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HomeMy WebLinkAbout2025-03-05; Economic Development Subcommittee; 03; Economic Development Strategic Actions UpdateMeeting Date: March 5, 2025 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 The new administration’s direction has created a period of uncertainty as businesses and organizations work to understand the impacts of new policies and rules being put in place. Among other areas, new directives around diversity, equity, and inclusion may impact federal contractors and their respective workforces, while discussions of tariffs may hurt Carlsbad manufacturers that rely on international supply chains or sell their products abroad. The broader economic implications of tariffs have raised concerns among financial institutions and market analysts. For instance, JPMorgan Chase has expressed apprehension that such trade policies might inadvertently become business-unfriendly, potentially leading to economic slowdowns in North America. Further impacts could occur as the administration has signaled halting all federal grants and have limited agency staff members’ ability to travel and meet with external audiences. In a region like San Diego, which receives billions in federal research grants, destabilizing funding and the ability for scientific research to continue could have an outsized impact on the life sciences and healthcare industries. The federal government has also demanded that all workers return to office in the coming months. This could signal a shift in how other employers treat hybrid and remote work, although many employers and workers have found those policies to enable higher productivity and quality of life. ECONOMIC DEVELOPMENT SUBCOMMITTEE March 5, 2025 Item #3 Page 1 of 4 The high cost of living in the area continues to be one of the main challenges for workers. High cost and constrained supply mean that employers have to increase wages or cast a wider net to find qualified workers. 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. Carlsbad’s economy has trended positively despite many of 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. 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 Program continues to expand its efforts to support Carlsbad’s small business community by providing direct assistance and streamlining connections to city resources. As the program evolves, the city remains committed to providing access to resources and ensuring small businesses have the tools needed to succeed. Direct Business Support The small business liaison continues to work with Carlsbad small businesses to provide direct support and help navigate city processes. This includes helping 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 to city processes and connecting businesses with the necessary resources to promote growth and operational efficiency. To better serve our small business community, staff created an intake form for businesses to request assistance. Whether you need guidance on permitting, workforce resources, signage regulations, or city ordinances, the best way to reach us is by filling out our intake form at carlsbadca.gov/SBL or emailing us at business@carlsbadca.gov. Digital Resource Hub Staff have completed the resource compilation and gathered key information to ensure the platform provides relevant and valuable content. With this foundation in place, the city will work with the software provider to build the website, ensuring it is accessible, user-friendly, and easy to navigate. Businesses will soon be able to access resources directly through the platform, streamlining support and information-sharing. Staff will incorporate ongoing business feedback to refine and enhance the available tools and information, ensuring the hub effectively meets the needs of Carlsbad’s small business community. March 5, 2025 Item #3 Page 2 of 4 Retail Establishments Staff is continuing to work with UCSD’s I4x Innovation Sprint program to analyze potential Storefront Improvement Program models. As part of this collaborative effort, we are examining 12 different cities in California that have implemented SIPs or alternative programs, such as signage enhancements, outdoor furnishings, and security improvements. This research focuses on program structure, funding sources, eligibility criteria, success metrics, and strategies for enhancing business visibility. Discussions with external city representatives are providing valuable insights into the implementation and impact of these programs. These findings will help inform Carlsbad’s exploration of a similar initiative to support small businesses and enhance the city’s commercial corridors. 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. Small Business Workshop Series The City of Carlsbad will launch a Small Business Workshop Series in partnership with the Carlsbad Chamber of Commerce and Carlsbad Village Association. This year-long series is designed to provide small businesses with the knowledge and tools needed to navigate key business challenges and business continuity planning. Through a combination of city-led and community-driven sessions, workshops will focus on equipping business owners with practical strategies to strengthen operations, foster growth, and build stronger connections with city departments and local business organizations. Labor Market Information and Economic Indicators Staff overhauled two data dashboards, one focused on labor market information, and one focused on Carlsbad economic indicators, to be more easily accessible and understandable. The updated dashboards provide fast visual representations of how Carlsbad’s economy and workforce are doing. The Labor market dashboard also corresponds to updates made to the Job-Readiness Room program. The dashboards can be found at carlsbadca.gov/talent and carlsbadca.gov/economy. In a corresponding move to make finding talent easier for businesses, the link carlsbadca.gov/findtalent was created to take businesses to the candidate marketplace. Job-Readiness Room The Job-Readiness Room is a free offering provided through Carlsbad Libraries and allows any resident to learn valuable skills that can better prepare them for work in Carlsbad’s key industries. The Job-Readiness Room program has been updated to better align skills courses with industry needs in Carlsbad. By linking to the labor market information dashboard, the program stays current as skills demand changes within Carlsbad’s key industries. Regional Partnerships Carlsbad continues to participate in regional economic development and industry organizations, establishing a presence for the city with key industry employers and leaders. As laid out in the economic development strategic plan, participation in these types of forums establishes the city as a March 5, 2025 Item #3 Page 3 of 4 welcoming place for those key industries and businesses. Additionally, the city’s engagement has led to a larger presence by those organizations in the city, supporting Carlsbad businesses. This includes Connect, which hosts their marquee summer social in Carlsbad as well as industry office hours and Startup San Diego, which hosts the opening day of San Diego Startup Week in Carlsbad. Industry Gatherings Over the past 18 months, staff have increased the engagement for industry gatherings, which occur on a monthly basis. The series has evolved from 4 – 8 industry leaders discussing operations in the city, to up to 40 attendees. In 2025, these gatherings will continue to focus on key industries and will add industry-focused discussions, like a speaker or panel. 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. March 5, 2025 Item #3 Page 4 of 4