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HomeMy WebLinkAbout2015-02-24; City Council; 21873; Economic Development Activity UpdateCITY OF CARLSBAD-AGENDA BILL AB# MTG. DEPT. 21873 2/24/2015 CEO RECOMMENDED ACTION: RECEIVE AN ECONOMIC DEVELOPMENT DEPT. DIRECTOR ACTIVITY UPDATE FROM THE CITY'S ECONOMIC CITY ATIY. DEVELOPMENT MANAGER CITY MGR. Receive an economic development activity update from the city's Economic Development Manager. ITEM EXPLANATION: The Economic Development Manager is charged with nurturing the city's strong and diverse economy, growing its position as an employment hub in San Diego County. City Council Priority Projects related to economic development include: • Implementing a business retention and expansion program; • Developing a strategy focused on attracting the talent and innovators to help our businesses compete in a global economy; and • Working with other municipalities and economic development partners to optimize Carlsbad and North County economic development efforts. This report will provide an update of these goals and discuss next steps. FISCAL IMPACT: No funding is being requested at this time. ENVIRONMENTAL IMPACT: 10 Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. DEPARTMENT CONTACT: Christina Vincent 760-602-2712 christina.vincent@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED WITHDRAWN AMENDED D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF COUNCIL RECEIVED THE REPORT /PRESENTATION OTHER-SEE MINUTES D ____ _ D D ~ D Economic Development Program Update Christina Vincent, Economic Development Manager City Council Update February 24, 2015 2 Economic Development Goals •Retain & expand businesses •Talent attraction campaign •Leverage partnerships & regional resources Economic Indicators Business tax revenue approx. 60% of total revenue (property taxes, sales tax, business license, TOT) •Unemployment rate continues to decrease •Commercial vacancy rates continue to decline •Transient Occupancy Tax revenue historic levels •Property values in Carlsbad have increased •Actual sales tax transactions increased 3 4 $0 $20 $40 $60 $80 $100 $120 2006 2007 2008 2009 2010 2011 2012 2013 2014MillionsBusiness Tax Revenue Business License Transient Tax Sales Tax Property Tax $90 M $94 M $88 M $88 M $91 M $94 M $99 M $103 M $84 M 5 Unemployment Rate Compare to the previous year 8.0 7.0 6.0 Ql bO -2011 I'll .. -2012 ~ 5.0 u .. -2013 Ql Cl. 4.0 -2014 3.0 2.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 6 Carlsbad 3.4% 9 8 7 6 5 4 3 2 1 2014 Unemployment Rate A National Comparison -National -state -county -carlsbad ~---------~~---------------~ ----- 0 +---~----~----~--~----~--~----~----~--~----~----~--~ Jan Feb Mar Apr May Jun Jul Aug Sep Oct 7 Industrial 11.0% Office 14.7% Carlsbad Vacancy Rates -Office -Industrial 2006 2007 2008 2009 2010 2011 2012 2013 2014 8 Avg. Rate 68% 95% 90% 85% 80% 75% 70% 65% 60% 55% SO% 45% 40% Hotel Occupancy Rate Jan Feb Mar April May June July Aug Sept Oct Nov Dec Major Development Maps 9 Bi Annual Business Survey •476 businesses participated •85% Businesses indicated Carlsbad was an excellent or good place to do business. •Businesses were 8x’s as likely to be optimistic about business climate. •73% businesses were confident in Carlsbad to make decisions to positively affect business climate. 10 Bi Annual Business Survey •95% Businesses satisfied with Quality of Life. •77% Businesses satisfied with access to clients and customers. •Dissatisfaction: –Regulatory environment (20%) –Local roads/transportation (14%) –Ability to find talent (11%) 11 Bi Annual Business Survey •74% Carlsbad’s larger firms (50+ employees) have grown and expect to continue to grow. •Cluster Expectations for Growth –Action Sports, Life Sciences, Hospitality & Tourism expect above average growth –CleanTech, Info. Communications Tech. expect the same or below average growth 12 By the numbers •6,280 businesses •79,445 employees •Avg. yrs. located in Carlsbad = 10.8 •Avg. number of employees = 16.89 13 58.40%21.30% 12.50% 7.80% Size of Business 1 to 4 employees 5 to 9 employees 10 to 24 employees 25 or more employees Number of Companies KEY INDUSTRY CLUSTER 2012 2013 2014 Information & Communications Technology 254 249 294 Life Sciences 131 180 155 Action Sports Manufacturing 47 45 39 Clean Technology 90 85 54 Hospitality & Tourism 150 154 14 Total Employees KEY INDUSTRY CLUSTER 2012 2013 2014 Information & Communications Technology 9,203 9,558 9,999 Life Sciences 7,033 7,450 6,546 Action Sports Manufacturing 2,773 2,575 2,890 Clean Technology 4,882 5,269 4,693 Hospitality & Tourism 11,941 12,380 14,776 15 Average Wage KEY INDUSTRY CLUSTERS 2012 2013 2014 Information & Communications Technology $114,561 $109,282 $121,320 Life Sciences $128,722 $130,867 $126,566 Action Sports Manufacturing $91,020 $92,641 $95,931 Clean Technology $112,672 $107,030 $120,289 Hospitality & Tourism $25,567 $25,230 $25,469 16 Talent Attraction 17 ...... --· i'lot'll" ...... '***'*'* ... Life In Action™ FY 2014-2015 (to date)Total Print Ads 4 Brochure distribution 1,300 Website users 3,583 Website pageviews 15,673 Website news posts 21 Facebook likes 793 Facebook posts 67 Twitter followers 272 Twitter posts 449 18 Leverage Partnerships •78 Corridor –Contract with San Diego Regional EDC –New position dedicated to efforts –Website and materials under construction •Chamber –Meet monthly to discuss business related topics –Collaborate on events and partnerships –Monthly article in Carlsbad Business Journal •Support regional industry groups 19 Questions? 20