HomeMy WebLinkAbout2022-05-19; Economic Development Activity Update (Districts - All); Rocha, LauraTo the members of the:
CITY COUNCIL
Date'5/tq { ;;GCA ✓CC ~
CM L ACM ~DCM(~} V i
Council Memorandum
May 19, 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 Activity Update (Districts -All)
{city of
Carlsbad
Memo ID #2022062
This memorandum provides an update on city economic development activities. It also
includes relevant discussion and updates from the City Council Economic Development
Subcommittee meeting on May 9, 2022.
Background
Economic vitality is a Council goal theme and one of significant interest to the community. The
city has dedicated resources to support businesses, analyze and address economic disruptions,
and respond to the COVID-19 pandemic.
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
activities. Key economic development activities and actions of the Economic Development
Subcommittee are summarized below.
Economic Conditions
The economic disruption caused by the COVID-19 pandemic continues to wane. Health order
restrictions have been lifted and emergency orders are also being lifted in many areas. While
the case rate ebbs and flows corresponding with new variants and surges, the impact on the
region's health system, as well as business operations has lessened and remains stable.
However, despite the diminishing impacts of COVID-19 on business operations, several other
global disruptions, some of which are caused by COVID-19 in other parts of the world, are
impacting businesses, locally. Through the City's Economic Intelligence & Insights program (Ei2),
staff have monitored these disruptions and where possible, have helped businesses connect to
resources and developed new programming & interventions.
Economic Development Strategic Plan
Economic development staff continue to work with an economic development consultant, RSG
Group, on the development of an Economic Development Strategic Plan to help guide
economic development efforts in Carlsbad over the next 3-5 years.
Administrative Services Branch
Innovation & Economic Development Department
1635 Faraday Ave I Carlsbad, CA 92008 I 442-339-2222
Council Memo -Economic Development Activity Update (Districts -All)
May 19, 2022
Page 2
The Economic Development Strategic Plan (plan) is currently in the business and stakeholder
idea gathering phase, as RSG Group is simultaneously drafting the plan. From March 21 through
May 15, staff used an "Idea Wall" to solicit feedback and ideas from businesses, workers, and
residents. This resource generated several dozen comments from the community. On
May 24 and 26, staff will host two community forums, one using Zoom to enable remote
participation, and one in person. These two sessions will allow stakeholders to respond to
strategies proposed in the plan before being finalized. These outreach tactics complement
three input sessions that took place at the beginning of the plan process for businesses,
residents, and workers, as well as presentations to the Chamber of Commerce, Visit Carlsbad,
and Carlsbad Village Association Boards of directors in April and May.
The plan is expected to be finalized and presented to the Economic Development
Subcommittee and City Council over the summer.
Carlsbad Street Banner Program
The city's Street Banner Program (program) uses light post banners to beautify certain retail
corridors in the city. These areas currently include Carlsbad Village, the Paseo Del Norte &
Palomar Airport Road area, and The Forum. The program enhances a sense of place and
promotes Carlsbad as a destination. Prior to the COVID-19 pandemic, the city had contracted
with a vendor to fabricate and install the banners in the village area. The program locations
were used during the COVID-19 pandemic to hang "mask up" program banners promoting
safety messaging. In the summer of 2021, as the necessity for safety messaging declined, the
program was reverted to its original purpose of placemaking and beautification.
The current 96 banner locations are split between the Carlsbad Village, Paseo Del Norte,
Cannon Road, Palomar Airport Road, Armada Drive, the Carlsbad Premium Outlet Mall, and The
Forum.
Staff evaluated the program and options to manage it more effectively. This included soliciting
interest from several potential vendors, including the Carlsbad Chamber of Commerce, Visit
Carlsbad and the Carlsbad Village Association (CVA). Ultimately, the CVA was selected to install,
maintain and store banners due to their interest in running the program, the additional services
they proposed to provide at no additional cost, their localized community knowledge, and their
track record of managing successful programs. The total annual cost for the program was to
exceed the historic budgeted amount of $35,000. The initial repositioning of the program has
been a success.
As the program operator, the CVA has been able to increase the number of banner change-outs
during the year, expand the number of locations where banners are displayed, manage banner
Council Memo -Economic Development Activity Update (Districts -All)
May 19, 2022
Page 3
production, maintain banners, and provide storage for the program. The level of service
provided by the CVA is more cost-effective than the city's previous vendor.
In January 2022, new banners were hung throughout the current program area. These include
all-new banners with updated imagery embodying Carlsbad lifestyle and activities. The new
banner designs have been recognized by visitors and businesses for their embodiment of
Carlsbad and placemaking aesthetic.
The Economic Development Subcommittee (subcommittee) a'sked staff to further evaluate the
program, including potential expansion. At the January 10 subcommittee meeting, the
subcommittee suggested that an evaluation of potential locations and costs associated with
expanding the program be pursued for future consideration. Staff provided updates to the
subcommittee at the March 14 and May 9 subcommittee meetings on potential ways to update
the program.
Staff have worked with the CVA to identify
potential expansion locations and develop
a corresponding budget.
The proposed expansion areas (pictured)
include 73 new banner locations spread
across:
• La Costa Town Square
• Bressi Ranch
• The corridor adjacent to The
Crossings Golf Course
• The Shoppes at Carlsbad
Expanding the program to these new
areas is estimated to cost up to an
additional $35,000 and would further
provide a sense of place and beautification
for residents, visitors, and workers in these major Carlsbad retail areas.
Carlsbad Tourism Business Improvement District
. ~:.i:~\t,,.:~
\~
Skrt:,,,·,,i-:,o.
OLfCJul, r_:.
I ~r-·1,,,;,•
l,;.·.i ,.,o.;_i,.
.;.·
;i.~.
ll)C<l-•l" • .:o' u:~e~11 i ·:.:,:::::~ fl '.:'
,\' ""-•t., . .,..;-! ~•~<;;;:•:'m.•
•I•:"
The Carlsbad Tourism Business Improvement District (CTBID) supports promotion of Carlsbad as
a destination for tourism. Tourism promotion is an important support mechanism for Carlsbad's
economy and helps drive transient occupancy tax revenue to the city.
Council Memo -Economic Development Activity Update (Districts -All)
May 19, 2022
Page 4
The CTBID currently operates under the Parking and Business Improvement Area of 1989
(89 Act). The CTBID includes the entire City of Carlsbad and is funded by a self-assessment of
the 42 hotels in Carlsbad. In 2020, the fee assessment changed from a flat rate of $1/room
night to 2% of the room rate, resulting in a larger pool of funding to market the destination.
Tourism has recovered over the last year as COVID-19 pandemic conditions lessened. With the
recovery, the assessment is currently projected to provide $5.3 million per year to use on
destination marketing services.
As the ability for tourism promotion increases along with the budget, and to secure the CTBID
funding for more than an annual term, as allowed under the 89 Act, the CTBID Board is
considering pursuing a transition to a CTBID authorization under the Property and Business
Improvement District Law of 1994 (94 Act). The 94 Act allows for assessment funds to be
secured over at least a five-year term, allowing for more long-term initiatives and consistent
operations for the contracted destination marketing organization, which is currently Visit
Carlsbad, and clarifies certain regulations that the 89 Act did not.
At the Jan. 12, 2022, CTBID meeting, members considered and approved an item to appropriate
funding to explore a conversion to a 94 Act assessment district structure. Based on that action
staff retained outside counsel and a consultant to assist with the evaluation, due diligence, and
support necessary to potentially move to a new governance model should the CTBID Board
recommend pursuing it. Staff provide regular updates to the CTBID Board and a governance
subcommittee of the CTBID Board, which was formed to oversee the process.
Should the CTBID recommend pursuing the conversion, an ordinance would be brought forward
to the City Council to establish the new district and governance model.
Life in Action
Staff have continued to develop the Life in Action brand as a talent attraction and recruitment
program. In 2021, Life in Action content featured more than 240 Carlsbad companies on social
media channels and focused on more than 50 company stories through original content
development on the Life in Action blog. In total, there were 47,622 unique page views for the
Life in Action website in from May 2021 to May 2022, continuing an increasing trend of visitors
year-over-year. There were 7,262 page views for the blog alone.
Businesses continue to engage with Life in Action as a way for them to promote career
opportunities in Carlsbad, share open jobs, and tell the story of working in Carlsbad. In general,
businesses see Life in Action as a resource that amplifies their ability to reach and find new
talent. The Life in Action job board continues to be the most visited page after the home page.
Council Memo -Economic Development Activity Update (Districts -All)
May 19, 2022
Page 5
Llfc:, m Ye~r Wrap Up -Qlt(jbi,d Life In Ad'lOll lltSlnCTII~
,,. · 1, ·,1 1 Original content a Socia! Standout'I ··~•.•·· fl II II II
DriQinal C6nten.l
tlftfil Oftr l r. fe.11tund .1nd lJDl ~fli9itiM ori IQQel q,.,-.r {ti. L'!-,t f(',lif ~
I·~ Ote:i ~ comp,,l'oies. Wlff"lf faWfl!il
~ __, ..J .md lritcrvlewod Ir~ ,M 4 bi(,ut ..........
@ 1,llil-~~lk\'J1J1¥!';.
GI G :', I a ThemlO 4 --mai lJ' ll.l l ll111~~ ,,.
0
1 • l~hf~~ i~:''·-~ ~~~ ~ ltMiJ 11ft ffltt!!lli<~" :Pa•t~pma,n:r,iCr.'
0
I il10MM!loF~J
~R.!ft:..h! , 1ltu;Jl!,IM
Pmt~~· J ~ !nt1ci!iil Ml:{i'fJit1Ml"il~ _.)I ,
I,' :Jn«~ti!lF~~
~P'ffl"~•' k'....~~
lll i!!rNpullllr;I~
~-~tffl,i,M#'ifft ll•
Last year, the city leveraged Life in Action to
tell stories of COVID-19 resiliency and
added a focus on small businesses that
weathered the pandemic. Through Life in
Action social media channels, the city
shared resources, pertinent information
about restrictions, highlighted best
practices, and celebratl;!d business success.
Staff also increased engagement across
internal departments, collaborating to
promote business resources from other
departments, like the library,
environmental management services, and
transportation & mobility teams.
In August 2021, the Life in Action Recruiter
tool was piloted on the Life in Action
website. This represented the city engaging
in a more meaningful capacity to help
businesses address the challenges to hiring
talent, which is a primary concern for
businesses. This tool creates a direct resou rce for both workers interested in a Carlsbad career
and businesses that are needing to identify new sources of talent.
In the first six months, more than 175 individuals created profiles on the Life in Action website
and the city was able to connect them with a dozen Carlsbad businesses. Staff have evaluated
opportunities to scale the Life in Action Recruiter tool into the future. The initial goal would be
to reach at least 50 Carlsbad businesses and target additional areas to reach potential
candidates. Additional funding will be necessary to scale the Life in Action Recruiter tool and
may be evaluated during the fiscal year 2022-23 budget process.
Business Expansion, Attraction, and Retention
Over the past several months, Economic Development staff have been engaged in several
significant Business Expansion, Attraction, and Retention (BEAR) projects that will 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 grow in the city.
BMW is building its new dealership and service center in Carlsbad. The project hit initial delays
and is now on track for a Q1-Q2 2023 opening. Because of the delay, BMW of Carlsbad will have
Council Memo -Economic Development Activity Update (Districts -All)
May 19, 2022
Page 6
BMW's new branding and design aesthetic, making Carlsbad a notable dealership, nationwide.
Staff continue to work alongside AutoNation, owners of the dealership, to work through
challenges as they arise.
Cruzan, owners of MAKE and COMMERCE developments on Avenida Encinas, are continuing to
redevelop several portions of their sites and are considering plans that would create up to
300,000 square feet of_ biotech space. Staff are working with the Cruzan development team to
address challenges in their process and keep the project on track.
A nationally recognized sports and active lifestyle company has acquired space on Cosmos
Court to develop their new headquarters and distribution center. The company's reasons for
choosing Carlsbad included the industry concentration and the city's business friendly
environment. Staff assisted the company in addressing several considerations in their site
selection process.
Ultima Genomics, a San Diego based genomics company, has selected a site on Faraday Avenue
to build out their new office and research center. Staff supported the company in identifying a
suitable location.
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
clearly, and collaboratively understanding how the city can make Carlsbad the best place for
them to do business.
Next Steps
Staff will continue to support businesses and develop programmingthat support business
expansion attraction and retention in Carlsbad.
Once the Economic Development Strategic Plan is complete, an item will be brought to the
Economic Development Subcommittee and then to the City Council for consideration.
Should the CTBID Board recommend converting to a new district and governance model, an
ordinance will be brought to City Council for consideration.
The next Economic Development Subcommittee meeting is scheduled for July 11, 2022.
Council Memo -Economic Development Activity Update (Districts -All)
May 19, 2022
Page 7
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Cindie McMahon, Assistant City Attorney
Kyle Lancaster, Parks & Recreation Director
Kristina Ray, Communications and Engagement Director
Zach Korach, Finance Director
Matt Sanford, Economic Development Manager