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HomeMy WebLinkAbout2026-07-21; Economic Development Subcommittee; 05; Economic Development Strategic Actions UpdateMeeting Date: July 21, 2026 To: Economic Development Subcommittee From: Tess Sangster, Economic Development Director Staff Contact: Tess Sangster, Economic Development Director Tess.sangster@carlsbadca.gov, 760-607-2923 Subject: 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 Economic Conditions & Outlook Economic conditions across the United States continue to show resilience in 2026, with steady consumer spending, ongoing business investment—particularly in technology, artificial intelligence, and advanced manufacturing—and a stable but cooling labor market. Inflation has eased from prior highs but remains above target, and the Federal Reserve’s higher interest rate environment continues to influence borrowing costs, capital access, and expansion decisions. Trade policy uncertainty and tariff-related pressures continue to challenge supply chains and input costs, while employers across sectors still report difficulty attracting and retaining skilled talent. In California, economic performance remains uneven, with strength in innovation-driven sectors such as technology, life sciences, defense, and advanced manufacturing, offset by continued pressure in rate-sensitive industries like retail, hospitality, and construction amid persistent affordability challenges. The San Diego region continues to benefit from its diversified economy— anchored by life sciences, defense, tourism, and innovation—with relatively low unemployment and a stabilizing commercial real estate market, though housing affordability remains a key constraint. Locally, Carlsbad remains well-positioned due to its strong innovation clusters, educated workforce, and high quality of life, with continued business attraction and expansion activity in life sciences, technology, advanced manufacturing, and active lifestyle industries. Overall, while growth is ECONOMIC DEVELOPMENT SUBCOMMITTEE July 21, 2026 Item #5 Page 1 of 6 expected to be more moderate, Carlsbad, San Diego, California, and the broader U.S. economy remain resilient with continued opportunities driven by innovation and long-term structural strengths. 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 300 businesses, marking a key milestone and 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. Small Business Liaison Program Update The Small Business Liaison Program continues to provide valuable support to Carlsbad businesses through direct engagement, personalized assistance, and regular Business Office Hours. Staff remain actively connected to the business community, helping entrepreneurs and business owners navigate city processes while connecting them to resources that support business growth and success. Current areas of assistance continue to center around site selection reports, signage guidance, financial resource connectivity, marketing support, and business visibility opportunities. Through ongoing outreach and one-on-one engagement, staff can identify business needs, address challenges, and connect businesses with relevant partners and resources. Digital Resource Hub Update The Digital Resource Hub remains an important resource for Carlsbad businesses, providing access to market data, business intelligence tools, and local business resources. Staff are currently working through the renewal process for the platform with the city’s vendor, SizeUp, and maintaining ongoing coordination to ensure continued access to these services. As part of this partnership, staff will begin discussions on priorities and implementation planning for the upcoming fiscal year to maximize the platform’s value and alignment with economic development goals. Business Office Hours Program Update The Business Office Hours program launched its pilot phase in July 2025 and has quickly become an effective tool for increasing access to economic development services and providing personalized support to Carlsbad’s business community. This report represents the program’s initial performance update and highlights the value of direct, one-on-one engagement with business owners, entrepreneurs, and residents exploring new business opportunities. Since launch, the program has served over 100 businesses and residents, resulting in over 250 individual services and referrals provided. Participants have included existing businesses seeking assistance with growth and operational needs, as well as over 80 new startup businesses starting a business in Carlsbad. Common topics of assistance have included business licensing, site selection, signage requirements, permitting guidance, financing resources, marketing support, and connections to city departments and partner organizations. July 21, 2026 Item #5 Page 2 of 6 The strong response to the pilot program reinforces the importance of accessible, relationship-based business support. Staff will continue to track participation, service categories, and business outcomes to better understand community needs and inform future program enhancements. Building on the success of the pilot, the city will continue its partnership with the Carlsbad Village Association to offer Business Office Hours on the first Wednesday of every month from 9:00 to 11:00 a.m. These sessions will provide ongoing opportunities for businesses and entrepreneurs to connect directly with city staff, receive individualized assistance, and access resources that support business success and long-term economic vitality in Carlsbad. Small Business Workshop Series The Small Business Workshop Series continues to be offered monthly in partnership with the Carlsbad Chamber of Commerce, providing free, in-person educational and networking opportunities for local businesses. The workshops are designed to equip business owners with practical tools, expert guidance, and peer connections that help strengthen operations, improve competitiveness, and support long-term growth. Over the past year, staff has expanded programming to address emerging business needs. These sessions provided businesses with an introduction to AI tools and strategies for integrating AI into day-to-day operations, as well as hands-on training designed to help participants identify practical applications within their own organizations. Given the strong interest and rapidly evolving nature of AI technology, this topic will continue to be incorporated into future workshop programming. The series also recently featured a commercial real estate workshop focused on lease negotiation strategies, a topic that continues to be of significant interest to businesses looking to expand, relocate, or establish their first physical storefront. Access to commercial space remains a critical consideration for many entrepreneurs and growing businesses, and workshops such as these provide valuable information to help business owners make informed decisions and navigate the leasing process with confidence. By continuing to offer relevant, timely, and business-driven content, the workshop series remains an important component of the city's efforts to support entrepreneurship, business retention, and economic vitality throughout the Carlsbad community. Carlsbad Business Walks Program Feasibility Assessment Staff are evaluating the feasibility of developing a Carlsbad Business Walks Program as a proactive, citywide business outreach initiative designed to strengthen relationships with local businesses across key commercial areas. As part of this assessment, staff are exploring the formation of an internal Economic Development Ambassadors working group to foster cross-departmental collaboration and support coordinated business engagement efforts. The assessment will evaluate opportunities to educate ambassadors on local business activity, City resources, and economic development initiatives; increase awareness among both staff and businesses of available programs and services; and strengthen internal communication and resource-sharing to better connect businesses with City support. Findings from this evaluation will help determine the program's structure, resource needs, operational approach, and potential next steps for implementation. July 21, 2026 Item #5 Page 3 of 6 Business Webpage Overhaul Staff is currently in the final implementation phase of the city’s Business Webpage Overhaul and is preparing for the updated pages to go live. Developed in collaboration with the Communications team, the redesigned website aims to create a more intuitive, business-focused user experience that makes it easier for entrepreneurs, business owners, and site selectors to access information and resources. The updated structure will feature a dedicated business landing page that serves as the primary entry point for economic development services and business support resources. In addition, four new subpages have been developed to provide targeted information for businesses at various stages of growth. These pages will include resources and guidance for starting a business, growing and expanding a business, workforce and talent development opportunities through the city’s Life in Action campaign, and a data and insights section designed to provide businesses with market information, demographic data, and other tools to support decision-making. The overhaul reflects the city’s ongoing commitment to improving access to information, enhancing the customer experience, and providing businesses with the resources they need to succeed. Once launched, the updated website will serve as a comprehensive digital resource hub that better supports business attraction, retention, and expansion efforts throughout Carlsbad. Site Selector Tool To better position Carlsbad as a competitive location for businesses looking to expand, relocate, or invest, staff is advancing development of a Site Selector Tool that will integrate with the city’s existing Geographic Information Systems (GIS) mapping platform. The tool will provide users with access to available commercial properties and site-specific information through an intuitive, user- friendly interface, helping businesses more efficiently evaluate opportunities within the city. The project has progressed significantly, and the city now has a fully executed agreement with GIS WebTech, a leading provider of economic development mapping and site selection solutions. The agreement has been reviewed and approved internally, allowing the project to move into the implementation phase. Over the coming months, staff will work closely with GIS WebTech, the city’s GIS team, and Information Technology Department to develop an implementation plan, configure the platform, and identify the data layers and functionality that will best support business attraction and retention efforts. Once completed, the Site Selector Tool will be integrated into the city’s website, providing prospective businesses, commercial brokers, site selectors, and investors with streamlined access to property and community information. As part of the city’s broader economic development strategy, the Site Selector Tool will enhance Carlsbad’s ability to market available sites, respond to business inquiries, and showcase the community’s strengths as a premier destination for investment and growth. Top Employer Outreach Initiative As part of the city’s ongoing business retention and expansion efforts, staff are launching a targeted outreach initiative focused on Carlsbad’s largest employers across a variety of industry sectors. Using internal business license and economic data, staff identified key employers based on factors July 21, 2026 Item #5 Page 4 of 6 including gross receipts, employee counts, longevity of operations, and overall economic contribution to the community. This data-driven approach will help ensure outreach efforts are focused on businesses that play a significant role in Carlsbad’s economic vitality. Through direct engagement with these employers, staff will seek to better understand their current operations, future growth plans, workforce needs, and any challenges that may impact their ability to expand or remain competitive. These conversations will provide an opportunity to strengthen relationships, connect businesses with available resources, and identify ways the city can support their continued success. Insights gathered through this outreach effort will help inform economic development strategies, enhance business retention efforts, and ensure the city remains responsive to the needs of its major employers while fostering a business-friendly environment that supports long-term growth and investment. Council Business Visits Program Staff are developing a Council Business Visits Program to strengthen engagement between City Council and Carlsbad's key employers while highlighting the city's major industry clusters. The program will provide opportunities for Councilmembers to visit local businesses, gain firsthand insight into industry trends, workforce needs, and operational challenges, and showcase the innovation and investment occurring throughout the community. These visits will foster ongoing dialogue between business leaders and city leadership, helping identify opportunities to support business retention, expansion, and long-term economic growth while reinforcing Carlsbad's commitment to maintaining a strong business-friendly environment. Regional Partnerships Economic Development staff continues to work closely with the Innovate78 partner cities to strengthen North County’s innovation and startup ecosystem through coordinated regional initiatives. Staff are currently collaborating with regional partners on the development of a new agreement focused on expanding support for startups, entrepreneurs, and innovation-driven companies throughout the Innovate78 corridor. This effort is intended to further enhance regional connectivity, increase access to entrepreneurial resources, and strengthen the region’s position as a leading destination for innovation and business growth. In addition, the City of Carlsbad is proud to once again serve as the host community for the opening day of Startup Week, marking the fifth consecutive year that the city has welcomed entrepreneurs, founders, investors, and innovation leaders to the community. Scheduled for November 2, 2026, the event will bring together startups, venture capital firms, business leaders, and ecosystem partners in Carlsbad Village to foster collaboration, share knowledge, and highlight the region’s entrepreneurial momentum. Staff are currently coordinating event logistics and programming with regional partners, with additional announcements and event details to be released through the Startup Week website in the coming months. Hosting Startup Week continues to be an important opportunity to showcase Carlsbad’s innovation economy, attract entrepreneurial talent and investment, and reinforce the city’s role as a key contributor to North County’s growing startup ecosystem. July 21, 2026 Item #5 Page 5 of 6 Industry Gatherings The Life in Action Industry Gatherings continue to serve as an important platform for connecting businesses, industry leaders, entrepreneurs, and ecosystem partners across North County. Building on the success of previous events, staff has established a schedule for the upcoming fiscal year and is actively coordinating with industry partners to deliver targeted networking and knowledge-sharing opportunities that support business growth and regional competitiveness. The upcoming series will focus on several of Carlsbad’s key industry clusters, including technology, life sciences, and sports and active lifestyle. Through these gatherings, staff aims to foster stronger connections among peers, mentors, investors, educational institutions, and support organizations while highlighting the strengths of North County’s innovation economy. As the Life in Action campaign continues to evolve, these events will remain a cornerstone of the city's efforts to strengthen industry engagement, encourage collaboration, and create opportunities for businesses to learn from one another. By convening stakeholders across sectors, the series supports the continued growth of Carlsbad's business community while reinforcing the region's reputation as a leading hub for innovation, entrepreneurship, and industry leadership. 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. Exhibits None July 21, 2026 Item #5 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. E C O N O M I C D E V E L O P M E N T 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 were implemented for fiscal year 2025-26 E C O N O M I C D E V E L O P M E N T E C O N O M I C D E V E L O P M E N T Fiscal Year 2026-27 Actions •Total Strategic Actions: 63 36 19 8 0 5 10 15 20 25 30 35 40 Complete In Progress Not Started Status Amount St r a t e g i c A c t i o n s Goal 1: Support Small Businesses, Startups & Entrepreneurs •Create a program to give planning and building staff better insight into operations in key industries, thereby giving a better understanding of development need. •Partner with the Employer Assistance and Resource Network on Disability Inclusion (EARN) to create resources for disabled-owned businesses. E C O N O M I C D E V E L O P M E N T Fiscal Year 2026-27 Actions Goal 2: Workforce Development and Talent Attraction •Partner with K-12, school districts, and higher education institutions to enhance their existing programs that provide technical and soft skills to entry level employees. E C O N O M I C D E V E L O P M E N T Fiscal Year 2026-27 Actions Goal 3: Supporting Key Industries •Partner with local universities and colleges to create workforce development opportunities in the hospitality, tourism, and entertainment sectors. E C O N O M I C D E V E L O P M E N T Fiscal Year 2026-27 Actions Goal 4: Placemaking and Engagement •Develop and promote “how to” videos for select permitting processes. •Partner with local businesses to participate in and promote the City’s volunteer program to activate public spaces and foster a sense of connection. •Continue to celebrate local artists by enhancing the City’s Public Art Collection. •Expand the City's parklet program to create additional green space and community gathering opportunities. E C O N O M I C D E V E L O P M E N T Fiscal Year 2026-27 Actions E C O N O M I C D E V E L O P M E N T Current Economic Trends •U.S. economy remains resilient with steady consumer spending, business investment, and continued growth in technology, AI, and advanced manufacturing. •Inflation and higher interest rates continue to impact costs, capital access, and business expansion decisions. •Trade uncertainty and tariffs continue to pressure supply chains and input costs. •California’s economy remains uneven with strength in innovation sectors and continued challenges in rate- sensitive industries. •Carlsbad remains well positioned with strong industry clusters, skilled talent, continued business investments E C O N O M I C D E V E L O P M E N T Direct Business Support – Summary 300+ Businesses Supported 540+ Total Projects 110+ New Businesses 2900+ 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 August 5th 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 E C O N O M I C D E V E L O P M E N T Small Business Liaison Office Hours E C O N O M I C D E V E L O P M E N T Office Hours – Summary 100+ Businesses Supported 250+ Total Projects 80+ New Businesses 135+ Employees Supported 2.68 Years Average Operations E C O N O M I C D E V E L O P M E N T Office Hours Support – Industry Analysis E C O N O M I C D E V E L O P M E N T Office Hours Support – Services Provided E C O N O M I C D E V E L O P M E N T 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: •Leadership – How to Fill the Leadership GAP: When You Were Hired for Your Brilliance, But Then Expected to Lead In Process of Planning FY 26-27 Workshop Topics E C O N O M I C D E V E L O P M E N T Small Business Workshops – Upcoming Calendar 2026-2027 Dates •July 27, 2026 •August 27, 2026 •September 28, 2026 •October 26, 2026 •November 23, 2026 •December 28, 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 •January 25, 2027 •February 22, 2027 •March 22, 2027 •April 26, 2027 •May 24, 2027 •June 28, 2027 E C O N O M I C D E V E L O P M E N T Digital Resource Hub – Businesses & Residents E C O N O M I C D E V E L O P M E N T Top Employers Outreach Initiative E C O N O M I C D E V E L O P M E N T Council Business Visit Program •GOAL: Formalize a strategic Council Business Visits Program to provide insights to key industry clusters, workforce development and talent pipelines, and opportunities to explore ways the city may best support our businesses. Key Objectives: •Strengthen relationships between City Council and Carlsbad's key employers. •Increase understanding of industry trends, workforce needs, and business challenges. •Showcase innovation and investment across Carlsbad's key industry clusters. •Identify opportunities for the City to better support business growth, retention, and expansion. •Foster ongoing dialogue and collaboration between business leaders and City leadership E C O N O M I C D E V E L O P M E N T Business Engagement Ambassador Program 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 E C O N O M I C D E V E L O P M E N T Economic Development Ambassadors •GOAL: Develop a program to conduct coordinated outreach to various business parks and commerce centers; focusing on developing an internal Economic Ambassadors Program. •Key Objectives: •Build collaboration across City staff through coordinated working group; Economic Development Ambassadors. •Educate ambassadors on local business activity, resources, and economic development initiatives. •Increase awareness among staff and businesses of available programs, services, and opportunities. •Strengthen internal communication and resource-sharing to better connect businesses with City support. E C O N O M I C D E V E L O P M E N T 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: August 13 – Arete Biosciences September – TBD – Partnering with SDSI Oct 13 – Alphatec Spine E C O N O M I C D E V E L O P M E N T Site Selection Tool E C O N O M I C D E V E L O P M E N T Site Selector Tool Site Selector Tool Site Selector Tool E C O N O M I C D E V E L O P M E N T Implementation - Project Timeline August System Configuration July 15 Project Kick-off September System Implementation October User Testing November Product Launch Ongoing Product Feedback & Refinement 2026 E C O N O M I C D E V E L O P M E N T Business Page Re-design E C O N O M I C D E V E L O P M E N T Business Page Re-design E C O N O M I C D E V E L O P M E N T Business Page Re-design E C O N O M I C D E V E L O P M E N T Business Page Re-design E C O N O M I C D E V E L O P M E N T Business Page Re-design E C O N O M I C D E V E L O P M E N T Business Page Re-design Local and Regional Partners E C O N O M I C D E V E L O P M E N T E C O N O M I C D E V E L O P M E N T Startup Week – Hosting Nov 2nd in Carlsbad Ha p p e ning Nove m b e r 2 -6, 2026. Join us for Sa n Die g o Sta rtup We e k! sa nd ie g osta rtup we e k.org THANK YOU! E C O N O M I C D E V E L O P M E N T