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HomeMy WebLinkAbout2022-02-10; Economic Development Update (Districts - All); Rocha, LauraTo the members of the: CITY COUNCIL DateJ'O /72-CA £ CC V CM _ACM ✓ DCM (3) V Council Memorandum Feb. 10,2022 To: From: Via: Re: Honorable Mayor Hall and Members of the City Council Laura Rocha, Deputy City Manager, Administrative Services David Graham, Chief Innovation Officer Geoff Patnoe, Assistant City Manager @ Economic Development Update (Districts -All) {city of Carlsbad Memo ID #2022023 This memorandum provides an update on city economic development activities. It also includes relevant discussion and recommendations from the Economic Development Subcommittee meeting of Jan. 10, 2022. Background Economic vitality is a City Council goal theme and one of significant interest to the community. The city has dedicated resources to address the economic response to the COVID-19 pandemic and helping businesses recover. While the impact of the COVID-19 pandemic to many small businesses, retail, hospitality, and tourism has been significant, other industry clusters, like life- sciences, have thrived. To support an ongoing focus on economic vitality, the City Council . created a standing committee to provide input to city staff and the City Council on economic development. Key economic development activities and actions of the Economic Development Subcommittee are summarized below. COVID-19 Response Over the last quarter, COVID-19 has had a fluctuating level of impact on Carlsbad's economy. The discovery of a new variant and growing case rates through the fall caused new challenges for the economy. While no new regulations on businesses have been put into effect, the California Department of Public Health (CDPH) did issue a new statewide indoor mask mandate that began on Dec. 15, 2022. Originally set to expire on Jan. 15, 2022, state officials have extended the mask requirements until Feb. 15, 2022, to combat an ongoing case surge. In response to any new information from the state, city staff continue to coordinate with the Carlsbad Chamber of Commerce and Carlsbad Village Association to notify businesses of relevant information via joint communications. The city is also working with its businesses and business organizations on any additional business supports or interventions that could help address the impact of the COVID-19 pandemic. The city still has a COVID-19 Small Business Loan Program, has contributed to the Gift Carlsbad Program, and regularly assesses the need for additional programs to support businesses. Administrative Services Branch Innovation & Economic Development Department 1635 Faraday Ave 'i Carlsbad, CA 92008 'i 760-602-4620 Council Memo -Economic Development Update (Districts -All) Feb. 10,2022 Page 2 COVID-19 Inclusive Recovery Assessment and Implications Update In May of 2021, staff presented the City Council with an inclusive recovery assessment and implications update. It outlined steps to improve and build capacity of city economic development operations, to expand access to business supports at a regional level, to improve access to talent and prepare for future disruptions. Staff have used the inclusive recovery assessment and implications to guide the development of several new and ongoing programs. This includes: • Bolstering data and research capacity, which allows staff to adapt programming and services based on real-time economic arid business challenges • Strengthening the city's communications channels with businesses, utilizing partnerships like the Joint Communication framework • Improving small business support like the "Start a business in Carlsbad" portal that will provide individuals with the information and resources necessary to start a business • Pursuing ongoing regulatory flexibility, such as reevaluating the sidewalk cafe and curb cafe programs in the Village and Barrio area • Maintaining capital-access programs, like the Business Recovery Loan Program • Using city-owned communications channels to support and promote local businesses • Leveraging partnerships to improve business access to regional support organizations and programs by increasing connectivity with organizations like CONNECT, the Regional EDC, Startup San Diego, the San Diego North EDC and others • Continuing sub-regional collaborations like the lnnovate78 partnership with other 78 Corridor cities • Working with CSU San Marcos, UC San Diego, and MiraCosta College on the ideation and development of programs that better connect students and graduates with Carlsbad companies • Leveraging platforms like Carlsbad Life in Action Recruiter to showcase Carlsbad's economy and recruit new talent from outside the city and region • Continuing to evaluate and prepare for potential macro shifts in the economy, which could demand innovative solutions • Connecting with relevant internal departments and external vendors to evaluate how to best enhance broadband connectivity to businesses and residents The inclusive recovery assessment serves as a bridge as the city moves from a COVID-19 pandemic economic response to recovery, and eventually, with the development of the economic development strategic plan, a long-term approach to economic vitality. Council Memo -Economic Development Update (Districts -All) Feb. 10,2022 Page 3 Economic Development Strategic Plan At the direction of City Council, and with funding that the City Council has approved, staff is working on a long-term Economic Development Strategic Plan, After evaluating several highly qualified vendors, staff selected RSG, Inc. (RSG} to support the Economic Development Strategic Plan development. The mission of RSG is to create solutions to enhance the physical, economic, and social capital of local communities. With over 40 years of experience, RSG works with about 100 cities and counties annually on community development, economic development and fiscal health strategies and programs. For Carlsbad, the Economic Development Strategic Plan process will incorporate the work done by Cities GPS for the inclusive recovery assessment and implications report. It will include an evaluation of current economic development efforts, consider COVID-19 pandemic impacts, leverage public input from businesses, workers, and residents, and draw on best practices that may be applicable in Carlsbad. The process and outcomes are also data-driven with a keen focus on the characteristics of the Carlsbad economy, its position in the region, and community factors that affect the economy. The next steps will be a series of engagement sessions in late-February through early March. Relevant information gathered from this effort to engage with residents, the workforce, and businesses will also be funneled into the City Council strategic planning process. Carlsbad Banner Program The city's Street Banner Program uses light post banners to beautify the Village, enhance placemaking, and promote Carlsbad as a destination. The city has traditionally contracted with a vendor to fabricate and install the banners. The themes that have been used have been focused on Carlsbad as an enjoyable place to live, work, and play. During the holidays there have been banners that have focused on a holiday theme. During the height of the COVID-19 pandemic the program was temporarily repurposed to provide public health reminders regarding healthy practices like wearing face masks, washing hands, and maintaining social distancing. During the summer of 2021, the city shifted from a public health message to one that promotes placemaking and contributes to the vibrancy ofthe Village. Staff evaluated the city's Street Banner Program and options, including soliciting interest from several potential vendors. Ultimately, the Carlsbad Village Association (CVA) was selected to install, maintain and store banners for a total annual cost not to exceed $35,000. The CVA has a strong reputation of understanding the needs of businesses, the importance of creating a welcoming environment, and a deep knowledge of creating a uniquely Carlsbad experience. As the Street Banner Council Memo -Economic Development Update (Districts -All) Feb. 10,2022 Page 4 Program operator, the CVA is able to increase the number of banner change-outs during a year and has expanded the number of locations where banners are displayed. The CVA also manages banner production, maintains banners, and provides storage for the Street Banner Program. The level of service provided by the CVA is more cost-effective than the city's previous vendor. The current location of the banners are: • 116 Standard Banners {30" X 96") o 74 in the Village on 10 major streets from Carlsbad Boulevard to the freeway o 30 outside of the Village in high traffic areas that include Paseo Del Norte, Cannon Road, Palomar Airport Road, Armada Drive, and the Carlsbad Premium Outlets o 12 at The Forum Carlsbad shopping area • 4 Oversize Banners (48" X 120") o Four large banners are prominently displayed in the Village on Grand Avenue The Street Banner Program produced and installed new banners on Jan. 17 and 19, 2022. There are a total of nine new designs that tell the story of the Village experience, which include images of the coastline, sunsets, active lifestyle (surfing, biking), as well as four that draw attention to the dining and shopping in downtown Carlsbad. There are also a total of eight new designs that tell the story of the City of Carlsbad which include images of the beach, the Flower Fields, the trails, the lagoon, the public golf course, the strawberry field, as well as two that promote dining and shopping locally. These designs will be used in all locations around the city, except the Village area. With the increase in locations and updated banners, there is an opportunity to expand the Street Banner Program even further in other Carlsbad retail/commercial areas, such as Bressi Ranch, the La Costa Canyon area and others. There would be a cost associated with an expansion of the Street Banner Program, however, the city has received interest from various areas of the city that are not currently covered by the Street Banner Program. On Jan. 10, 2022, the Economic Development Subcommittee (subcommittee) provided input regarding the potential of expanding the Street Banner Program. The subcommittee suggested that an evaluation of potential locations and costs associated with expanding the Street Banner Program be pursued for future consideration. Staff are working with the CVA to evaluate expansion opportunities, the value of expansion and the costs associated with an expansion. Council Memo -Economic Development Update (Districts -All) Feb. 10, 2022 Page 5 Life in Action Update Fostering a thriving economy is a multi-pronged approach and one that cannot overlook the importance of talent and the workforce. Carlsbad has had programs dedicated to talent attraction and retention for many years. Staff evaluated the impact of Carlsbad Life in Action at the end of 2021 in comparison with 2020. Momentum continued to grow in 2021 when a reimagined website and digital presence were launched. Staff analyzed the data and looked to expand the digital tools and engagement to create a robust talent attraction and retention campaign. Across the board there has been continued growth in the activity connected with Life in Action. The Life in Action job board is the second most visited page on the website, generating 3,756 unique page views in 2021, a 113% increase from 2020. The Life in Action website garnered over 22,345 users in 2021, a 22.1% increase from 2020. The activity growth is attributed to more engaging content, regularly refreshed approaches to communication, enhanced search engine optimization, improved features such as a "Relocation Quiz" and Carlsbad company map, and an increase in the amount of original content being generated. In 2021, the Life in Action team increased the frequency of original content, curating 20 biogs featuring 63 Carlsbad businesses compared to 14 blog posts in 2020. The campaign also updated its digital engagement strategy to diversify the content across the department's four platforms. In 2021, the program generated 208 Linkedln posts, 520 Twitter posts, 156 Facebook posts, and 180 lnstagram posts. Engagement and activity have seen significant increases across all platforms. In 2021, the Life in Action Linkedln and lnstagram pages surpassed 1,000 and 1,500 followers respectively. Linked In stands out at the primary social media platform driving visitors to the Life in Action website, indicating that job seekers, prospective talent and hiring managers are finding the content and tools on the site very useful. The #CarlsbadCareers campaign on Linked In featured 160 job openings at over 100 Carlsbad businesses in 2021. Twitter and Facebook have also been critical tools to deliver business support resources, especially during the COVID-19 pandemic. In August 2021, the Life in Action Recruiter tool was launched. This was a formative step in moving beyond marketing and promotion and connecting a pipeline of talent directly with Carlsbad companies. The Life in Action Recruiter tool allows staff to connect job seekers with Carlsbad businesses in different industries based on the individual's skillset and background. Since its launch, the Life in Action Recruiter tool has connected over 120 candidates with 12 participating Carlsbad businesses. Staff are looking to expand the Life in Action Recruiter Program by connecting with more businesses who want to participate. The expansion will also include soliciting feedback from employers to optimize the Life in Action Recruiter Program. Council Memo -Economic Development Update (Districts -All) Feb. 10,2022 Page 6 Overall, the Life in Action Program and its use of technology is a standout in the state, if not the country, particularly for a mid-sized city like Carlsbad. Business Expansion, Attraction, and Retention (BEAR) Update Over the past several months, Economic Development staff have been engaged on several large BEAR projects that are expected to yield gains in employment and new investment in the city. At any given time, staff are working with approximately 25-35 companies looking to locate to Carlsbad or to grow in the city. Direct engagement on the complex issues of locating a company in Carlsbad or expanding it requires significant staff time but results in direct value to the city in terms of jobs and tax revenue. Thermo Fisher Scientific continues to renovate space at their facility, converting warehouse and office space to lab and biopharmaceutical production space. The space will be used to develop media used in both DNA and mRNA vaccines to fight COVID-19 and other diseases. Beyond the immediate expansion, Thermo Fisher is pursuing further expansion through acquisition of new space and potentially building several new buildings. Thermo Fisher's current estimate is that its Carlsbad presence could double. Staff is supporting the company through an accelerated development process and evaluation of further expansion opportunities. Aptera Motors, makers of solar-powered, aerodynamic electric vehicles, has selected Carlsbad for its production manufacturing facility. The company is evaluating how to best setup its production and assembly space. Staff are working with the company to expeditiously address its needs. Aptera is expected to generate significant sales tax revenue, though an exact figure is not known at this time. Cruzan, owners of the MAKE and COMMERCE developments on Avenida Encinas, have partnered with Alexandria Real Estate Equities, Inc. (ARE) to redevelop several buildings on those campuses. The Cruzan/ARE development team is working with staff on renovating 50,000 sq . ft. at MAKE for a new biotech research and development company that is moving from the Pasadena area to Carlsbad. The partnership with ARE is significant, as ARE is the largest developer of life sciences space in the country. MiQ Partners has completed its headquarters move from Ohio to Carlsbad, with a grand opening in November. MIQ provides custom automation and other services for medical device, life sciences, industrial, automotive, aerospace, and food and beverage industries. The city's BEAR efforts are a core component of supporting a vibrant economy. Staff are dedicated to problem-solving, finding innovative solutions, communicating requirements Council Memo -Economic Development Update (Districts -All) Feb. 10,2022 Page 7 clearly, and collaboratively understanding how the city can make Carlsbad the best place for them to do business. Next Steps Staff will continue with the ongoing Economic Development activities of COVID-19 response and recovery, developing an Economic Development Strategic Plan, BEAR activities, talent attraction, and various other programs that contribute to a thriving economy. In late February and early March, staff will hold several workshops, in conjunction with its consultant, to solicit input for the Economic Development Strategic Plan. The results of that engagement will inform the development of the Economic Development Strategic Plan that is expected to go to the Economic Development Subcommittee and then to City Council in early summer. In the ongoing management of the city's Street Banner Program, the next step will be to produce and install several new spring designs that replace some, but not all, of the existing banners to recognize the change in seasons while keeping design consistency. Staff will also evaluate potential expansion locations and assess the related costs. cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Laura Rocha, Deputy City Manager, Administrative Services Suzanne Smithson, Library & Cultural Arts Director Kristina Ray, Communications and Engagement Director Roxanne Muhlmeister, Assistant Finance Director Matt Sanford, Economic Development Manager