HomeMy WebLinkAbout2024-01-25; Economic Development Subcommittee and Economic Development Strategic Plan Update (Districts - All); Rocha, LauraTo the members of the:
CITY COUNCIL Date~cA ✓ cc ✓
CM _LACM ~M (3)_L
{city of
Carlsbad
Council Memorandum
January 25, 2024
To:
From:
Via:
Honorable Mayor Blackburn and Members of the City Council
Laura Rocha, Deputy City Manager, Administrative Services
David Graham, Chief Innovation Offic712i
Geoff Patnoe, Assistant City Manager ~
Memo ID# 2024007
Re: Economic Development Subcommittee and Economic Development Strategic
Plan Update (Districts -All)
This memorandum provides an update on the most recent meeting of the Economic
Development Subcommittee of the City Council. It also includes information regarding the
implementation of programs and actions outlined in the Economic Development Strategic
Plan (EDSP).
Background
Economic vitality is one of the goals set forth in the Carlsbad Strategic Plan 2023-2027, which
was adopted on October 11, 2022, and is of significant interest to t he community. On
January 10, 2023, the City Council adopted the EDSP, aligning with the city's broader 5-year
Strategic Plan to enhance economic vitality. The EDSP, supported by the fiscal year (FY) 2023-24
budget, combines a long-term overarching strategy with adaptable, annually reviewed strategic
actions.
Core to the EDSP is setting long-term goals that support economic vitality while maintaining
flexibility to address economic uncertainty as it may arise. To achieve this, the proposed EDSP is
broken into two parts. The first part is the strategy itself, which sets long-term goals meant to
last three to five years with overarching economic development goals that include:
1. Support Small Businesses, Startups & Entrepreneurs
2. Develop Workforce and Attract Talent
3. Grow and Support Key Industries
4. Encourage Placemaking and Engagement
The second part is the Strategic Action Plan, which contains numerous tactics that can be
pursued by the city to achieve the four goals contained in the strategy. The Strategic Action
Plan also contains factors such as prioritization, cost, estimated timeline, departments engaged,
and key performance indicators (KPls) to measure success.
Administrative Services Branch
Innovation & Economic Development Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-5987 t
Council Memo -Economic Dev. Subcommittee and Economic Dev. Strategic Plan Update
January 25, 2024
Page 2
The Strategic Action Plan is revisited on an annual basis and updated to correspond with
changing market conditions, economic needs, and future challenges. As conditions change,
certain actions may be elevated in priority, timelines updated, or KPls adjusted to respond to
future needs more accurately.
The Economic Development Subcommittee plays an important role in reviewing the Strategic
Action Plan, providing input, and making recommendations to the City Council. The
subcommittee met on December 18, 2023. This report includes the items heard by the
subcommittee and the status of the EDSP implementation and its associated programs,
initiatives, and strategic actions.
Economic Development Subcommittee
The Economic Development Subcommittee had the following four agenda items on their
docket:
1. Carlsbad Business Organization and Business Updates
2. Update on Village Area Property and Business Improvement District Efforts
3. Update on Workforce and Talent Programs
4. Update on Economic Development Strategic Plan Progress
Carlsbad Business Organization and Business Updates
The subcommittee heard reports from the Carlsbad Village Association, Carlsbad Chamber of
Commerce, and Biocom California. Mr. Bret Schanzenbach, President and CEO of the Carlsbad
Chamber of Commerce, discussed national and local trends. He identified a shift in concerns
regarding finding labor and talent to a greater concern regarding inflation in the past year.
From his perspective the labor market had loosened with some of the layoffs that have
occurred. Though difficult for the individual who gets laid off he believed that it did benefit
companies that are looking for talent. Overall, from his perspective, Carlsbad companies and
the economy remained strong. During discussion with the subcommittee members, it was
identified that from his perspective many of the layoffs were of employees with technical skills
whether from large or medium sized companies.
The subcommittee also heard an update from Biocom California, the industry organization
representing life sciences companies in the state. Ms. Melanie Cohn, Senior Director for State
and Government Affairs, presented.
As far as industry trends related to workforce, Biocom has seen a net neutral trend in the
region because though there has been a dip in venture capital funding, the larger life sciences
companies continue to expand. The organization is advocating for transit access for workers
Council Memo -Economic Dev. Subcommittee and Economic Dev. Strategic Plan Update
January 25, 2024
Page 3
particularly in light of the fact that the San Diego Metropolitan Transit System (MTS) has
discontinued connection service at the Sorrento Valley Coaster Station.
The organization has weighed in on the Carlsbad Climate Action Plan particularly related to
building electrification. The speaker raised concerns that given the energy intensive uses
related to life sciences research, development, and manufacturing, there needed to be a
consideration for regulations that take industry needs into account.
Housing is the biggest issue facing the life sciences industry. This includes moderate income
housing which is 80%-100% of the Average Median Income (AMI) and the missing middle. The
missing middle was defined as a market rate town home type product for someone with the
average age for the industry which is $130,000. The concern expressed was that this type of for
sale product was not being built in the region.
The final comments were about land use issues and Biocom's support for permit process
improvement. There was a discussion about how zoning could be used to incentivize life
sciences companies to partner with residential developers to create more mixed-use campuses
that provided housing and jobs.
Village Area Property and Business Improvement District Efforts
Ms. Christine Davis, Executive Director of the Carlsbad Village Association (CVA), gave an
update on the status of efforts to explore the use of a property or business improvement
district to fund activities to benefit the businesses in the Village.
In the FY 2023-24 budget, the City Council allocated $20,000 to the CVA to support a feasibility
study for a Property-Based Improvement District (PBID). The CVA is working with Civitas
Advisors, a full-service firm specializing in sustainable funding solutions through the formation
and renewal of districts.
Ms. Davis expressed her appreciation for the city's backing of the PBID Feasibility Study. By way
of introduction, it was identified that Carlsbad's situation is different than other areas that form
districts. For many the issues of blight, vacancies, lack of clean and safe programs, or a robust
homeless outreach team, are more acute. While the city has provided significant services in the
PBID study area in the Village, business owners have expressed that there is room for
improvement. There is a keen interest in maintaining the Village as a premier destination and
avoiding the potential of sliding backwards.
The PBID Feasibility study is a data-informed approach to identifying where improvement is
needed and desired. It is also helps define the additional services that property owners would
like to see put into place.
Council Memo -Economic Dev. Subcommittee and Economic Dev. St rategic Plan Update
January 25, 2024
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To date, the CVA has identified a boundary map of properties to study to obtain data from a
wide cross-section of properties throughout the Village. The study area was intentionally broad
and will be refined to a smaller group of properties based on the district parameters.
Based on the boundary map, the CVA mailed a survey card to 163 property owners including
city owned properties. Information regarding the survey and a link to access it were added to
the CVA website. As of December, there had been a 10% survey response rate, which was
expected for several reasons. Getting survey responses from business owners is regularly a
challenge due to other priorities. The address list that is relied on for an effort like this consists
of San Diego County Tax Assessor address records that often identify the property owner as a
trust, bank, or other legal entity. The CVA has been conducting a direct personal contact with
property and business owners in the Village to boost participation. Also, a second mailing to a
cleaned-up version of the list is anticipated in the first quarter of 2024. The Carlsbad Chamber
of Commerce and Visit Carlsbad have also been enlisted to help increase the number of survey
responses.
For the 10% that responded to the survey, better management of homelessness in the Village
was identified as the top priority. The second highest priority identified was a tie between
addressing vandalism and property crime and the lack of public parking. Many of the priorities
identified by the survey were along the lines of a traditional clean and safe program that many
districts run. However, there were also comments about the CVA working with the city to use
city assets to increase available parking.
As next steps, the CVA is continuing to directly connect with property owners to increase survey
participation. There will be ongoing outreach and engagement over the next three months with
property and business owners alike. This will contribute to the key components of the
Feasibility Study which are a draft service plan, budget, and an assessment methodology. The
goal would be to have this work complete in three to four months.
Workforce and Talent Programs
Staff presented a deep dive on the issues of workforce and talent in Carlsbad and the programs
that have been developed to address them. Nationally, there is a growing demand for skilled
talent and the types of skills needed are rapidly evolving. There are jobs requiring many
different skill levels, but a component of the workforce need to be highly educated and highly
skilled to drive a vibrant economy. Companies continue to locate and expand in areas where
they have access to the skilled talent that they need to grow their companies.
Carlsbad is a net importer of jobs which means there are more jobs than residents. Though the
number fluctuates, there are about 60,000 residents in the workforce and about 80,000 jobs.
Council Memo -Economic Dev. Subcommitt ee and Economic Dev. Strategic Plan Update
January 25, 2024
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The workforce is highly educated with 60% having a bachelor's degree or higher and 24% a
graduate or professional degree.
Economic Development Strategic Plan Progress
The Economic Development Subcommittee received a status update on the programs,
initiatives and EDSP actions being undertaken to support EDSP Goals.
The Carlsbad EDSP is a roadmap that will guide the city's economic development activities. The
EDSP comes at a critical time for the city and the community. Given the COVID-19 pandemic,
subsequent recovery, market pressures, and international conflict, it was important to identify
Carlsbad's economic development strategies and to prepare for future challenges. The EDSP
provides flexible and agile guidance for Carlsbad to address City Council's Goal of Economic
Vitality: fostering a healthy local economy.
It's important to note that economic development is a collaborative effort, and is not limited to
one department, group, or organization. The EDSP involves multiple city departments, local and
regional partners, workforce and talent, residents, and the broad and diverse businesses that
support the community.
Goal 1: Support Small Business, Startups & Entrepreneurs
Support Small Businesses, Startups & Entrepreneurs in partnership with local and regional
collaborators, supporting the long-term viability of entrepreneurs and small businesses in
Carlsbad.
Strategy Action Priority Status
1.1.1. Celebrate staff's role in economic development High In Progress
and continue to educate them on how their (work internally with other
work can lead to success and economic health departments that
in the city. interface with businesses)
1.1.2. Continually review the planning application and High In Progress
permitting procedures to identify process (ADU by right process,
improvements. comprehensive form
updates)
1.2.1. Continue the implementation of the Customer High In Progress
Self-Service Program within the permitting (12 permits now available,
application system, Energov, to increase the goal to have 200 permits
number of applications available on line. available online)
1.2.3. Increase the ability for customers to track the High In Progress
status of their projects on line. (Building permits now
available)
Progress
Ongoing
Ongoing
10%
25%
Council Memo -Eco nomic Dev. Subcommittee and Economic Dev. Strategic Plan Update
January 25, 2024
Page 6
1.2.4. Promote the pre-application program to help High In Progress
identify major issues early in the entitlement (Information included in
process. discussions with
developers and new
companies)
1.2.5. Enhance the Welcome to Carlsbad Program for Medium Complete
new businesses by providing information and (Available on the city's
resources on the pre-application program, business page)
permitting process, and business resources.
1.2.10 Utilizing Energov, track turnaround times for Medium In Progress
planning applications and permits to identify (CD staff tracks
areas to increase efficiency. turnaround times, enabled
streamlined signage
application)
1.3.1. Create Small Business and Entrepreneur Medium In Progress
Symposium on basic and critical issues for small (Partnership with SBDC
business owners. Topics could include and Carlsbad Libraries)
marketing, social media, finance, human
resources, access to capital, technology, and
more.
1.3.2. Partner with business organizations to develop Low In Progress
a shop local initiative to encourage patronage (in conjunction with
at Carlsbad businesses. Chamber, CVA and Visit
Carlsbad)
1.4.1. Evaluate signage requirements for businesses. Low Not started
Goal 2: Develop and Attract Workers & Talent
Develop and attract workers and talent by providing skills, resources, and support for current
and future jobs.
Strategy Action Priority Status
2.1.1. Enhance Life in Action tools to assist in talent High In Progress
attraction for Carlsbad businesses in key (New interface is
industries -transitioning Life in Action Recruiter complete. Due to launch
tool from a pilot to an ongoing resource for in January)
Carlsbad businesses. Pilot connected 40
companies with 400 employees. Funding
proposal would go from pilot to long-term and
2x pa rticipation.
2.2.2. Promote the city's existing digital tools to High Complete
connect residents, businesses, and tourists to (via newsletter and social
resources the city offers. media)
Ongoing
100%
Ongoing
33%
75%
0%
Progress
90%
100%
Council Memo -Economic Dev. Subcommittee and Economic Dev. Strategic Pl an Upd ate
January 25, 2024
Page 7
2.1.3. Enhance and promote educational workshops Medium In Progress
provided by the Library, Parks and Recreation (Several workshops taken
and other resources that provide skill place)
development to Carlsbad's workforce.
2.2.1. Conduct an initial study for outdoor Wi-Fi at Medium In Progress
city facilities and other critical areas for the (Data gathering, research,
public. and cost estimation have
been completed)
75%
50%
Life in Action Recruiter: To make it easier for employers to connect with potential talent, staff
are enhancing the "Life in Action Recruiter" tool. As part of the FY 2023-2024 budget, the
Economic Development Subcommittee recommended additional funds for the build-out of the
recruiter platform, which was in turn approved by the City Council. The upgraded interface
provides a more user-friendly and efficient pla t form for employers to recruit interested
workers. By streamlining this process and making t he platform more efficient for employers, we
aim t o facilit ate better matches bet ween local businesses and job seekers, t hereby optimizing
t he recruitment process. The upgraded platform is currently in beta testing as the final kinks get
worked out and will launch in January/February 2024.
Collaboration with Local Partners and Educational Institutions: Staff are actively collaborating
with local pa rtners and educat ional institut ions to increase st udent awareness of job and
internship opportunities in Carlsbad. For example, staff are in conversations with CSU San
Marcos to determine how to better provide connectivity options, like shuttles, to Carlsbad
employers. Staff are also working with the university and the San Diego North Economic
Development Council to promote campus housing as an option for summer interns. Through
this program, CSU San Marcos will offer blocks of rooms to summer interns at Carlsbad
companies at a discounted "rack rate". The program, set to begin in Summer 2024, removes a
sign'ificant barrier for interns -affordable options for summer housing. Several Carlsbad
employers have expressed significant int erest in the program and laud the idea to expand their
ability t o hire interns from across t he count ry.
Expanding the Job Readiness Room: The Job Readiness Room (JRR), offered through Carlsbad
Libraries completed the pilot phase in July 2023. The program partners learned several lessons
about demand, indust ry interests from participants, and usabilit y by businesses. The program
succeeded in providing new skills to more t han 100 Carlsbad resident s and workers, but fell
short on placements wit hin Carlsbad companies, at roughly 15% placement/success in finding a
new job. In debriefing with Carlsbad employers, it was evident that while the program did
upskill candidates, it was too challenging to break outside their standard hiring pract ices. As
such, the JRR pa rtners reconfigured the program t o provide more specific upskilling pathways
for newly hired employees. In this form, the program will allow for 25 small-to-medium-sized
Carlsbad employers to provide 15-20 hours of job training for new employees once a hire has
been made. This pivot, which will be promoted through the Chamber of Commerce, better
aligns with current employer hiring practices and continues to provide a more qualified
Council Memo -Economic Dev. Subcommittee and Economic Dev. Strategic Pl an Update
January 25, 2024
Page 8
workforce that supports the city's competitiveness.
Evaluating Micro mobility Options: To improve accessibility to employment centers, staff
continues to monitor North County Transit District's efforts to revive the former Carlsbad
Connector Program to provide first and last-mile connectivity from transit hubs to major
employers and business parks. This initiative, which aligns with the city's Transportation
Demand Management plan is also how the city would propose to move students from CSU San
Marcos to the business park. It aims to address transportation barriers that might prevent
talented individuals who do not live within close proximity to Carlsbad from accessing
employment opportunities. By improving connect ivit y and transit options, Carlsbad is making it
easier for workers to commute, thereby expanding t he t alent pool available to our local
businesses.
Goal 3: Grow and Support Key Industries
Grow and support key industries by providing and creating resources for these industries to
thrive in Carlsbad's economy.
Strategy Action Priority Status
3.1.1. Evaluate micro-mobility options in the Village High In Progress
and coastline to make Carlsbad more (Potential collaboration
connected and accessible. with the City of Encinitas)
3.4.1. Continue to support Carlsbad business High In Progress
organizations that maintain the tourism (Regular meetings with
economy in Carlsbad . Visit Ca rlsbad and
hoteliers, re-
establishment of the
CTBID under '94 law)
3.2.1. Use business data and recent business surveys Medium In Progress
to assess and engage with industry clusters to (2024 business survey is
develop support for their expansion, attraction, live and open for
and retention. (Biennial Business Survey) responses)
3.2.2. Utilize partnership with Innovate 78 to connect Medium In Progress
Carlsbad businesses with regional resources. (Regional collaboration
pivoting in 2024 to be
more resource-driven)
3.3 .1. Promote the city's business locator website to Medium Complete
businesses looking to move to Carlsbad, (Via newsletter and social
developers, brokers, and investors. media)
3.3 .2. Host industry advisory groups with leaders in Medium Complete
key business clusters, with a specific emphasis (Roundtable series
on the innovation economy. captures all key industries)
Progress
75%
Ongoing
50%
Ongoing
100%
10%
Council Memo -Economic Dev. Subcommittee and Economic Dev. Strategic Plan Update
January 25, 2024
Page 9
Industry Roundtables
Beginning on August 30, 2023, these roundtables have successfully convened leaders from key
industries in Carlsbad, including Tech, Sports and Active Lifestyle, Cleantech, and Life Sciences
sectors. These discussions foster industry-specific dialogue and insight into future challenges
and opportunities. Plans are set to host 12 such discussions annually beginning in 2024.
Broker Connections
Staff continue to maintain relationships with the commercial real estate brokerage community
in Carlsbad. Continuous engagement with the commercial real estate brokerage community has
been pivotal in enhancing business intelligence and keeping Carlsbad at the forefront as a
preferred business location.
Innovation Day
Carlsbad's participation in Innovation Day hosted by Connect, an organization committed to
innovation in San Diego County, at Petco Park underscored the city's role as a regional
innovation hub. The event attracted over 3,500 attendees, including more than 100 Carlsbad
residents. Notably, Carlsbad companies such as Aptera, Shipcalm, Airspace Technologies,
Argonaut Manufacturing, and Viasat were featured. Connect's commitment to host a flagship
event in Carlsbad in 2024 further reinforces this positioning.
Regional Collaboration
The City of Carlsbad continues to participate in the lnnovate78 collaboration along with the
cities of Escondido, Oceanside, San Marcos, and Vista. The collaboration allows the five cities to
compete collectively as a North County region, instead of independently and against one
another. Starting in 2023, the collaboration made a pivot to work with the San Diego North
Economic Development Council to bolster North County attraction and retention efforts.
Beginning in 2024, the collaborative will shift its focus from lnnovate78 as a marketing and
promotional initiative and invest more heavily in direct services and support for startups,
entrepreneurs, and innovation economy companies. This will be done through mutual support
of Connect, in which Carlsbad was already a supporter.
Economic Intelligence
The ongoing biennial business survey is a critical tool for understanding and responding to
economic trends and needs. The 2024 survey is currently in progress, with results expected to
be presented in the first quarter of 2024.
Outreach is being conducted through city-owned channels as well as partner organizations.
Businesses can fill out the survey through January at carlsbadca.gov/BusinessSurvey.
Council Memo -
E
conomic Dev. Subcommittee and Econ omic Dev. Strategic Pl an Update
January 25, 2024
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Goal 4: Connection, Engagement & Placema king
Encourage a sense of connection in our community by building upon our successes and
promoting access to economic development resources and opportunities.
Strategy Action Priority Status
4.2.1. Partner with local business organizations to High Com plete
implement placemaking strategies such as {Contracted with CVA on
holiday lighting and a banner program to successful implementation
enhance the sense of place and community. of the banner program
and holiday lighting)
4.1.2. Incorporate business and economic High In Progress
development activities into the weekly City {14 business related items
Manager newsletter, city calendar, and social featured in the city
media to foster a sense of pride in local managers update 11
businesses. articles published, 11
newsletters distributed)
4.2.3. Utilize the city's social media platforms to High In Progress
showcase Carlsbad's sense of place and {918 posts, 132,000
community. engaged)
4.1.6. Develop a business spotlight program to Medium Complete
highlight local businesses. {Small business spotlight
in newsletter and social
media) -
Progress
100%
Ongoing
Ongoing
100%
Life in Action: Recognizing the importance of showcasing Carlsbad as an ideal place to live and
work, staff are ut ilizing the Life in Action Program to promote the city as a great place to live
and work. Highlighting the unique lifestyle, cultural richness, and career opportunities available
in the city, Life in Action engages audiences via persistent social media posts, monthly
newsletters, and original content. By effectively communicat ing these attributes, staff aim to
attract a diverse and t alented workforce who are drawn not only to the quality of life that
Carlsbad affords but also to the career prospect s of key indust ries and businesses.
In the last year, Life in Action published 918 social media posts, engaging 132,000 people. Staff
also authored 11 articles and published 11 newsletters.
Banner Program
Since the Banner Program's expansion, it has received numerous compliments from residents,
visitors, and businesses. The Carlsbad Village Association {CVA) has effectively managed the
Banner Program, expanding it s scale and introducing cost efficiencies. The program's success
under CVA's management has been notable, enhancing the city's visual appeal and community
engagement. This includes more than doubling the program scale, sourcing local imagery,
adding a Fall seasonal rotation, and handling storage and maintenance of t he program.
Council Memo -Economic Dev. Subcommittee and Economic Dev. Strategic Plan Update
January 25, 2024
Page 11
Discussion
Carlsbad has a history of making strategic decisions to support a vibrant economy. The
COVID-19 global pandemic had a significant impact of many business sectors. The City
Council moved quickly to create an ad hoc subcommittee and economic response. By any
measure the city's response to the COVID-19 pandemic helped many businesses survive. It
also brought into clear focus the need to continue to make strategic investments in the
economy.
The City Council created a standing Economic Development Subcommittee to guide the
city's support for business and the economy. In 2020, the City Council approved the
creation of the Innovation and Economic Development Department that was formed
through efficiencies and without the addition of new positions. Around a dozen new
programs and partnerships have been piloted since the City Council created a department
focused on economic development. The city has expanded its collaboration with industry
organizations, educational institutions, and its business organizations like the Carlsbad
Chamber of Commerce, Carlsbad Village Association, and Visit Carlsbad.
The City Council approved the city's first stand alone EDSP with a corresponding annual
Strategic Action Plan. The plan, developed in close collaboration with businesses and the
community, has received significant praise. To achieve its goals and objectives there will
need to be a continued investment which in turn will support thriving businesses that
contribute a significant amount of revenue to the city. That revenue in turn supports the
services that make Carlsbad a safe and attractive place for people to locate. In turn, that
talent attracts companies. The continued strategic investment in a comprehensive
economic development strategy not only benefits the businesses powering our economy
but the services all residents enjoy.
The City Council decisions over the past four years have significantly supported Carlsbad
businesses and laid a strat egy for a vibrant economy into the future. The Economic
Development Subcommittee continues to be an important resource for businesses and
business organizations to engage with the city. After one year of implementation of the
EDSP it is clear the city is on the right track and should continue investing in its
implementation.
Next Steps
The Economic Development Subcommittee will meet on January 30, 2024, at 10 a.m ., to set a
calendar of meetings for 2024. The subcommittee will review the 2023 implementation of the
EDSP and provide input on the Strategic Action Plan for 2024. This will include potential
recommendations for the FY 2024-2025 budget. The 2024 Strategic Action Plan and any budget
recommendations will be presented to the City Council for their consideration.
Staff will continue to execute strategies and tactics included in the Strategic Action Plan in
conformance with the EDSP approved by City Council. Staff will continue to update the
Council Memo -Economic Dev. Subcommittee and Economic Dev. Strategic Plan Update
January 25, 2024
Page 12
Economic Development Subcommittee on progress and present annual reports to the City
Council.
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Jeff Murphy, Community Development Director
Suzanne Smithson, Library & Cultural Arts Director
Kristina Ray, Communications and Engagement Director
Matt Sanford, Economic Development Manager