Loading...
HomeMy WebLinkAbout2026-04-28; Economic Development Subcommittee; 03; Economic Development Strategic Actions UpdateMeeting Date: April 28, 2026 To: Economic Development Subcommittee From: Tess Sangster, Economic Development Director Rachel Maltz, Senior Program Manager & Small Business Liaison Staff Contact: Rachel Maltz, Senior Program Manager & Small Business Liaison rachel.maltz@carlsbadca.gov, 442-977-5702 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 Ongoing shifts in national and global economic conditions continue to shape a complex but generally resilient environment for Carlsbad businesses. Despite continued geopolitical tensions, trade policy uncertainty, and moderating global growth, U.S. financial markets have remained relatively strong, supported by steady corporate earnings, resilient consumer spending, and a still-solid labor market. This stability has helped buffer some of the broader economic uncertainty, allowing many businesses to maintain cautious optimism heading into mid-2026. Inflation has continued to moderate but remains above the Federal Reserve’s long-run target, keeping pressure on both consumers and businesses. The Federal Reserve has maintained a cautious stance on interest rates, with borrowing costs remaining elevated. While this continues to constrain access to capital, particularly for small and mid-sized firms, there is growing anticipation of potential rate adjustments later in the year if inflation continues to ease. Trade policy and tariffs remain a persistent concern, especially among small businesses and manufacturers. Ongoing tariff pressures on imported goods and materials continue to contribute to ECONOMIC DEVELOPMENT SUBCOMMITTEE April 28, 2026 Item #3 Page 1 of 6 cost volatility, forcing many businesses to reevaluate pricing strategies, supplier relationships, and margins. Locally, businesses report that while they have attempted to absorb costs where possible, sustained tariff impacts are making price increases increasingly unavoidable. At the national level, the labor market has shown signs of gradual cooling while remaining fundamentally stable. The unemployment rate has remained relatively low, hovering around the low 4% range, though job growth has slowed compared to prior years. Hiring demand has softened in some sectors, while others continue to face persistent workforce shortages. This moderation reflects a broader rebalancing of the labor market rather than a significant downturn. In the San Diego region, one notable trend is the easing of commercial and residential rental rates after several years of sharp increases. Early data indicate that rents across parts of the county have begun to stabilize or decline modestly, which could provide some relief for both residents and businesses facing high occupancy costs. For businesses, particularly small and locally serving establishments, lower commercial rents may improve viability and expansion opportunities. For residents, any sustained relief in housing costs could support workforce retention and overall economic stability. Staff will continue to closely monitor this trend to assess its durability and potential impacts on Carlsbad’s economic landscape. Consumer spending remains positive but more selective, as households adjust to higher prices and borrowing costs. Confidence levels have improved slightly from recent lows but continue to reflect cautious sentiment. National GDP growth remains positive, though below long-term averages, reinforcing expectations of a slower but steady expansion. In California, the economic outlook continues to reflect a “two-speed” dynamic. High-value sectors such as technology, life sciences, and advanced manufacturing remain relatively strong, while more cost-sensitive industries—including construction, retail, and hospitality—face ongoing challenges tied to labor costs, financing conditions, and shifting demand patterns. Against this backdrop, Carlsbad businesses continue to demonstrate resilience. Key industry clusters, including life sciences, technology, and sports and active lifestyles, remain competitive and adaptive, even as companies navigate elevated costs, workforce constraints, and policy uncertainty. The combination of a stable macroeconomic foundation, easing local cost pressures such as rent, and continued innovation positions Carlsbad to weather ongoing uncertainty while identifying opportunities for strategic growth. Staff will continue to monitor economic conditions and emerging trends and will provide recommendations to ensure programs and policies remain responsive to the evolving needs of the business community. 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 demonstrate strong momentum, providing streamlined support and meaningful connections to resources for Carlsbad’s small business community. The program has now supported over 200 businesses, marking a key milestone and April 28, 2026 Item #3 Page 2 of 6 reflecting continued demand for personalized assistance. As the program evolves, staff remains focused on reducing barriers, improving access to city services, and ensuring businesses have the tools needed to start, operate, and grow successfully. Direct Business Support The program’s direct, one-on-one support model remains a cornerstone of its success, helping businesses efficiently navigate city processes while also addressing broader operational needs. This approach continues to gain traction through expanded offerings such as Business Office Hours, which provide accessible, real-time support to business owners. Staff is growing its small business workshop programming to address common needs and provide targeted technical assistance. Looking ahead, the planned implementation of a Business Walks program will further strengthen outreach efforts by proactively engaging businesses, identifying challenges, and connecting them with available resources. Collectively, these efforts enhance business support, strengthen business retention, and provide long-term resilience within the local business community. Digital Resource Hub Carlsbad’s Digital Resource Hub continues to be a valuable and widely utilized tool for local businesses. The platform is being actively leveraged through features such as Small Business Insights Reports, the Small Business Advisor tool, and the Shop Local tool. Together, these resources provide accessible, data-driven insights that help businesses better understand market conditions, identify opportunities, and make informed decisions. The continued use of the Hub highlights the importance of equipping businesses with practical, real-time data to support growth and competitiveness. Office Hours The Small Business Liaison Office Hours program continues to be a successful and well-utilized resource, improving access to economic development staff and providing personalized, one-on-one guidance to Carlsbad’s small business community. The pilot program in partnership with the Carlsbad Village Association (CVA) proved highly effective, demonstrating strong demand and engagement from the Village business community. Based on this success, the city will continue its partnership with CVA, maintaining a regular presence to support both new and existing businesses. The program has strengthened connectivity within the Village area, creating additional touchpoints for businesses to engage with city staff, ask questions, and access resources needed to grow their ventures. Office Hours will continue to offer 30-minute, one-on-one appointments through a scheduled format, ensuring dedicated time for individualized support. Weekly office hours will remain in place every Tuesday from 9:00 to 11:00 a.m. at the Carlsbad City Library (Dove Library), while staff will resume in-person monthly sessions at CVA beginning May 1. These sessions are designed to help businesses better understand city processes, identify next steps, and connect with relevant internal departments and external partners. Appointments can be conveniently scheduled online at carlsbadca.gov/business/digital-resource-hub/business-office- hours, ensuring continued accessibility and ease of use for the business community. April 28, 2026 Item #3 Page 3 of 6 Small Business Workshop Series In partnership with the Carlsbad Chamber of Commerce, the city continues to provide timely, practical resources and expert-led guidance to support local businesses through its Small Business Workshop Series. Offered monthly at no cost, these in-person workshops provide valuable opportunities for networking, peer learning, and direct access to subject matter experts. Building on this momentum, staff is also strengthening collaboration with external partners, including the County of San Diego, to expand the range of tools and information available to small businesses. For our April workshop, the county will be providing businesses with up-to-date knowledge of operational best practices on their small business support programs. This ongoing series continues to support the city’s broader economic development efforts by strengthening business capacity, improving access to resources, and fostering a more connected and resilient small business ecosystem. Carlsbad Business Walks Program The city is advancing the initial implementation of the Carlsbad Business Walks Program as a proactive, citywide outreach effort designed to strengthen connections with local businesses across key commercial areas, including business parks and Village corridors. This program will bring together multiple city departments in a coordinated approach to engage directly with businesses, better understand their needs, and connect them with relevant services and resources in real time. Through structured outreach, data tracking, and follow-up, the program aims to provide timely, actionable solutions while also identifying broader trends impacting the business community. As the program is developed, staff will continue to coordinate across departments and with community partners to refine operations, expand outreach efforts, and ensure a consistent and effective approach to supporting Carlsbad businesses. Business Webpage Overhaul Staff is currently undertaking a comprehensive update to the city’s business webpage, which serves as a primary digital entry point for individuals and companies seeking to engage with Carlsbad’s economic development services. In collaboration with the Communications team, efforts are focused on making the site more easily navigable and intuitive, ensuring information is clearly organized and easy to understand for a wide range of users. Content development is ongoing, with a continued focus on keeping information current, streamlined, and business-focused. Staff anticipates completing the full update by the end of the fiscal year. Site Selector Tool To better position Carlsbad as a competitive option for businesses looking to expand or relocate, staff is advancing development of a Site Selector Tool that will integrate with the city’s existing GIS mapping platform. The tool will allow users to identify available sites and vacant commercial properties. In collaboration with UC San Diego’s I4x Innovation Sprint team, staff are supporting implementation through a GIS web technology contract, resulting in a functional, beta-tested product that will serve as the foundation for the city’s Site Selector Tool. The project is now in its final stages of research development, with UC San Diego scheduled to present initial outcomes at their Demo Day on May 12. April 28, 2026 Item #3 Page 4 of 6 Throughout development, the tool has been informed by input from city staff, real estate professionals, and businesses that have recently navigated the site selection process. A key focus has been ensuring the platform is intuitive and accessible to users who may not be familiar with technical land use or zoning terminology. Following the conclusion of the UC San Diego program on May 12, staff will continue refining and advancing the platform in coordination with the city’s GIS and IT teams, incorporating findings and recommendations identified during the development process. As part of the city’s broader business attraction and retention strategy, the Site Selector Tool is intended to improve access to critical property information, streamline decision-making for businesses, and enhance the city’s ability to respond to market demand. Regional Partnerships Economic Development staff, in coordination with Innovate78 partner cities, are actively exploring regional partnerships aimed at strengthening the startup ecosystem across North County. These efforts include collaboration with key educational institutions such as California State University San Marcos and MiraCosta College, which are prioritizing workforce development initiatives aligned with industry needs. Through these coordinated partnerships, the region is working to better connect talent pipelines, entrepreneurial resources, and business support services, with the goal of enhancing overall regional competitiveness and fostering innovation-driven economic growth. External Engagement & Conference Participation Economic Development staff presented on the City’s economic development efforts at the California Association of Local Economic Development Conference in partnership with the County of San Diego. Staff highlighted the development of the City’s Economic Development programs and their impact on the local business community through strengthened collaboration efforts or digital product development support. Staff participated in the panel “How Jurisdictions Can Turn Data into Actionable Economic Development Tools,” which focused on how cities can leverage internal expertise, cross-department collaboration, and existing datasets to develop practical, user-friendly tools for businesses and the public. The discussion emphasized breaking down silos across departments, including to shift from static reporting to dynamic platforms that enhance engagement and support more informed decision-making. Carlsbad shared its existing Economic Development dashboards and discussed future enhancements to further improve data accessibility, transparency, and utility for both internal teams and the business community. Key themes across conference sessions included workforce trends, small business support, and the growing need for jurisdictions to provide streamlined, accessible resources in a rapidly evolving economic environment. April 28, 2026 Item #3 Page 5 of 6 Industry Gatherings Since the inception of the Life in Action Industry Gathering series, staff have continued to expand and strengthen engagement through regular, industry-focused meetings. The industry gatherings momentum has continued into 2026, with strong interest across key sectors. Most recently, the life sciences industry event generated over 80 RSVPs, reflecting the growing demand for opportunities to connect within North County’s innovation ecosystem. By bringing together stakeholders from across North County, the series is helping to strengthen regional collaboration, elevate local talent, and showcase the depth of the area’s industry clusters. These events are intentionally designed to support ecosystem-building efforts by creating space for knowledge-sharing, partnership development, and increased visibility of the region’s assets. Participant feedback continues to highlight the importance of these interactions, particularly for startups and small businesses that benefit from direct access to peers, mentors, and industry leaders. As the series evolves, staff will continue to evaluate program structure to further enhance value and support the continued growth of North County’s businesses and our innovation ecosystem. Fiscal Analysis This action has no financial impact. Next Steps Staff will continue to implement the Economic Development Strategic Plan actions for fiscal year 2026-27 and will keep the subcommittee informed of progress. Exhibit None April 28, 2026 Item #3 Page 6 of 6 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 •U.S. economy remains resilient despite global uncertainty; markets supported by spending and earnings •Inflation remains above target and interest rates stay elevated, keeping costs and borrowing constraints in place •Tariffs & trade uncertainty continue to drive cost volatility & pressure margins •Labor market is cooling but stable (low unemployment , slower job growth, mixed hiring demand) •Consumer spending is positive but more selective; GDP growth remains steady but below average •California shows a “two-speed” economy, with strong high- value sectors and weaker cost-sensitive industries ECONOMIC DEVELOPMENT Economic Outlook – Regional & Carlsbad •San Diego rents are stabilizing or modestly declining, easing pressure on businesses and residents •Tariff & Inflation related cost increases are gradually being passed on to customers •Carlsbad businesses remain resilient despite higher costs and workforce constraints •Key industries (life sciences, tech, active lifestyle) continue to adapt and compete •Businesses are adjusting pricing, supply chains, and operations amid ongoing uncertainty •Easing local costs and continued innovation support cautious optimism and growth opportunities ECONOMIC DEVELOPMENT Direct Business Support – Summary 207 Businesses Supported 448 Total Projects 50 New Businesses 2533+ Employees Supported 7.38 Years Average Operations Standardizing Office hours at the Carlsbad City Library & through our partners Office Hours are available at multiple locations: Carlsbad City Library - 1775 Dove Ln, Carlsbad, CA 92011 When: Every Tuesday Carlsbad Village Association (CVA) - 2695 State Street, Carlsbad, CA 92008 When: First Wednesday of each month – Next session May 6th Time: 9:00 – 11:00 a.m. Format: In-person, 30-minute appointments Both locations offer the same services and appointment structure. Location: 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 Office Hours – Summary 60+ Businesses Supported 171 Total Projects 31 New Businesses 76+ Employees Supported 2.37 Years Average Operations ECONOMIC DEVELOPMENT Office Hours Support – New & Existing Businesses ECONOMIC DEVELOPMENT Office Hours Support – Industry Analysis ECONOMIC DEVELOPMENT Office Hours Support – Services Provided ECONOMIC DEVELOPMENT Office Hours Support – Businesses Total Employees ECONOMIC DEVELOPMENT Office Hours Support – Businesses Years of Operation ECONOMIC DEVELOPMENT Office Hours Support – Business License Status Direct Business Support – Office Hours ECONOMIC DEVELOPMENT REAL ESTATE TRANSITION VERIFICATION OF CITY ZONING INTERNAL DEPARTMENTAL COORDINATION IDEAL RESOLUTION FOR THE SMALL BUSINESS 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 Upcoming Workshop Topics: •AI Adoption – How to Implement and Use •Real Estate – How to Negotiate your Lease ECONOMIC DEVELOPMENT Small Business Workshops – Upcoming Calendar 2026 Dates •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: Chamber Events Page https://web.carlsbad.org/atlas/calendar ECONOMIC DEVELOPMENT Digital Resource Hub – Businesses & Residents ECONOMIC DEVELOPMENT Digital Resource Hub – Website Usage & Analytics 5311 2360 473 212 286 140 2972 548 203 147 139 135 0 1000 2000 3000 4000 5000 6000 Tota l /business/digital-hub /business/digital-hub/small-business-insights /business/digital-hub/shop-local /business/digital-hub/small-business-advisor /business/digital-hub/pulse Digital Resource Hub - Website Analytics Active users Vie ws ECONOMIC DEVELOPMENT Business Walks Proactive, citywide outreach program targeting business parks and Village corridors Multi-department effort to engage businesses and connect them to services in real time Structured approach with data tracking and follow-up to deliver actionable solutions Identifies key trends impacting the business community Ongoing coordination to refine, expand, and strengthen business support efforts ECONOMIC DEVELOPMENT Business Open House NEW DATE: Thursday, May 28 ECONOMIC DEVELOPMENT Industry Gatherings •Monthly gatherings attract 50+ regular attendees from key industries •Evolved from small discussions to larger forums for trend analysis, business insights, and industry connections •Serves as an introduction to Carlsbad for some businesses interested in local sites •Facilitates partnerships and connections among local businesses and stakeholders •Informs future programming and resource allocation to support industry competitiveness Upcoming Events: April 29 - Gaming Tech Night at The Op Games May 27 - Life Sciences at Pictor ECONOMIC DEVELOPMENT CALED Presentation How Jurisdictions Can Turn Data into Actionable Economic Development Tools Anita Kaur Walia, Small Business Manager, County of San Diego Rachel Maltz, Senior Program Manager & Small Business Liaison April 17, 2026 CALED ANNUAL ECONOMIC DEVELOPMENT CONFERENCE 2026 Session Objectives: •Learn how to build cross-department collaboration •Discover practical digital strategies for business support •Gain tools to turn data into actionable insights •Identify ways to improve workflows and efficiency •Hear real-world examples •Walk away with ideas to strengthen business engagement CALED ANNUAL ECONOMIC DEVELOPMENT CONFERENCE 2026 Economic Development Dashboard CALED ANNUAL ECONOMIC DEVELOPMENT CONFERENCE 2026 Show eligible properties within allowable zones Life Science Manufacturing Plant Site Selector Tool Site Selector Tool Site Selector Tool ECONOMIC DEVELOPMENT Site Selection Tool ECONOMIC DEVELOPMENT i4x - Project Timeline February 24 Comprehensive Site Selection & Zoning Research January 13 Program Kick-off March 30 Final Zoning Matrix & Key Considerations Report April 14 Initial Product Design April 28 Product Refinement May 21 Final Presentation & Demo Day to Partner Organization 2025 ECONOMIC DEVELOPMENT i4x – Carlsbad Site Visit ECONOMIC DEVELOPMENT Business Page Re-design Goals of the Business Page Redesign? Goals of the Business Page Redesign? Goals of the Business Page Redesign? Goals of the Business Page Redesign? Goals of the Business Page Redesign? Local and Regional Partners ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT Startup Week – Dates Announced! San Diego Startup Week 2026 Happening November 2-6, 2026. Join us for San Diego Startup Week! ECONOMIC DEVELOPMENT Innovate78 ECONOMIC DEVELOPMENT Public-Private Partnership (PPP) What is a Public-Private Partnership (PPP)? A public-private partnership (PPP) is a long-term contractual arrangement between a government entity and a private partner to deliver a public asset or service. ECONOMIC DEVELOPMENT Promotion of PPP Cities can promote PPPs Local governments across the U.S. routinely encourage PPPs to deliver infrastructure, economic development projects, housing, and services. In California, this is generally allowed under municipal powers, as long as the city: •Serves a public purpose •Follows procurement and contracting laws •Avoids giving improper private benefit without public value in return ECONOMIC DEVELOPMENT PPP - Economic Development THANK YOU! ECONOMIC DEVELOPMENT