Title
Recommendation to Review the Strategies Matrix and Provide Direction for Drafting the Economic Development Strategic Plan (EDSP). (Economic Development 001-6100)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Review the Strategies Matrix and Provide Direction for Drafting the Economic Development Strategic Plan (EDSP)
BACKGROUND
The City of Alameda is preparing an Economic Development Strategic Plan (EDSP), which will be the City’s long-term (five to ten years) roadmap for undertaking business attraction, retention, and workforce development activities, while improving the quality of life for Alameda residents and employees.
The last time the City prepared a strategic plan was in 2007, which was a revision of the previous plan written in 2001. Among other things, the previous EDSP led to the restoration of the Alameda Theatre, the development of Alameda Landing, and the redevelopment of Bridgeside Shopping Center, anchored by the Nob Hill supermarket.
During the past ten years, many changes have occurred in the local, regional, and national economies and in public policies, which require a new EDSP that takes into consideration the economic development work already completed or underway in Alameda and the work needed going forward to ensure that Alameda continues to grow its economic and employment base.
On July 5, 2016, the City Council approved an agreement with Strategic Economics to prepare the new EDSP. The EDSP will identify specific goals, strategies, and actions needed to create, support and attract businesses and jobs, diversify the local economy, and maintain the City’s fiscal health. Tonight, staff and the consultant team are at a point in the process-between having completed the initial research and drafting the final document-to report to the City Council and to receive direction on a proposed framework and draft strategies for the EDSP (see Exhibit 1-Draft Strategies Matrix). With the City Council’s direction, staff and Strategic Economics will then identify specific tactics and action items to implement the strategies.
DISCUSSION
Strategic Economics compiled its research and analysis of Alameda’s existing economic conditions, opportunities, and constraints into a Background Report (see Exhibit 2-Background Report). The Background Report provides the data and factual foundation for the EDSP.
Strategic Economics supplemented the quantitative data with qualitative information gained from a community workshop, two meetings of the Mayor’s Economic Development Advisory Panel (EDAP), and eight focus group discussions with representatives from:
• Bio-, clean-, green-, and hi-tech companies.
• The Chamber of Commerce’s Government Relations and Economic Development Committee
• City department head and Community Development division managers
• Commercial and recreational maritime businesses
• Retail businesses and brokers
• Specialty food and beverage manufacturers
• Tourist attraction businesses
• Workforce development agencies
Strategic Economics also conducted two one-on-one interviews with major commercial and retail brokers, local developers, an appointed member from the Planning Board, the City and Assistant City Managers, and all of the members of the City Council.
Strategies Matrix
Based on the work outlined above, the consultant team then prepared a matrix of preliminary strategies (“Strategies Matrix”) that may be pursued based on Alameda’s comparative advantages and opportunities. The Strategies Matrix is the framework for the EDSP, providing the direction and structure for the final document. The initial Strategies Matrix was reviewed by an EDAP subcommittee, the full EDAP, and the Planning Board, and discussed at a second community workshop. Staff and the consultant team subsequently revised the Strategies Matrix based on the comments received.
The following three interlocking and self-reinforcing Guiding Principles for the EDSP emerged from these meetings and the discussions with the Planning Board and the EDAP subcommittee:
1. Improve Alameda’s jobs/housing balance
Local jobs should closely match the skills of local residents. Alameda should attract, retain, and grow a strong concentration of innovative commercial and light industrial businesses that provide high quality jobs for its residents. Employers’ labor needs should also be aligned and integrated with the career and educational programs at local high schools, colleges, and universities. Finally, employees of firms located in Alameda should be able to find housing in Alameda.
2. Preserve Alameda’s “quirky and magical” character and quality of life
There are very few communities in the Bay Area that have Alameda’s reputation as a safe and authentically charming place to live, work and play. The City should preserve and promote its unique landmarks and destinations, which contribute to making Alameda a creative and inspiring place for innovators, such as artisans, entrepreneurs, and craft workers. Our geography-an island city centrally located in the San Francisco Bay-signifies that marine-related industries and an accessible waterfront for recreational activities should be mainstays of our local economy. Alameda should support its vibrant restaurant, shopping, and entertainment districts-with many independently owned businesses-to help attract and retain desirable companies. Finally, Alameda should have a sustainable transit system, where it is easy to get around the City and on and off the island.
3. Maintain Alameda’s fiscal stability
Alameda’s high quality of life and comprehensive municipal services are supported in large part through the tax revenue generated by the business community. Alameda should maintain and pursue a diversity of business sectors to help the City respond to market cycles. Also, the City should focus on economic growth from within, helping existing small businesses and entrepreneurs to expand, thereby contributing to the resiliency of Alameda’s economic base.
In the first column of the Strategies Matrix, under each of these three Guiding Principles, are listed the relevant opportunities and constraints identified in Strategic Economics’ Background Report. The second column lists potential strategies for the City to consider pursuing over the next five to ten years. This initial list of strategies is meant to be a starting point for discussion purposes with the City Council.
Tonight, staff is asking the City Council to review and comment on the Strategies Matrix. Does it meet the Council’s vision of a healthy, local economy? Are there any elements that should be added or modified to its proposed Guiding Principles and strategies?
Upon receiving comments and direction from the City Council, staff and Strategic Economics will refine the framework and draft strategies and develop the specific implementation actions for the EDSP. Staff anticipates that a draft EDSP will be completed for review by the EDAP, Planning Board, and City Council within the next few months.
FINANCIAL IMPACT
There is no impact on the General Fund in providing direction on the EDSP.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The 2001 EDSP’s objective states that the long-term plan should provide for periodic review.
ENVIRONMENTAL REVIEW
An Economic Development Strategic Plan is not a project under the California Environmental Quality Act because it is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment (CEQA Guidelines, section 15378 (b) (5)) and therefore no environmental review is required.
RECOMMENDATION
Review the Strategies Matrix and provide direction for drafting the Economic Development Strategic Plan.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Lois Butler, Economic Development Manager
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Draft Strategies Matrix
2. EDSP Background Report