Title
Resolution to Approve the 2024 San Leandro Economic Development Strategy
Staffreport
SUMMARY
The final 2024 San Leandro Economic Development Strategy is presented to the City Council for review and approval. Based on detailed feedback and analysis, the Strategy provides a modern and exciting vision for the future of San Leandro’s local economy and outlines specific strategies and action steps to achieve that vision.
RECOMMENDATIONS
Staff recommends that the City Council adopt a resolution approving the 2024 San Leandro Economic Development Strategy.
BACKGROUND
The City’s Economic Development Strategy is a policy document that will guide economic development activities over the next five to ten years. The Strategy will articulate a clear vision and pathway for economic development, in line with existing City Council policies and priorities. It will also prioritize and focus the City’s resources on initiatives with the greatest potential to: grow San Leandro’s economy, expand the City’s regional image and identity, spur new investment and high-quality jobs, and improve the quality of life for residents.
Staff has been working with a consulting team led by Strategic Economics to develop the Economic Development Strategy. This process has included:
• Data Analysis of San Leandro’s existing employment, demographic, industry, business, and occupation trends.
• Interviews and focus groups with business representatives, real estate professionals, non-profits, education and cultural institutions, and technology and infrastructure leadership in San Leandro.
• Community Workshops held on November 18, 2023 (at the San Leandro Boys & Girls Club) and March 13, 2024 (at the Senior Community Center).
• Analysis of opportunities to build the creative economy in San Leandro.
• Multilingual, door-to-door business outreach to solicit feedback from local business owners located outside of the City’s mainstream business core.
• Meetings with the City Council’s Finance Committee on January 31 and May 22, 2024, to obtain feedback from the Committee.
As a result of the analysis and community engagement noted above, a new Economic Development Strategy has been drafted that includes:
• A strategic vision, goals, strategies, and action steps;
• An assessment of San Leandro’s strengths, weaknesses, and opportunities for high-quality job growth and business development;
• SMART strategies (Specific, Measurable, Actionable, Relevant, and Time-Bound);
• Performance measures, to gauge success; and
• Implementation plan, to prioritize resources and programs.
On July 8, 2024, staff presented the Administrative Draft of the Economic Development Strategy for review by the City Council and public. The City Council and public provided feedback and guidance, which staff has incorporated into the final version of the Strategy. Additionally, staff worked with a graphic designer to format the final version of the Strategy, to best highlight the vibrancy of the community, assist in accessibility and understanding of the document, and to best market the community.
Analysis
Based on comments provided by the City Council on July 8, the following revisions were made to the document:
• The Executive Summary and vision statement were revised to connect more directly to the General Plan vision.
• References to other plans were added, and the Strategy’s emphasis to those plans was emphasized.
• The Strategy’s four “headline” initiatives in the revised Major Initiatives, Goals, and Strategies content of the Executive Summary were emphasized.
• Phasing for the City’s delivery of elements of the Economic Development Vision was added.
• The short-, medium-, and long-term implementation of Action items were clarified.
• Clarification of the descriptor “transformative” was provided in Goals Overview and other relevant sections of the Strategy document, referring to sites with the opportunity to attract new industries, high-quality jobs, or to reposition San Leandro’s economy.
• Action 2.4, which identifies tourism promotion opportunities and the promotion of events such as the Cherry Festival, the Farmers Market, and San Leandro Pride, was added.
• Reference to Development Agreements as an important implementation tool in the description of Goal 2 was added.
• Implementation timing for childcare item 17.1 was changed from mid-term to short-term.
• Actions 8.3, 14.2, 15.1, and 17.1 were reworded to emphasize equity and inclusion (in addition to other actions that already emphasized racial equity and/or inclusiveness for LGBTQ-owned businesses, such as 15.3, 18.4, 19.1, and 19.3).
• Crime prevention through environmental design was added to Action 9.2.
• Exploration and implementation of business incentives were added as new Action 18.6.
The Strategy includes key findings about San Leandro’s economy:
• The City has opportunities to attract innovation-based industries (e.g., food tech, clean tech, robotics, biomedical) and to retain existing businesses with growth potential (e.g., health care, construction, retail, manufacturing).
• There is a significant need for upgraded infrastructure and modern industrial flex buildings.
• The City has the opportunity to develop a more prominent image and identity within the region.
• Development challenges include construction costs, permitting, and financing.
• San Leandro’s shopping centers need physical improvements to offer more high-end retail options.
• Career pathways in locally strong industries provide economic opportunities for residents.
Out of the analysis and key findings noted above, the Strategy includes a clear Strategic Vision to guide economic development efforts, based on five components:
• Innovation: San Leandro will become the East Bay’s premier location for innovation-based industry.
• Quality: The City will attract more high-quality retail and transformative development opportunities - including Bay Fair, Downtown and Shoreline - to position the city for long-term economic vitality.
• Community: The City will remain a diverse and welcoming community, with a vibrant dining and cultural scene.
• Equity: The City will champion small business support and equitable workforce and entrepreneurship opportunities.
• Character: Through branding, marketing, and service delivery, the City will build a strong public image and become widely recognized as a destination for creativity, technology, and production.
Based on this guiding Strategic Vision, the Strategy lays out a series of goals, strategies, and action steps. These are described in detail in the 2024 San Leandro Economic Development Strategy (see Attachment B) and are summarized below:
1. Accelerate Innovation and growth of Target Industries:
• Attract innovation-based industries (food tech, clean tech, robotics, biomedical)
• Explore opportunities for building the Creative Economy
• Enhance Branding & Marketing - improve visibility & identity, attract businesses & residents
• Retain and support existing value-add industry sectors
2. Support Transformative Development Opportunities:
• Evaluate & Update Zoning and Review Processes to support strategy goals
• Facilitate Transformative Development Projects (e.g., Bay Fair, Downtown, Shoreline, Kaiser North, etc.)
3. Preserve Industrial Districts & Address Infrastructure Needs:
• Undertake District-based planning to modernize industrial infrastructure
• Establish Partnerships to support power upgrades
• Plan for self-supporting real estate and facilities
4. Attract High-Quality Retail & Support Shopping Districts:
• Develop Retail Action Strategy for specialty, experiential & family-oriented retail
• Assist shopping centers to make aesthetic, tenant and safety upgrades
• Support placemaking in Downtown and along E. 14th Street
• Analyze hotel market and promote key sites
5. Facilitate Workforce Development & Education Opportunities
• Ensure programs are responsive to resident & business needs
• Explore higher-education partnerships
• Support childcare services to reduce barriers to employment
6. Support Small Businesses & Entrepreneurs
• Expand and formalize technical assistance programs to ensure ongoing support
• Reduce barriers to entry, and provide support for diverse businesses
The Strategy also includes an evaluation of the “creative economy” in San Leandro. This evaluation, conducted by CVL Economics, found that the City has compelling opportunities to: develop the local film and digital media production industry; pursue culinary arts; and establish a multifaceted entertainment zone in the East 14th Street corridor. These findings and recommendations are integrated into the overall Economic Development Strategy.
Conclusion & Next Steps
If approved, the Economic Development Strategy will move into its implementation phase. Staff will prepare work plans for the different strategy areas, including an Innovation Action Strategy and Retail Action Strategy. Staff plans to present a City Council Economic Development Priority Work Plan in the fall/winter of 2024. At that time, prioritization of projects, timing of implementation, and necessary funding may be discussed further.
Previous Actions
• Resolution No. 2016-457 - Adoption of the San Leandro 2035 General Plan, including Economic Development Element - September 19, 2016
• Resolution No. 2021-150 - Adoption of ARPA Budget for Fiscal Years 21-22 and 22-23 and Authorizing the City Manager to Approve Carryovers/Unspent ARPA Funds to Future Fiscal Years’ Budgets - November 1, 2021
• Resolution No. 2023-134 - Approval of Consulting Services Agreement with Strategic Economics for Production of the Economic Development Strategy - September 18, 2023
Committee Review and Actions
• January 31, 2024 - Finance Committee - Presentation of preliminary findings of analysis and community outreach
• May 22, 2024 - Finance Committee - Presentation of draft vision, goals and strategies for review and comment
Applicable General Plan Policies
• Action ED-1.11.A: Economic Development Strategy Updates - Periodically update and revise the City’s Economic Development Strategy in response to changing market conditions and economic trends.
• Action ED-4.1.A: Retail Action Strategy - Develop a Retail Action Strategy, including evaluations of retail shopping patterns and leakage to other communities in particular sectors. The Strategy should include programs to retain San Leandro’s retailers and attract new retailers in under-represented sectors.
Summary of Public Outreach Efforts
• November 18, 2023 - Community Meeting to review preliminary data findings and gather community feedback on priorities and goals.
• March 13, 2024 - Community Meeting to review draft vision, goals and strategies
• Fall 2023 - Spring 2024 - Stakeholder meetings with six groups, including 29 participants
ATTACHMENTS
Attachment A: Resolution approving the 2024 San Leandro Economic Development Strategy
Attachment B: 2024 San Leandro Economic Development Strategy
Attachment C: Final Economic Development Strategy Presentation
PREPARED BY: Katie Bowman, Economic Development Manager, Community Development Department