HomeMy WebLinkAbout2024-11-19; Economic Development Subcommittee; ; Economic Development Strategic Actions Update Meeting Date: Nov. 19, 2024
To: Economic Development Subcommittee
From: Matt Sanford, Economic Development Director
Staff Contact: Matt Sanford, Economic Development Director
matt.sanford@carlsbadca.gov, 442-339-5987
Subject: Economic Development Strategic Actions Update
Recommended Action Receive an informational report on the implementation of current economic development strategic
actions, discuss and provide recommendations.
Executive Summary
The Economic Development Strategic Plan is a roadmap that guides the city’s economic
development activities over a five-year period, which began in 2023. The Economic Development
Strategic Actions Plan is the annual implementation of the tactical steps to achieve the goals and
objectives of the Economic Development Strategic Plan and outlines the tactical actions that are
taken to achieve its goals and objectives. This report provides an update on economic development
activities and the implementation of the approved strategic actions.
Explanation and Analysis
Current Trends
Staff have been engaged with a number of businesses to better understand workforce challenges
that are increasingly impacting the Carlsbad's business community. Employers across multiple
sectors and of varying sizes continue to report difficulty in finding and retaining employees, which is
creating a ripple effect on business operations and could impact future growth. This trend is
influenced by several interrelated factors.
One of the primary drivers of these workforce challenges is the high cost of living in Carlsbad.
Despite a leveling off of home values, housing costs and limited availability of workforce housing
make it difficult for businesses to attract talent from outside the region. For some existing
employees, these financial pressures have led to relocation or extended commutes as they pursue
more affordable options, further straining the local labor market.
Additionally, competition for skilled workers remains intense. High-growth sectors such as
technology, life sciences, and advanced manufacturing are particularly affected as they compete not
only with other local businesses but also with regional and national employers offering remote
opportunities. This dynamic underscores the need for enhanced workforce development and
retention strategies that focuses on worker, as well as company needs.
ECONOMIC DEVELOPMENT SUBCOMMITTEE
Nov. 19, 2024 Item #4 Page 1 of 3
Programs like the Job-Readiness Room, Candidate Marketplace, and the internship housing initiative
collectively begin to address these challenges. They offer targeted solutions to help businesses
connect with qualified candidates, provide support for new talent, and help Carlsbad workers upskill
to be better qualified for jobs in our key industries. These efforts have seen early success, but the
scale of the challenge requires sustained engagement with both employers and regional partners.
Staff will continue to adapt these programs to maximize impact.
Carlsbad’s businesses continue to show resilience despite these challenges. Staff remain committed
to working closely with employers to develop solutions, including facilitating partnerships with
educational institutions, advocating for workforce housing, and expanding city-led talent attraction
initiatives. Ongoing efforts will focus on understanding and addressing these workforce issues while
supporting a vibrant and sustainable local economy.
Retail Establishments
Based on feedback from the subcommittee, staff are analyzing potential Storefront Improvement
Program (SIP) models in collaboration with UCSD's I4x Innovation Sprint program. This partnership
leverages UCSD’s research capabilities to assess how a SIP or alternative program could be
structured to provide meaningful support to small businesses in aging properties. Through the
program, UCSD is conducting a comprehensive study of storefront improvement practices in other
cities, identifying successful strategies, proposing program guidelines, and evaluating best practices
from similar existing programs. This research will examine how such a program could encourage
property owners to upgrade the exterior of their buildings, thereby enhancing the visual appeal of
Carlsbad’s retail corridors, increasing foot traffic, and supporting long-term vitality in commercial
areas.
This aligns with the city's objectives to foster a vibrant business environment that meets the evolving
needs of our community and supports the growth and sustainability of local small businesses.
Progress on Current Actions
The following are recent highlights from the implementation of the Economic Development Strategic
Plan and reflect progress toward the approved actions.
Small Business Liaison Program Development
The Small Business Liaison (SBL) Program, launched as part of Carlsbad’s Economic Development
Strategic Plan, has already begun to make strides in strengthening the city’s small business
community. In December, the program will introduce a series of training workshops to address key
industry trends, with a specific focus on lease negotiation strategies—a critical issue due to rising
lease rates across the region. These sessions will feature insights from local real estate professionals,
providing small business owners with practical guidance to navigate lease terms and ensure fair
agreements.
Direct Business Support
Since establishing the SBL Program, the city has directly assisted 12 small businesses with a range
of individualized support. This includes help with permitting and zoning, workforce resources,
signage guidance, and assistance in understanding city ordinances and regulations. The Small
Business Liaison acts as a single point of contact, streamlining connections for business owners
Nov. 19, 2024 Item #4 Page 2 of 3
to city processes and connecting businesses with the necessary resources to promote growth
and operational efficiency.
Digital Resource Hub
To further support Carlsbad’s small businesses, the city has selected a software provider to host
a comprehensive digital hub, anticipated to launch in early 2025. This hub will serve as a
centralized resource for business owners, offering tools and information on funding
opportunities, regulatory guidance, and best practices. The city has partnered with regional
organizations, including the local Small Business Development Center (SBDC) and the California
Office of Small Business Advocate (CalOSBA), to ensure that the hub provides up-to-date
information and resources tailored to the needs of the local business community. This digital
platform will be continuously updated, creating a reliable source of support for small businesses
in Carlsbad.
Business Visits
In October, City staff facilitated a site visit to the Omni La Costa Resort and Spa to learn more about
the industry trends for “Group Travel.” Attendees also gained an appreciation for the resort’s role in
Carlsbad’s tourism economy and its impact on the local business community. This visit offered an
opportunity for staff and council members to gain insights into the resort's operations, including a
behind-the-scenes look at group bookings, event planning, and the resort's broader economic
influence.
Startup Week
In October, San Diego Startup Week 2024 kicked off in Carlsbad Village, launching a weeklong
celebration of entrepreneurship and innovation across San Diego County and Tijuana. Carlsbad’s
opening day, themed “Making Waves in the Creative Economy,” brought together entrepreneurs,
innovators, and leaders from North County for a day filled with startup expos, mentorship sessions,
and discussions on regional growth. Attendees engaged with local businesses, explored expo booths,
and connected with potential investors, gaining valuable insights into trends, challenges, and
collaboration strategies. The day concluded with a formal networking reception, setting an energetic
tone for the rest of San Diego Startup Week. An estimated 400 attendees were present for the day.
Fiscal Analysis
This action has no financial impact.
Next Steps
Staff will continue to implement the Economic Development Strategic Plan actions for fiscal year
2024-25 and will keep the subcommittee informed of progress.
Exhibit
None
Nov. 19, 2024 Item #4 Page 3 of 3
ECONOMIC DEVELOPMENT STRATEGIC ACTIONS
UPDATE
Recommendation: Receive an informational report on the
implementation of current economic development strategic actions,
discuss and provide recommendations.
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ECONOMIC DEVELOPMENT
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ECONOMIC DEVELOPMENT
STRATEGIC PLAN
•Supports Strategic Plan Goal -Economic Vitality
•Four Key Goals:
o Support Small Businesses, Startups &
Entrepreneurs
o Develop Workforce and Attract Talent
o Grow and Support Key Industries
o Encourage Placemaking and Engagement
•40 Actions implemented for fiscal year 2024-25
ECONOMIC DEVELOPMENT
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Carlsbad
Omni La Costa Resort & Spa
•Gained insights into industry trends for group travel and event planning
•Learned how group travel affects Transit Occupancy Tax contributions
•Highlighted the resort's role in Carlsbad’s tourism economy and local business
ecosystem
•Received behind-the-scenes tour to see how operations took place and met with
front-line workers
ECONOMIC DEVELOPMENT
Business Site Visits
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Carlsbad
Storefront Improvement Program (SIP)
•Collaborative analysis with UCSD’s I4x Innovation Sprint
program
•Comprehensive study of storefront improvement practices in
other cities
•Identification of successful strategies and best practices
•Proposed program guidelines to support small businesses in
aging properties
Key Objectives
•Encourage property owners to upgrade building exteriors
•Enhance the visual appeal of Carlsbad’s retail areas
•Increase foot traffic and support long-term vitality in
commercial areas
ECONOMIC DEVELOPMENT
Options to Reinvigorate Retail Spaces
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Projects
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Direct Business Support
•Assisted 12 small businesses with permitting, zoning, workforce resources,
signage guidance, and understanding city ordinances and regulations.
•Launching a series of training workshops for small businesses
o The first will take place in December, and led by local commercial real estate
professionals offering practical guidance
Digital Resource Hub
•Comprehensive platform launching early 2025 to centralize business resources
•Offers tools for funding opportunities, regulatory guidance, and best practices
•Collaboration with SBDC and CalOSBA ensures tailored, up-to-date support for
Carlsbad’s small business community
ECONOMIC DEVELOPMENT
Small Business Liaison Program Development
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Opening Night of San Diego Startup
Week took place in Carlsbad Village
•Making Waves in the Creative
Economy”
•Approximately 400 attendees
•Carlsbad’s Sarah Davis, CEO of
Fashionphile was keynote address
•Topics supporting Carlsbad key
industries: Sports and Active Lifestyle,
Creative Economy, Tech, etc…
ECONOMIC DEVELOPMENT
San Diego Startup Week
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Carlsbad
ECONOMIC DEVELOPMENT
Economic Overview Dashboard
City of Carlsbad Economic Development Dashboard
Economic Overview Talent & Workforce Demographics I ._I __ c_o_m_m_e_rc_ia_l _Re_a_l E_s_ta_te __ _,11 Business Activity & Industry Clusters
Economic Overview -Key Indicators Snapshot
Carlsbad's economy is characterized by its robustness and diversity, supported by a range of industries and favorable
economic indicators. The city's Gross Domestic Product (GDP) shows steady growth, driven by key sectors such as life
sciences, technology, sports innovation and design, cleantech, and hospitality and tourism.
With a healthy employment rate and a skilled workforce, Carlsbad maintains its economic prosperity. The city's median
household income surpasses the national average, reflecti ng its high quality of life. Carlsbad 's business landscape is
diverse, with a wide range of industries contributing to its economic stability and resilience.
Job Postings -Unique
This economic dashboard shows key indicators and trends to give readers a better understanding of the
makeup and track record. The indicators shown below provide a high level overview of Carlsbad's econo
tabs across the top allow for a deeper dive into workforce dynamics, detailed industry information, and d
trends.
Population
114,160
Gross Regional Product
(GRP)
$17.2B
Unemployment Rate Median Home Value
4.4% $1.51 M
'---
2022 2023 0 3, 2024 0 3, 2024 2024
6,309
03, 2024
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ECONOMIC DEVELOPMENT
Talent Dashboard
The City of Carlsbad Economic Dashboard provides an in-depth look at the city's vibrant talent pool and workforce statistics. This interactive tool
showcases key demographic data, including workforce size, education levels, and industry-specific employment trends. By highlighting the skills and
expertise within our community, the dashboard supports businesses, residents, and future jobseekers in making informed decisions that drive economic
growth and sustain Carlsbad's competitive edge in the regional and global markets. Discover how Carlsbad's dynamic workforce is shaping the future of
innovation and opportunity below.
Cleantech Information
Click Here
Sports and Active Lifestyle Information
Click Here
Occupation Characteristics
Profession 2023Jobs
General Laborer
General and Operations Manager
Route Sales Representative
Software Developer
Tech Information Life Sciences Information
Click Here ChckHere
Hospitality and Tourism
CIICkHere
2023 Median Salary 2023 Average Hourly Wage
1,613
1,605
1,576
1.520
$37,852 -
$157,150
$64,808
$150,601
$19.85
$99.19
$40.58
$72.38
Top Life Sciences Hard Skills
Skill
Microsoft Excel
Microsoft Office
Microsoft Outlook
Python (Programming Language)
Microsoft PowerPoint
C ++ (Programming Language)
Salesforce
Spreadsheets
SQL (Programming Language)
C (Programming Language)
Postings
221
218
130
116
115
89
86
79
76
73
%ofTotal Postings
11%
11%
4%
4%
4%
4%
4%
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Carlsbad
•Staff will continue to monitor workforce trends and subsequent impact on
businesses
•Staff will leverage partnership with UCSD to explore potential approaches to a
storefront improvement program and options to be better prepared for an uptick
in leasing and net-absorption of commercial space
•Staff will continue to execute on the 40 actions outlined in the fiscal year 2024-25
economic development strategic actions.
ECONOMIC DEVELOPMENT
Next Steps
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