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Status Report on Implementation of the City of Alameda’s COVID-19 Economic Recovery Plan
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To: Members of the Mayor’s Economic Development Advisory Panel
EXECUTIVE SUMMARY
In July 2018, the City Council adopted the Economic Development Strategic Plan (EDSP). The final EDSP, as well as the background report, can be found at this link: <https://www.alamedaca.gov/Departments/Community-Development/Economic-Development/EDSP>.
Since the onset of the pandemic, staff, the Economic Development Advisory Panel (EDAP), and City Council have worked on a number of initiatives to diminish the impact of the crisis in Alameda. At its May 14, 2020 meeting, EDAP recommended that City staff form a COVID-19 Economic Recovery Task Force (Task Force), to create a short- to mid-term strategy for economic recovery in Alameda. This resulted in the creation of the Economic Recovery Plan (ERP) that supplements the EDSP by specifically addressing the effects of COVID-19 pandemic on Alameda’s economy. The ERP can be found at this link: <https://www.alamedaca.gov/Departments/Community-Development/COVID-19-Economic-Recovery-Task-Force>.
The ERP sets forth additional strategies to further mitigate impacts from the pandemic. EDAP reviewed the progress of the ERP at its March 1, 2021 and June 22, 2022 meetings. While California’s COVID-19 State of Emergency officially ended on February 28, 2023, the pandemic’s effects on the local economy have been long lasting at the retail and corporate levels.
This report is to provide EDAP with the current status of implementing the ERP. It summarizes some of the short-term strategies implemented during the height of the pandemic as well as the mid-tem initiatives currently underway. This item is for informational purposes only; no action is recommended.
BACKGROUND
The global COVID-19 pandemic prompted widespread public health and shelter-in-place restrictions, resulting in a sudden economic recession with unprecedented increases in unemployment and business closures.
In the initial weeks and months of State and County shelter-in-place orders, staff and City Council quickly implemented a number of immediate actions to help local businesses, including:
• Creation of the Commercial Streets Program that included re-striping Park and Webster Streets and implementing a streamlined permitting process for parklets and large al fresco dining areas.
• Creation of emergency zoning changes: for example, to extend business hours for food related services and to make curbside pickup easier.
• Communication of key information and resources through: the City’s website, a webinar series, and regular town hall meetings.
• Creation of a consumer-facing website to share information about restaurants, retail, and other open businesses in Alameda.
• Awarding of 74 emergency grants for up to $7,500 to retailers, restaurants, and other small businesses.
• Creation of the Alameda Strong program to raise money for future grants to businesses, non-profits and residents.
• Deferral of payment for business license taxes, business improvement area (BIA) fees, and transient occupancy taxes (TOT).
• Implementation of a moratorium on commercial and residential eviction for non-payment of rent due to COVID-19.
• Technical assistance to individual businesses through the City’s Business Assistance Hotline and At Your Service program.
• Cap on third party delivery fees for restaurants to mitigate the costs related to the increased reliance delivery and takeaway service for restaurants.
While these initial actions were important and necessary, they were primarily “reactive” in nature. At its May 14, 2020 meeting, EDAP recommended that City staff form a Task Force, with the goal of moving beyond “reactive” tasks to create a short- to mid-term strategy for economic recovery in Alameda. The EDAP also emphasized that the Task Force should focus on mitigating the economic hardships affecting the City’s most vulnerable businesses, workers, and residents.
DISCUSSION
The Task Force, appointed by the City Manager, organized the ERP into eight categories, paying special attention to the types of efforts that can be led by the City and to provide flexibility to address the ever-changing conditions of the pandemic. Listed below under each category are the City’s short- and mid-term initiatives conducted over the past three years.
1. Land Use and Infrastructure Strategies.
• Commercial Streets-The City has worked closely with the Downtown Alameda Business Association (DABA) and the West Alameda Business Association (WABA), extended the parklet program to November 2024. The extension includes increased safety precautions such as future installation of concrete barriers, improved storm-water drainage, and increased insurance coverage reimbursed by the City. Currently, approximately 20 parklets, which contribute to the overall vitality and visible activity in the business districts.
2. Use of City Properties.
• Alameda Point Disposition and Leasing Strategy-The City is analyzing the real estate assets at Alameda Point, specifically within the Reuse Area, for a potential strategy for future leasing and sale of buildings. The analysis includes the Alameda Point leasing tour on Friday, December 8, 2023 and multiple stakeholder meetings to obtain input from developers and existing Alameda Point property owners and tenants.
• Alameda Point Maritime Strategy-currently in the initial stages, staff will seek public input in the future. Consultants are examining opportunities and constraints, in order to develop this strategy given the intrinsic and valuable waterfront assets at Alameda Point.
3. Technical Assistance to Local Businesses.
• The City collaborated with organizations such as East Bay SCORE and Alameda County Small Business Development Corporation (SBDC) to provide rapidly needed individual business assistance and group webinars.
4. Financial or Other Resource Assistance.
• The City maintained the Alameda Strong Fund, a local crowd-sourcing fund to help local small businesses, nonprofit organizations, and residential tenants in need. Alameda Strong enabled the City to award 25 small business grants-ranging between $3,750 and $7,500-and nine, $5,000 grants to local non-profit organizations, totaling $223,000 in business-related grants.
In total, during the pandemic, the City awarded approximately 108 COVID emergency grants (34 Alameda Strong grants and 74 through the Small Business Relief Grant Program in 2020). The City also financially contributed to an additional 40 grants ($5,000 each) to local businesses through the County’s CARES Act Small Business grants in early 2021 for a total infusion of $1,023,000 into the local economy.
• Given the importance of maintaining a vibrant restaurant industry in Alameda and the continued challenges facing the restaurant industry, the City Council approved an ordinance in March 2023 to make permanent the cap on third party delivery fees.
5. Outreach and Coordination.
The City continues to collaborate with the Alameda Chamber & Economic Alliance (Chamber) to conduct industry-specific focus groups and organize coalition meetings.
• During the pandemic, the City provided regular business briefings and virtual town-hall forums, known as “Tuesdays at Two.” The meetings, supported by the Downtown Alameda Business Association (DABA), West Alameda Business Association (WABA), and the Chamber, have since been suspended due to decreased need.
6. Information Sharing.
• The City continues to work with the local business associations to coordinate and share information through electronic business alerts of government assistance programs, quarterly newsletters, and special workshops, such as ADA compliance concerns.
• During the height of the pandemic, the City organized bi-weekly meetings with County Public Health officials to keep current with public health guidelines and solicit useful information for local businesses.
• The City also conducted on-line Business Pulse Surveys in 2021 and 2022. The 2023 responses are being tabulated now. In previous surveys, most businesses anticipated a long road to recovery - more than half of the businesses expected it will take one to three years to recover financially from the pandemic.
• The City restarted its annual commercial brokers event September, 2023 which provided an opportunity to share with Bay Area commercial brokers the real estate opportunities in Alameda, including but not limited to Alameda Point, Harbor Bay Business Park, and the Research Park at Marina Village.
7. Marketing and Promotion.
• Over the past two years, the City organized the following major marketing campaigns to support local businesses:
o Shop Local campaigns, providing “thank you” post cards and give-away items to support local retail during the holiday seasons.
o “Back-to-School” focused shop local campaign, providing 5,000 give-away bags to 34 participating businesses.
o “Flavors of Alameda” promotional campaign, with 57 participating businesses receiving free digital marketing kits that included individualized photos of their establishments and signature entrees.
o The 2022 and 2023 “Restaurant Week” with 34 and 42 registered restaurants, respectively, and over 500 diners participating each year in a special raffle.
o Marketing campaign for Spirits Alley; effort has included with the development of a special dedicated website <https://spiritsalley.com/>; a short term, 10-week shuttle system; a “passport” patronage program; and new directional signs to boost business.
8. Support for Vulnerable Workers: Worker protections and resources for worker assistance.
• In partnership with the Chamber, the City has resumed its annual Autumn Job Fair. The 2023 Job Fair attracted 34 local and regional employers. Many of the businesses commented on the huge turnout of job seekers, perhaps reflecting the current job market.
• Although not included in the ERP, the City allocated $4.6 million in American Rescue Plan Act (ARPA) funding for a guaranteed income pilot program aimed to help low income households, which were disproportionately impacted by the pandemic.
Next Steps. In addition to continuing many of the above-mentioned initiatives, the City has identified the following Economic Recovery items for 2023 and 2024:
• Work with DABA and WABA to market vacant storefronts in the main street commercial districts
• Resume funding for the Façade Improvement Grant Program, funding for which was on hold during the pandemic. The FY23/24-24/25 budget adopted by City Council includes $250,000 funding for storefront enhancements.
• Continue to track changing economic circumstances (e.g. surveys) and City responses
• Convene industry coalitions and working groups; promote visitor resources and visitor strategy
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This report provides an update on the performance of the targeted industry groups identified in the Economic Development Strategic Plan process.
RECOMMENDATION
This item is for informational purposes only. No action is recommended.
Respectfully submitted,
Lois Butler, Economic Development Division Manager
By,
Eric Fonstein, Development Manager