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Home My WebLink About2025-10-21; Economic Development Subcommittee; 03; Economic Development Strategic Actions UpdateMeeting Date: Oct. 21, 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 progress on 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 Ongoing shifts in national and global economic conditions continue to create uncertainty as Carlsbad businesses adapt to changing market dynamics. A rebound in inflation and persistently high interest rates have led many companies to adopt a more cautious outlook. Although inflation has eased from its peak, the cost of goods, materials, and services remains elevated, sustaining pressure on operating expenses and consumer demand. According to a Q3 2025 survey by the U.S. Chamber of Commerce, inflation remains the top operating concern for nearly half of small businesses. High borrowing costs are further constraining access to credit, especially for small and mid-sized firms seeking to finance growth or manage cash flow. Many local businesses report taking a measured approach to investment and hiring as they navigate tighter margins and slower sales growth in certain sectors. Trade policy tensions and global supply chain disruptions also continue to pose challenges, particularly for local manufacturers that rely on importing and exporting goods. Companies in Carlsbad’s key industries are closely monitoring how evolving regulations and geopolitical developments may impact their operations and costs. ECONOMIC DEVELOPMENT SUBCOMMITTEE Oct. 21, 2025 Item #3 Page 1 of 4 Workforce conditions remain a defining challenge. Although the labor market has cooled slightly as unemployment edges upward, it continues to favor job seekers. Employers face sustained competition for talent in occupations such as healthcare, advanced manufacturing, and professional services. Rising wage expectations and high regional housing costs are adding complexity to recruitment and retention, particularly for entry- and mid-level roles. While overall economic fundamentals remain stable, Carlsbad businesses are adjusting to a slower growth environment shaped by inflationary pressures, elevated borrowing costs, and ongoing labor market imbalances. Progress on Current Actions The following items highlight recent progress on the implementation of the Economic Development Strategic Plan and outline current and planned activities. 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 ensuring small businesses have access to the tools and support they need to succeed. Direct Business Support – Small Business Office Hours During the three-month Small Business Office Hours pilot, city staff met with 30 local businesses and entrepreneurs—each a first-time engagement with the city’s Economic Development team. Participants represented a range of industries and business stages, including several women- and veteran-owned enterprises. Appointments were consistently well-utilized, with 85% of available sessions booked and strong participation at the Dove Library location. Conversations often covered multiple topics, from permitting and signage to financing, expansion planning, and connections to local partners. Staff identified common themes across these sessions, which were then integrated into the city’s small business workshop series with the Carlsbad Chamber of Commerce. Participant feedback was overwhelmingly positive, citing the program’s accessibility, the convenience of library venues, and the value of one-on-one guidance from city staff. Many noted that the sessions provided clarity, reduced stress, and gave them a clear path forward on next steps. Based on these successful outcomes, staff will continue Small Business Office Hours on a weekly basis at Dove Library beginning in mid-October. Future enhancements will include exploring additional locations, expanding appointment availability, and further aligning sessions with the city’s broader small business support programs. Small Business Workshop Series In partnership with the Carlsbad Chamber of Commerce, staff launched a new Small Business Workshop Series on September 29, designed to provide monthly programs addressing timely and practical topics for local business owners. The first session focused on new marketing tactics and drew 30 attendees. It featured local marketing experts and businesses sharing best practices for digital outreach, brand storytelling, and customer engagement. Feedback from participants was positive, and upcoming sessions will explore subjects such as financial planning, e-commerce, and navigating local regulations. The ongoing series is part of the city’s broader effort to strengthen business resilience through education, peer learning, and access to expert guidance. Oct. 21, 2025 Item #3 Page 2 of 4 Digital Resource Hub The Digital Resource Hub continues to serve as a well-utilized tool for Carlsbad’s business community. Since its launch, it has provided thousands of data points and insights to help businesses better understand their markets, identify competitors, and benchmark performance. The tool remains a central resource for market research, business planning, and customer discovery. Weekly live sessions hosted by the platform vendor continue to help users make the most of the system, ensuring businesses can access accurate and actionable data. Commercial Broker Engagement and Zoning Education To improve alignment between the city and the commercial real estate community, staff hosted a Zoning and Land Use Workshop on August 26 for brokers representing Carlsbad properties. The session, attended by approximately 35 brokers, provided detailed information on allowable uses, recent zoning updates, and city permitting processes. The workshop was developed in response to an increase in inquiries about uses in industrial zones that were inconsistent with current zoning designations. By enhancing brokers’ understanding of land use regulations, the city aims to reduce permitting delays and ensure better alignment between tenants and available properties. As a follow-up to the workshop, Planning and Economic Development staff met with several brokers to discuss demand trends for non-medical office space and strategies to attract professional service and creative firms seeking high-quality space in Carlsbad. This dialogue can help inform future business attraction efforts and will better prepare staff for interpreting some proposed uses related to office market diversification. Site-Selection Tool As part of the city’s business attraction strategy, staff have identified an option for developing and deploying an online site-selection tool to promote available commercial properties in Carlsbad. Once implemented, this platform will make it easier for prospective businesses, brokers, and developers to explore real-time property listings, understand zoning and permitting considerations, and identify opportunities to locate or expand in Carlsbad. The development should be complete by the end of the calendar year. Startup Week Highlights – Carlsbad Village, October 6 For the fourth year in a row, Carlsbad hosted the opening day of San Diego Startup Week on Monday, October 6, in the Village, under the theme “In Our Backyard: First Steps to Growing Sustainable Success.” The day featured a full slate of programming including panel discussions, mentoring sessions, keynote talks, sector-focused conversations, and networking opportunities. Among the highlights was a fireside chat with Michael Milam, COO of Dr. Bronner’s, offering both inspiration and real-world insight into scaling sustainably. Several hundred entrepreneurs, founders, investors, and startup employees converged in Carlsbad Village for the event, showcasing the city’s role as an active node in the regional innovation ecosystem. In advance of the main program, the City and Eventship, an event calendaring startup, co-hosted a pre-launch reception at Docent Brewing, drawing 176 attendees. The reception provided a casual networking and kickoff opportunity for local innovators, business leaders, and ecosystem supporters Oct. 21, 2025 Item #3 Page 3 of 4 to mingle, exchange ideas, and celebrate Carlsbad’s role as the day’s Startup Week anchor. When polled, a majority of those in attendance indicated they were from Carlsbad and North County, demonstrating the importance of developing the ecosystem locally. Life in Action Website and Marketing The city’s talent attraction platform, Carlsbad Life in Action, successfully relaunched in July with refreshed design, updated content, and a stronger focus on storytelling that highlights Carlsbad’s innovation economy and quality of life. Following the relaunch, staff implemented technical and content refinements in August and September to improve functionality and ensure an optimal user experience. Life in Action continues to serve as a key marketing and communications tool supporting recruitment, retention, and business attraction. As such, staff will continue to evolve content and imagery to meet present demand from businesses and talent. The site will also have continued ADA compliance updates in the coming months. Carlsbad Talent Hub To better align with its purpose and audience, the city’s Candidate Marketplace platform has been rebranded as the Carlsbad Talent Hub. The updated name clarifies the tool’s role in connecting Carlsbad employers with skilled talent who have expressed interest in working locally. The platform remains a free resource for local businesses, providing an efficient way to access candidate profiles, resumes, and professional information while supporting the city’s ongoing efforts to strengthen its workforce pipeline. Fiscal Analysis This action has no financial impact. Next Steps Staff will continue to implement the Economic Development Strategic Plan actions for fiscal year 2025-26 and will keep the subcommittee informed of progress. Exhibits None Oct. 21, 2025 Item #3 Page 4 of 4 ECONOMIC DEVELOPMENT STRATEGIC ACTIONS UPDATE Recommendation: Receive an informational report on the implementation of current economic development strategic actions, discuss and provide recommendations. It e m 3 ECONOMIC DEVELOPMENT 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 •55 Actions implemented for fiscal year 2025-26 ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT Current Economic Trends Q3 2025 Small Business Index survey by the U.S. Chamber of Commerce •Small Business Index is 72.0, up from last quarter’s score of 65.2 and an all-time Index high. •Inflation still a top concern, for 46% of small businesses •Trade policy tensions and global supply chain disruptions remain key risks. •High borrowing costs are further constraining access to credit. •Labor market cooling modestly but still favors job seekers. Source: U.S. Chamber of Commerce Resuming 1:1 business support office hours at Carlsbad City Library on Oct 21, 2025 Current Schedule: •Day Offered: Tuesdays •Time: 9:00 AM – 11:00 AM •Session Duration: 30-minute appointments •Location: Dove Library: 1775 Dove Ln, Carlsbad, CA 92011 •Booking Access Points: •Carlsbad Library Website: library.carlsbadca.gov/programs/events- calendar •City of Carlsbad’s Digital Resource Hub: carlsbadca.gov/business/digital-resource-hub/business-office- hours ECONOMIC DEVELOPMENT Small Business Liaison Office Hours ECONOMIC DEVELOPMENT Small Business Liaison Office Hours Topics may include: •Navigating city processes •Questions about business licenses •Understanding permitting requirements •Guidance on home-based vs. commercial operations •Assistance with understanding city codes and regulations •Connection with other city departments •Access to incentives, grants, or other financial resources •Connection to external agencies and organizations •General navigation of city departments or contacts Office hour sessions serve as the first point of contact for business inquiries and are a means for helping staff understand emerging business needs and inbound interest. ECONOMIC DEVELOPMENT Office Hours - Analytics: Business License Status ECONOMIC DEVELOPMENT Office Hours - Analytics: Years of Operation ECONOMIC DEVELOPMENT Office Hours – Analytics: Industries ECONOMIC DEVELOPMENT Office Hours – Analytics: Industries – New Businesses ECONOMIC DEVELOPMENT Small Business Liaison Office Hours - Summary 30 New Businesses Supported 18 Women, Minority or Veteran Owned Businesses 18 Businesses going through the Business Licenses Progress 60+ Employees Supported Less than 2 Years Average Operations ECONOMIC DEVELOPMENT Small Business Workshops Business education series that provides small businesses with knowledge and tools to address key challenges and pursue growth Goals: •Support business resilience and growth •Provide actionable insights •Address timely and relevant challenges Direct Business Support – Ongoing Initiatives Prior Workshop Topics: •July: Foreign Trade Zones & International Business Resources •August: Industry Focused: Zoning – Allowable Usages for Brokers •September: Marketing Made Simple ECONOMIC DEVELOPMENT Small Business Workshops - Upcoming Topic: Financial Resources Date: Monday, October 27th, 2025 Time: 2:00 PM – 3:00 PM Sign Up: https://web.carlsbad.org/atlas/calendar Presenters: County of San Diego – Economic Development Department & Small Business Development Center (SBDC), Founders First Session Details: •Offering financial resources and available support programs •Strategies to prepare for growth and contracting with institutions •Overview of funding tools and programs businesses can tap into ECONOMIC DEVELOPMENT Small Business Workshops – Upcoming Calendar 2025/2026 Dates •October 27, 2025 •November 17, 2025 •December 15, 2025 •January 26, 2026 •February 23, 2026 •March 23, 2026 •April 27, 2026 •May 18, 2026 •June 22, 2026 Time: 2:00 to 3:00 PM *Dates/Times subject to change based on availability Location: Carlsbad Chamber of Commerce 5934 Priestly Dr, Carlsbad, CA 92008 Register: Events Page https://web.carlsbad.org /atlas/calendar ECONOMIC DEVELOPMENT Startup Week Highlights – Carlsbad Village •Fourth consecutive year Carlsbad hosted the opening day of San Diego Startup Week (Oct. 6) - Several hundred attendees •Event theme: “In Our Backyard: First Steps to Growing Sustainable Success” •Panel discussions and keynote talks •Mentoring sessions and sector-focused conversations •Networking opportunities for startups and innovators •Fireside chat highlight: Michael Milam, COO of Dr. Bronner’s •Pre-Launch Reception: Co-hosted with Eventship (startup event platform) at Docent Brewing •176 attendees, including local innovators, business leaders, and ecosystem supporters ECONOMIC DEVELOPMENT Site Selector Tool ECONOMIC DEVELOPMENT Site Selector Tool Businesses answer a short and simple questionnaire ECONOMIC DEVELOPMENT Site Selector Tool Life Science Manufacturing Plant Fill in their information related to their business ECONOMIC DEVELOPMENT Site Selector Tool Show eligible properties within allowable zones Life Science Manufacturing Plant Source: CoStar ECONOMIC DEVELOPMENT Site Selector Tool Who will this tool support? •Businesses looking for a new location •Businesses looking to relocate within Carlsbad •Individuals looking for property investment opportunities Example of Future Property Database Source: GIS WebTech ECONOMIC DEVELOPMENT Site Selector Tool What will the tool show? •Location •Zoning Information •Property details: •Rental Rates •Contact information Example of Future Property Database Source: GIS WebTech Storefront Improvement Program (SIP) Exploratory analysis with UCSD’s I4x Innovation Sprint program to research & develop a site selector tool to improve how small businesses identify potential properties that align with city zoning requirements ECONOMIC DEVELOPMENT External Partnership Support – Site Selector Goal: Research and develop an initial prototype for small businesses •Explore businesses uses connect to zoning locating •Highlight existing or vacant properties for businesses •Align with the city's goals for economic and community development Project Scope: •Comprehensive Research - outlining business use types mapped to zoning categories •User Interface Prototype – the Site Selector Tool •Exploration of an AI-driven component to support conversational search and natural-language queries, such as, “I want to locate my new ice cream business in the city, where can I go? ECONOMIC DEVELOPMENT Doing Business - Data Updates Updating Data and Graphics on the Doing Business webpage: http://carlsbadca.gov/doingbusiness Estimated Completion Date: November 2025 ECONOMIC DEVELOPMENT Life in Action Website and Marketing •Relaunched in July with a refreshed design, updated content, and a stronger focus on storytelling that showcases Carlsbad’s innovation economy and quality of life. •Implemented technical and content refinements in August and September to enhance functionality and user experience. •Continues to serve as a key marketing and communications tool for business recruitment, retention, and attraction. •Ongoing updates planned to evolve content, imagery, and ADA compliance. ECONOMIC DEVELOPMENT Carlsbad Talent Hub •Rebranded from the “Candidate Marketplace” to better reflect its purpose and audience. •Connects Carlsbad employers with skilled talent interested in local opportunities. •Job Board shows open Positions in Carlsbad’s key industries •Remains a free resource for businesses and job- seekers to access job opportunities/candidate profiles, resumes, and professional information. •Supports the city’s efforts to strengthen the local workforce pipeline. THANK YOU! ECONOMIC DEVELOPMENT