HomeMy WebLinkAbout2022-02-10; Economic Development Update (Districts - All); Rocha, LauraTo the members of the:
CITY COUNCIL
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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