..Title
Recommendation to Accept the Economic Development Status Update and Provide Feedback and Direction Regarding Economic Development Efforts and Activities. (Base Reuse and Economic Development 10061810)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
This economic development status report covers the City of Alameda’s (City) economic development activities related to the retention, expansion, and growth of businesses in the past Fiscal Year (FY) 2023-24 and highlight the proposed workplan for FY 2024-25.
BACKGROUND
The City’s economic development activities are rooted in the 2018 Economic Development Strategic Plan (EDSP), which focuses on the retention, expansion, and growth of businesses in six major sectors:
1. Life sciences
2. Clean, green and high tech
3. Blue tech and maritime
4. Retail and restaurants
5. Tourism and hospitality
6. Artists and small manufacturers
The EDSP can be found here: <https://www.alamedaca.gov/files/content/public/v/140/departments/base-reuse-and-economic-development/edsp-2018.pdf>
The EDSP also identified critical City services, such as workforce development and the City’s permitting processes, that support the retention, expansion, and growth of businesses in Alameda across the major sectors.
This economic development status report is for information purposes only, covering the City’s economic development activities for the past FY 2023-24.
DISCUSSION
The City’s Economic Development Division works closely with the business community, a vital source of tax revenue as well as high skill, high paying jobs in our six major sectors. Following is a description of the Division’s programs and activities throughout the prior fiscal year:
Business Engagement Activities. One of the Division’s most important tools is personal familiarity with individual businesses owners and management teams. Having a point of contact with the City and providing continuous support helps to create a business-friendly environment. During the past fiscal year, the Economic Development Division has visited the following businesses, with a particular focus on businesses at Alameda Point whose leases might be renegotiated or renewed within the next few years:
• Alameda Community Sailing Center (ACSC), a non-profit, volunteer-run organization that provides sailing lessons to youth and families.
• Bay Area Disruptor and Startup Support Labs (known by its acronym BADASS Labs), which owns and operates two biotech incubators, each in Research Park in Marina Village and the Harbor Bay Business Park.
• Checkerspot a bio-manufacturing company located in one of the historic Shipway buildings in Alameda’s Research Park along the Oakland Estuary.
• Infinimmune, a small “platform therapeutics” biotech startup company located at Harbor Bay.
• Natel Energy, a clean technology company at Alameda Point.
• Navier, a startup company at Alameda Point that is developing hydrofoiling, electric-powered, zero-emission vessels. The company has been featured in the San Francisco Chronicle, Forbes, and the Wall Street Journal.
• Power Engineering, a site visit of working waterfront activities at Alameda Point’s Pier One.
• Pyka, a designer and manufacturer of autonomous electric airplanes. The City joined the US Dept. of Commerce in welcoming the San Francisco-based Consul General of Guatemala to Pyka Inc.’s facilities in Oakland. Pyka will be moving its operations this summer to Alameda Point.
• RAIN, a leader in aerial wildfire containment technology, using autonomous aircraft. It is located at the former control tower building at Alameda Point.
• Rondo Energy at Harbor Bay Business Park, an energy storage company that designs, manufactures, and installs “heat batteries” for industrial companies with factories that make cement, food, plastic, and other commodities.
• Twelve, a carbon capture company at the Research Park.
Many of these site visits and the ensuing conversations have helped identify specific issues on which the City provided useful information, facilitated networking opportunities, and/or assisted with the permitting process.
The Economic Development Division regularly helps coordinate interdepartmental review of major permit applications (known as the “At Your Service” program). This past year, staff helped guide Natel Energy and Pyka through various permitting issues, working closely with the Planning and Building Department.
Economic Development staff has also worked with the hotel developer Southern Hospitality Service since 2007 when it purchased property in the Harbor Bay Business Park, across the street from the former Oakland Raiders facilities. In August 2023, the City coordinated an “At Your Service” interdepartmental meeting (which included Public Works, Fire, Planning Building & Transportation, and AMP) with the developer to review some outstanding concerns and anticipated approval process. This coordination resulted in the groundbreaking of a new 229-room hotel, which will be co-branded as both a Hilton Garden Inn and Homewood Suites. City staff will be revising the “At Your Service” program later this year, working with the City Building Official to fine-tune building permit approvals and site inspections timeframes.
As a result of the business relationships that the City has developed, Saildrone Inc. and Rain Industries recently won Innovation Awards, based on the nominating applications submitted by the City. The awards spotlight some of the most significant contributors to the East Bay’s creative spirit and cluster of successful, pioneering businesses.
Business Associations. The City regularly meets-at least once a month-with the Downtown Alameda Business Association (DABA) and the West Alameda Business Association (WABA) to discuss common topics concerning the local retail districts such as coordination of the marketing initiatives outlined below, parklets and the Commercial Streets Program, and the filing of their annual reports to the City. Staff also frequently attends business mixers, monthly board meetings, and non-specific meetings to help understand and address the concerns primarily of local retail merchants and restaurateurs.
The Economic Development staff meets on average once or twice weekly with the Alameda Chamber & Economic Alliance (Chamber) to coordinate various initiatives and events, such as “Focus at 12”, a roundtable of no more than 12 industry sector executives at 12 noon. A recent Focus at 12 meeting enabled a candid and informal discussion among blue tech and maritime representatives that will help inform the future of the waterfront near Alameda Point. Economic Development staff supports Chambers activities by participating in their business meetings, mixers, major events, ensuring agendas for meetings and mixers address policy issues facing the City, and meeting with the Chamber to discuss key concerns that impact their member businesses.
Workforce Development. Some of the City’s workforce related activities included:
• Autumn Job Fair. The City held its ninth annual Autumn Job Fair last September at South Shore Center. The job fair attracted 34 local and regional employers and four City departments (Library, Police, Human Resources, and Recreation & Parks). Many of the businesses commented on the huge turnout of job seekers, reflected in the approximately 115 people that signed in at the registration table. The City collaborated with the South Shore Center, Alameda County Social Services Agency, and the Alameda Chamber and Economic Alliance in organizing the event.
• Youth Career & Job Fair. The City and the Alameda Unified School District hosted its Eighth Annual Youth Career & Job Fair at the Encinal Jr. Sr. High School gymnasium. The event attracted over 700 students and approximately 42 employers, trade associations, and educational and volunteer organizations, resulting in the largest turnout in the history of the event. City staff were present from several departments including Police, Fire, Base Reuse and Economic Development (BRED), Finance, and Recreation and Parks, representing the 16 summer internship opportunities that BRED will fund this year.
• City Summer High School Internships. The City recently hired 14 high school summer interns, organized and funded through BRED. Each intern will be able to work up to 20 hours per week for five weeks during the summer. Over 165 students applied for positions in eleven City departments.
• Minimum Wage. The Economic Development Division is overseeing the annual increase of the City’s minimum wage, which is now $17 per hour, starting July 1, 2024. The City published the official minimum wage bulletin-translated into six languages--that informs employees of the new minimum wage requirement and their rights. Staff conduct enforcement activities for the minimum wage requirements as well.
Economic and Community Development Initiatives. Other City economic development efforts consisted of:
• Streamlining Special Event Permit Process. Economic Development staff recently worked with an interdepartmental team to revise the special event permit process to make it simpler, faster, more predictable and more transparent, as directed in the 2018 Economic Development Strategic Plan. As part of this work, staff developed a set of revised permit documents, a new, information-rich website, and a new Special Event committee to work with producers on event applications.
• Storefront Vacancy Strategy. In response to concerns raised by the City’s small businesses and business improvement associations, City staff are conducting a market study to better understand the vacancy challenges faced by the City’s business districts. This study will evaluate the most recent market and visitor data for the Downtown Business District Association and West Alameda Business District Association districts, and compare the City’s districts to other East Bay business districts. The study will also consider qualitative data gathered from interviews with brokers, businesses, business districts, and other organizations. Based on this data, the City will gain insight into how staff can most effectively support existing businesses and attract new businesses to fill our vacant storefronts. Staff is providing the business districts with a status update on the study in late July. The study and strategies on how the vacancies will be addressed will be completed in late August to early September.
• Public Art. In December 2023, the City Council unanimously adopted the City’s first Public Art Master Plan (Plan). The Plan is a comprehensive guide that aims to promote and support public art in the City. The City also released a Request for Proposals (RFP) for Cultural Arts and Arts Programming and awarded $60,000 in grant funds to a variety of cultural arts organizations. Eligible proposals include performing arts, literary arts, film and video, screenings and installations, arts education, art lectures and presentations, special events, and artist-in-residence programs in the arts.
• Façade Improvement Program. This year’s program included a special promotion for awnings: awning improvements will be reimbursed at the 80/20 level (i.e. the City will grant up to 80 percent of the cost of the work up to $10,000). In early March, the Façade Grant Committee awarded six Façade Grants totaling approximately $78,000 and leveraging over $257,000 in private investment. One grant awardee is located in the Park Street Business District, two are located in the Webster Street Business District, and three awardees are located in other commercial properties across the city.
• Sister Cities. The Economic Development Division provides support for the Alameda Sister Cities Association, such as coordinating the recent Memorandum of Understanding and corresponding delegation visit to Varazze, Italy.
• Mayor’s Economic Development Advisory Panel (EDAP). The Economic Development Division regularly convenes the EDAP to receive guidance on city matters from local business, nonprofit, and education leaders. Staff anticipates that the next meeting, later this summer, will go over a possible maritime strategy and future use of the Enterprise District at Alameda Point.
• Alameda Point Recruitment and Retention Strategy. The Economic Development Division worked in coordination with the Base Reuse team to identify Alameda Point tenants whose leases with the City will expire in the next several years. Beginning in FY 2024-25, staff will proactively engage with these tenants to see how the City can support their long-term presence and potential expansion in Alameda, and will support recruitment of new tenants to vacant buildings.
Marketing. Some of our business marketing initiatives included:
• Restaurant Week. Forty-three restaurants participated in our seventh annual restaurant week, which was held last March to encourage and incentivize people to try new establishments and support their favorite eateries.
• Shop Local Campaign. Every year Economic Development organizes shop local campaign to promote local businesses in the Park Street, Webster Street and Station areas.
• Business Times Supplement. Bi-annually Economic Development works with the San Franciso Business Times (SFBT) to produce an Alameda Supplement to attract business to the city. The supplement highlights Alameda in a positive light. On off years, for the last few years, SFBT has done editorials featuring Alameda, Economic Development has run ads in the editorial to ensure our message about Alameda is well framed. This year’s editorial was released on May 31, in tandem with the Alameda Point Open House hosted by BRED as well.
• Spirits Alley. The Economic Development Division is working with a new shuttle operator to develop a summer pilot transit system between the ferry terminals and Spirits Alley.
Rise Up Alameda. Last December, the City dispersed the first payments for Rise Up Alameda-the City’s guaranteed income (GI) pilot program. (Rise Up Alameda provides $1,000/month, for 24 months, to 150 low-income individuals.) The program includes a research component conducted by Abt Associates Inc. (Abt). Abt’s first, mid-program report is expected to be completed in the first quarter of 2025. In February, the City hosted a screening of It's Basic, a documentary film on guaranteed income pilot programs, which made its global premiere at the Tribeca Film Festival in New York City. This compelling film features families from across the country who have participated in guaranteed income pilot programs. The next phase of Rise Up Alameda will be developing a narrative storytelling component specific to Alameda. Storytelling is a critical part of many GI pilot programs to help change local understanding and perceptions surrounding poverty, economic security, inequity, race, and gender through the stories and experiences of individuals participating in the program.
Work Plan for Fiscal Year 2024-2025
Throughout the FY, the Division will continue to support many of the programs described above. As noted, some activities will move into a new phase; for example, the Division will:
• Integrate Alameda Point tenants more proactively into business engagement;
• Continue to evaluate and refine the Special Event Permit Process, as needed;
• Move to the implementation phase of the storefront vacancy strategy for Park Street and Webster Street;
• Support Spirits Alley tenants by providing further information about them and wayfinding at nearby licensed events; and
• Move to the evaluation and storytelling phase of Rise Up Alameda.
The most significant change for the team this year is the retirement of Division Manager Lois Butler. Her professionalism, deep expertise in economic development, and collaborative partnership with the City’s private businesses, Chamber of Commerce, and Business Improvement Associations has been pivotal to the success of the City’s economy for the last eight years. Staff have commenced the recruitment process for a new Division Manager.
ALTERNATIVES
This report is for information purposes only. No action is required.
FINANCIAL IMPACT
This status report is for information purposes only with no financial impact to the City.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The City’s economic development activities are rooted in the EDSP. The actions in this report support the following City Strategic Plan Projects: Adopt and Implement a new Public Art Master Plan, Expand Citywide Business Economic Development Activities, including an Alameda Point Attraction and Retention Program; Reinvigorate and Manage the Business Façade Grant Program, Complete the Revision for Special Event Permits, Continue Supporting AUSD and College of Alameda Job and Career Fairs and Career Pathway Opportunities, and Implement and Manage Rise Up Alameda .
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Accept the economic development status update and provide feedback and direction regarding economic development efforts and activities.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Lois Butler
Economic Development Division Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director