Title
Status Report on Implementation of the City of Alameda’s COVID-19 Economic Recovery Plan
Body
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>.
The Economic Recovery Plan (ERP) supplements the EDSP by specifically addressing the effects of COVID-19 pandemic on Alameda’s economy (which can be accessed here: <https://www.alamedaca.gov/Departments/Community-Development/COVID-19-Economic-Recovery-Task-Force>).
Since the onset of the pandemic, staff and City Council have worked on a number of initiatives to diminish the impact of the crisis in Alameda. The ERP sets forth additional strategies to further mitigate these impacts. At its last meeting on March 1, 2021, the Economic Development Advisory Panel’s (EDAP) reviewed of the ERP.
This report is to provide EDAP with the current status of implementing the ERP. This item is for discussion purposes only; no action is recommended.
BACKGROUND
The global COVID-19 pandemic had 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 the shelter-in-place, staff and City Council worked to implement 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.
• Award 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 tax, business improvement area (BIA) fees, and transient occupancy tax (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 our Business Assistance Hotline and At Your Service program.
• Cap on third party delivery fees for restaurants, which impact restaurant revenues.
While these actions were important and necessary, they were primarily “reactive” in nature. At its May 14, 2020 meeting, the EDAP recommended that City staff create a COVID-19 Economic Recovery Task Force (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 City initiatives and activities conducted over the last year.
1. Land Use and Infrastructure Strategies.
• Commercial Streets-The City has been working closely with the Downtown Alameda Business Association (DABA) and the West Alameda Business Association (WABA), extended the parklet program for an additional two years to November 2023. The extension includes increased safety precautions such as future installation of concreate barriers, improved storm-water drainage, and increased insurance coverage reimbursed by the City. Currently, approximately 24 businesses are in the process of extending their permits.
2. Use of City Properties.
• The City continues to provide rent relief program for City-owned properties.
3. Technical Assistance to Local Businesses.
• The City continues to collaborate organizations such as East Bay SCORE and Alameda County Small Business Development Corporation (SBDC) to provide individual business assistance and group webinars.
4. Financial or Other Resource Assistance.
• The City maintains the Alameda Strong Fund, a local crowd-sourcing fund to help local small businesses, nonprofit organizations, and residential tenants in need. Over the last twelve months, the City has awarded 19 small business grants-ranging between $3,750 and $7,500-and seven, $5,000 grants to local non-profit organizations. In total, the City has awarded 26 business-related grants through the Alameda Strong Program.
To date, the City has awarded approximately 100 COVID emergency grants (26 Alameda Strong and 74 through the Small Business Grant Relief Grant Program in 2020). The City has also financially contributed to an additional 40 grants to local businesses through the County’s CARES Act Small Business grants in early 2021.
5. Outreach and Coordination.
• The City continues collaborate with the Alameda Chamber & Economic Alliance to conduct industry specific focus groups and organize coalition meetings with:
o Specialty food and beverage manufacturers
o Hospitality
o Restaurants and bars
o Personal care services
• The City had also provided regular business briefings and virtual town-hall forums, known as “Tuesdays at Two.” The meetings, supported by DABA, WABA, and the Chamber, were recently suspended due to decreased need.
6. Information Sharing.
• The City works 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 Survey and Child Care Surveys in Spring 2021. Most businesses surveyed 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.
7. Marketing and Promotion.
• Over the past year, the City organized the three major marketing campaigns to support local businesses:
o “Back-to-School” 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 “Restaurant Week” with 34 registered restaurants and over 700 diners participating in a special raffle.
8. Support for Vulnerable Workers: Worker protections and resources for worker assistance.
• In partnership with the Alameda Chamber, the City held two job fairs in 2021, attracting over thirty businesses to each event.
Next Steps. In addition to continuing many of the above mentioned initiatives, the City has identified the following Economic Recovery items for 2022:
• Work with DABA and WABA to market vacant storefronts in the main street commercial districts
• Conduct outreach to childcare providers to identify technology and support needs; and opportunities to support childcare providers
• Continue emergency grant program for rental assistance; provide referrals for mediation services, legal services, and other aid
• Continue to track changing economic circumstances (e.g. surveys) and City responses
• Convene industry coalitions and working groups; promote visitor resources and visitor strategy
• If funds become available, explore creating a new financial assistance program for childcare providers
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 discussion purposes only. No action is recommended.
Respectfully submitted,
Lois Butler, Economic Development and Community Services Manager
By,
Eric Fonstein, Development Manager