HomeMy WebLinkAboutApprove the Economic Development Implementation Plan Dept. ID ED 17-09 Page 1 of 3
Meeting Date: 6/5/2017
74"
CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 6/5/2017
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Ken Domer, Assistant City Manager
Kellee Fritzal, Deputy Director Business Development
SUBJECT: Approve the Economic Development Implementation Plan
Statement of Issue:
The City Council identified a goal of developing an Economic Development Implementation Plan
(Plan) to create an incentive based business retention, attraction, and expansion program to bolster
the City's fiscal sustainability. The Plan identifies goals and objectives that are quantifiable and the
Plan will be reported to the City Council quarterly. The City Council is requested to approve of the
Plan.
Financial Impact:
Not applicable. Any proposed projects or programs that arise out of the Plan will be brought forth to
City Council for consideration.
Recommended Action:
Approve the Economic Development Implementation Plan.
Alternative Action(s):
Do not approve the Plan and direct staff accordingly.
Analysis:
At the City Council Strategic Planning Session on January 28, 2017, the City Council identified a
goal of developing an Economic Development Implementation Plan (Plan). This Plan represents an
economic development strategy that creates an incentive based business retention, attraction, and
expansion program that will benefit the City. The Plan identifies goals and objectives that are
quantifiable and the Plan will be reported to the City Council quarterly. This will be a living
document and can be amended to include new priorities of the City Council.
The Plan sets forth goals, objectives, and tasks necessary to achieve the City's economic
development goals as identified by City Council. The Plan concentrates on five (5) focus areas,
which will be addressed over the next two (2) years. The focus areas were selected based on a
SWOT analysis that emerged from the Economic Development Strategic Plan, a review of the
City's existing economic make-up, and a review of trends and technology advancements within the
industries present in the City.
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Dept. ID ED 17-09 Page 2 of 3
Meeting Date:6/5/2017
These focus areas are:
o Responsive and Effective Government
o Tourism, Retail, and Quality of Life
o Entrepreneurship
o Healthcare and Biomedical Technology
o Manufacturing
These focus areas are viewed as areas that are primed for economic growth, are existing job
creators, have gained national attention as growth opportunities for the economy, and in some
cases need a City led effort to improve.
The goals and objectives in this plan have been designed to address specific economic
development priorities. These priorities include:
Increase the city's tax base and other revenue sources
Create and retain jobs
Address sales tax leakage and diversify the sales tax base
Create new markets and spur innovation
Build local and regional relationships to aid in the advancement of the economic
development program.
The goals and objectives include potential collaborations (private sector and regional) and will
include indicators that are measurable (action, timeframe, and performance).
The Office of Business Development team helps to facilitate the services available to businesses
(City, regional, State, and Federal), as well as to provide one-on-one assistance through our
Business Advocate Program. The Office's role includes offering a central point of contact for new
and existing businesses that can help them access City services, as well as guiding businesses
through the entitlement process when needed. The Office also facilitates the development and
marketing of economic programs in the City of Huntington Beach. This is a team effort and all
Departments within the organization are responsible for the economic strength of the City.
The Plan calls for quarterly updates of the goals and objectives. As part of the update the goals
and objectives may be changed/amended, deleted, and new goals may be added as City priorities
change. The Plan is a living document that will be used as a tool to evaluate the City's economic
development progress over the next two years. The quarterly updates will be distributed to City
Council, posted on the City's website, and be part of the electronic communications to the City's
business partners.
A quarterly Economic Development Snapshot will be included in the update. The Snapshot will
include the quarterly sales tax trends, new businesses, loss of businesses, unemployment rate
comparisons and other relevant economic data. The Snapshot will be an opportunity for the
community to understand the City's tax base, other revenue streams, employment statistics, and
leakage/diversification/demand of the retail tax base.
The draft Plan has been reviewed by the Economic Development Committee, provided to all City
Council members for comments, as well as Community Development and interested City Staff. In
addition, the Chamber of Commerce and Visit Huntington Beach has also reviewed the Plan.
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Dept. ID ED 17-09 Page 3 of 3
Meeting Date: 6/5/2017
Environmental Status:
Not Applicable
Strategic Plan Goal:
Strengthen Economic and Financial Sustainability
Attachment(s):
1. Economic Development Implementation Plan
Item 8. - 3 HB -58-
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Table of Contents
Introduction 1
Economic Development Implementation Plan 1
Plan Objectives 2
Office of Business Development /Cooperation 3
Responsive and Effective Government 3
Tourism, Retail and Quality of Life 5
Entrepreneurship/Small Business Development 8
Healthcare and Biomedical 9
Manufacturing 10
Evaluation of Goals and Objectives 11
Membership/Training 11
Funding of Economic Development Goals and Objectives 12
APPENDIX 14
Matrix of Goals and Objectives
Item 8. - 5 HB _60_
INTRODUCTION
The City has defined its mission and overall economic development goal as follows:
Mission Statement
The mission of the City of Huntington Beach economic development program is
to strengthen and grow the city's economic base.
Economic Development Goals
The goals of the City of Huntington Beach Office of Business Development are to
a) increase the city's tax base; b) create and retain jobs within the city; and c)
address sales tax leakage and relationships to aid in the advancement of the
Economic Development Mission.
The term "economic development" refers to activities undertaken by the public sector to
promote job creation and retention, to ensure a strong, growing and diversified
economy, and to increase the size of the City's tax base. Economic development
success depends not only on business-oriented programs, but also on complementary
efforts to provide public infrastructure, education, workforce training, affordable housing,
and a cost-effective and predictable regulatory framework.
Generally, economic development activities fall under one of three approaches:
1. Business attraction — marketing to attract businesses to relocate to
Huntington Beach
2. Business creation — encouraging entrepreneurship and the development of
new businesses and jobs
3. Retention and expansion — enhancing existing businesses and employers
The recession and elimination of redevelopment agencies statewide challenged
economic development agencies to do more with fewer resources. In response to these
challenges, the City undertook the formation of an Economic Development Strategy in
2014, which analyzed and discussed the City's economic base, with a specific focus on
driving industries that form the basis for future economic prosperity. The Strategy
defined the City's strengths and weaknesses, as well as both internal and external
threats. Having now achieved some measure of success with the initial implementation
of objectives, it is an ideal time to focus the strategy on those objectives which are most
relevant to the City's current needs and growth opportunities.
ECONOMIC DEVELOPMENT IMPLEMENTATION PLAN
This Huntington Beach Economic Development Implementation Plan ("Plan") sets forth
the objectives and tasks necessary to achieve the City's economic development goals.
The Plan looks beyond the "traditional" strategies formerly employed by economic
development agencies and instead focuses on new and innovative strategies, a focus
on the leveraging of partnerships and collaboration, and targeted infrastructure
H B -01- Item 8. - 6 �I
improvements. It is the responsibility of the City to establish the economic foundations
— workforce development, job opportunities, physical infrastructure, a positive business
and regulatory climate, advanced technology, and a high quality of life — to encourage
the business community to invest in Huntington Beach, create jobs and have the
resources to be successful.
The Plan sets forth a path to creating a responsive government that is praised for its
customer service, opportunities for development, market-generating programs, flexible
industrial spaces, and infrastructure needed for entrepreneurs to start/expand
businesses.
With the help of the business community, residents and our economic development
partners, the City can strengthen our local economy by capitalizing on its existing assets
and resources. Consistent with the City's economic goals, the Plan is designed to
retain existing Huntington Beach businesses, create opportunities for expansion,
provide resources for entrepreneurs and attract complementary businesses to the City.
The City's efforts to enhance the quality of life in Huntington Beach, by supporting an
expanded business sector, will have the effect of potentially increasing revenue by
driving up economic activity and the resulting taxes and fees that support public
services for residents and businesses.
Plan Objectives
The Plan concentrates on five (5) focus areas to be addressed over the next two (2)
years. These areas were selected based on the SWOT analysis from the Economic
Development Strategic Plan, review of the City's existing economic make up and
reviewing trends and technology advancements. They include areas that are ripe for
economic growth, are existing high job creators, are gaining national attention as growth
opportunities, or need a City-led effort to improve.
These focus areas are:
o Responsive and Effective Government
o Tourism, Retail and Quality of Life
o Entrepreneurship
o Healthcare and Biomedical
o Manufacturing
The goals and objectives in this plan have been designed to address specific economic
development goals: increase the city's tax base and other revenue sources, create and
retain jobs within the city, address sales tax leakage and diversify the sales tax base,
create new markets, and build local and regional relationships to aid in the
advancement of the economic development program. The goals and objectives will
discuss potential collaborations (private and regional) and will include an action,
timeframe and performance indicator. The funding of items will be indicated.
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OFFICE OF BUSINESS DEVELOPMENT / COOOPERATION
The Office of Business Development team helps to facilitate the vast services available
to businesses, as well as provides one-on-one assistance where extra efforts may be
needed as a business advocate. The Office's role includes offering a central point of
contact for new and existing businesses that can help them access City services, as
well as guiding businesses through the entitlement process. The Office also facilitates
the development and marketing of economic programs in the City of Huntington Beach.
It is worth noting, however, that all departments are responsible for the economic
strength of the City. Cities and states across the country are vying for some of the
same economic opportunities. To effectively compete for these important jobs and
economic opportunities, the City must be prepared internally by providing quality
services for businesses which encourage them to locate here. The Office of Business
Development will provide assistance for professional development to all other
Departments. Further, the City is also part of a regional economic system and our
success is aligned with the economic achievement of the region. The City must
continue to partner and leverage local and regional efforts to encourage, assist and
partner with institutions and businesses, large and small, to achieve our business goals.
It should be recognized that the City may not have all the necessary resources to
achieve every objective, but will undertake the implementation to continue the City's
success - partnerships are key in achieving our goals.
Responsive and Effective Government
One of the key elements of economic development is a responsive and effective
government. Outreach, both internal and external, is critical to create a positive
atmosphere for dialogue and discussion with existing and future businesses. Business
outreach promotes a positive perception of the City as business-friendly, both locally
and regionally. This perception can be promulgated through partnerships and active
memberships with the local Business Improvement Districts (BID's), Chamber of
Commerce and regional and state-wide economic development groups. Three ways to
enhance the level of a responsive and effective government is through:
• Customer Service — provide employees with the training, skills and tools they
need to effectively and professionally provide accurate information in a timely
manner;
• Efficiency — identify and resolve internal systems that delay outputs or result in
redundancy, without sacrificing community wellness and public health and
safety. Efficiency also pertains to coordinating with external partners to avoid
duplication of efforts and to share resources;
• Communication — develop effective communication tools to demystify local
government, improve transparency, and share valuable information and
resources.
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1) Convene Quarterly Meeting with Development Staff to Share Information/
Success and discuss streamlining processes
a) Business Development staff will present to the various departments and/or
divisions in City Hall the goals and objectives of this Plan, its relevance to each
Department, and discuss the status and next steps to be undertaken.
2) Expand the Existing Business Advocacy Program to Assist New and
Expanding Businesses
a) Create a brochure with contact information for the Business Advocacy
program that can be provided to City Inspectors and make available at local
business organizations.
b) Work with specific departments to update/create a flow chart of how a
business owner would obtain a business license, plan check and building
permit(s), planning entitlements, and other permits that might be necessary
from other governmental agencies, such as the Orange County Health
Department.
c) Coordinate resources with federal, state, and local programs where needed.
d) Create a poster and fliers for placement at City Hall where business
owners/operators would visit such as business license, Community
Development, Public Works letting businesses know they can visit Business
Development staff to provide business advocacy services and to answer
business related inquiries.
3) Continue to Engage and Work with the Huntington Beach Chamber of
Commerce/OCBC/ACC-OC/Regional Economic Development Groups/Visit
Huntington Beach/Downtown and Auto Business Improvement Districts for
Business Enhancements
a) Actively participate (attend meetings) within these groups, by providing data and
information from the City.
b) Provide marketing information from the City to organizations.
c) Work with organizations for joint marketing opportunities.
d) Discuss lease space availability, development opportunities, project/program
status and other initiatives of the City.
e) Work with internal and external organizations to provide the best experience
possible to Huntington Beach visitors.
4) City staff, along with the Mayor and City Council, will re-establish the
business visitation program - Business Link
a) Business Development staff will arrange for a site visitation and tour with the
Mayor. The visit will provide an opportunity for questions and answers. If the
Mayor is unavailable to attend the business visitation, the program will be
open to fellow Council Members.
b) Discussion may include discussion of the health of the company, their
experience with the City and actions that the City can take to assist the
business.
c) Visits will assist the City to gain insight about the needs and wants of business
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owners through the Business Link program and improve upon the programs
and resources offered to them. Summaries of business visits will be
provided for the web site and future goals and objectives may be
developed.
5) Hold Business Roundtables with the Economic Development Committee
(EDC). The Roundtable will be focused on specific areas within the City
a) The Roundtables may include City Council, Business Development and other
City departments, business resource organizations such as the Chamber of
Commerce, the SBA and SBDC and the OC One-Stop Center to welcome
businesses into the City and to provide an opportunity to introduce to a wide
variety of business resources to owners and create positive relationships.
b) The Roundtables can provide an opportunity for businesses to become familiar
with City staff and available resources and the City to find out the needs of the
business community. In addition, it is an outreach tool for Business
Development to gain business owner insights, including experience(s) working
with the City and other opportunities for improvement.
6) Use of Electronic Communication to Share Information and Accomplishments
a) Gather/obtain and create and e-mail blast for monthly information on business
related items. Email blast can include program/project updates, upcoming
events and business spotlights.
b) Distribute permit process handouts, FAA's and contact lists.
c) Increase web based information, look at use of other media and opportunities to
provide electronic information tools that can serve as business resources.
7) Continue the Brokers Briefings, which creates opportunities for the City and
brokers to discuss real estate trends and any potential leads for
attraction/retention
a) City will provide an update on current issues, new programs, projects.
b) Staff will provide information as requested by the brokers (City code clarification,
review process, etc.).
c) Brokers to present as well with deals they have closed and areas they are
currently representing, available properties or properties coming available.
Tourism, Retail and Quality of Life
Tourism is an integral part of the Huntington Beach economy. Visitors make significant
contributions to our local tax revenues, employment and quality of life. In 2015, nearly 4
million non-OC resident visitors to HB generated approximately $700 million in total
economic impact (business sales), which in turn generated $15.7 million in local taxes,
supported 6,000 jobs and $276 million in labor income. It is estimated that the average
annual tax burden for HB households would increase $497 yearly to maintain the same
level of community services were it not for the economic impact of visitor expenditures.
Without Huntington Beach visitors, and their associated spending, the City would have
an estimated 240 fewer restaurants, 100 fewer recreational businesses and 82 fewer
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retail businesses, which would have a major impact on the quality of life for all local
residents. The City's Transit Occupancy Tax (TOT) also continues to increase, with the
opening of Pasea, a 250-room boutique hotel at Pacific City. In 2017, the long- awaited
Hilton Hotel tower expansion will open along with Springhill Suites by Marriott. Last year
the TOT increased by 9%. It is budgeted for another 2% increase in 2016-17.
The City continues to show growth in our commercial sectors. The retail sales tax has
continued to increase and has reached pre-recession amounts with Fiscal Year 2016-
2017 anticipating a 2% increase. Our vehicle sales continue to increase and this year
we have seen a new dealership on the Beach Blvd of Cars (McKenna Subaru). The
City will have three auto dealers investing significant capital improvements on their
property — McKenna Subaru, Hardin Hyundai and Car Pros Kia. With the opening of
Pacific City, retail sales are continuing to climb. However, the City needs to ensure that
the older commercial strips also reinvest in their property to continue the sales tax
growth potential.
The City needs to watch, understand and contest the internet/on-line shopping. The
City receives 1% of the total sale for each sale that tax place within the City
boundaries. Local tax for online sales (not attached to a brick and mortar store or
distribution center) is distributed to a countywide sales tax "pool". The pools are made
up of local tax for sales that occur online, for goods that ship to California customers
from a point outside the state, and use tax associated with construction contracts.
Huntington Beach receives approximately 6% of the Orange countywide sales tax pool
— or 6% of the 1%. One consideration for encouraging local in-store shopping is a "Shop
Local" Program.
The City's Property Tax is forecasted to raise 2.4%; the City's single family home price
is at its highest level of $695,000 since 2006.
Quality of life plays an important role in the local economy. The City hosts 752 acres of
park land, with a world-class Central Library located within the 356-acre Central Park,
as well as four additional branch libraries. The City just opened a new state of the art
38,000 sq ft Senior Center in Central Park including the Hoag Health and Wellness
Pavilion and a computer learning center. The City's cultural and sports resources
include the Art Center, five recreational centers, the International Surfing Museum, Pier
Plaza, Equestrian Center, Shipley Nature Center, Dog Beach, Vans Skate Park, and a
45-acre Sports Complex. The City hosts large-scale annual events such as the Vans
US Open of Surfing, Breitling Air Show, Fourth of July Parade and Fireworks Show, Surf
City Marathon, and Concours d `Elegance. The City also is home to a 10- mile award-
winning beach.
The actions resulting from the Plan can enhance and improve the quality of life for
Huntington Beach residents and promote Huntington Beach as a business and vacation
destination. The Plan can assist to stabilize and expand the retail base by assisting in
the attraction of needed retail establishments, marketing vacant storefronts, and
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supporting existing businesses. Our objectives are to increase sales tax, transit
occupancy tax and property tax.
1) Retain and Expand the existing job base while pro-actively attracting new
businesses, industries, jobs and investment
a) Create marketing materials that promote Huntington Beach's strengths to
send/hand out to businesses to increase the City's proactive outreach.
b) Attend ICSC and related conferences/events to promote the City as a business
destination.
c) Compile and provide information regarding access to capital sources.
d) As needed, offer Sales or other Tax Sharing Agreements for desired businesses
that bring in high paying jobs, large sales tax producers or are identified as
priorities in the Plan.
2) Create a Shop Local Program
a) Work with Chamber and BID's to create a new Shop Local Program.
b) Market the Shop Local Program on social media and all other avenues.
3) Enhance Huntington Beach tourism opportunities
a) Identify potential new events that encourage and increase regional tourism to
Huntington Beach, focused on the "off-season" (September to June).
b) Work with Visit Huntington Beach to install Way-finding Program to assist visitors
to drive to numerous locations throughout the City.
c) Collaborate with all parties to cross-promote activities and events, including both
Huntington State and Bolsa Chica State Beach.
d) Reach out to major sports tournaments and sporting events to attract and
enhance sporting events —focus on off-season".
e) Work with Visit Huntington Beach to dissimulate information on Huntington
Beach's eco-tourism opportunities.
4) Increase efforts to attract filming
a) Work with Visit Huntington Beach to promote City at filming location conference
b) Promote /advertise the filming that has occurred within the City.
c) Work with State Film Commission to have Huntington Beach listed on State web
site, or establish Huntington Beach as a separate Film Commission.
5) Create a Pop-Up Program to temporary fill vacant storefronts
a) Create a list of potential pop-up programs/uses to provide to vacant storefronts.
b) Develop a list of local artists that could install a decorative storefront in vacant
properties with high visibility; and/or create a standard window wrap concept.
c) Work with Community Development and Fire Departments to review City
regulations and create a streamlined/minimum guideline for Pop-up Program
temporary use.
6) Enhance the City's Commercial Corridors
a) Focus on segments of major commercial corridors (Beach/Edinger/Adams/
BrookhursWVarner/Bolsa Chica) to meet with the businesses, provide City
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information and promote the Commercial Facade Rehabilitation Program.
b) Place Shopping Center Directory on City's Business Development website to
provide retail shopping opportunities and related information to the community.
7) Collaborate with the Downtown Business Improvement District
a) Enhance the marketing of the Downtown area to the Huntington Beach
community and to attract regional visitors, this can be accomplished through e-
mail blasts, advertisements and additional events.
b) Expand the maintenance area by the BID though the MOU boundaries,
responsibilities.
c) Work with the Property owners on Main Street to encourage the investment in
the maintenance of the buildings. Look at the outdoor dining program.
8) Create an Economic Disaster Recovery Program
a) Set up program for the Fire Department to contact the Office of Business
Development, after a commercial fire that will cause the closure of a business.
b) Staff will work with property owner and business tenant to develop a recovery
plan and time schedule.
c) The recovery plan may consist of incentives for the business re-opening by
offering expedited plan review, delaying of fees or a payment plan for fees.
d) Assist in temporary tenant relocation, if feasible.
9) Promote Sustainable Business Practices
a) Promote the City's Sustainable Business Certification through all available
marketing channels.
b) Work with the Investor Owned Utilities and Republic Services to promote their
rebates, incentives, and services that help businesses reduce their operational
costs.
c) Continue to pursue grants that fund the certification of businesses.
d) Work with CIELO to teach sustainable practices that enable businesses to save
money.
Entrepreneurship / Small Business Development
Economic growth is increasingly tied to small business and start-ups. It is well
documented that small businesses create most of the nation's new jobs, employ more
than half of the nation's private sector workforce and more than half of the nation's non-
farm, private real gross domestic project. The City has approximately 8,850 businesses
in the City; the leading industries in Huntington Beach are Manufacturing, Retail,
Professional, Scientific, and Technical Services, and Health Care and Social Services.
The interesting fact of Huntington Beach businesses is that 68% of the businesses have
1-4 employees.
1) Training/Education Opportunities
a) Offer SCORE (Service Corps of Retire Executives)/SBA (Small Business
Administration/Chamber workshops to Huntington Beach business owners at no
cost or limited fee.
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b) Host small business forums with partners to educate aspiring and existing small
business owners, provide network opportunities, and retain businesses.
c) Conduct presentation at Chamber of Commerce meeting to inform business
community of City resources.
d) Support the creation of programs and events that develop student entrepreneurs
e) Look at feasibility of developing "Pop-Up" program to incubate start-ups and
decrease vacancy rate.
2) Retention, Expansion and Attraction
a) Conduct business visitation program to businesses.
b) Look at creating financing mechanism for small businesses such as local
investors and/or crowd-funding mechanisms (in connection with RMDZ and
other funding sources) and work with local banks.
c) Look to create a Small Business Assistance Revolving Loan Program.
d) Highlight and advertise the City's policy regarding purchasing from local vendors
e) Host a home-based business forum.
f) Provide business development resources to high-tech entrepreneurs (such as a
manufacturing incubator).
g) Provide financial and service incentives to upgrade vacant existing office
buildings, such as utility and or fiber upgrades.
Health Care and Biomedical
Huntington Beach has a well established healthcare industry with Huntington Beach
Hospital, Hoag Medical Center, Kaiser and Memorial Care facilities in town. Overall
there are over 1,450 medical related establishments with over 8,200 jobs. Healthcare
and biomedical research is a growing field and provides for high-paying jobs, and many
supporting jobs such as retail medical suppliers, medical manufacturing and business
and legal service providers that rely on our healthcare industry.
The City should work towards exploring opportunities for the healthcare industry to
thrive and help prepare prospective employees for careers in the field and encourage
and facilitate additional private investment in the area.
1) Build upon and expand the local service health care facilities and biomedical
research and manufacturing field
a) Focus on attracting biotech, research and development or other medical facilities
in the City. Especially those that can create Sales Tax.
b) Explore what infrastructure and building facilities are needed to foster biotech
research and development medical facilities.
c) Support the development of office space to capture new jobs in medical
information technology, health information and management.
d) Work with Golden West College to focus on health care initiatives and expanding
opportunities.
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Manufacturing
On a national level, manufacturing in the US has increased along with productivity and
wages; however the number of manufacturing jabs has declined due to increased
modernization of the manufacturing field with computers and other leaner operation
processes. As of 2016, Huntington Beach has over 435 businesses that state they are
in the manufacturing establishment with over 6,100 jabs. Our tap businesses in the
manufacturing sector including Boeing, Zodiac/C& D Aerospace and LIFT by EnCore.
These three tap businesses are a magnet for numerous other manufacturing
businesses. The City also has Cleveland Golf, and many skateboard manufactures.
The City should investigate needed resources to encourage growth in this cluster.
There are two primary industrial zones in the City, one in the Northwest area of the City
("Innovation Corridor") and also along the Gothard Corridor. However, the need for
infrastructure, such as fiber-optic connections, is critical to continue to maintain and
grow the manufacture sector. The City should focus on haw to provide the
infrastructure and resources existing manufacturers need to compete in a global market.
The expansion of research and development opportunities for emerging technologies
needs to be harnessed.
1) Research infrastructure need for R & D manufacturers
a) Create a high speed, reliable, affordable fiber-optic infrastructure plan and
implement plan as funding is available.
b) Review zoning to provide more flexibility for uses and expansion, while
protecting housing and or non-industrial businesses such as gyms/entertainment
uses from utilizing industrial space.
c) Work with Planning and Public Works on alternatives to the parking issues within
the areas.
d) Proactively research emerging trends in high-tech manufacturing and focus City
business development efforts on the emerging trends.
2) Create a Manufacturing Incubator
a) Finalize research on incubator programs; recommend creation of a pilot
program for a manufacturing incubator.
b) In order to attract technology businesses, the City should work with
entrepreneurs to incubate business ideas and concepts. Similar to the Las
Angeles Incubator, the City should partner with the local educational community,
Chamber of Commerce, and utility companies to create a space designated for
businesses to faster ideas that businesses. There is unprecedented economic
opportunity as the country and the State rebuilds its energy and transportation
infrastructure.
c) If approved, allocate seed money from the Commercial Fagade
Rehabilitation Program.
d) Create a Request for Proposals (RFP) seeking a qualified firm to establish
and operate the incubator.
e) Apply for grants for the on-going operation, if successful.
a) Work with innovative start-ups for inclusion in the incubator.
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3) Marketing of Manufacturing Area
a) Design and publish manufacturing specific ads for industry publication.
b) Attend manufacturing trade shows.
c) Produce and maintain a manufacturing specific webpage.
4) Promote the Recycling Market Development Zone (RMDZ)
a) Design and publish resources available from the State to promote the RMDZ.
b) Attend Green Tech and Manufacturing Trade Shows to attract new businesses
to the City and promote the benefits of the RMDZ.
EVALUATION OF GOALS AND OBJECTIVES
The Office of Business Development will provide quarterly update/status on the goals
and objectives. As part of the update the goals and objectives may be changed/
amended, deleted and new goals added as needs arise. The goal is to have this Plan
as a living document that will be used as a tool to evaluate progress over the next two
years. The quarterly updates will be distributed to City Council, posted on the City's
website, and be part of the e-mail blast to the City's business partners.
A quarterly Economic Development Snapshot will be included in the update. The
Snapshot will include the quarterly sales tax trends, new businesses, loss of
businesses, unemployment rate comparisons and other relevant economic data. The
Snapshot will be a chance for the community to look at the tax base, other revenue
streams, employment, and leakage/diversification/demand of the retail tax base.
MEMBERSHIP/TRAINING
A key component of any Implementation Plan is the on-going training of City Council
and staff in all City departments. Training ensures that staff is aware of new trends,
emerging sectors, creative financing and other economic development information. A
part of training includes membership in various economic development
organizations. City Council Members will also be able to access the benefits and
training opportunities offered through these organizations.
The memberships will include the following organizations:
• International Conference of Shopping Centers (ICSC) - ICSC provides regional
and national training opportunities that are important to attend and promote
Huntington Beach
• International Economic Development Council (IEDC)
• California Association of Local Economic Development (CALED)
• Orange County Business Council (OCBC)
• Association of California Cities, Orange County (ACC-OC)
Membership in organizations that are active in the industry of development, economic
development, and retail and entertainment aid in the economic growth of the City.
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HB -71- Item 8. - 16
Many of the developers and retailers with whom the City has worked with in the past
were first introduced at these types of events.
• Market/promote the City of Huntington Beach at conferences by
exhibiting, meeting, and networking with the purpose of attracting quality
development and businesses in the city.
• Create a follow-up program and database of contacts from these
attraction activities.
FUNDING OF ECONOMIC DEVELOPMENT GOALS AND OBJECTIVES
Funding is a function that is both internal and external to the organization. The
City's General Fund is relied upon for a large portion of funding for the Economic
Development programs. It is prudent to research and be aware of outside funding
sources. The City can seek grants to fund activities (such as incubators, etc), and
assess unique and innovative financing alternatives to determine their applicability
to Huntington Beach and if they warrant the use of City resources to pursue.
1 . Annual Budget Allocation - During the annual budget process, adequate
resources should be allocated to allow for the implementation of the economic
development programs proposed to be implemented in the Implementation Plan for
the year.
2. Redevelopment Property Tax Trust Fund ("RPTTF") Residual- Another
revenue source for economic development programs is the RPTTF Residual funds.
The RPTTF is the money left over after the Successor Agency (the former
Redevelopment Agency); this is the City's portion after it pays its enforceable
obligations every six months.
This amount varies from one six-month period to another depending on the
enforceable obligations that need to be paid, as well as the amount of the
distributions from the County Auditor-Controller. This source of funds represents a
small piece of what used to go to the former Redevelopment Agency for economic
development purposes.
3. Portion/Percentage of New Revenue- as the Economic Development
Implementation Plan moves forward, new economic development projects may
produce new revenue to the City. It may be practical to apply a portion of any new
revenue generated by economic development projects to Economic Development
programs.
4. Tax Sharing Agreements- Tax sharing agreements are a way to assist tax
revenue generating uses with minimal impact to the City's general fund. This aids
in business attraction, as well as the expansion and retention of existing
businesses.
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Item 8. - 17 HB -72-
MATRIX OF GOALS AND OBJECTIVES
Goal Objective Timeframe Staff Performance
Indicators
Responsive and Effective Government
Set up internal Share information/ Quarterly OBD Hold 4
meetings with success and discuss trainings —
development staff streamlining processes start 3/1
Expand the Create brochure September OBD to Create and
Business 2017 counter send out
Advocacy Create a flow charts for staff brochure,
program business owner on September OBD/Dept flow charts,
various permitting 2017 install poster
processes
Develop Poster/Flier for October OBD
1st floor on Business 2017
Development services
Develop Actively participate On-going OBD/CMO Attend
Partnerships (attend meetings) /CC meetings —
with Economic prepare
Development Provide marketing monthly
organizations materials/joint On-going summary to
marketing Council on
status
Market incentives
On-going
Reestablish Establish meeting with On-going OBD/CMO Set up 10 to
business focus businesses — retail /CC 12 visits/year
visitation sales/property
program - tax/technology
Business Link
Conduct Based on Geographical 2 — 3 a year OBD/CMO Set up April
Business area of City and /EDC 2017, goal is
Roundtables business clusters 2-3 a year
Increase Use of Dissimulate information On-going, OBD/CRO Put one new
Social Media through e-blasts, minimum of article/
process information, etc. quarterly e- information
blasts up weekly
Brokers Briefings Hold meetings to share 3-4 times a OBD 4 per year—
information year scheduled
1/25/17
Tourism, Retail and Quality of Life
Retain/Expand Create marketing On-going OBD/CRO 2 - 4
job base; pro- materials materials
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HB -73- Item 8. - 18
actively attract Attend ICSC and May/as- sent out
new businesses, related conferences needed CC/OBD/
industries, jobs CMO Attend 2
and investment Compile information conferences
regarding capital By June 2017 OBD/ Fact Sheet
Chamber created
Discuss Sales or other On-going OBD/CMO TBD
Tax Sharing
Agreements
Shop Local Create and Market August 2017 OBD/ Logo/
Program program Chamber Marketing
materials
created
Enhance tourism Identify new regional October 2018 VHB/OBD 1 new event
opportunities events, focused on created in
the "off-season" 2018
Work with VHB on
Way-finding Program August 2017 VHB/OBD Installation
starts
Cross-promote January 2018 VHB/OBD/ Enhanced
activities/events CRO/CSD coordination
Look at major sports January 2018 VHB/OBD/ 1 new sports
tournaments/events CSD tourney in
2018
Work with VHB on March 2018 VHB/OBD
eco-tourism On-going
Increase filming Promote City at filming June 2017 OBD/VHB Attend
location conference conference
Promote the filming that June 2017 OBD Pictures on
has occurred website
Huntington Beach listed August 2018 OBD/VHB Posted on
as a Film Commission State
website
Create a Pop-Up List of programs/uses March 2018 OBD List created
Program for vacant storefronts
List of local artists to March 2018 OBD/CSD Art or Wrap
install a decorative installed on
storefronts and/or vacant
create a window wrap storefront
concept
Work with CDD and March 2018 OBD/CDD/ Streamlined
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Item 8, - 19 HB -74-
Fire to review City Fire regulations
regulations
Enhance the Major commercial July 2018 OBD/CC/ Meetings/
Commercial corridors meet with the CMO business
Corridors businesses, provide visits
City information commenced
Shopping Center Jan/Feb 2018 OBD Placement
Directory on City's
on web site
Business Development
website
Collaborate with Market Downtown area July 2017 OBD/DBID E-mail blast
the DBID to community and sent out
tourist quarterly
Expand the August 2017 PW/CMO/ New MOU
maintenance area by DBID created
BID
Work with the Property June 2017 OBD/CMO Meeting held
owners to encourage
investment in
maintenance
Economic Fire Dept informs OBD June 2017 Fire/OBD List created
Disaster of closure of business
Recovery
Program Work with property
owner/business to As needed Own Prop Plan
develop a recovery plan Owner/ created
and time schedule Tenant
OBD/ Expedited
Plan may consist of As needed Finance/ plan review,
incentives for the CDD/PW/ delay/
business re-opening Fire payment
plan
Assist in temporary
tenant relocation, if If needed OBD TBD
feasible
Sustainable Market Sustainable On-going CMO/OBD Marketing
Business Business Certification material
Practices created
Work with Utilities to
promote rebates/ Assist 3-5
incentives/services On-going CMO businesses
Pursue grants for On-going CMO Apply for 1
certification grant
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HB -75- Item 8. - 20
Work with CIELO On-going CMO/OBD Teach class
ENTREPRENEURSHIP/SMALL BUSINESSES DEVELOPMENT
Training/ Offer SCORE/SBA/ September OBD/SBA/ Conduct 2
Education Chamber workshops 2017 SCORE/ workshops
Opportunities Chamber
Host small business
forums/ provide OBD/CC/ Host 2
network opportunities, On-going Chamber forums
and retain businesses
Present at Chamber OBD/CC/ Present at
City resources August 2017 CMO Chamber
Support the creation of OBD/ Create 1
programs/events to January 2018 Chamber program/
develop student event
entrepreneurs
Look at developing
"Pop-Up" spaces See above See above
See above
Retention, Conduct business June 2017 OBD/CC/ Conduct 10 a
Expansion and visitation program CMO year
Attraction
Create financing October 2017 OBD/CMO Develop
mechanism /Finance program
Create a Small October 2017 OBD/CMO Develop
Business Assistance /Finance program
Revolving Loan
Program
Advertise City's local June 2017 OBD/ Create
vendors purchasing Finance advertise-
ment
Host a home-based July 2017 OBD/
business forum Chamber Hold forum
Provide business
development resources October 2017 OBD/CMO Create list
/Finance
Provide financial and October 2017 OBD/CMO Create
service incentives to /Finance program
upgrade vacant existing
office buildings
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Item 8. - 21 H13 -76-
Technology and Work with October 2017 CMO/ Apply for
Innovation entrepreneurs to Education/ Grant
Hub/Incubator incubate business Chamber/
ideas and concepts - Utilities
create a space to
foster ideas
HEALTHCARE AND BIOMEDICAL
Expand local Focus on attracting November OBD Send out
service health biotech, research and 2017 targeted
care facilities and development or other marketing
biomedical medical facilities in the piece
research and City— look at trends
manufacturing
Support development of November OBD Offer
office space for medical 2017 Business
IT, health information Advocate
and management services
Work with Golden West January 2018 OBD/ Set up
College to focus on Golden meeting with
health care initiatives West GWC
and expanding College
opportunities
MANUFACTURING
Research Create high speed, June 2017 CMO Develop plan
Infrastructure reliable, affordable fiber-
need for R & D optic infrastructure plan
manufactures
Review zoning to July 2017 OBD/CDD Look at
provide more flexibility options
for uses and expansion
Review parking options On-going OBD/CDD/ Consider
PW options
Proactively research
emerging trends in high- On-going OBD On-going
tech manufacturing
Release an Finalize October 2017 OBD/ Program
Request for Research/recommend CC decision
Proposals for a program
Manufacturing
Incubator Create RFP for October 2017 OBD/CMO RFP
establishment released
Find a location November OBD Space rented
2017
Apply for grants for the Grant
on-going operation January 2018 CMO submitted
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HB -77- Item 8. - 22
Work with innovative January 2018 OBD/CMO Tenants
start-ups for inclusion in signed
the Incubator
Marketing of Manufacturing specific August 2017 OBD Look for best
Manufacturing ads for industry publications
Area publication
Attend manufacturing As needed OBD Look for
trade shows conferences
Produce and maintain a August 2017 OBD Website
manufacturing specific created
webpage
Market the RMDZ Zone On-going OBD/ Market
to existing businesses ATCM program
and use as a business
attraction
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Item 8. - 23 HB -78-