general. Is there a potential to expand into healthcare-related R&D?
A
Real Estate, Construction
and Development
Relevant cluster only to the extent City needs to support revitalization. B
“Traded” clusters – already present in Simi Valley
Downstream Chemical
Products
Could be relevant for certain specific industries. Examples:

Cosmetics relevant to entertainment, CBD preparations. A Information Technology &
Analytical Instruments
(e.g., AI, robotics, etc.) Generally, Simi Valley can serve the kind of higher-skill industries in these categories here now, through labor force, higher education (including Moorpark College), and other local/regional resources.

A Lighting and Electrical
Equipment
Medical Devices
Metalworking Technology
Possible Emerging Simi Valley clusters (traded)
Food Processing and
Manufacturing
Utility capacity, including water, is always a question, but otherwise is a natural fit. Can involve innovation. B
Furniture Questions remain as to whether these fit within the local economic ecosystem.

B
Recreational and Small
Electric Goods B
“Traded” clusters – Prominent in surrounding regions (but not well represented in Simi Valley) Aerospace Vehicles and
Defense
May seem like small cluster, only if in relation to some other cities. Growing, and big opportunity. A
Biopharmaceuticals
T.O. successfully recruited, with some firms taking advantage of Camarillo incubators. Opportunities for spinoffs, but T.O. has advantage.

A
Business Services B
Distribution and Electronic
Commerce
Target only to extent needed to support local manufacturing, etc. County currently doing freight study. Pay relatively low. B Environmental Services B
Marketing, Design, and
Publishing
Some activities potentially go into Town Center. Together, support film industry, so natural fit with region. Santa Susanna High School has focus on arts; also have City Cultural Arts Center and County Arts Regional Plan initiative. Potential annexation area could support growth of filmmaking (sound stages)
A Music / Sound Recording
Performing Arts
Video Production
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SCREENING LEGEND
A. Potential targeting interest
B. Potential other or later consideration/support

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4. REAL ESTATE DEMAND PROJECTIONS
Summaries of real estate demand projections for retail, office, industrial, and hotel land uses are shown in the corresponding sub-sections below. The tables for all uses include figures for existing inventory, changes in inventory, absorption over the previous five years, and vacancy/occupancy rates in recent years. Tables also include a brief narrative describing the basis for the demand projection figures shown.

It should be emphasized that the r eal estate market projections represent unconstrained (“theoretical“) demand and have not been adjusted to reflect available land/zoning capacity in Simi Valley. As a practical matter, Simi Valley is largely built out and has limited land capacity for new development. As such, the demand projections summarized below need to be interpreted with a degree of caution.

While there is theoretically demand (including potential opportunities to recapture a portion of resident retail demand that currently “leaks” to neighboring cities) to support new development, actual development is likely to be more modest based on land constraints and other market trends (e.g., the increase in remote work has a dampening effect on office demand). In this regard, the EDSP anticipates that the City’s future economic development efforts will focus on “quality over quantity.” This focus can include facilitating revitalization and/or reuse of older commercial properties; marketing to support high-value tenant recruitment for vacant commercial and industrial space; and encouraging intensification of industrial uses with tenant-types that have higher densities of high- paying jobs.

Retail/Restaurant
Compared to the other uses, retail activity has an outsized role in defining community image, augmenting residents’ quality of life, and supporting fiscal health of the municipality. Retail land uses are of particular interest to the City of Simi Valley given concerns about the long-term positioning of the Simi Valley Town Center and the City’s current “Envision Simi Valley” planning initiative which seeks to identify retail development opportunities as part of a future mixed-use focus along the Los Angeles Avenue and Tapo Street corridors.

Projections of retail/restaurant demand are generated using a combination of four key variables:
existing and projected population, income levels, and the portion of income allocated to retail expenditures. The supply of existing retail activity is estimated using taxable sales data from the State of California, as well as retail real estate data from CoStar. The demand modeling process incorporates factors that recognize the effects of increasing e-commerce activity, which tends to be focused within specific retail categories. The Covid pandemic also affected recent past trends in retail activity and development. Besides leading to the closure of some establishments, the pandemic tended to accelerate retail customers’ use of e-commerce, as a way to help minimize public contact. Together, these influences also expanded the supply of vacant space that could be absorbed by new retail activity (creating capacity for absorbing new demand without construction of new commercial space). 27 PAGE | 22
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The analysis included an assessment of current retail sales leakage in Simi Valley. Unlike the supply/demand analysis, which considers a primary market area that includes Simi Valley and Moorpark combined, the leakage assessment focused on just the city of Simi Valley.

The table on the next page provides a succinct summary of the retail demand analysis. The “expanded capture rate scenario” (more fully explained in the separate market study report) represents the theoretical potential for Simi Valley to increase its attraction of external (non-resident) demand from neighboring communities (from which Simi Valley currently attracts modest patronage in most retail categories). Under the most aggressive scenario, demand for new retail occupancies in Simi Valley is projected at 587,000 square feet over the next 19-year forecast period (2022 through 2040). While this might seem like a large number under current retail market conditions, the following points should be noted:
• This projection represents an average annual absorption rate of about 31,000 square feet per year; under the more conservative scenario, average annual absorption would be about 20,000 square feet). Compared to the existing base of 6.6 million square feet of retail space, these projections represent annual demand growth of 0.5% under the aggressive scenario and 0.3% under the conservative scenario.
• The indicated demand could partly be accommodated in existing vacant space, so the projections do not necessarily translate into demand for new construction. • Even for demand that would be accommodated by construction of new retail facilities, the demand is not likely to take the form of larger/traditional shopping centers but would more likely be fulfilled in multiple smaller projects spread over the 19-year forecast horizon. For example, smaller retail projects included in mix-use settings along the Los Angeles Avenue and Tapo Street corridors (pursuant to Envision Simi Valley) would account for a portion of the projected citywide demand.

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RETAIL
Total existing inventory (square feet) 6,550, 468
5-year change in total inventory 44,475
5-year net absorption 302,737
Vacancy rates: 2022 YTD 2021 2020 2019

9.4% 8.7% 9.1% 7.4%
Basis for demand projections:

Projected demand for 2022-2040
Retail Category
2025 2030 2035 2040
Baseline scenario
GAFO 37,306 75,476 103,926 142,692
Food and Beverage 12,352 28,070 44,100 60,450
Food Services and Drinking 9,512 21,615 33,959 46,549
Bldg. Matrl. and Garden Equip. and Supplies 8,062 18,321 28,784 39,455 Auto Parts 2,067 4,697 7,380 10,116
Services Space @ 20% of Total 17,325 37,044 54,537 74,816 Total All Categories 86,624 185,222 272,685 374,079
Expanded capture rate scenario
GAFO 102,830 135,566 158,180 198,684
Food and Beverage 64,775 81,975 99,537 117,470
Food Services and Drinking 45,400 58,553 71,983 85,696
Bldg. Matrl. and Garden Equip. and Supplies 19,412 30,172 41,158 52,375 Auto Parts 6,956 9,683 12,465 15,303
Services Space @ 20% of Total 59,843 78,987 95,831 117,382 Total All Categories 299,215 394,936 479,154 586,910
GAFO: General merchandise, apparel, furniture, and other/specialty retail sales categories 4 key variables: existing and projected population,
income levels, and the portion of income allocated
to
ward retail expenditures, in total and by category.
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CITY OF SIMI VALLEY, CA | EDSP
Office and Industrial
The analysis of demand for new office and industrial space in Simi Valley makes use of TNDG’s office and industrial space demand model, along with data on employment trends and projections, in total and by industry sector, for Simi Valley and other relevant geographic areas. Employment growth rate projections were derived through cross calibrating a variety of relevant data of this type.

In the space demand model, portions of projected employment growth, by industry, are assigned to office and industrial space-using classifications. These allocations of employment to space-using classifications have been derived by TNDG based on long-term studies of office and industrial demand conditions, related to employment growth, across southern California. Assignment of employment to the two categories of office and industrial space represents slightly less than half of total employment in the City, with the balance of employment going to the space-using category of “Other.” Based on the approach applied to this analysis, the projected space figures should be understood as the midpoint of ranges that could vary considerably, but represents reasonable levels for strategic and other planning purposes. The projections also reflect the expectation that the EDSP will potentially be successful in generating additional jobs, which would support positive growth rates in office and industrial space not necessarily reflective of downturns in activity in the most recent past.

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CITY OF SIMI VALLEY, CA | EDSP
Office Demand Summary
The negative values in office inventory and absorption in recent years, as shown on the following table, have multiple causes. Office space use has tended to decline in recent years due in part to the pandemic and subsequent trends of increased working-from-home on the part of employees in many business sectors. Vacancy rates for office buildings in general, in many locations, tended to be relatively high, even before the pandemic. This has led to the redevelopment of some office properties into other uses, resulting in decreases in space inventory.

The reductions in the office inventory (i.e., demolition of high-vacancy buildings) have had the effect of reducing the overall vacancy rate to a more acceptable level, even though net absorption has been negative in recent years. Going forward, TNDG projects that office demand is likely to be relatively modest, suggesting that policies that encourage the rehabilitation of existing office buildings would be an appropriate strategic focus for the City.

OFFICE
Total existing inventory (square feet) 1,832,356
5-
year change in total inventory 730,401
5-year net absorption 456,122
Vacancy rates: 2022 YTD 2021 2020 2019

7.5% 6.7% 8.5% 19.2%
Basis for demand projections: Estimated (compounding) annual growth rate of 1.1% Projected demand for 2022-2041:

Employ-
ment
Space
demand
2022-2026 513 94,947
2027-2031
542 100,285
2032-2036 573 105,923
2037-2041 605 111,879
Total growth through each interval shown
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CITY OF SIMI VALLEY, CA | EDSP
Industrial Demand Summary
Recent/current industrial development in Simi Valley and Moorpark (including 288,000 SF currently under construction, and an additional 629,000 SF of new space proposed for the next few years)7 reflects developers’/employers’ confidence in attracting activity to Simi Valley (along with the requisite workers). Consequently, although we would expect some overlap between space projected by TNDG and recent/proposed industrial space development activity, TNDG’s projections for periods beyond 2026, as reflected in the following table, can be understood to be in addition to the current very active development market. In this sense, TNDG’s projections can be viewed as relatively conservative compared to recent historic trends, but nevertheless still appropriate for planning purposes, consistent with the intent noted above in this report. In Simi Valley’s case, the operative constraint is available land for future industrial projects. While demand will theoretically continue to be strong (totaling about 1.2 million square feet beyond projects that are currently in the development pipeline), land constraints are likely to significantly limit Simi Valley’s ability to fully capture this demand.

7 Data are from CoStar and compiled for both cities combined.

INDUSTRIAL
Total existing inventory (square feet) 8,263, 154
5-year change in total inventory 834,044
5-year net absorption 714,078
Vacancy rates: 2022 YTD 2021 2020 2019

0.9% 0.8% 4.50% 4.80%
Basis for demand projections: Estimated (compounding) annual growth rate of 0.9% Projected demand for 2022-2040: Total growth through each interval shown Employment Space demand
2022-2026 543 (Note 1)
2027-
2031 568 383,265
2032-2036 594 400,826
2037-2041 621 419,190

1. Industrial space already under development or recently completed will likely absorb all available demand as modeled through 2026.
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Hotel
Current and projected market conditions were estimated in part based on proprietary hotel data from STR, which included hotels in the surrounding region. Future demand range also reflects uncertainty in the hotel market, locally and regionally.

Simi Valley Hotel Rooms
Total existing inventory (rooms) 673

5-year change in total inventory 0

5-year net absorption 0

Occupancy rates: 2022 YTD1 2021 2020 2019

77.9% 72.9% 55.9% 79.4%

Projected demand for 2022-2040: Total new room demand through year shown

Baseline
scenario
Robust
scenario

2025 8 35

2030 43 109

2040 117 280

1. Seasonal variations in occupancy could affect ultimate annual rat e. Note that recently available CoStar data for the Oxnard/Ventura submarket of the California Central Coast region (essentially Ventura County) indicate a current occupancy level of 73.3%, higher than the 12-month average of 71.5%, suggesting that occupancy rates are trending upward.

Source: STR; TNDG

Real estate demand projections data notes
Real estate market data from CoStar, for Simi Valley and Ventura County (and neighboring cities and counties) 8, provided information on total inventory, change in occupied retail, office, and industrial space, leasing rates, and other details, for the period of 2000-2022, for office, industrial, and retail space (data from 2006). This information was particularly useful for calibrating demand model factor assumptions and the resulting estimates of space requirements.

Other data sources included:
• California Employment Development Department (EDD), data for Ventura County, for projections of overall employment and for individual sectors.
• Southern California Association of governments (SCAG), total employment projections for Simi Valley and Ventura County.
• Emsi, employment by sector for Simi Valley, current and projected.

8 Data shared by City of Simi Valley.
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CITY OF SIMI VALLEY, CA | EDSP
• Taxable sales data from the California Department of Tax and Fee Administration (CDTFA). • The Bureau of Economic Analysis, for income data.
• U.S. Census, American Community Survey, for income and other data. 34 PAGE | 29
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5. SWOT SUMMARY
The process of identifying the primary strengths, weaknesses, opportunities, and threats (SWOT) that impact Simi Valley’s economic competitiveness involved input from key stakeholders as well as analyzing and synthesizing TNDG’s background research. The SWOT summary is intended to identify positive conditions that can be leveraged to help support economic growth and also incorporated into marketing programs for the City. Weaknesses and threats can be assessed for the potential extent to which they might constrain certain aspects of economic growth, including options for target industries.

Results of the SWOT analysis are summarized below.

SWOT SUMMARY FOR

SIMI VALLEY ECONOMIC DEVELOPMENT STRATEGIC PLAN

Strengths Weaknesses

• Favorable location as alternative to Los
Angeles area, and cost advantages
compared to LA
• High quality of life for families (including
recreational and open space amenities)

• Resident population with relatively high
incomes, high rates of homeownership

• Employment projected to grow at almost
twice the rate of population

• Excellent higher education resources in
region (including Moorpark College)

• Retail and office vacancies are high

• Limited amenities for young professionals

• Recent declines in population and
employment (with future growth expected to
be very modest due to cost-prohibitive
housing for many working-age households)

• Local job mix results in lower average salaries
compared to county and state; limited career
opportunities for recent college graduates

• Taxable sales per household lag county and
state

Opportunities Threats (local and addressable)

• Underutilized commercial properties can
transform to potential new development

• Simi Valley is a natural location for filming-
industry activity, and has base of arts-
oriented activity and resources such as Allied
Studios. Within the TMZ

• Tech-oriented companies located in the
City and region have demonstrated that it
is a desirable location

• Resident workforce larger and more
qualified than the local job base

• Limited remaining supply of developable land
``
• Economic/financial feasibility of revitalization

• Limited housing, constrained capacity for
new development (and State
policies/mandates encouraging new housing
development may reduce the land available
for non-residential land uses)

• Retail competition in surrounding cities

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6. EDSP STRATEGY FRAMEWORK
The strategy framework is described in this section of the document under the headings associated with the EDSP Overview chart below. The flowchart shows the relationships among key components of the structure within which the EDSP was formulated: A central, focusing theme prompted certain strategic responses, which incorporated consideration of key assets in the community; and this initial framework then led to the generation of strategic plan elements and associated catalyst projects, which in turn related to a set of overarching implementation themes.

EDSP OVERVIEW

A discussion of each component of the diagram follows.

CENTRAL THEME AND STRATEGIC CONTEXT
Central Theme: Development contraction opens the door to reevaluation, repositioning Simi Valley has a reputation for having a high quality of life, which was borne out over the last two decades by the City’s successful recruitment of major retail activity. The loss of major employers related to the subprime lending crisis (roughly 2007-2010), the pandemic, and other influences that are not necessarily fully understood contributed to a change of fortunes for the City, along with disinvestment in certain properties.

A. Central theme
Key assets
B. Overview of
strategic responses to
central theme
C. Strategic plan elements
Overarching
implementation themes
D. Catalyst projects
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CITY OF SIMI VALLEY, CA | EDSP
An overview of recommended strategic responses to this central theme, based on specific conditions arising from past trends and current influences, are shown in the Part B table below. For each condition shown, the table shows:
• Strategic implications: how would the City strategically respond to certain conditions? • Assets to highlight: Key assets listed by number below the table can be leveraged, physically and in terms of marketing messages, as appropriate to advance strategic objectives. • Marketing implications/focus: how does the role of marketing interface with strategic objectives, leveraging of assets, etc.?
• Project examples: how might strategic and marketing implications be expressed in actions? These observations then help define the specific EDSP elements as shown in Part D.

OVERVIEW OF STRATEGIC RESPONSES TO CENTRAL THEME
Condition Strategic
implications
Assets to
highlight
Marketing
implications/focus Project examples
General need for real
estate development
repositioning in light of
current market
conditions
Underscores
importance of
comprehensive
economic
development
strategic planning
All
Package
assets/attributes
within comprehensive
framework
Uniquely focused
marketing to
counter existing
conditions
Stagnant/constrained
employment growth
Industry targeting
and probing
motivations of
existing key firms
1, 2, 5, 6, 7,
10, 11, 12
Target industry
rationale and assets.

Locational and
economic/
demographic
attributes
Focused survey of
selected firms
Fewer local jobs than
resident workers Industry targeting
Retail vacancies, while
also below-average retail
sales per household
Redevelopment/
revitalization
opportunities
4, 9
Locational and
economic/
demographic
attributes
Simi Valley Town
Center
repositioning
Office vacancies
Redevelopment/
revitalization
opportunities
1, 5, 6, 7, 9
Real estate
development
pilot project
Stagnant/constrained
population growth
Expanded
residential
opportunities
1, 2, 3, 4, 8
(Focused
marketing, tenant
recruitment)
Vacant land is relatively
scarce
Redevelopment/
revitalization
opportunities
7, 9 Planning/economic
development efforts
Revisions to
zoning, plans
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KEY ASSETS LEGEND

1. Accessibility to and from Los Angeles area

2. Area rich in natural amenities

3. Superior air quality compared to neighboring Los Angeles County

4. “Neighborhood” of surrounding communities that are also attractive

5. Diversified economic base

6. Resident workforce of a size and quality that exceeds the existing economic base

7. Infrastructure (including broadband upgrade initiative) generally supportive of development

8. Arts/cultural facilities and institutions such as City Cultural Arts Center and County Arts Regional Plan initiative

9. Planning initiatives focused on some areas with evidence of distress

10. Collaborative organizations to support economic development

11. Collaborative institutions/organizations to support workforce development

12. Collaborative institutions/organizations to support entrepreneurial development

13. SIFI network (construction underway on City licensing initiative that will result, when completed, in Simi Valley being designated a Gigabit Community)

CATALYST PROJECTS
“Catalyst Projects” are labeled as such to reflect their intended purpose – to serve as proactive demonstrations for how desired strategic objectives could be brought about, or at least given special encouragement. The concept behind such projects is that focusing efforts on a particular activity, making conscious efforts to bring together various types of resources, could yield a result that would not necessarily happen within a “natural” progression of market and other economic forces. Eight suggested catalyst projects for Simi Valley, representing a range of strategic directions, are listed below:

1. As a subset of the ED retention function, launch an initial effort, through selective sampling of contacts, designed to yield a fundamental understanding of why certain tech-oriented companies/industries, considered important to Simi Valley’s future, are located in Simi Valley or the region. (Note that this could potentially be accomplished as part of the work scope of a retained public relations/marketing firm. See EDSP Element #1, Economic Development Marketing Program.)

2. Within the context of related efforts for repositioning retail, the City can sponsor and coordinate a process to bring Simi Valley Town Center to a higher level of functionality and symbolic relevance for the community.

3. Undertake a revision of the City’s zoning, relevant specific plans and sections of the General Plan, with the intent to optimize development potential in undeveloped as well as selected distressed areas, recognizing industry targeting, development trends, the general need for flexibility, and similar considerations.
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4. Sponsor the creation of a real estate development pilot project within the Envision Simi Valley study areas.

5. Establish a process to develop a Healthcare strategy that helps maximize this industry within Simi Valley. Two concepts to explore include: 1) guiding the evolution of Healthcare services and facilities as provided in Simi Valley so that they meet the needs of changing population characteristics in the city and region, and 2) investigating and defining the potential to expand Healthcare into related R&D activities, which might include the hospital providing incubator space for this type of startup.

6. Convene real estate brokers and developers for input on the City’s role in revitalization strategies, in general and for specific areas as appropriate.

7. Set up a process for retaining and working with a professional marketing services provider to support design and implementation of the comprehensive marketing program recommended in this EDSP.

8. Systematize entrepreneurial resources for City residents (which may involve regional resources) through creation of an “entrepreneurial ecosystem” in which stages of startups, separately for tech-oriented and local businesses, are accommodated in terms of business development support, basic networking, etc.

While there is theoretically demand to support new development, actual development is likely to be more modest based on land constraints and other market trends. In this regard, the EDSP anticipates that the City’s future economic development efforts will focus on “quality over quantity.” This focus can include facilitating revitalization and/or reuse of older commercial properties; marketing to support high-value tenant recruitment for vacant commercial and industrial space; and encouraging intensification of industrial uses with tenant-types that have higher densities of high-paying jobs.

The limited supply of developable land by no means suggests that economic development is a less important City function than it was in years past. In fact, it is arguably a higher priority now. In the absence of proactive economic development programming, the potential for economic stagnation is a real concern (since there are fewer greenfield-based opportunities to create jobs, inject new private investment in the community, and increase the City’s fiscal revenues). As such, it becomes vitally important to maximize the economic impact of Simi Valley’s remaining land resources and to aggressively promote opportunities for redevelopment and infill projects. The EDSP action plan (detailed below) reflects this recommended strategic approach. 39 PAGE | 34
CITY OF SIMI VALLEY, CA | EDSP

EDSP ELEMENTS
Recommended EDSP elements are summarized below, under the three main categories of a) Umbrella Programs, b) Industry Targeting, and c) Land Use/Placemaking. Detailed descriptions of each strategy element follow this summary.

Umbrella Programs: aligning attributes with economic potential; clarifying any misperceptions

1. Recognizing that existing capacity for expansion is limited, implement a phased economic development marketing program to capture the most desirable economic activities for the community, beginning with a comprehensive framework for positioning Simi Valley in relation to assets and opportunities, and adding targeted industries as rationales for selecting these industries develop. In the context of Simi Valley’s limited remaining capacity for new development, it is anticipated that the marketing effort would target recruitment of selected high-impact employers (e.g., technology firms) and retail/service businesses that provide a high amenity value to the community (e.g., restaurants and entertainment).

2. Leverage the City’s in-house resources for economic development, recognizing the comprehensive nature of this EDSP, through carefully integrated strategic partnerships and interdepartmental collaboration. [This would include coordination framework for Envision Simi Valley.]
Industry Targeting: Business Development/Job Creation

3. Focus City’s business retention/expansion (BRE) and attraction efforts toward industry clusters that are strategically aligned to be mutually reinforcing.

4. As a specific component of regional collaboration, coordinate with regional institutional (including higher education) and other partners to expand/enhance entrepreneurial development resources for Simi Valley residents and targeted clusters/industries.

5. As a specific component of regional collaboration, coordinate with regional institutional and other partners to expand/enhance workforce development resources for Simi Valley residents and targeted clusters/industries.

Land Use / Placemaking Programs: Physical Changes to Accommodate Quality Growth

6. Build on Envision Simi Valley redevelopment/revitalization concepts to create a geographically broadened “reposition retail” initiative to facilitate revitalization and/or repurposing of high- vacancy shopping centers and other retail properties, based on potential market demand for other land uses (including for example – “tech flex” space, office, residential, and mixed-use combinations).

7. Implement strategic initiative to attract investment in new (speculative) business park/“tech flex” buildings to accommodate targeted business growth, at new locations or areas suitable for repurposing.
40 PAGE | 35
CITY OF SIMI VALLEY, CA | EDSP

8. Review city’s zoning, general and specific plans, etc. with the intent to optimize development potential in undeveloped as well as distressed areas, recognizing industry targeting, development trends, the general need for flexibility, and similar considerations.

Full EDSP Element Descriptions
Gold = Year 1 (12-18 months)
Green = Year 2 (next 12 months)
Purple = Year 3 or later
Umbrella Programs: aligning attributes with economic potential

1. Economic Development Marketing
Implement phased economic development
marketing program, beginning with a
comprehensive framework for positioning
the community in relation to assets and
opportunities, and limitations in capacity
for expansion, and adding targeted
industries as rationales for selecting those
targets develop.

The marketing program can be phased to
initially address the critical need to position
the community in relation to assets and
opportunities, developing a compelling story
to counter what would seem to be current
misperceptions, and then adding targeted
clusters/industries as rationales for these
clusters emerge.

City
role:

Lead
Action steps
(Gold = Year 1; Green = Year 2; Purple = Year 3 or later) a. Consider engaging a professional marketing firm to coordinate development of the marketing program and undertake specific components of a marketing campaign, including a branding exercise with material developed that ties all City services/departments/initiatives together in a unified brand statement. Anticipate a marketing campaign that could include both analog and digital components (for example mailers as well as digital fliers.) b. Working with partners in economic development, the business community, and representatives of various community assets, as appropriate, generate an overall vision, goals/objectives, and structure for a comprehensive marketing program intended to be implemented in phases and/or in accordance with specific marketing topical areas. Anticipate that the program will promote all available regional resources, taking extra measures as necessary beyond website updates and social media posts, to help ensure access to all audiences. c. Focus an early phase of market messaging on positioning the community image in relation to assets and opportunities, developing a clear, convincing message for outsiders. Highlight Simi Valley's great attributes and promote relationship development with prospective businesses, brokers, and other investors. Feature the role of the Economic Development division (including the case of not having an immediate location available but keeping prospects advised of opportunities as they arise).
d. Working closely with real estate development interests and major landowners as appropriate, assemble a marketing message of Simi Valley as a development location (focusing on redevelopment and infill opportunities as appropriate), to integrate into other market messaging. 41 PAGE | 36
CITY OF SIMI VALLEY, CA | EDSP
e. Develop a compendium of regional resources for promotion to the business community. f. Add targeted clusters/industries to marketing program and materials as cluster selection is finalized (recognizing that business attraction expectations need to be moderated based on limited supply of industrial land/buildings).
g. Launch retail/restaurant tenant recruitment campaign focused on “backfilling” existing vacancies with businesses that elevate the community’s overall quality of life. h. Continue to update and enhance the City's Economic Development webpage, including material that unifies or otherwise appropriately reflects the messages of all economic development actors in the City and region, with the appropriate focus on Simi Valley.

Year 1 Milestones/Checklist
Research and staff report on recommendations for pursuing professional marketing services for design and implementation of portions/phases of EDSP marketing program.

Marketing partners identified and screened for key interests and messages, expected level of participation, etc.; plan and preliminary budget for marketing program drafted; initial meeting convened.

Key marketing messages defined for initial phase.

2. Strategic Partnerships and Interdepartmental Collaboration Leverage the City’s in-house resources for
economic development, recognizing the
comprehensive nature of this EDSP,
through carefully integrated strategic
partnerships and interdepartmental
collaboration.

The process of organizing partners/collaborators
will recognize the comprehensive nature of this
EDSP, and highlight the importance of
partnership collaboration in its implementation.

The strategy will build upon partner participation
in formulating this EDSP. Additional topics
potentially applicable to partnership roles could
include the following:
• Can assets available to residents encourage
outside visitation?
• Community acceptance of certain affordable
housing location types.

City
role:

Lead,
Coord-
ination
Action steps
(Gold = Year 1; Green = Year 2; Purple = Year 3 or later) a. Identify potential supplemental external partner entities, objectives, and roles in ongoing EDSP implementation, updating, and refinement, for all relevant aspects of the EDSP mission, and devise structure for working with these entities. Investigate the potential for coordinating with these partner entities on particularly challenging issues not specifically addressed in the EDSP, such as location and acceptance of affordable housing.
b. In conjunction with Strategy #5 below, convene ad hoc education/workforce development advisory group (including such partners as Simi Valley Unified School District, Moorpark College, and Simi Institute for Careers & Education) to identify specific opportunities for these partners to support ongoing implementation of the EDSP).
42 PAGE | 37
CITY OF SIMI VALLEY, CA | EDSP
c. Establish coordinating mechanisms within City government through which economic development strategies in the EDSP, and economic development considerations in general, can move forward through interdepartmental cooperation, in the form of some combination of formal coordination structures, commitments, staff orientations, and the like. d. Identify critical external (outside of City administration) partner roles in EDSP implementation, and set up a management/oversight system for coordinating these activities over time.

Year 1 Milestones/Checklist
Generation of contact database of potential partners and their potential roles in the EDSP, and initial confirmation of willingness to participate and general basis of participation.

Industry Targeting: Business Development/Job Creation

3. Business Retention/Expansion (BRE) and Attraction
Focus City’s business retention/expansion
(BRE) and attraction efforts toward
industry clusters that are strategically
aligned to be mutually reinforcing.

This strategy should be carefully coordinated
with and informed by Catalyst Project #1,
survey of tech companies. The wording of this
strategy is intended to encourage
consideration of links among industries that
may already exist or could be expanded. For
example, innovation and its connection to
creative arts could be a theme for cluster
targeting in Simi Valley.

City
role:

Lead
Action steps
(Gold = Year 1; Green = Year 2; Purple = Year 3 or later) a. For BRE functions, design a program (or adopt systems created by others) involving tools such as business databases, online surveys, and business site visits to expand communication with existing firms, with the intent to: identify any needs for business assistance, connect businesses with available support resources, and coordinate operational or expansion requirements with local regulatory bodies.
b. Coordinate any programs for surveying firms with Catalyst Project #1, Selective sampling of contacts, designed to yield a fundamental understanding of why certain tech-oriented companies/industries are located in Simi Valley or the region. c. If Catalyst Project #1 is undertaken, coordinate results of this project with refinements in industry targeting. For example, survey results from the Project may indicate that Simi Valley’s tech base may be, or could be encouraged to be, more closely linked than is typical. d. Consider targeting themes for which Simi Valley has unique potentials, such as promoting the link between innovation and creative arts.
e. Incorporate consideration of how the Work From Home (WFH) phenomenon could affect various aspects of economic development, including the relationship of industry targeting to strategies intended to enhance the quality of life for resident workers, and the potential for WFH to be beneficial for metropolitan-fringe communities such as Simi Valley. 43 PAGE | 38
CITY OF SIMI VALLEY, CA | EDSP
f. Coordinate business attraction efforts with Strategy #1, Economic Development Marketing Program, so that targeted industries are aligned with two key aspects of marketing messaging: 1) the economic linkages and other advantages for business operations, and 2) the quality-of-life assets available in Simi Valley to target industries’ workforces.

Year 1 Milestones/Checklist
Memorandum (staff-generated) outlining in-house plan for existing business outreach; business database compiled and initial round of contacts identified based on criteria established.

MOU with appropriate partners for coordination on business attraction activities (including the relationship of regional targets relevant to Simi Valley for which attraction efforts are already planned or underway).

4. Entrepreneurial Development
As a specific component of regional
collaboration, coordinate with
regional institutional and other
partners to expand/enhance
entrepreneurial development
resources for Simi Valley residents
and targeted clusters/industries.

Of the numerous resources for entrepreneurial
development in Ventura County, how accessible are
these resources to Simi Valley residents, and how well
do they align with the City’s cluster targets? Can existing facilities and programs be used or adapted to Simi
Valley’s needs, or are additional resources needed?
Entrepreneurial resources include incubators/
accelerators, physical and virtual, as well as networking programs, special events, and the like. Resources may
be delivered through educational institutions, physical incubator or accelerator facilities, facilities that are essentially “maker” spaces, programs for
entrepreneurial development that may or may not
include a facility, and support organizations that
primarily foster networking opportunities as a support
mechanism.

Two broad categories of entrepreneur-focused
services/facilities also need to be recognized, each
having different implications for serving local needs: 1) for small businesses focused on local-serving goods/
services, and 2) for tech-oriented businesses, which are likely to require higher levels of technical expertise, and therefore may be focused on one or a small set of
industry types. The latter tends to have more relevance for economic growth, while the former may be
important for some local residents seeking to expand
their economic options.

City
role:

Coord-
ination
44 PAGE | 39
CITY OF SIMI VALLEY, CA | EDSP
Action steps
(Gold = Year 1; Green = Year 2; Purple = Year 3 or later) a. Coordinate entrepreneurial resource development efforts with Catalyst Project #8, Systematize entrepreneurial resources for City residents (which may involve regional resources) through creation of an “entrepreneurial ecosystem”. . . , recognizing that the intent of this Project is to address a broad spectrum of startup needs.
b. Inventory resources for entrepreneurial development and support in Ventura County, to assess the following: 1) how accessible these programs are to Simi Valley residents, both physically and administratively, and 2) the range of industries to which these resources relate, including how well they align with the City’s cluster targets.
c. Based on the inventory of resources, determine whether existing facilities and/or programs can be used or adapted to Simi Valley’s residents’ needs as well as the City’s economic needs. If additional resources are needed, investigate what they would consist of, what partners could be involved, how additional coordination among providers might help serve Simi Valley’s purposes, whether physical space or programmatic elements are needed, etc. d. Consider the potential for maximizing “least cost” entrepreneurial development efforts, which might include initiating networking programs (or promoting existing programs), sponsoring events focused on raising the profile of Simi Valley’s and the region’s entrepreneurial ecosystem, and helping to organize local startup funding organizations. e. Whether the focus of the entrepreneurial development strategy is on existing facilities/programs or new, explore ways the City can maximize its coordination with the business model of incubator/program operators and their tenant focus.

Year 1 Milestones/Checklist
City/ED webpage identifying and summarizing existing entrepreneurial development resources in City and region (links), categorized by type.

Preliminary discussions with identified partners and selected entrepreneurial service providers about “startup network” workshop (to be implemented in Year 2).

45 PAGE | 40
CITY OF SIMI VALLEY, CA | EDSP

5. Workforce Development
As a specific component of regional
collaboration, coordinate with regional
institutional and other partners to
expand/enhance workforce development
resources for Simi Valley residents and
targeted clusters/industries.

This strategy acknowledges that the
workforce development ecosystem in
most regions faces fundamental
challenges in timely coordination of
workforce training with industry needs –
challenges particularly acute in this era of
increasing automation and disruption of
traditional tech-related systems, such as
electric vehicles.

The City can set up a system for this type of
collaboration, based on models developed
elsewhere if appropriate, and systematically
interface with education and workforce
development partners to support the following
outcomes:
• Improve information flow between
employers and educators/trainers regarding
needed skills, in general and for targeted
industry clusters.

• Increase awareness of Simi Valley residents
about types of businesses being sought, and
available training/job placement services.

City
role:

Initiate,
then
Coord-
ination
Action steps
(Gold = Year 1; Green = Year 2; Purple = Year 3 or later) a. Consider formulating a strategy by which the City plays a pivotal role in setting up a system for collaboration between workforce training providers and industry representatives. The system can be based on models developed elsewhere, with the intent to institutionalize a means by which education and workforce development partners maintain timely communications with employers regarding needed skills – in general and for targeted industry clusters. (Note that the marketing campaign could potentially provide initial input on ways to maximize effectiveness of this type of outreach, which would include educating and informing businesses of all the services and opportunities available to them.)
b. Develop a mechanism for communicating to Simi Valley residents the types of businesses being sought, and available training/job placement services related to those and other businesses.

Year 1 Milestones/Checklist
Generate database of workforce development resources available through local/regional partners (including entities such as Simi Valley Unified School District, Moorpark College, and Simi Institute for Careers & Education).

Convene 1-2 organization/coordination meetings with regional partners to identify resources available to Simi Valley workers and firms, and ways to expedite worker/employer connections with these resources.

Create City/ED webpage listing available workforce development resources.

Define strategy for facilitating ongoing connections between selected Simi Valley key employers and partners, to improve alignment of education and training with industry needs.

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CITY OF SIMI VALLEY, CA | EDSP
Land Use / Placemaking Programs: Physical Changes to Accommodate Quality Growth

6. “Reposition Retail” Initiative
Build on Envision Simi Valley
redevelopment/ revitalization concepts
to create a geographically broadened
“reposition retail” initiative to facilitate
revitalization and/or repurposing of
high-
vacancy shopping centers and other
retail properties.

Although data on recent trends in local retailing
and retail-sales-per-household in Simi Valley
suggest some potential unmet demand for
retail/restaurant goods and services), global
trends for the retail industry suggest that older
shopping centers will increasingly struggle to
maintain acceptable occupancy levels and vibrant
tenant mixes. While the City’s internal
identification of struggling centers and
underutilized areas will be a key component of
this initiative, the City will take additional
approaches as outlined in this EDSP to defining
and putting forth solutions to these challenges
that are mutually beneficial to the City, property
owners, and residents.

Strategic approaches also need to be based on
potential market demand for other land uses
(including for example “tech flex” space, office,
residential, and mixed-use combinations) in
lagging centers.

City
role:

Initiate
early
steps as
neces-
sary,
then
Coord-
inate
Action steps
(Gold = Year 1; Green = Year 2; Purple = Year 3 or later) a. Coordinate this strategy with Catalyst Projects #2, 3, 4, and 6, which deal with specific redevelopment/revitalization focus areas in the city, revision of the City’s zoning and other regulatory documents/policies, and the concept of seeking input on the City’s role in revitalization strategies from real estate brokers and developers. Whether these projects are undertaken or not, they call attention to the comprehensive nature of redevelopment/revitalization needs and purposes in Simi Valley, and each can be reconsidered/ restructured as an EDSP action item if not treated as specific projects.
b. Establish a formal system for coordinating with the Envision Simi Valley planning and implementation process, to maximize integration of those areas and programs with other development-related EDSP strategies, and with Simi Valley’s economic development in general. c. Encourage broad interpretations of options for identifying struggling retail areas’ problems and opportunities, and for generally encouraging redevelopment/revitalization, involving repurposing or other approaches.
d. Consider the use of focused market/financial feasibility studies related to retail areas in need of revitalization, which might be in the form of case studies of typical areas and their conditions and 47 PAGE | 42
CITY OF SIMI VALLEY, CA | EDSP
would be intended to augment private development decisions, document a potential role for public investment, etc.

Year 1 Milestones/Checklist
Establish specific goals, objectives, and other details related to this initiative, including questions that need to be addressed, key participants that need to be involved, alternatives for achieving certain outcomes, etc.

Convene initial meeting with shopping center owners/developers and others as appropriate, connected with Envision Simi Valley process, to explore objectives, methods, etc. related to formalizing coordination systems.

7. Attract Investment in New (Speculative) Business Park/“Tech Flex” Buildings Implement strategic initiative to attract
investment in new (speculative) business
park/“tech flex” buildings to
accommodate targeted business growth,
at new locations or areas suitable for
repurposing.

The scarcity of available/modern industrial
space in Simi Valley is recognized as a constraint
to business attraction. Developing additional
suitable employment-use building space is
complicated by the limited supply of vacant
land appropriately zoned. This strategy will
focus on creating capacity for new development
through redevelopment of existing properties,
implementing innovative zoning policies
(Strategy 8), and marketing investment
opportunities to the development community.

City
role:

Initiate
early
steps as
neces-
sary,
then
Coord-
inate
Action steps
(Gold = Year 1; Green = Year 2; Purple = Year 3 or later) a. The multifaceted nature of this strategy implies coordinating with Strategy #6, the Reposition Retail initiative, and Strategy #8, implementing innovative zoning policies, recognizing that repositioned retail areas may include employment uses, and zoning regulations may need to be revised accordingly, and coordinating with Catalyst Project #6, outreach to real estate brokers and developers.
b. As part of the EDSP marketing effort, promote opportunities for the “condominiumization” of large existing industrial buildings, as a means of incentivizing private investment in modern business park buildings.
c. Explore a range of options for how the City can most cost-effectively support this strategy, from focused marketing, to cost or no-cost targeted incentives, to “virtual redevelopment” as a pilot study, to partnering with real estate developers on a physical pilot development project. d. Coordinate strategy with those related to industry targeting as well as marketing the City as a real estate development location.

48 PAGE | 43
CITY OF SIMI VALLEY, CA | EDSP
Year 1 Milestones/Checklist
Initial results of screening process of alternatives for how to begin implementation of this strategic initiative, which considers relative efforts/costs, what are the most likely expectations in terms of relationships with other strategies and catalyst projects, a list of key potential broker/developer partners, and similar considerations

8. Development Potential in Undeveloped as Well as Distressed Areas Review City’s zoning, General Plan, CIP,
and specific plans with the intent to
optimize development potential in
undeveloped as well as distressed areas,
recognizing industry targeting,
development trends, the general need for
flexibility, and similar considerations.

This strategy has a dual, integrated focus:
a) comprehensive evaluation of the City’s zoning
and related land use policies, to help match land
supply with anticipated commercial and
industrial development demand; and b)
alignment of the City’s Capital Improvement
Plan (CIP) with the infrastructure requirements
of existing or expanded developable properties,
including those suitable for targeted industries.

Other policy documents that could have a role
in implementing this strategy include the
General Plan, Specific Plans, and initiatives such
as Envision Simi Valley. Although the General
Plan is not expected to undergo major updates
in the near future, individual elements will be
updated within the plan at int
ervals (such as the
recently updated Housing Element). Envision
Simi Valley and forthcoming updates to Specific
Plan areas may provide avenues by which to
accommodate creative zoning concepts such as
the Floating Zone options that could expedite
the conversion of some older areas into more
productive uses.

Revisions are assumed to be proactive steps to
both change zoning designations, allowed uses
(by permit type) and other zoning language, and
also expedite change requests. The City will also
closely track and provide input on regional
infrastructure investments impacting Simi
Valley’s economic development potentials.

This strategy could also include pursuing
strategic annexations (in select cases where the
annexation would directly enhance economic
development opportunities).

City
role:

Initiate,
then
Coord-
inate
within
City
Depts.
49 PAGE | 44
CITY OF SIMI VALLEY, CA | EDSP
Action steps
(Gold = Year 1; Green = Year 2; Purple = Year 3 or later) a. Conduct a comprehensive evaluation of the City’s zoning and related land use policies, with the intent to identify where land supply, including existing underutilized, functionally obsolescent, etc. property, can be aligned more closely (geographically as well as in terms of quantity and overall locational attributes) with anticipated commercial and industrial development demand.

Part of this evaluation includes recognition of a series of matrices produced by Simi Valley specifying land uses allowed in two specific plan areas (and their respective zoning districts) and one combined category of zoning districts, including overlay zones. Within these areas, uses are subject to one category of permit or another, in some cases, with certain exceptions for specific uses and other details. The areas for which these use matrices were generated include:
• The West End Specific Plan area
• Simi Valley Town Center Specific Plan area
• Commercial, Industrial, Business Park Overlay, and Mixed-Use Overlay zoning districts b. Investigate the potential for proactive, creative zoning revisions that could expedite the conversion of some older areas, including concepts such as “floating zones” to facilitate repurposing of obsolete/ underperforming commercial/industrial facilities. c. Investigate the potential for focused annexations to the City that would directly support EDSP objectives. (Two possible opportunities were identified by stakeholders during the course of this planning process: annexation to facilitate expansion of the Levinson Studio operations north of the 118 Freeway; and annexation of the existing landfill to generate “tipping fee” income for the City. Additional investigation/discussion is needed to assess the feasibility of these suggestions.) d. Investigate the potential for expediting zoning and other regulatory change requests that would support revitalization and be applied to specific focus areas or the City’s commercial/industrial areas in general.
e. Align the City’s Capital Improvement Plan (CIP) with the EDSP, including the general need to expand the capacity of commercial/industrial land for additional development, based on a comprehensive assessment of infrastructure needs (including the SIFI fiber network) in development areas, including those identified through zoning revisions. f. Monitor regional infrastructure improvement plans and investments potentially impacting EDSP strategies and Simi Valley’s economic development in general, and confirm that mechanisms (procedural, political, etc.) are in place for providing input on such plans.

Year 1 Milestones/Checklist
System for undertaking the evaluation of zoning, etc., including the role of participating agencies and personnel, preliminary scheduling, intended objectives of the evaluation, and general geographic scope of areas and the/or types of areas to be considered.

50 PAGE | 45
CITY OF SIMI VALLEY, CA | EDSP

OVERARCHING IMPLEMENTATION THEMES
The overarching themes shown below serve to further illustrate the linkages between the strategic focus of EDSP elements and catalyst projects, and can be thought of as key objectives in which stakeholders have expressed a particular interest and that also bridge multiple categories of elements/projects.

Overarching themes What purpose is the theme
serving?
What does this mean to the
EDSP?
A: Arts, motion picture
concepts integrated into
cluster targeting
Builds on existing base, including
City Cultural Arts Center and
County Arts Regional Plan
initiative; takes advantage of
favorable location
Image-enhancing marketing
message
B: High-density housing
supports revitalization
Adds flexibility to real estate
development
Helps attract diverse, targeted
workforce
C: Advanced, tech-focused
manufacturing
Reinforces how a desirable city
can attract higher-value activities
Supports goal of achieving higher-
level salaries, while supporting
existing economic base
D: Shop Simi Valley Reinforces Simi Valley as a
desirable place to live
Supports the marketing message
of communicating unrecognized
values

SUMMARY MATRICES
Table 1 shows how EDSP strategy elements would be expected to relate to both Catalyst Projects and the Overarching Themes described above. The Catalyst Projects are noted as having a Primary or Secondary relationship to the elements.

Table 2 indicates potential Partner Roles within each of the eight strategy elements. 51 PAGE | 46
CITY OF SIMI VALLEY, CA | EDSP
TABLE 1. MATRIX OF EDSP ELEMENTS IN RELATION TO CATALYST PROJECTS AND THEMES

EDSP ELEMENTS CATALYST PROJECTS THEMES

1. Focused
survey of
selected
firms

2. Simi
Valley
Town
Center

3. Revi-
sions to
zoning,
plans

4. Real
estate
dev.
pilot
project

5. Health-
care
strategy

6. Develop-
ment
comm.
input on
revit.

7. Profes-
sional
market-
ing

8. Entre-
preneurial
ecosystem

A B C D
Aligning attributes with economic potential

1. Phased economic develop-
ment marketing program S X X X

2. Strategic partnerships and
interdepartmental
collaboration

S S S S P P X X X
Industry Targeting

3. Business
retention/expansion/
attraction efforts focused on
strategically aligned industry
clusters

P P S S X X

4. Expanded/enhanced
entrepreneurial development
resources for Simi Valley
residents and targeted
clusters/industries

S P X X X

5. Expanded/enhanced
workforce development
resources for Simi Valley
residents and targeted
clusters/industries

P S S X X
Land Use/Placemaking Programs

6. Geographically extensive
“reposition retail” initiative to
facilitate revitalization and/or
repurposing

P P P P X X

7. Initiative to attract investment
in new (speculative) business
park/“tech flex” buildings

S P S X X

8. Reassessment of zoning,
General and Specific Plans,
etc. to optimize development
potential in
undeveloped/distressed areas

S P S P X X X X
Theme A: Arts, motion pictures X X X
Theme B: High-density housing
supports revit. X X X X
Theme C: Advanced, tech-
focused manuf. X X X X X
Theme D: Shop Simi Valley X X X
P= Project has Primary relationship to Element ǀ S= Project has Secondary relationship to Element 52 PAGE | 47
CITY OF SIMI VALLEY, CA | EDSP
TABLE 2. MATRIX OF EDSP ELEMENTS AND POTENTIAL PARTNERS Organization / Strategy 1.EDM 2.SPI 3.BRE 4.ENT 5.WD 6.RRT 7.FLX 8.RZ Category
L/R
Business promotion, economic dev., & trade
orgs.

L Simi Valley Chamber of Commerce
R 805 Connect
R Ventura County Film Commission
R Economic Development Collaborative-
Ventura County (EDC-VC)
R VCCAR – Ventura County Coastal Assoc.
of Realtors
City-connected economic or other major
asset
L Rancho Simi Recreation & Park District
L Simi Valley Library
L Ronald Reagan Presidential Library
L Simi Valley Transit
L Simi Valley Public Works
L Simi Valley Water
L Simi Valley Environmental Services
L Simi Valley Neighborhood Councils
(Executive Board Chairs for 4 Councils)
L Simi Valley Youth Council
Key Private Sector Stakeholders
L Motion picture studios
L Real estate brokers
L Real estate developers
Education
L Simi Valley Unified School District
L Simi Institute for Careers & Education
R Moorpark College
R Ventura County Community College
District (VCCCD)
R California Lutheran University (CLU)
R Ventura County Office of Education
Civic organization
R Ventura County Arts Council
R Ventura County Civic Alliance
53 PAGE | 48
CITY OF SIMI VALLEY, CA | EDSP
Organization / Strategy 1.EDM 2.SPI 3.BRE 4.ENT 5.WD 6.RRT 7.FLX 8.RZ Category
L/R
R Ventura County Community Foundation
Regional infrastructure or management
function
R Cabrillo Economic Development
Corporation (affordable housing)
R Southern CA Edison
R Southern CA Gas
R Ventura County Transportation
Commission (VCTC)
R Ventura COG
Workforce or entrepreneurial development
L Startup Simi
L Simi Institute for Careers & Education
R 805 Startups
R CLU Steven Dorfman Center for
Innovation and Entrepreneurship
R Biotech Network (Ventura Bio Center)
R HUB101
R S.C.O.R.E. Ventura County
R Ventura County Innovates (VCCCD)
R Women's Economic Ventures
R California Coast Venture Forum
R
Workforce Education Coalition: initiative
of South Central Coast Regional
Consortium

R Workforce Development Board of
Ventura County (WDB)*

L = Local (Simi Valley) organization
R = Regional organization including Simi Valley in service area * WDB has several industry-focused committees (manufacturing, health care, clean green, and business services) that may be relevant to Simi Valley.

Simi Valley City CouncilMarch 4, 2024

Simi Valley City Council
March 4, 2024