Title
Presentation on the City of San Leandro Draft Economic Development Strategy
Staffreport
SUMMARY
Staff will present the draft Economic Development Strategy, including data findings; community feedback; draft vision, goals and strategies; and project schedule; and will receive feedback from the public and City Council, prior to presenting a final Strategy for review and approval in Fall 2024.
RECOMMENDATIONS
Staff recommends that the City Council review and provide input on the draft 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.
At this time, staff is providing the Administrative Draft of the Economic Development Strategy for review by the City Council and the public (see Attachment B). The City Council is asked to provide feedback and guidance to allow staff to complete and finalize the Strategy.
Analysis
The Strategy includes a number of 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 and 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 draft 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 attached Administrative Draft (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
Conclusion & Next Steps
This report presents the Administrative Draft of the Economic Development Strategy for review by the City Council and the public (see Attachment B). The City Council is asked to provide feedback and guidance on the Strategy.
The next steps will be for staff to work with the consultant team to complete any needed follow-up or additional analysis, incorporate the City Council’s feedback and guidance, and produce the final Economic Development Strategy. Under the current projected timeline, in September 2024, staff will bring the completed Economic Development Strategy back to the City Council for final approval.
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: Economic Development Strategy Presentation
Attachment B: Economic Development Strategy Administrative Draft
PREPARED BY: Katie Bowman, Economic Development Manager, Community Development Department